Relocating to Jersey - Ogier

Relocating to JerseyAn introduction to working with uswww.ogier.comBahrain • British Virgin Islands • Cayman Islands • Dublin • GuernseyHong Kong • Jersey • London • Luxembourg • Shanghai • Tokyo

The Ogier Group provides international legal services andtrust, company and fund administration.We employ over 850 people and provide advice on BVI,Cayman, Guernsey, Jersey and Luxembourg law andadministration services through our network of officesthat cover all time zones and key financial markets. Theseinclude Bahrain, BVI, Cayman, Dublin, Guernsey, HongKong, Jersey, London, Luxembourg, Shanghai and Tokyo.Our highly qualified professionals deliver outstanding clientservice in each location.The Group’s legal and administration offering is a successfulcombination and we regularly win awards for the quality ofour client service, our work and our people.

Introduction“...in the topdivision...”(InternationalMonetary Fund -September 2009)For decades Jersey has welcomed a limitednumber of new individuals and businesses tothe Island and this is set to continue as part ofJersey’s commitment to attract, among others,entrepreneurs and principals of investment andfunds businesses. Recently ranked as the topBritish offshore destination for wealthy peopleto reside in, Jersey’s charm stems from a uniquecombination of factors.In deciding whether to move to Jersey, a numberof personal, family and business questions willbe of key importance. In our experience, manyindividuals have found Jersey’s answers tothese questions extremely positive. Ogier hasassisted numerous individuals, their families andbusinesses that have decided to move to Jerseyand has the expertise and contacts to provide a“one-stop shop” for clients covering all aspectsof the relocation process.

Business framework“particularlyconstructivebusiness andregulatoryenvironment”“internationallycommended”Jersey provides a particularly constructivebusiness and regulatory environment for theestablishment of high value businesses. Inthe business planning stage of establishing ormoving an existing business to Jersey, Ogieris delighted to facilitate the introduction ofthe principals to key executives in the JerseyFinancial Services Commission, PopulationOffice, Tax Office and other relevant governmentdepartments.Ogier has excellent relations with the relevantregulatory bodies and a demonstrable trackrecord of achieving tailored, client-specificsolutions to regulatory questions in expeditedtimescales.“full operationalsupport”Relocating to Jersey 5

Moving the team“governmentpolicy toencourageappropriateinwardinvestment”Jersey is not a member of the European Union,but applies equivalent principles of freedom ofestablishment and free movement of employees,subject to some local licensing requirements inrelation to housing and businesses with a localphysical presence.In relation to personal accommodation,authorisation to establish residency will beobtained from the Population Office in respectof individuals who do not have a prior relevantconnection to Jersey.For the high net worth individual principals ofthe business, approval for residency proceedsaccording to the following criteria:••likely contribution to Jersey tax revenues(at present this would be in the regionof £125,000 per annum although thePopulation Office is also willing to takeaccount of related employment creationopportunities);••relevant business and social background;••the number of dependants and the extentto which these persons may in time acquirelocal housing qualifications;••the total net worth of the application;••any other non-economic benefits for Jersey;and••the associated establishment of a businessin Jersey generating local tax revenues andproviding employment whilst not adverselyimpacting upon local resources.The successful principal would generally beexpected to purchase a Jersey property of atleast £1,000,000 in value, although there aresome houses and apartments available belowthis level.In employing the professionals required for theoperation of the business, where the requiredskill-set cannot be readily found in Jersey, anapplication is made for the post to be filledby “essentially employed” individuals, whichpermits the business to recruit the necessaryprofessionals from outside Jersey.Such essentially employed professionals will alsobenefit from access to a wider range of qualitypersonal accommodation than would otherwisebe the case.Individual employees residing in Jersey as aresult of being “essentially employed” do nothave to satisfy a minimum local income taxcontribution. The factors taken into account ingranting “essentially employed” status includethe expected economic contribution of theemployer and the qualifications of the employee.In a significant policy development, the Jerseyauthorities have demonstrated an increasedwillingness to grant “essentially employed”status to new businesses that meet the criteriafor establishing a presence in the Island. Theseindividuals are subject to local tax on theirworldwide income at a headline rate of 20%.6 www.ogier.com

Local laws“a leadingoffering”Jersey business laws such as the companieslaw, limited partnerships law and employmentlaw are based on the equivalent English lawsbut benefit from additional, business-focusedinnovations and operational flexibility. Manyhigh net worth individuals and entrepreneursestablish their business in Jersey for its politicaland economic stability, judicial independenceand competence and robust and familiar laws.Ogier’s award winning, full service Jersey legaloffering can advise on all these areas.“political andeconomicstability... robustand familiarlaws... awardwinning legaloffering”“income(corporate)...taxed at...0%”“fiscal stabilityand taxcertainty”“straight-forwardpersonal tax”Local taxCorporate taxThe income profits of most Jersey companies aresubject to tax at a rate of 0% on their worldwideincome. A higher rate of 10% applies to theincome of a restricted sector of local financialservices companies. There is no corporatetaxation of capital gains in Jersey.In contrast to other jurisdictions, Jerseysocial security contributions are capped forboth employer and employee. Employercontributions are levied at 6.5% on the first£43,000 (approximately) of salary and employeecontributions are levied at 6% to the same salarylevel.Personal taxJersey has a straight-forward personal taxregime. Generally only income is subject totaxation in Jersey and therefore there are:••no wealth taxes;••no capital gains taxes;••no gift taxes; and••no inheritance taxes.Stamp duty is payable on the acquisition andfinancing of Jersey property and a cappedprobate duty is payable on the registration ofJersey wills.Jersey’s fiscal stability and tax certainty isdemonstrated by the headline rate of income taxhaving remained at 20% since circa 1940.Whilst the general headline rate of Jerseyincome tax is 20%, banded headline rates applyfor high net worth individuals under the presenthigh value residency rules, as follows:••Minimum annual contribution for all newresidents is £125k;••All Jersey property income is taxed at 20%;and••The first £625k is taxed at 20% with thebalance being taxed at 1%One key factor is to have certainty of breakingprevious tax residency on relocating.Principals should obtain specialist tax advice fordetailed worldwide tax planning and Ogier aredelighted to make introductions on request.Relocating to Jersey 7

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CLEMENTRosièreBEAUPORTWCKJerseyLa LandesSt Clement'sDicqRecreatio nDolmen duParish Chur chdu OuestMA4GroundsMont UbéLe HurelFIQUETPort eletElizabethHavr e Des PasNTBAYCastlePort eletSamar ès ManorCommonPowerWCLe Rocquier A5StationF.B.Field sB49ST. HELIERPontacKHARBOURLe Squez B48C111île auSt Clement' sGuerdainLe MaraisParish Hal lWCEstate Le HaguaisB37PORTELETKNoirmontBAYWCLe Hoc qLa Ro cqueîle PercéeNoirmont Command BunkerSamarè s A4ST. CLEMENT'S BAYA4Le NezWCKLa Rocque HarbourGr een IslandSea W a lRailw ay W alkLes Mie le sCy cle HireRailw ay Wal kMourier ValleySt . Peter's ValleyVallée des VauxGrands VauxLocation of choice“a leadinginternationalfinance centre”“service deliveryand economicsubstance”“...competitorjurisdictionsare not able tomatch”Jersey has world-wide appeal as the jurisdictionof choice for high net worth individuals,professionals and entrepreneurs. Longestablished as a leading international financecentre Jersey offers:••Long-term economic and political stability••A flexible, independently endorsedregulatory framework••Mature and well respected commercial legalsystem based on English law principles••Skilled and responsive workforce••Track record of product and serviceinnovation••Competitive position: Jersey is the onlyoffshore jurisdiction ranked in the top20 Financial Centres by the 2010 GlobalFinancial Centres Index••The presence of many of the leading globalnames in investment funds and financialservices.••International Monetary Fund endorsement asa global finance centre in the “top division”of both offshore and onshore centres(September 2009)Jersey is a British crown dependency witha unique constitutional position. It has anallegiance to the British monarchy which datesback 800 years and has its own courts andlegal system. Jersey has one of Europe’s oldestparliaments which has responsibility for its owndomestic and fiscal affairs.The Island possesses a centuries old traditionof political stability, yet with sufficient autonomyto fine-tune a modern and evolving financialservices industry.Jersey is a leader among the offshorejurisdictions offering significant advantages overother centres in terms of service delivery andeconomic substance and its proximity to andsame time-zone as London make closing andongoing administration of London-originatedtransactions a simpler process. The Island’sfinance industry and professional infrastructurehas a headcount in excess of 12,000 and hasdeveloped a breadth and depth in its expertiseand range of services that many competitorjurisdictions are not able to match.8 www.ogier.com

Ogier - Who we are andHow we can help“one of theworld’s leadingproviders of crossborderlegal andadministrationservices”Ogier is one of the world’s leading providers ofcross-border legal and administration services.Headquartered in Jersey, the firm currentlyemploys over 850 professional and supportstaff located in 11 international offices includingJersey, Guernsey, London, Luxembourg, Dublin,Hong Kong, Shanghai, Tokyo, Bahrain, BVI andCayman.We provide a full range of specialist legal andfiduciary services and are one of the largestindependent professional and back-office serviceproviders who are not affiliated with a bank orfinancial institution. We have strength in depthto handle the largest, most demanding andcomplex offshore transactions across all timezones.How we can helpOut strategy is to provide a “one-stop shop” forpeople wishing to move to Jersey. Our advicecovers all aspects relevant to the relocationincluding:••assistance with the application process••advice on purchasing property••advice on relocating your business••advice on employing people in JerseyRelocating to Jersey 9

Ogier - Client Service Proposition“committedto providingthe best”We are committed to providing the best availableintegrated offshore legal and administrationservices. Our combined offering distinguishesitself for its commercially minded and clientfocusedapproach which is based on thefollowing:••Partner led, dedicated client teams••First class lawyers and professionaladministrators with high staff continuity••Customised, client specific operatingprocedures••Flexibility and transparency in relation to feecharging arrangementsThis briefing provides a general summary only of this area based on the current law and practice in Jersey at the date of writingand is subject to changes therein. It does not purport to be comprehensive and does not constitute legal or tax advice that may berelied on. Specific, professional advice should be sought on each occasion.

Key contact details - Relocation TeamLegalSteve MeiklejohnT: +44 1534 504462E: steve.meiklejohn@ogier.comJonathan HughesT: +44 1534 504336E: jonathan.hughes@ogier.comMichael LittleT: +44 1534 504374E: michael.little@ogier.comFiduciaryPhilip Le CornuT: +44 1534 504225E: philip.lecornu@ogier.comwww.ogier.comBahrain • British Virgin Islands • Cayman Islands • GuernseyHong Kong • Ireland • Jersey • London • Shanghai • Tokyo

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