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Offshore relocationsMoving to the Channel Islands
The ChannelIslands are abeautiful andsecure locationoffering an idealbase for familiesand businesses.
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Moving to the Channel IslandsThe traditional arguments made forrelocating to the Channel Islands usedto revolve around unspoiled beaches,sunshine, great restaurants, golfcourses and low tax rates.
Today, those arguments still holdtrue – but more and more thethings that are swaying peopletowards Jersey and Guernsey areabout the high quality of lifestyle,healthcare and education, strongand reliable travel links, a thrivingentrepreneurial culture and theavailability of quality property.
The process of moving offshoreneeds specialist advice, which iswhy our relocation teams arecalled in to assist on the residencyprocess, wealth structuring, andbuying property – as well as beingable to guide clients to trustedcontacts in the property, tax andbanking fields for expert bespokeadvice.
In recent years, the islands havereformed HNWI tax arrangementsto be even more attractive towealthy newcomers.
Our specialist relocation teamshave seen an increase in inquiriesboth from businesses and families– partly driven by theestablishment of governmentagencies in both Jersey andGuernsey to market the islands asa relocation destination – who arelooking for a base to operate from,or a new home. While thefavourable tax rates are a factor,the deciding reasons more oftenrelate to island life, and everythingit has to offer.
As well as the traditional market ofretirees, the Channel Islands aredrawing more and moreentrepreneurs and people withyoung families, lured by acombination of the lifestyle andsports on offer, as well as thefriendly and secure environment,and the infrastructure in terms oftravel, health and educationservices.
Navigating through the process ofmoving offshore requires expertisein the residency process itself, theprocess of finding and buying (andoften extending or adapting) aproperty, and in terms of wealthstructuring advice. Ogier'sspecialist relocation teams offer adiscreet, knowledgeable andproactive service to navigatethrough the unfamiliar processand deliver the bespoke outcomethat fulfils and surpasses client'sexpectations.
Governmentrelocation agencyLocate Jersey saw155 inquiries abouthigh value residencyrelocations in 2017,and had 31 newinward investmentbusinesses approved.Official figures
From 2016 to 2018,relocation agencyLocate Guernseydealt with 385enquiries, with 24total relocations in2018 alone.Official figures
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About the Channel Islands...Jersey and Guernsey sit outside of theUK and the EU and are just a fewmiles from the French coast. Theislands are the sunniest part of theBritish Isles.
The fact that you can be at homeor on the beach within minutes ofleaving work, the absence ofcapital gains or inheritance taxes,and an enviable work-life balanceare still key drivers both for inwardinvestment and decisions by highnet-worth individuals, but today,the reasons that the relocationshortlist is so often whittled downto the Channel Islands go muchfurther than tax and lifestyle.
Jersey and Guernsey's travel andtransport links enable residents toget to some parts of the UKquicker than they could fromLondon, some of the highest fibre-optic broadband connection rateson the planet underpin anemerging digital sector, and top-class education and healthservices and very low crime ratesmake the islands an attractivecommunity environment.
In addition to that comes theexceptionally high quality ofprofessional services, includingsome of the world’s leading banks,financial institutions and lawfirms, offering the same quality ofadvice and professionalism thatyou would expect from the topLondon institutions.
A huge and often decisive factor indecisions by high net-worthindividuals in particular is findingthe perfect home. The local legalsector have long-establishedconnections with professionals inthe islands' property sector, andprovide a range of services to bothdomestic and international clientsrelating to the purchase andownership of Jersey and Guernseyproperty assets, guiding themthrough every step of the process.
Many clients also spendsubstantial sums on developingand renovating Jersey andGuernsey properties, and legalteams assist and advise on thenegotiation and appointment ofdesigners, architects and otherprofessionals – not to mentionoffering guidance through aplanning system that can beparticularly complex where olderproperties are concerned.
The Channel Islandswere the sunniestplace in 2018 acrossthe British Isles. Werecord sunshine herein Jersey officiallyand in Guernseythere's an officialsite. And comparingthe Islands with allthe data from acrossthe sites in theBritish Isles we haverecorded almost2,000 hours ofsunshine across theChannel Islands lastyear and that ishigher than any ofthe other sites.Official figures
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Our services to relocating families, individuals and firms goes beyond basic conveyancing - we advise on finding a property, and work with clients to introduce them to our trusted networks of local suppliers and professionals.
Jonathan HughesHead of Offshore Relocations
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Life in Jersey and Guernsey...Michelin-starred restaurants, a rangeof golf courses, world-championshipsurfing spots and miles of coastline toexplore give the islands a uniquework/life balance.
Jersey boasts three Michelin-starred restaurants, a culturalcalendar that includes the Battleof Flowers carnival, a film festivaland a literature festival.
There is also a thriving local sportsscene: the Jersey Reds play in theGreene King IPA Championship,the second tier of English rugby,Team Jets compete in Englishnetball's Premier League Two andthe island regularly hostsinternational cricket matches.
But whether it's sailing, surfing,kayaking, fishing or paddle-boarding, a huge part of theIsland's sporting life takes place on(or in) the water.
Across the water, Guernsey'sfootball team - Guernsey FC - plytheir trade in the Ryman IsthmianLeague Division South.
There's also the other islands thatmake up the Bailiwick of Guernsey- Alderney, Sark, Herm and Lihou,all of which are a short hop awayon a boat.
For a small island, Guernsey has arich cultural heritage - Victor Hugolived in the island for more than 30years, and you can visit the largelypreserved house where he wrotepart of Les Miserables.
Today, the island is better knownas the setting for the 2008 novel"The Guernsey Literary and PotatoPeel Society" which has sold 7.5million copies in 37 territories andwhich was made into a film in2018.
Fragments of Francewhich fell into thesea and weregathered up byEngland.Victor Hugo on theChannel Islands
Visits to LocateJersey's website in2017 came from 172countries.Official figures
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Property law adviceOgier's Jersey property practice is in aleague of its own, having retained itsfirst place among Jersey law firms inthe Chambers UK league table.
Our team deals with property,planning and constructionmatters from the residential andcommercial sectors, and haveexperience on projects worthmillions of pounds.
Our highly-rated Guernsey serviceis led by one of the island's mostexperienced and best-connectedproperty lawyers.
Our services to relocating families,individuals and firms goes beyondbasic conveyancing - we advise onfinding a property, and work withclients to introduce them to ourtrusted networks of local suppliersand professionals.
We also have a leading planningand construction team who canhelp to navigate through thesometimes complex regulationsrelating to restoring or renovatingold properties.
We also handle a wide range oflocal residential transactionsranging from the purchase andsale of the most valuable andprestigious properties in theislands, to flats and starter homes.Our residential property team ishighly recommended by localagents, banks and the people wehave helped to buy, sell andfinance their property.
Our team have specialist expertisein:
Residential sales and purchases,particularly high-valueresidential conveyancingThe Planning process forrenovations, extensions or newdevelopmentsDevelopment, sales and lettingsof large scale commercial andresidential projectsConstruction, environmental andhealth and safety law issues
Professional yetapproachable, withan ability to focus onthe key issues.Chambers UK,Jersey, Property,2020
Ogier's commerciallyminded, personableand responsiveattitude sets it apartfrom other firms.Legal 500 UK,Guernsey, Property,2020
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A world-class commercial environment in a relaxed, safe, holiday location – what more could you ask for?
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A world-class commercial environment in a relaxed, safe, holiday location – what more could you ask for?
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Relocating your businessMore and more, the people relocatingto the Channel Islands are bringingnot just their families but theirbusinesses too.
Jersey and Guernsey have all theinfrastructure and expertise mostbusinesses require with new officespace under construction to addto that already available. Backoffice functions, IT, banking,compliance and accountingfunctions are all readily available.Local professional advisers operatein a manner that would be familiarto anyone working in London andwork to high standards of clientdelivery.
Various organisations andauthorities continue to scrutiniseinternational finance centres andthere are an increasing number ofchallenges being made bygovernments and revenueauthorities to the integrity ofstructures. Therefore, it isbecoming increasingly importantfor businesses to demonstrateproper substance in thejurisdiction not just withmanagement and control but alsowith office space and employees.This is often not possible in otherjurisdictions but is very easy toachieve in the Channel Islands.
If you need to bring over certainkey essential staff with yourbusiness then the islands'governments can grant licencesto recruit staff who are notresident in Jersey or Guernsey. Ingranting these licences, they willalways have regard to whether theskills you need are alreadyavailable in the island.
There are different types ofemployment-related licencesunder the Guernsey regime:
Short term – these are grantedfor periods of up to 9 months orup to a maximum of 3 years.Essential – these are issued for upto 15 years but the vast majorityare granted for 5 years.
Foreign companies can conductbusiness in Guernsey and there isno requirement that a business beowned by a Guernsey company.However, many businesses doincorporate a new Guernseycompany to hold or operate thebusiness. Alternatively, it is oftenpossible to migrate a foreigncompany to Guernsey via a de-registration and re-registrationprocess.
We advised on theWaitrose acquisitionof the Checkerssupermarketbusiness in Jerseyand Guernsey.
We advised BrevanHoward, one of thelargest hedge fundmanagers in theworld withapproximately US$40bn undermanagement, onthe relocation of itshead office to Jersey.
We advised OceanRig, a deep waterdrilling operationcurrently in theFalklands and Brazil,on relocating itsadministration andcontracts businessto the ChannelIslands.
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As well as a business having toobtain consent for relocatingemployees to reside in Jersey, thebusiness will also have to obtainapproval to set up operations andwill be granted a business licenceto operate, occupy office spaceand is required to employ up to aspecific number of non locallyqualified employees. Once thelicence is granted, the businessmay employ as many or as fewlocal employees as it wishes.
Other licences may also berequired if your business isconducting any regulated activity,such as investment managementor insurance business, and Ogiercan advise on all aspects of theselicences.
Jersey has modern laws relating toregistered rights such as patentsand trademarks. A recent new lawhas updated older copyright andunregistered intellectual propertyrights such as database,publication and design rights.
Relocating businesses will alsoneed to take advice on the islands'competition legislation, as well asemployment law advice on thecontracts of employees.
The key factors making Jerseyand Guernsey so attractiveinclude:
zero rate of corporate tax forforeign-owned businesses andlow rates of personal taxationno capital gains or inheritancetax and no stamp duty otherthan on local real estatetransactionsability to centralise managementand control in one placeability to demonstrate realsubstance in the jurisdictionmodern and flexible legislationgood supply infrastructureresources including office spaceand support servicesa broad base of professionalservice providers with high levelsof expertisea skilled local work forcea government which is willingand keen to encourage inwardinvestment and businessrelocationproximity to London and abilityto deal with New York and HongKong in same business dayeconomic and political stabilitystrong transport links to Londonand other European centres
We advised HeritageOil plc, a FTSE 100 oilcompany, which hasits main office inJersey, where itschief executive alsolives.
We helped a top 20hedge fundmanager, AltisPartners, onrelocating all itsprincipals andoperations to theChannel Islands.
We advisedrenewable energysolutions firm KesellLtd, who are basedin the South West,on their move toGuernsey.
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Local taxesThe legislatures in Jersey and Guernseyhave reformed their tax regimes forHigh Net Worth Individuals to makethe islands even more attractive as arelocation option.
While the general headline rate ofJersey income tax is 20%, bandedheadline rates apply for high networth individuals under thepresent high value residency rules,as follows:
Minimum annual contributionfor all new residents is £125,000The first £725,000 is taxed at20% with the balance beingtaxed at 1% on worldwideincomeIncome from land and buildingsin Jersey is taxed at 20%
For high net worth individuals whoare principals of a business,approval for residency can begranted based on the following:
Likely contribution to Jersey taxrevenues (in the region of£125,000 pa although thePopulation Office is also willingto take account of relatedemployment creationopportunities)The number of dependants andthe extent to which these peoplemay in time acquire localhousing qualificationsAny other non-economicbenefits for JerseyThe associated establishment ofa business in Jersey generatingeconomic benefits while notadversely impacting on localresources
Guernsey law sets an upper limitof £220,000 to the amount ofincome tax to be paid annually –divided into two separateallowances for Guernsey-derivedincome (£110,000) and worldwideincome (£110,000).
For tax purposes, an individual willbe ‘resident’, ‘solely resident’ and/or ‘principally resident’ in Guernsey- those definitions relate chiefly tothe number of days spent inGuernsey during a tax year ofcharge and, in many cases, duringa number of preceding years.
Ogier's team of relocationspecialists can introduce you toour trusted network of experiencedtax advisers who can help you withyour specific requirements.
Neither Jersey norGuernsey have anycapital gains orinheritance taxes.
Jersey has a salestax rate set at 5%although medicalsupplies, medicine,childcare and schoolfees are zero-rated.
Income from landand buildings inboth islands is taxedat 20%.
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The things that are swaying people towards Jersey and Guernsey are the high quality of lifestyle, healthcare and education, strong and reliable travel links, a thrivingentrepreneurial culture and theavailability of quality property.
Martyn BaudainsProperty Partner, Guernsey
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Contact us
Jonathan HughesHead of Offshore RelocationsT +44 1534 514336M +44 7797 [email protected]
Martyn BaudainsProperty Partner, GuernseyT +44 1481 752217M +44 7797 [email protected]
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Jersey and Guernsey have a vibrant cultural calendar.
Ogier provides practical advice on British Virgin Islands,Cayman Islands, Guernsey, Jersey and Luxembourg lawthrough our global network of offices. Ours is the only firmto advise on these five laws. We regularly win awards forthe quality of our client service, our work and our people.Regulatory information can be found at ogier.com
ogier.com
Contacts
British Virgin IslandsRitter HouseWickhams Cay IIPO Box 3170Road Town, TortolaBritish Virgin Islands VG1110T +1 284 852 7300F +1 284 852 7450E [email protected]
Cayman Islands89 Nexus WayCamana BayGrand CaymanCayman Islands KY1-9009T +1 345 949 9876F +1 345 949 9877E [email protected]
GuernseyRedwood HouseSt Julian's AvenueSt Peter PortGuernsey GY1 1WAT +44 1481 721672F+44 1481 721575E [email protected]
Hong Kong11th Floor Central Tower28 Queen's Road CentralCentralHong KongT +852 3656 6000F +852 3656 6001E [email protected]
Jersey44 EsplanadeSt HelierJersey JE4 9WGChannel IslandsT +44 1534 514000F +44 1534 514444E [email protected]
London1st Floor99 BishopsgateLondon EC2M 3XDT +44 203 693 7178F +44 1534 514444E [email protected]
Luxembourg2-4 rue Eugène RuppertPO Box 2078L-1020 LuxembourgT +352 2712 2000F +352 2712 2001E [email protected]
ShanghaiRoom 3671Level 36 Shanghai InternationalFinance Centre Tower IINo. 8 Century AvenuePudong New AreaShanghai 200120ChinaT +86 21 6062 6294E [email protected]
TokyoNisso 23 BuildingSuite 801Toranomon 3-8-25, Minato-kuTokyo 105-0001JapanT +81 3 6430 9500F +81 3 6430 9501E [email protected]
