EUROPE
Jersey
Jersey is neither a mass-market nor a budget destination, and its tax regime explicitly acknowledges this. The island levies a flat 20% income tax, does not impose capital gains tax, inheritance tax, or wealth tax (Government of Jersey), and restricts access to its privileged residency to a select number of applicants chosen each year. High-value resident status requires a commitment to a minimum annual tax contribution of £250,000 and the purchase of property at high price points. This deliberate filter produces a stable, discreet environment with a leading financial services industry, just a twenty-minute flight from the Normandy coast.
A VALUED APPLICATION, NEVER GUARANTEED
The case is won in front of the Jersey authorities
A successful application to Jersey hinges on its presentation to the local authorities, who have the discretionary power to assess the economic and social benefits of each case. We prepare your application with our selected local advisors, verifying beforehand that your profile meets the actual criteria, and then manage the property purchase and relocation process. Your departure from your country of origin is handled concurrently.
TAX ADVANTAGES
A flat 20% income tax rate applies to the first £1,250,000 of worldwide income for high-net-worth residents, with the excess taxed at only 1% (Government of Jersey). There is no capital gains tax, no inheritance tax, and no wealth tax. A 5% tax on goods and services is levied on local consumption.
IDEAL PROFILE
Wealthy families, business owners who have sold their assets, financial services professionals, and entrepreneurs with high and recurring global income are eligible. The scheme explicitly targets substantial fortunes: the criteria cited include annual income exceeding £1,250,000 and assets exceeding £10,000,000 (Government of Jersey).
RESIDENCY CONDITIONS
High-value resident status, as provided for in the housing regulations, grants the right to purchase property and settle there. It requires a commitment to a minimum annual tax contribution of £250,000 on the applicant's own income, a sustained annual income of at least £1,250,000, the purchase of a property with a minimum price ranging from £1,750,000 for an apartment to £3,500,000 for a house, and discretionary approval from the authorities (Government of Jersey).
QUALITY OF LIFE
Safety, a pristine coastal setting, traditional British private schools, a good healthcare system, and quick air links to London and France. The French-speaking community is long-established, and Normandy is just minutes away. The island is small, the housing market limited, and the winters windy.
POINTS OF VIGILANCE
Approval is not automatic: the authorities select applicants, and the number of statuses granted each year remains limited. The applicant's existing contribution level must not decrease as a result of relocation, a condition that excludes certain profiles. Separate taxation of married couples has finally become mandatory starting with the 2026 tax year.
FAQ
What is high-value resident status?
Jersey strictly regulates access to housing and residency. High-value resident status, designated by regulatory reference 2(1)(e), is the pathway for wealthy individuals wishing to settle on the island without pre-existing professional ties. It grants the right to acquire property and establish residency. Granting this status is not automatic: the authorities assess each application based on the expected economic and social contribution, and the number of statuses granted each year is intentionally limited. This selectivity is both the main challenge of the application process and the reason why the island retains its unique character. An application is prepared, researched, and presented effectively; it is not simply submitted.
What tax contribution is required?
Since July 2023, new applicants for this status have committed to a minimum annual tax contribution of £250,000, calculated based on their own taxable income. The calculation mechanism is unique and worth understanding. The applicable rate is 20% on the first £1,250,000 of worldwide income, and only 1% on the excess, resulting in exactly £250,000 of tax at that threshold (Government of Jersey). If your actual income falls below this level, you are nonetheless deemed to earn enough to meet this minimum; the contribution is a floor, not an estimate. Above the threshold, the marginal rate drops to 1%, making the regime remarkably efficient for very high earners.
What are the real estate thresholds?
Purchasing a home is an integral part of the status requirements, and the amounts involved are high. The published thresholds indicate a minimum price of around £3,500,000 for a house and £1,750,000 for an apartment (Government of Jersey). These amounts do not constitute an investment in the sense of "residence-by-investment" programs; this is the home you will actually occupy. As Jersey’s market is small, the availability of properties meeting these criteria is limited, and the search takes time. We recommend starting the search while the application is being processed rather than afterwards, while ensuring you do not make an irrevocable commitment before the status is secured.
Does Jersey tax capital gains and inheritances?
No, which is why the island features prominently in significant wealth planning strategies. Jersey levies no capital gains tax, inheritance tax, or wealth tax. An individual who sells a shareholding or portfolio after establishing residence in Jersey is not subject to local tax on the resulting capital gain. However, two caveats apply. The country of departure retains its own rules, making the timing of the sale relative to the effective date of the move the decisive factor. Furthermore, assets located in other jurisdictions may remain subject to inheritance tax there based on their location, regardless of your residence. Consequently, a comprehensive analysis of your assets should be conducted before you relocate.
What should you know about French taxation before leaving?
Jersey is a British Crown Dependency outside the European Union; this makes the conditions for deferring payment of the "exit tax" less favorable than for a move to a European destination, making financial modeling all the more essential if you hold equity stakes. The island has signed an information-exchange agreement with France and adheres to international transparency standards, dispelling any notion of the lack of transparency that ceased to exist long ago. Income sourced in France will continue to be taxed in France under the rules applicable to non-residents, and French real estate assets will remain subject to the real estate wealth tax (*Impôt sur la fortune immobilière*). These financial implications must be calculated before departure, not after.
Does the exit tax apply to a move to Jersey?
Yes, and Jersey is one of the destinations where poor planning of this tax proves most costly. The tax is triggered when an individual holds securities worth €800,000 or more, or a 50% stake in a company, after having been a French tax resident for six of the preceding ten years (Article 167 bis of the General Tax Code). Since the island is part of neither the European Union nor the European Economic Area, payment deferral is not automatic: you must appoint a tax representative and provide financial guarantees amounting to 12.8% of the relevant capital gains. The tax liability is waived after two years—or five years if the value of the shares exceeds €2,570,000 (according to the French tax authorities). Consequently, an executive who sells their company eighteen months after leaving pays the tax they believed had already been settled.
How will dividends from my French company be taxed once I am based in Jersey?
They are subject to French withholding tax deducted prior to any payment. The rate is 12.8% when the beneficial owner is an individual and 25% for a legal entity (BOFiP, withholding tax on distributed income). In the absence of a tax treaty between France and Jersey, no reduced treaty rate applies, and no tax relief procedure is available—unlike the arrangements offered by Malta, Cyprus, or Luxembourg. For an executive planning to draw remuneration via dividends from a retained French company, this discrepancy is a crucial factor: it negates a significant portion of the benefit of being based in Jersey, and the financial impact must be calculated beforehand, not after the fact.
What happens to my estate if my children live in France?
It remains...
The information in this FAQ is provided for informational purposes only and does not constitute tax or legal advice. Tax regulations are subject to change. Coreway Consulting recommends that each client undergo a personalized analysis during the initial consultation.