High net worth individual immigration

Jersey and Guernsey are separate and distinct jurisdictions. The Islands have their own parliament, legal and tax systems. The Islands are UK protectorates and not part of either the UK or EU.

For High Net Worth Individuals (HNWs) neither Island is difficult to move to. In both Islands the process is straightforward and quick.

Over a number of years the Islands have welcomed many HNWs and the Islands are an attractive location for HNWs for the following reasons:

• proximity to the UK and Europe;
• excellent transport and communication links to UK and Europe;
• good schools teaching the UK curriculum;
• politically stable with an established infrastructure;
• low levels of crime;
• the official language is English;
• the currency used is sterling;
• time zone is GMT; andthe Islands are in the top tier of Offshore Financial Centres and have deliberately positioned themselves as well regulated and cooperative offshore jurisdictions.

Due to the relatively small size of the Islands there are special housing rules designed to control population. The housing laws are different in both Islands.

In Jersey the standard rate of income tax is 20%, however there is a special regime and rates for incoming HNWs. Through pre-immigration structuring it is possible to effectively cap a HNW’s Jersey income tax liability at £100k

In Guernsey there are essentially two types of categories of property local market and open market. There are restrictions on who can buy local market property. However there are no restrictions on who can buy an open market property. The general rate of income tax is 20% but there is an overall income tax cap of £200k.

In both Islands it is important that pre immigration tax advice is taken to ensure that any necessary structuring is undertaken and all opportunities are optimised. Part of the process involves discussions with the Islands’ authorities and the relationships we have built up over a number of years with the authorities are invaluable in ensuring a positive outcome for HNWs.

PwC have significant experience of assisting individuals and their businesses relocate to the Islands. Over the years we have dealt with the tax affairs of HNWs and their structures encompassing not only Jersey and Guernsey tax implications but also UK and International tax issues.