Jersey Fact File

Fact File - Your Guide to Jersey

Where is it?

Jersey is located 85 miles (135 km) south of mainland Britain and 14 miles (22 km) from the coast of France. Jersey, at 45 square miles (118 square km) in size, is the largest of the British Channel Islands.

Is it politically stable?

Yes. As a Crown Dependency, Jersey has the constitutional rights of self-government and judicial independence. These rights were granted by Royal Charter 800 years ago and are unaffected by changes to United Kingdom or European government. Jersey’s legislative assembly, the States of Jersey, comprising 53 elected Members, has total responsibility for the Island’s domestic legislation, including taxation and financial regulation. Jersey is divided into 12 parishes. Each parish is presided over by the elected head of parish, the Connétable, on issues relating to civil matters. The British pound (£) and Jersey pound (valued 1:1) form its retail currency, with all major currencies accepted for financial transactions. The jursidiction's main language is English. However, most European languages are spoken and can be used for business transactions.

What is its relationship with the UK and the European Union?

Jersey has complete autonomy from the UK in relation to its domestic affairs, including taxation. However, they benefit from military protection, legislative guidance and the international leverage of the United Kingdom. Jersey has a special relationship with the European Union, defined by Protocol. Neither a member nor associate member, the special relationship with the European Union is ratified by Protocol 3 of the Treaty of Accession of the United Kingdom to the European Community. Through this Protocol, Jersey complies with European Union Directives on trade in industrial and agricultural products, but is not bound by Directives or Regulations in other areas such as European Monetary Union, Taxation, Financial Services.

Does Jersey have a compensation schemes?

Yes. Jersey’s Depositor Compensation Scheme was introduced recently. The scheme covers all 'qualifying deposits' (mainly those from personal retail depositors, wherever they live) in licensed banks on Jersey. It provides compensation of up to £50,000 per person in respect of that bank.

Will my savings and investments be tax free?

Like many offshore financial centres, Jersey benefits from a low tax regime. There is currently no withholding tax on dividends paid, no capital gains tax and no inheritance tax all of which allows your savings to grow on the island without the deduction of taxes. This doesn’t mean you are exempt from paying tax on your savings and investments in your current country of residence, it simply means there are no Jersey taxes applicable. For example, if you are an expat in a European Union country, you have to comply with the European Union Savings Directive (EUSD). So if you have savings in Jersey and reside in an EU country you will be given the option to have the Retention Tax automatically deducted at source from interest earned on savings at 35% commencing July 2011, or opt for disclosure of interest payments and not have Retention Tax applied. In addition, taxes such as death duties or inheritance taxes may well be bound by your domicile, rather than residence.

Does Jersey have any tax agreements with other countries?

Yes. A list of all Jersey’s tax agreements can be seen here

What range of financial services are on offer to expats?

Jersey is a well established financial centre and offers the full range of financial services from simple deposit taking services to wealth management. There are also personal banking and investment services, offshore trusts and associated fiduciary services such as accountants and lawyers.

What providers operate from Jersey?

You will find that many of the UK high street banks and financial institutions have a base in Jersey. These include Barclays, Natwest, Lloyds and HSBC. A full list of providers operating in Jersey can be found at Jersey FInancial Services Commission.

Do I need to be an expat from a particular part of the world to use Jersey?

No. Jersey offers its services to expats all over the world. However, due to its proximity to the UK it is a popular with British expats.

Why should I use Jersey?

For expats juggling with at least two tax regimes initially, possibly more if you have to move for employment purposes, placing your savings and investments in a reputable offshore centre not only gives you the potential to grow your savings in a largely tax free environment, it also gives you the flexibility of having all your savings and investments in one place. For many expats this is a much better option than having lots of little savings and pension pots in different countries suffering a wide variety of different tax regimes and potential access problems.