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Jersey. Information on Residency for tax purposes

Jersey, its official name is the Bailiwick of Jersey, is known as an island that is self-governing British Crown Dependency with a prosperous business climate for running a business. It is a country where the economy is services-focused and highly developed, with a GDP per capita of $60,000, and a population of about 107,800 people. Jersey is an attractive place for setting up a business, because of having well-developed communication networks and low both company and personal taxes. Moreover, Jersey refers to one of the most successful and thriving international financial centers worldwide.

Ease of Doing Business in Jersey

The Bailiwick of Jersey is recognized as an extremely easy place to operate, thanks to legislative policies that are largely in line with international standards, a quick process for registering new companies, and a strong regulatory framework.

The entrepreneurial spirit of Jersey determined the island’s economy many years ago. Island residents are very proud of the traditional industries like agriculture, tourism, and also fishing, which make the basis of Jersey’s economy. The Bailiwick of Jersey can also boast its position as a leading international financial center, with nearly 40% of its GVA generated. Hence, the business world of Jersey serves as home to many of the world’s leading law firms, financial institutions, and, of course, banks.

According to the Business Tendenc​y Survey report for March 2021, Jersey’s business activity indicator is -21 percentage points (pp). The main indicator of business activity refers to the total amount of work performed by businesses operating in Jersey. Moreover, the type of business activity is different for every enterprise: the amount of product made or turnover, etc.

Business Taxes

Jersey represents a low-tax jurisdiction with some of the lowest tax rates in the whole of Europe. It has low personal tax rates, no personal income tax, as well as no inheritance tax, and a business tax system of 0%-10%. Furthermore, in the 1920s, Jersey got its reputation as a tax haven.

There are tax payments, known as the total number of taxes paid by businesses (plus electronic filing). This tax is counted as paid once a year even if payments are more often. However, there was no research performed in Jersey in 2019, so the World Bank research has no results for that year.

Income tax

An income tax is a tax imposed on individuals or business entities (taxpayers) in respect of their income or profits earned. Income tax rates may vary by the types or characteristics of the taxpayer and the type of income.

As for Jersey Personal Income Tax Rate, it is 20%. It is the maximum that most residents pay in a year.

Corporate tax

A corporate tax (also called corporation tax or company tax) is a direct tax imposed on the profits of a corporation. The corporate income tax (CIT) rate in Jersey is 0%. 

Domestic companies are subject to corporate income tax in every country. In Jersey, however, there is no corporate tax rate for companies. There are only a few instances when companies are imposed with effective corporate income tax rates. For example, a 20% corporate tax rate applies to income and gains from Jersey real estate development, utility companies, and also profits from imports and shipments of hydrocarbon oil. In addition, companies providing financial services, like banks, are taxed at 10%.

Dividends, interest, or royalties are not subject to withholding taxes in Jersey (non-residents).