Jersey, Channel Islands

Individuals who are resident and ordinarily resident in Jersey are liable to Jersey income tax on their worldwide income; however, individuals who are resident but not ordinarily resident in Jersey are taxed on Jersey-source income, and overseas income is subject to tax to the extent that it is remitted to Jersey.

A person who is not resident in Jersey is liable to Jersey income tax on Jersey-source income, except for some specific exemptions, including Jersey bank interest, interest received from a Jersey resident company, profits and earnings of the office of the director of a company, and dividends received from Jersey companies to the extent they are paid out of profits taxed at 0% on the company.

Personal income tax rates

Tax is payable at the rate of 20% on net income after allowances.

Alternative tax calculation

In Jersey, an alternative means of computing tax liability by reference to a marginal rate is undertaken automatically by the tax authorities. For the marginal rate calculation, the exemption limit is deducted from the taxpayer's income along with any relevant additions to the exemption limit, as listed in the Deductions section. Tax is then computed at the marginal rate of 26%. The taxpayer’s liability is based on the lower of the tax payable at the 20% rate and tax calculated using the marginal rate.

Taxation of wealthy immigrants

There is a high value resident (HVR) programme in Jersey, which is a route to residency for high-net-worth individuals (HNWIs) looking to live and work in Jersey. The programme grants a housing licence, which allows HNWIs to rent any property or buy property. The HVR programme also offers a favourable tax regime for HNWIs. The HVR programme is by application and will not automatically be granted. Economic and social factors will be considered as part of the application.

All Jersey property income will be subject to tax at 20%. For other income, the first 1,250,000 pounds sterling (GBP) is subject to tax at 20% and the balance at 1%.