Tax in Jersey

Jersey is the largest of the Channel Islands and the closest to the French mainland. Jersey is a British Crown Dependency, meaning it has its own government and legal system, giving it full autonomy over the Island’s tax regime, whilst the UK is responsible for its defence and international relations. 

Jersey is a globally renowned, long established international financial centre, with some of the key factors behind its success being tax neutrality for businesses, proximity to the both the UK and Europe, and a welcoming tax environment for high net worth individuals.

Please see below details regarding the key tax considerations for both individuals and companies in Jersey.

The standard rate of income tax in Jersey is 20%.

To protect individuals with lower incomes from the burden of income tax, an individual’s income tax liability is calculated by reference to two methods: the standard rate method (calculated as 20% tax on total taxable income) and the marginal relief method (calculated as 26% tax on total taxable income less the personal exemption, child allowance and certain other reliefs/allowances); the individual tax liability is based on whichever of the two methods produces the lower figure.

The personal exemption in Jersey for 2026 is £21,250; meaning that individuals with an annual income below this amount will not pay income tax in Jersey .

All taxpayers are now assessed independently, however couples who were married/in a civil partnership and arrived in Jersey before 1 January 2022 (and have not previously elected to be independently taxed) can elect to file a joint tax return; such couples also have the ability to share reliefs/allowances between themselves.

Jersey has a high value resident (‘HVR’) regime for high net worth individuals moving to the Island. Criteria for an application under the HVR regime to be considered by the Government of Jersey include the ability to demonstrate a minimum level of recurring taxable income, currently of £1.25 million per annum (with a resultant minimum income tax liability of £250,000 per annum), and net assets in excess of £10 million (excluding the individual’s main residence).  Subject to a successful application, the individual is granted the right to acquire a high value residential property (£3.5 million for a house or £1.75 million for an apartment) in the Island and can access a beneficial rate of tax (1%) on their income in excess of £1.25 million.

The Jersey tax year runs from 1 January to 31 December. The due date for the filing of personal tax returns is 31 July in the year following the relevant tax year.

Jersey levies social security contributions on earnings until an individual reaches state pension age and separately levies a long-term care contribution on an individual’s taxable income – both of these contributions are subject to a cap on the maximum amount that can be contributed.

Jersey does not levy Capital Gains Tax or Inheritance Tax. 

A Goods and Services Tax (‘GST’) is levied at a maximum of 5% on goods and services purchased in the Island.

The default income tax rate for companies in Jersey is 0%.

Certain “financial services companies” are subject to income tax at a higher rate of 10%.

A 20% rate of income tax applies to the following:

1. Income derived from Jersey real estate (property development and/or rental businesses)
2. Utility companies
3. Income derived from the importation and supply of hydrocarbon oils
4. Income derived from quarrying in Jersey

In addition, ‘large corporate retailers’ (companies with £2 million or more in retail sales to Jersey customers and for whom retail sales to Jersey customers make up at least 60% of its trading turnover) are taxable on a sliding scale between 0 and 20%, depending on the amount of taxable profit reported.

Jersey tax returns for companies are due for submission by 30 November in the year following the relevant tax year.

A separate tax called Multinational Corporate Income Tax (“MCI”) applies solely to Jersey entities which are part of large multinational groups (i.e. groups which have consolidated turnover in excess of €750m per annum); MCIT is levied at the rate of 15%.

Jersey – along with the majority of other international financial centres – has implemented economic substance obligations on companies and partnerships over recent years. These need to be considered on a case-by-case basis, however they generally result in ensuring that Jersey resident companies/partnerships undertake their governance in Jersey perform certain specific activities/make key decisions on-Island.