The personal income tax rate is 20%.This rate also applies to the tax adjusted profits of sole traders and partnerships.
There are no higher rate bands, capital gains tax or inheritance tax.
There are exemption thresholds to keep low income households from paying tax and marginal relief to reduce tax for households on what is generally called the 'middle income' bracket. This is a tapering relief which gradually reduces as income increases.
Income tax (for individuals) (taxes and your money section)
The standard rate of corporate tax in Jersey is 0%.
The exceptions to this standard rate are:
- financial service companies (defined in the Income Tax Law) which are taxed at 10%
- utility companies which are taxed at 20%
- income specifically derived from Jersey property rentals or Jersey property development taxed at 20%
Companies (taxes and your money section)
High Value Residency (HVR)
Individuals who qualify under the HVR rules are an essential part of Jersey's economy.
We want to encourage these individuals to Jersey to increase inward investment into the Island. This is because in addition to their direct tax contributions, they will also contribute through on-island spending and often relocate their businesses and investments to Jersey.
What are the tax rules to qualify for a HVR license?
There is an annual minimum tax contribution of £125,000.
When applying for a HVR license, the applicant is required to demonstrate they have sufficient wealth to generate the annual minimum tax contribution in future tax years.
The tax rates that apply are:
- 20% on all income earned from land and buildings in Jersey, or dividends paid from a company in receipt of Jersey property income
- 20% on the first £625,000 of all other income
- 1% on all income above that level
For confidential and free advice about any aspect of high value residency in Jersey, please visit the Locate Jersey website or contact our Director of High Value Residency.
Locate Jersey website
Keeping it simple
One of the key features of the Jersey tax system is its simplicity. As the tax legislation in a number of other jurisdictions has grown exponentially in recent years, Jersey has largely rejected this trend, with the entire income tax legislation still contained in a single Act of just 150 Articles.
The need to modernise the tax system and broaden the tax base in recent years has led to the introduction of a goods and services tax and a land transaction tax, however, these taxes have been designed with the principle of simplicity at their core.
For international investors this provides a stable, easily understood tax system that creates the certainty they need to invest in and through the Island with confidence.
Our international obligations
On the international stage Jersey has been a key member of the OECD's Global Forum on Transparency and Exchange of Information for Tax Purposes. Jersey has also adopted a pro-active approach to the negotiation of tax treaties.
International tax agreements (taxes and your money section)
Other financial benefits to businesses and individuals include:
- social security payments in Jersey are low compared to many jurisdictions
- no stamp duty on equity transactions
- a straightforward method of making tax and social security contributions
People in employed work - class 1 contributions (employment and careers section)
Self employed class 2 contributions (employment and careers section)