Planning your finances
Before you leave your current country, there are certain financial considerations that you’ll need to make. Knowing your obligations will help your financial planning.
Notify your local government and service providers
You need to inform the country you’re coming from that you’ll be moving to Jersey. This includes your taxes and local government / council services. It’s a good idea to give them as much notice as possible.
You’ll also need to consider which service providers you’ll need to notify. Your service providers may include healthcare, pension providers, insurance brokers, banks and utilities.
Update your credit status
You may need to settle any outstanding debts before you move to Jersey. Having an up to date credit history will boost your credit rating. This will help in getting a credit card, borrowing money and renting or buying property in Jersey.
Talk to your bank or credit provider about getting a current credit rating.
Understand your contribution liability in Jersey
You're liable to pay social security contributions (the equivalent of National Insurance) if you’re living in Jersey and between 18 years and pension age. Contributions are payments that you and your employer make by law. Contributions are paid so that we can provide a range of Social Security contributory benefits, pensions and health services to you when you’re in need.
There are two categories of contributions:
You pay Class 1 contributions if you’re employed for eight hours or more per week. 6% is deducted from your wage, and 6.5% is paid by your employer.
You pay Class 2 contributions if you’re not employed. This includes people who are self-employed, students, non-employed (including early retirement).
If you’re going to be paying class 2 contributions, you’re contributions will be based on your tax assessment from 2 years ago.
You’ll need to get your tax assessment from your local tax department and take this to Customer and Local Services in Jersey when you register for social security purposes.
Jersey’s tax year runs from 1 January to 31 December each year. You’ll need to ensure you have sufficient assessments to cover the whole period.
Understand your tax obligations in Jersey
If your intention is to move to Jersey permanently, you’ll be taxed on all your income, including any non-Jersey income.
If you’re only coming to Jersey on a short term or temporary contract, you’ll pay tax on your Jersey income and any income you remit to Jersey.
Residency for Jersey income tax
The standard rate of tax in Jersey is 20%. This is the maximum personal income tax you’ll pay in a year. There are also tax reliefs and deductions that will reduce your tax rate if you are on a low to middle income.
Allowances for income tax
Bank accounts, mortgages and pensions
There are many banks on island, including the top UK banks.
The Ring-fencing legislation requires UK bank to separate its retail banking activity from the rest of its business. This is to protect customers’ day-to-day banking services from unrelated risks elsewhere in the banking group.
Ring-fencing was one of several important reforms brought in by the UK government to strengthen the financial system following the financial crisis in 2007.
This has an impact on you if you have an account in the UK because the Jersey branch of that bank is unlikely to be able to access information about your UK accounts. You may find it easier to open a Jersey bank account instead.
Jersey bank accounts can only be set up on island. You’ll need to provide personal information to open a bank account. This includes information such as proof of identity, employment and address.
You can only get a mortgage in Jersey to buy a Jersey property. You can’t transfer a mortgage from another property outside the island. If you will continue to own property outside Jersey, speak to your mortgage provider.
If you’re in receipt of a pension, speak to your pension provider to notify them that you’ll be moving to Jersey. They’ll be able to advise you of how this affects your pension plan.
Research the cost of living in Jersey
You should consider how the cost of living in Jersey will affect your finances.
To get an idea of how much things cost compared to where you are living now, take a look at our
cost of living page.