Exemptions from Jersey income tax
If you are not resident in Jersey, certain sources of your income may be exempt from income tax.
You will be exempt from income tax under the law if your income, profits or gains relate to any of the following:
- interest paid in respect of, or credited to, a deposit with a person registered under the Banking Business (Jersey) Law 1991
- interest and cash dividends paid, and stock dividends issued, by a company regarded as resident in Jersey
- income arising from a pension payable under the Social Security (Jersey) Law 1974
- income arising or accruing from a purchased life annuity
- the profits and earnings of the office of director of a company
- royalty or other sum paid in respect of the user of a patent
Receiving income from a Jersey property
If you are a non-resident landlord, you are liable to pay income tax at 20% on rental income you receive from property you own in Jersey.
As you do not reside in Jersey, tax must be collected from either the agent managing your property, or the tenant of your property.
It is a legal obligation for the managing agent or tenant to deduct tax at the standard rate of 20% from the net rental income.
There are conditions where rent can be paid and received without being taxed:
- (in the case of tenants only) if the rent paid to the non-resident landlord is less than £25,000 per annum (pro rated if necessary) and no notice has been served to the company on the tenant by the Comptroller of Taxes
- if the property income is exempt from tax under Article 115 of the Income Tax (Jersey) Law 1961 (as amended)
- if the non-resident landlord has consistently complied with the requirements of the income tax law in full and without delay. The landlord must be able to provide his agent / tenant with a good compliance certificate
To apply for a good compliance certificate, the non-resident landlord must write to the Comptroller of Taxes on an annual basis. The certificate must be presented to the managing agent or tenant to enable them to make the rental payments gross.
Failing to pay income tax if you're a non-resident landlord
If you're a non-resident landlord and do not pay income tax when you're liable, we can:
- serve notice on a tenant to deduct tax from the rent payable to a non-resident landlord in cases where the total annual rent is £25,000 or less
- serve notice on a landlord's agent or tenant to deduct tax from the rents payable to the landlord at a rate greater than the standard rate of income tax. The rates we may apply are 25%, 30% or 35%
Jersey occupational and private pension income
This is taxable income if you are a non-resident.
You may be able to make a claim to have the pension income exempted in Jersey, but only if there is a tax agreement with the country you live in and if pension income is covered by the agreement.
Tax and your pension income: living abroad