Jersey residence for tax
Most people who live and work in Jersey and spend all their time here except for short visits abroad on business or holiday are resident and ordinarily resident in Jersey for tax. This means they pay tax on all their income from both Jersey and non-Jersey sources.
The following information will help if your tax residency is different to this position.
Jersey tax residency terms
There are three types of residency status that can apply to an individual.
|Resident and ordinarily resident
|Liable to Jersey income tax on your world-wide income regardless of where it arises. If you pay tax on the same income in another jurisdiction, a credit may be available for foreign taxes paid.
|Apportionment of allowances in the year of arrival or departure based on the date you arrived in or left Jersey.
Full allowances available otherwise.
|Resident but not ordinarily resident
|Liable to Jersey income tax on all income arising in, and remitted to, Jersey.
|Apportionment of allowances governed by Article 129A of the Income Tax (Jersey) Law.
(Restricted for each day not spent in Jersey, ignoring exceptional absences such as holidays and business trips).
|Liable on income arising in Jersey with certain exceptions.
|Restricted allowances governed by Article 129B.
Your residency status and employment status will impact your exposure to Jersey income tax.
Residency status and exposure to Jersey income tax
Determining residency for tax purposes
Your residency status for the purposes of income tax depends on:
- the length of your visit
- the frequency of your visits
- availability of accommodation in Jersey
Residency and moving to Jersey
If you are moving to Jersey permanently
or you intend to live here for 5 years or more you will be classed as resident and ordinarily resident for tax purposes from the date you arrive in the island.
If you stay in accommodation which is available for your use even for one night you will be regarded as resident for tax purposes for that tax year.
If you live abroad but visit Jersey on a regular basis, averaging more than 90 nights per year over a 4 year period, you will become resident and ordinarily resident from the start of year 5.
Residency and short term contracts
Your tax residency is based on the total length of your contract of employment in the island. Provided that your contract of employment is less than 4 years, you will be classed as resident but not ordinarily resident in Jersey subject to the following conditions:
- if the length of your contract changes your residency position may change, any variation will apply from the date of the change of the contract
- if your contract is extended at any time within its duration, so that you will be living in Jersey for more than 4 years you will become resident and ordinarily resident from the date of the change
- bonuses paid whilst living in the island or received after you have left the island are covered in the concession and practice guidance notes
- all cash sums paid by a Jersey employer are taxable including per diems which are paid to cover any incidentals or living expenses
Short-term business visitors
From 2024, short-term business visitors who work in Jersey for 60 days or fewer each year are not liable for income tax. The day count (including days of arrival and departure) is cumulative meaning workers can come and go throughout the year if their total day count does not exceed 60.
Employers are not required to include short-term business visitors on their Combined Employer Returns. Employers are still required to apply for business licences where applicable.
Double tax agreements
Jersey holds agreements with certain countries to avoid double taxation on income whilst working in Jersey or abroad.
You will need to check the individual contents of any agreement that applies to you.
UK double tax agreement
An individual who is resident of the United Kingdom will be exempt from Jersey tax on profits or remuneration in respect of personal (including professional) services performed within Jersey in any year of assessment if:
- they are present within Jersey for a period or periods not exceeding in the aggregate 183 days during that year
- the services are performed for or on behalf of a person resident in the UK
- the profits or remuneration are subject to United Kingdom tax.
If a resident of the UK is required to pay Jersey income tax on their income arising in Jersey, they may apply for a credit for the Jersey taxes paid to be applied to their UK assessment.
Double taxation agreements
Tax and your pension income: living abroad
From 2024, Jersey residents who are taxed on their employment income from working in another jurisdiction can receive relief against their Jersey income tax. The tax relief is available in respect of jurisdictions with which Jersey does not have a double tax agreement. The maximum value of the relief is the lower of the foreign tax paid or the tax charged at the standard rate in Jersey.
Meaning of available accommodation
Accommodation is usually considered to be available for your use if you own, rent or lease property in your name and you can use it when you wish.
Property owned or rented by your partner or spouse is normally treated as available for your use.
Accommodation provided by your employer is considered to be available for your use after the end of the second calendar year in Jersey.
Short stays in hotels, guest houses and serviced apartments are not normally considered to be available accommodation.
Remittances of income
Remittances of income include:
- all non-Jersey income paid into Jersey bank accounts whether held in your own name, jointly with another person, or in a third party's name
- income brought into the island as cash
- items brought into the island and then sold
- bills arising in the island but paid from sources of income arising outside of the island, including by credit or debit cards
- your living expenses whilst you visit the island
- any Jersey property maintenance expenditure which includes payments for rates, insurance and mortgage or rents which are funded from overseas bank accounts are also considered to be remitted income
- converting income abroad into investments and then sending those investments to Jersey to convert them to cash
Emoluments arising from employment exercised in Jersey is Jersey income and is taxed on an arising basis. The remittance basis will still apply to taxpayers who are resident but not ordinarily resident who have a contract with a non-Jersey employer and carry out that employment outside Jersey.
If you are classed as ordinarily resident for the first time during a calendar year, you will be taxed on your Jersey income for the full year (unless that income is exempted under an international tax agreement), and your non-Jersey income from the date of arrival.
Assessments on overseas income under Schedule D Cases IV and V will be computed as follows if the:
- source of income ceased before that date of commencement of residence no assessment will be raised.
- income first arose before the date of residence, the assessment for the first year of residence will be restricted to the proportion appropriate to the period from the date of commencement of residence to the end of the tax year.
- income first arose after the date of commencement of residence, the full amount of the income arising in the first year will be assessed.
- source of income ceased between the date of commencement of residence and the end of the first tax year, the assessment will be restricted to the amount of income arising for the period of the date of arrival to the date of cessation of the source.
In the case of an individual becoming resident but not ordinarily resident, they will be treated as resident for the whole of the income tax year. Assessments under Case IV and V will be computed on the remittances in that year whether made before, during or after their physical presence in Jersey in that year.
Leaving Jersey permanently
In the year you leave Jersey, you will be taxable on Jersey income for the whole year (unless that income is exempted under an international tax agreement) and any non-Jersey income up to the departure date if you are ordinarily resident.
If you are resident but not ordinarily resident you will be taxable on your Jersey income for the whole year and remittances to the date of departure.
Apportionment of allowances and exemption thresholds
If you arrive or leave during the year, you may have your allowances and exemption threshold apportioned by the number of complete days you were resident in Jersey per Article 129AA of the Income tax (Jersey) Law.
Income tax legislation
If your ordinary residence is in Jersey and you leave only for occasional residence abroad you will be charged to tax on all your income whether in Jersey or elsewhere. (Article 126 Income Tax (Jersey) Law.)
Leaving Jersey for longer periods
In the year you leave Jersey you'll be treated as resident and ordinarily resident up to the departure date.
If you are absent from Jersey for a full year or longer your Jersey tax residence will take into account:
- visits to Jersey
- available accommodation in Jersey
If you retain available accommodation in Jersey and you stay in that accommodation for any length of time you'll be treated as resident in that year. If your visits become habitual you'll be treated as resident and ordinarily resident from year 5.
Returning to Jersey
In the year you return to Jersey if you were resident but not ordinarily resident in the previous year you'll be treated as resident and ordinarily resident from 1 January.
If you were non-resident the previous year you'll be treated as resident and ordinarily resident from the date of your return.