Jersey offers an exciting blend of British and French culture, along with a unique island lifestyle. Known for its stunning beaches and friendly atmosphere, Jersey is an increasingly popular destination for expats.
In this guide, we’ll walk you through everything you need to know about relocating to Jersey from a personal tax perspective, including tax residency, income tax, special tax regimes and tax return obligations.
TaxPilot recommend that you organize your affairs in good time to get ahead and make the most of favorable tax treatment while making sure you’re meeting your tax return obligations.
Jersey follows a residence taxation model. If you are resident, you will pay tax worldwide incomes. If you are non-resident, you will pay tax on local incomes only.
if you are present in Jersey on more than 182 days during the tax year.
if you are present in Jersey on 90 days over four consecutive tax years.
if you have accommodation in Jersey during the tax year.
Providing that you are considered not ordinarily resident, you can exclude foreign incomes and gains from Jersey taxation providing the incomes and gains are not remitted to Jersey. Jersey can be a very tax efficient place to live for expats and nomads and as such, Global Tax Consulting recommends seeking personalized tax planning advice to take advantage of the special tax regime.
Exempt from Jersey taxation.
Must be not ordinarily resident.
Tax on property and share sales
Tax on value of owned assets
Tax on assets passed to heirs
Tax to contribute to state welfare
If you receive incomes overseas while you are living in Jersey, you may find the source country, as a starting point, continues to tax the income which may cause double taxation unless you are using special tax regime.
Double taxation agreements can be used to mitigate double taxation and receive tax free income. As such, the more double taxation agreements a country has, the better, as agreements will ensure you’re not taxed twice and even better, ensure your income is tax free.
At present, Jersey has 25 double taxation agreements signed.
