Jersey is a low tax jurisdiction with some of the lowest tax rates in Europe. With low personal tax rates, no CGT or IHT, and  a 0%-10% Business Tax system, discover how relocating to the beautiful Island of Jersey can pave the way to success for you, your business and your family.

If you would like to know more about moving to and living in Jersey, you can find more information in our Living & Working in Jersey section or get in touch with a member of our team on +44(0)1534 440604 or locatejersey@gov.je

NB: We recommend you seek professional tax advice at the earliest opportunity.


Personal Income Tax

The standard rate of personal income tax in Jersey is 20%. This is the maximum that most residents will pay in a year. Personal tax is based on total income but takes into account exemption thresholds and any eligible allowances and reliefs.

Individuals who relocate to Jersey under a ‘Licensed’ permission will pay tax at 20%.

High Net Worth Individuals who move to Jersey as an approved 2(1)(e) resident (High Value Residency) have a tiered rate of tax on personal worldwide income of;

  • 20% on the first £725,000;
  • 1% on all income over £725,000; and
  • 20% on income derived from Jersey land and property or dividends paid from a company in receipt of Jersey property income

There is an annual minimum personal income tax contribution of £145,000 (this amount is subject to review in 2023).

If you are an employee or a company director receiving a salary/fees, you will have a regular deduction from your salary. This is called the Income Tax Instalment System (ITIS). You will receive an effective rate which shows your tax rate (as a percentage). This percentage is deducted from your gross pay every time you are paid.

If you are in receipt of other sources of income you will be required to settle your tax liability on a payment on account basis.

The tax year in Jersey is the calendar year. You will be issued with a personal tax return form in the January following the tax year end. Based on the information you provide within your tax return form, you will receive an income tax assessment and be advised of any further tax liability.


Long-Term Care Contribution

The Long-Term Care (LTC) scheme provides financial support to Jersey residents who are likely to need long-term care for the rest of their life, either in their own home or in a care home.

A separate Long-Term Care fund has been set up to help those who need long-term care and everyone who pays income tax, pays into the Long-Term Care fund.

The current maximum rate is 1.5%*. This is capped at the Social Security Upper Earning Limit £20,800 per month**. So most people will pay less than that. Contributions are based on total income. It also takes into account any tax allowances and reliefs.

Contributions are calculated by the Taxes Office and is collected in the same way as income tax.

There are no extra forms and the amount is shown separately on tax bills.

* All rates are subject to review and may change on an annual basis. Information accurate as at 1st Jan 2020.

** The Upper Earning Limit increases annually by the value of the average earning index as of 30th June of the previous year unless otherwise changed in the Government of Jersey annual budget.


Social Security Contribution

Contributions are payments that employees and employers make by law*. They are split into Class 1 and Class 2.

Class 1 liability relates to employed contributions. This is split between employee and employer.

Class 2 liability is in the absence of employed contributions I.e. self-employed, non-employed, etc.

Social security contributions go towards contributory benefits such as:

  • Short-term Incapacity Allowance
  • Long-term Incapacity Allowance
  • Maternity Benefit
  • Home Carers Allowance
  • Old Age Pension/Survivors Allowance and Death Grant

For more information on Class 1 and Class 2 contributions, see below.

* All rates are subject to review and may change on an annual basis. Information accurate as at 1st Jan 2020.

Who Must Pay Contributions

Jersey residents are liable to pay contributions if they’re:

  • living in Jersey
  • over 16 (if working)
  • between 18 and pension age

Even if:

  • studying; or
  • looking after a family; or
  • not working

Individuals who have not been registered in Jersey before, and don’t work for an employer, don’t not have to pay contributions for the first 6 months of being resident.

Individuals who have been registered in Jersey before, will be liable for contributions as soon as they arrive in the Island.

Class 1 and Class 2 Contributions*

CLASS 1

Jersey residents who are employed for 8 hours or more per week are required to pay Class 1 contributions. The amount owed is based on income.

6% is deducted from wages each month (capped at £273.48 in 2020).

6.5% is paid to the Government of Jersey by the employer on earnings up to £4,558 per month. The employer also pays an additional 2.5% on earnings over £4,558 and under £20,800 per month*.

Residents have to meet the lower earnings threshold of £968 (in 2020) to cover their Class 1 liability in full. This is for pension and benefit purposes.

This contribution stops at pension age.

CLASS 2

Jersey residents pay Class 2 contributions if they’re not employed. This includes people who are:

  • self-employed
  • students
  • looking after a family
  • not working

The maximum rate is 12.5% (capped at £975.80 per month for 2020).

The amount owed is calculated from the individual’s total income 2 years previously. Rates can vary depending on the individual’s total income and circumstances.

Depending on certain circumstances individuals may be able to apply for contribution credits. These protect the individual’s Social Security record and their entitlement to certain benefits.

Such circumstances include but are not limited to; studying and looking after young children.

For more information about Social Security contributions please follow the link at the end of this page. See below for more information on business taxes and contributions.

*All rates are subject to review and may change on an annual basis. Information accurate as at 1st Jan 2020.


Business Income Tax

The standard rate of business income tax in Jersey is 0%. The exceptions to this standard rate are:

  • certain regulated financial service companies (as defined in the Income Tax Law) which
    are taxed at 10% see Financial Services for more information;
  • utility companies which are taxed at 20%;
  • retailers in Jersey (with retail turnover of £2m and above) where tax is charged:
    • at 0% where profits are less than £500k; or
    • on a sliding scale from 0% to 20% where profits are between £500k and £750k: or
    • at 20% where profits exceed £750k
  • 20% on income specifically derived from trading in Jersey in:
    • the importation and/or supply of hydrocarbon oils; or
    • quarrying; or
    • property development; or
    • property rental.

The tax year is the calendar year (‘the year of assessment’). The basis upon which trading income is charged to tax is the accounting period ending in the year of assessment.

All companies must file an annual tax return. Company tax returns are completed on-line and must be submitted by 31 December in the year following the year of assessment. The information a company is required to provide on the tax return is dependent on the circumstances of each company.

Companies which are subject to a positive rate of tax will receive an annual notice of assessment in the year following the year of assessment. Tax which is due is payable immediately. There is a surcharge penalty of 10% in respect of any tax which is not paid by early December of the year following the year of assessment.

For more details about Jersey’s business income tax please see the link at the end of this page. For more information on employer social security contributions see above.

*All rates are subject to review and may change on an annual basis. Information accurate as at 1st Jan 2019.


BEPS & Economic Substance

In June 2017, the Jersey Government signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS). In doing so, the Island has further demonstrated our internationally recognised, leading position in complying with the international standards on:

  • financial regulation;
  • anti-money laundering;
  • tax transparency; and
  • information exchange.

Jersey is fully supportive of the BEPS project.

On 1 January 2019 Jersey implemented the new Economic Substance Regime. Substance refers to businesses having a physical presence on the Island. It is designed to prevent offshore structures attracting profits which don’t reflect the actual economic activity in the Island. As of 1 January 2019 (and all accounting periods thereafter) certain businesses tax resident in Jersey must comply with the regime.

For more information on BEPS & Economic Substance please see Regulation & Legislation in Jersey.


Goods and Services Tax (GST)

There is no VAT in Jersey, however there is Goods and Services Tax (GST), which is at a much lower rate*. GST is a tax on the sale of goods and services supplied in Jersey for local use (including imports above £135).

There are 3 categories under GST, and all goods and services are placed into one of them:

  • standard-rated (5%)

Almost all goods and services provided in Jersey attract GST at the standard rate. This includes goods purchased online that are worth £135 or more, including freight and any VAT payable in the country of purchase.

  • zero-rated

These are goods and services taxed at 0%. For example exports of goods, housing, medical prescriptions and international services.

  • exempt

These are goods and services that are not taxed for public policy reasons, or because they are difficult to tax accurately. For example financial services, insurance, postal services, supplies by charities and school fees.

GST is collected at each stage of production, manufacture, distribution and sale, where the supplier is registered for GST.

*information on this page is accurate as of Jan 2020. All rates are subject to review and may change on an annual basis.


GST for Customers

Buying Online and from outside of the Island and paying GST

GST is paid on all goods imported by private individuals worth £135* or more (including freight costs). There are 3 different duties and taxes collected on imported goods;

  • Excise duty on alcohol, tobacco and fuel;
  • the Common Customs Tariff (CCT) is charged on all goods imported from outside the EU (to find out how much will be required, got to Trade Tariff); and
  •  GST (5%) on the combined value of the goods above £135.

Bringing Household goods when you relocate to Jersey and paying GST

If you are moving to the Island permanently then you must apply for GST relief prior to or when you arrive in Jersey.

If you meet certain criteria, you will not be charged GST on your personal belongings, including any means of transport.

For more information on duties and taxes that may need to be paid when relocating to Jersey and importing personal household goods (including cars or other motor vehicles) please visit Practical Information for Moving to Jersey.

Individuals travelling to Jersey should also be aware of the duty free limits for goods purchased outside the Island that are brought into Jersey on a commercial or private flight or boat. You can find more information by following the provided links at the bottom of this page.

*All rates are subject to review and may change on an annual basis. Information accurate as at 1st Jan 2020.


GST for Businesses*

Businesses must register for GST if:

  • the business has made taxable supplies of £300,000 or more in the preceding 12 months. Taxable supplies include; goods and services that are taxed at both the standard, and the zero-rate for GST. If the turnover from these goods and services was £300,000 then the business should register; or/and
  • there are reasonable grounds to believe that the value of the taxable supplies in the coming 12 months is likely to exceed £300,000.

If an established Jersey business makes supplies of less than £300,000 in any 12 months, the business can still apply for voluntary registration. More information and quick guide to GST is available by following the links provided at the bottom of this page.

The Sale of Zero-rated Goods and GST Exemptions

If the company only makes zero-rated sales, the business can apply to be exempt from registering for GST.

If the company is exempt from registering, it won’t be required to complete GST returns or charge GST on the supplies made. But the business won’t be able to recover any input tax or import tax that it is charged by other companies.

The Sale of Exempt Goods and GST

If the only supplies of goods or services made are exempt from GST, there is no requirement to register for GST.

For more detailed information on GST for customers and businesses, please follow the links at the bottom of this page.

* All rates are subject to review and may change on an annual basis. Information accurate as at 1st Jan 2020.


Property Tax

Stamp duty

Stamp duty is payable by the purchaser on all acquisitions or transfer of all freehold and flying freehold property. It is calculated on the market value of the property on a sliding scale up to a maximum rate as from 1st January 2020 of 9.5%* (for transactions above £6 million), and must be paid in full prior to the passing of contract.

Stamp duty of 0.5% plus a document fee of £80 is payable on any borrowing secured over Jersey real estate.

*This rate is subject to an annual review and may changeFor the most up to date calculations, a ‘ready reckoner’ is available on the Government of Jersey website; www.gov.je/government/nonexeclegal/judicialgreffe/sections/publicregistry/pages/registryservices.aspx

Land Transactions Tax (LTT)

Land Transactions Tax is payable on share transfer property transactions and is broadly equivalent to the amount of stamp duty payable by someone buying a freehold property. Your lawyer will be able to advise you of stamp duty payable on the property and mortgage, if applicable.

Parish rates

Jersey is divided into 12 parishes. Each parish levy rates which go towards parish expenses, repair and maintenance of parish by-roads and refuse collection etc. You must pay rates if you are an owner and/or occupier of ‘land’ (‘land’ includes any house, building, structure or land). If you own or occupy ‘land’ on the 1st January, then you’re liable for the rates for the whole year. An apportionment of rates is normally agreed between vendor and purchaser at the date of completion of sale.

For more information on buying a house in Jersey see Finding a Home.


Useful Links & Contacts


Andrew Benitz

“Ultimately, choosing Jersey was not just a business decision, it was a family one”

Andrew Benitz (CEO Jersey Oil & Gas)

For more information on tax in Jersey or for more information about moving to Jersey, get in touch today on +44(0)1534 440604 or locatejersey@gov.je

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