Jersey's  Stability

Economic Stability

• Jersey has an enviable economic strength, with no public debt and a substantial strategic reserve, achieved through its stable infrastructure and prudent budgeting.
• Jersey benefits from, and contributes to, the free flow of capital throughout the European Union and beyond. There is no question of exchange controls being applied to the movement of funds into or out of the Island.
• Jersey’s economic stability has allowed an independent and uncomplicated taxation system to benefit residents and overseas investors for over 60 years.
• Jersey has complete fiscal autonomy in setting its rates of tax within its own Tax Law and the Island’s low rate of income tax and tax provisions in general, have remained unchanged since 1940.
• There are neither capital gains taxes, estate or inheritance duties, nor value added, sales or other taxes applying to fees or charges for professional services.
• Trusts for non-residents (often established for wealth management and employee benefit schemes) are exempt from income tax on overseas income and on bank deposit interest and collective investment fund income arising in Jersey. Companies owned by non-residents can also receive the same tax benefits.
• Jersey’s legal currency is the British pound and it also issues its own notes and coins of equivalent value, which are freely accepted within the Island and prized by collectors worldwide. Transactions in all major world currencies are conducted by the Finance Industry.

Political Stability

• As a Crown Dependency, Jersey has the constitutional rights of self-government and judicial independence. These rights were granted by Royal Charter 800 years ago and are unaffected by changes to United Kingdom or European government.
• Jersey’s legislative assembly, the States of Jersey, comprising 53 elected Members, has total responsibility for the Island’s domestic legislation, including taxation and financial regulation.
• Jersey has a special relationship with the European Union, defined by Protocol. Neither a member nor associate member, the special relationship with the European Union is ratified by Protocol 3 of the Treaty of Accession of the United Kingdom to the European Community.
• Through this Protocol, Jersey complies with European Union Directives on trade in industrial and agricultural products, but is not bound by Directives or Regulations in other areas such as:
• European Monetary Union
• Taxation
• Financial Services
• Following a review of Jersey’s structure of Government, the ’Clothier Review’, the States of Jersey implemented the Report’s recommendations in December 2005, thereby enabling the Island to benefit from a more efficient legislative process within the stability of its historical grounding.
• Modern technology is being utilised to its fullest in Jersey’s e-government initiative. Many Government Ministries are already on-line. Their websites include specific information on States legislation and Government debates - these are linked from the main government site (www.gov.je).

Futher information

STEP Report 2009 - International Financial Centres and the World Economy, James Hines:  

"International Financial Centres promote good government and the benefits that flow from demoncratic accountability. The evidence indicates that by far the most successful international financial centres are those whose governments score highly on the World Bank's indicators of governance quality."  

 Click here for the full report