Jersey


ESSENTIAL FACTS

LOCATION: 49 15 N, 2 10 W
Jersey is an island in the English Channel, northwest of France.

POPULATION: 91,321
Nearly a third of the population resides in Saint Helier.

CURRENCY: English 94.5% (official), Portuguese 4.6%, other 0.9%

LANGUAGE: Jersey pound, but the British pound is also legal tender

CLIMATE: Jersey has a temperate climate, with mild winters and cool summers.

PUBLIC HOLIDAYS: Liberation Day, 9 May (1945)

HISTORY AND GOVERNMENT

HISTORY
Jersey dates back to at least the 11th century, when it was territory fought over in the Battle of Hastings. Although Normandy was ceded back to France after being in English control, the Channel Islands, of which Jersey is one, remained under British rule.

Jersey has a convenient location between England and the continent, and has the added benefit of free movement and trade between the EU but is not actually a part of the EU.

POLITICAL SYSTEM
Jersey, being a self-governing British Crown Dependency, has a parliamentary democracy ruled by the Queen, who is represented by a Lieutenant Governor. The Chief Minister is elected to be the head of the government. The Cabinet is appointed by the Assembly of States of Jersey, which is the name for the unicameral legislature.

JUDICIAL SYSTEM
The Royal Court administers the judicial branch, and the legal system is based on English law.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: Potatoes, cauliflower, tomatoes; beef, dairy products, Jersey cattle
Industry: Tourism, banking and finance, dairy, electronics

TRADE PRACTICES
Exports: Light industrial and electrical goods, dairy cattle, foodstuffs, textiles to the UK
Imports: Machinery and transport equipment, manufactured goods, foodstuffs, mineral fuels, chemicals from the UK

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
Jersey's standard of living is on par with the United Kingdom. Over half of the island’s revenue comes from the financial industry. Dairy and agriculture are important exports. Jersey has taken advantage of the need for electronic goods by promoting Jersey has a logical choice for manufacturing relocation.

Fiscal year: 1 April - 31 March

BANKING
The Jersey Financial Services Commission oversees the banking industry and has final approval on all bank and bank branch applications. Basle Convention requirements apply.

STOCK MARKET
The Channel Islands Stock Exchange (CISX) has been in existence for 10 years. Its listing members are all based in the Channel Islands. Market capitalization stands at over US$17 billion. Guernsey (the other bailiwick of the Channel Islands) trades represent the vast majority of trades on the Channel Islands Stock Exchange.

REAL ESTATE
Real estate transactions are subject to a stamp duty, levied on a sliding scale with a minimum of .5 percent and a maximum of 2 percent.

IMMIGRATION

VISAS
EU free movement and UK visa rules apply for all travelers.

EMPLOYMENT
EU residents and citizens have first refusal of jobs in Jersey. Work permits are issued only if no one in the EU can be found that is suitable for the position.

RESIDENCE
For tax purposes, residency means being in Jersey for at least six months during one year; 12 months over a four year period, at a minimum of three months in one year; or owning real estate and visiting for even 24 hours at any time during the fiscal year.

BUSINESS

BUSINESS ENTITIES
Jersey companies can be formed as a branch, a foreign or limited partnership, an international business company, a branch, or an exempt limited liability company.

TRUSTS
Jersey trusts mostly defer to English common law. Jersey trusts to not need to register or perform any filing activity. There is a duration of 100 years for jersey Trusts, and trusts for the purpose of asset protection are not specifically allowed.

TAXATION
The following is not taxed in Jersey: capital gains, capital transfers, sales, inheritance, estates.

PERSONAL TAXATION
Non-residents are taxed only on income derived in Jersey. Income is seen as from real property, including rent; interest; dividends. Some benefits other than cash bonuses, etc. may be exempt.

CORPORATE TAXATION
There is withholding tax of 15 percent. Real and other property used for company business must be specified in order to receive tax breaks.

OTHER TAXATION/DUTIES
There is a new Goods and Services tax of 3 percent in effect starting in 2008. There is no customs duty paid on goods in or out of Jersey to or from the rest of the European Union.