Jersey Overview of Economy for Foreign Investors

Key Sectors

• Financial Services: This is the largest sector, encompassing banking, trust and company administration, fund management, and investment services.
• Tourism: Contributes to the economy through visitor spending.
• Digital Sector: A growing sector, with a focus on attracting and developing technology businesses.

Economic Indicators

• Currency: The local currency is the Jersey pound, which has parity with the UK pound.
• GDP: Jersey has a high GDP per capita.
• Employment: The finance sector is a major employer.

Legal and Regulatory Framework.

• Regulation: The Jersey Financial Services Commission (JFSC) regulates the financial services industry.
• Legal System: Jersey's legal system is based on customary law, influenced by English common law.

Taxation

• Corporate Income Tax: The standard rate of corporate income tax is 0%. A 10% rate applies to certain financial services companies.
• Individual Income Tax: Residents are taxed on their worldwide income at a flat rate of 20%.
• Goods and Services Tax (GST): A consumption tax levied at 5%.

Business Environment

• Political Stability: Jersey has a stable political environment.
• Infrastructure: The island has a well-developed infrastructure.
• Location: Jersey is located close to the UK and mainland Europe.

Foreign Investment

• Jersey welcomes foreign investment, particularly in the financial services sector.

Important Considerations for Foreign Investors

• Regulation: The financial services sector is highly regulated.
• Economic Substance: Companies carrying on certain activities must meet economic substance requirements.