Jersey: Country and Foreign Investment
Investments by Foreigners
The authorities deter "active" foreign investment (new businesses and permanent immigration) but welcome "passive" investment (purchase of real estate for investment purposes, or the purchase of existing business assets). This is part of the administration's general policy of protecting the island's scarce resources. Therefore the island does not offer investment incentives, other than its permissive tax regime as such.
It became clear in May 2002 however that Jersey, along with its fellow UK dependent territories Guernsey and the Isle of Man, would agree to be part of the EU's information-sharing regime, the Savings Tax Directive, whereby financial institutions will be obliged to pass details of income on investments by nationals of EU member states to their home tax administrations. The EU introduced this information-sharing on 1 July 2005, although Jersey along with Guernsey, the Isle of Man, Austria, Belgium, and a number of 'third countries' including Switzerland, decided instead to opt for a withholding tax on interest income which was applied initially at a rate of 15%. This rate increased to 20% on July 1, 2008, and to 35%, on July 1, 2011.