IMPORTANT WARNING: The contents of this report have been compiled in good faith by Investorsoffshore.com to provide assistance to investors, but do not constitute investment advice or recommendations. Investors should not rely upon the information given in order to choose types or routes of investment but should make their own independent enquiries before making choices. Investorsoffshore.com has taken reasonable care in researching and presenting the information herein but makes no representations as to its accuracy and accepts no liability for actions taken or not taken as a result.

The largest and most southerly of the Channel Islands between England and France, Jersey is a self-governing British Crown Dependency, with a population of around 94,000 (July 2011 est.) expatriates and residents. Despite being only 45 square miles, it is as bustling and active as offshore jurisdictions many times its size, and the moderate climate means that outdoor activities such as golf, swimming, water-sports and cycling are enjoyed by all its citizens.

As is the case in all of the Channel Islands, Jersey is exceptionally politically stable, and relationships with the United Kingdom, (which is responsible for its external affairs, such as dealings with the European Union), and with its peers are always cordial and respectful. The currency is the Jersey pound, which is on a par with the British pound, and there are no exchange controls.

In terms of living costs, prices are broadly the same as in the UK, although there is some divergence. Certain items, for example foodstuffs, are more expensive as a result of the various costs incurred in transportation. However, other goods benefit from the lack of VAT (although a Goods and Services Tax was introduced at a rate of 3% in 2008, later increased to 5% in 2011), and the low level of excise duties on the island. Housing is one major area in which prices are usually significantly higher than in the United Kingdom.

Jersey has a reasonably settled relationship with the multilateral organisations of the moment, namely the EU, the Financial Action Task Force (FATF), and the Organisation for Economic Co-operation and Development (OECD), although there was some friction with the latter in the early stages of its 'harmful tax competition' initiative. In the OECD's latest listing of offshore jurisdictions in April 2009, Jersey was placed in the 'white' section of the three-tier classification.

The island is not a member of the European Union, and as such is not necessarily obliged to comply with the Union's various tax initiatives, although the UK often tries to exert pressure on it to do so, as can be seen below. Recently the EU has been pressurizing Jersey (as well as Guernsey and the Isle of Man) to abandon their 'zero/ten' tax systems, under which non-financial companies pay zero tax. The outcome of this 'discussion' is unclear, however, as described in more detail below. Despite its close relationship with the UK, Jersey is excluded from most of the effects of Britain's accession to the EU, other than those concerning trade in goods. Its constitutional position in relation to Europe cannot be changed without the unanimous agreement of all EU member countries, which of course includes the UK, which never legislates regarding Jersey without consultation.

Jersey was described on the occasion of the release of the first FATF 'uncooperative countries' blacklist as being in 'close to complete adherence' with the organisation's forty anti-money laundering recommendations, and the jurisdiction is one of the most respectable and long-established of all the offshore financial centres.

It came as a surprise, then, when in Summer 2000, Jersey and Guernsey were included on the first OECD blacklist, accused of employing 'harmful tax competition' because they had refused to sign a letter committing themselves to abiding by the rules laid down on taxation by the organisation.

Jersey signed a 'commitment' letter to the OECD in February 2002, but it contained an 'Isle of Man' level playing field clause making changes dependent on comparable changes in Switzerland and the USA. By mid-2003, the OECD seemed to have forgiven Jersey, and was assisting it to design a 0% corporate tax system.

Jersey's unique situation with regard to the EU is both a strength and a weakness. The island will remain a favoured base for holding and trading companies working into the EU, and for e-commerce activity; but it has the EU and the OECD to contend with.

After several years of 'hands-off' policy in regard to Jersey taxation, the UK government in 2002 threatened Jersey with sanctions if it didn't fall in line with EU information-sharing rules under the Savings Tax Directive. In May, 2002, it became clear that Jersey, along with its fellow UK dependent territories Guernsey and the Isle of Man, was ready to sign up to the EU information-sharing regime if that became necessary; but after the EU finally reached its compromise agreement on the Directive in early 2003, Jersey decided, along with Guernsey and the Isle of Man, to apply a withholding tax to the returns on personal savings for EU residents.

This is known locally as a 'retention' tax, and was levied at 15% from 2005, when the Directive came into force until 2007; from 2008 the rate was increased to 20%, and from July, 2011, it was increased again, to 35%.

Jersey has expressed an interest in moving to automatic exchange of information under the Directive after Guernsey and the Isle of Man both switched from the withholding tax system to information exchange in 2011. However, a letter issued by the States of Jersey to paying agents in January 2011 clarified Jersey's position thus: "Unlike Guernsey and the Isle of Man, Jersey is not intending to move to automatic exchange of information with effect from 1 July 2011. Jersey’s current policy is not to decide on when to make this change until there is a clear statement from the EU on when the two EU member states (Austria and Luxembourg) presently applying a withholding tax will be required to move to automatic exchange of information."

Jersey's Advantages

Jersey is particularly well known for its banking and trust sectors, and the long established nature and popularity of these areas of expertise has meant that a good financial and business infrastructure has been established.

Despite the global financial turmoil in 2008, Jersey Finance reported just a 2% dip in the net asset value of funds in December 2008 compared to a year earlier, from GBP246.2bn to GBP241.2bn. However, the total number of funds increased by 161 from 1,311 to 1,472 over the same period.

Jersey’s finance industry has showed stable growth since then, with the value of funds administered in the island reaching its highest level for two years in the second quarter of 2011. The net asset value of funds being administered in Jersey grew for the fourth consecutive quarter to stand at GBP196.7bn as of June 30, 2011, a 10.5% year-on-year increase. This figure does not include funds established under the Unregulated Funds Regime, of which there were 136 by the end of the period – an 8.8% increase on the previous quarter. The alternative asset classes also reported net asset value growth of GBP2.3bn (1.6%) to GBP145.2bn. The JFSC authorised 25 new regulated funds during the second quarter of 2011, reflecting a 25% increase over the quarter. The value of funds under investment management increased by GBP0.9bn (4.2%) compared to the previous quarter from GBP21.3bn to GBP22.2bn.

The total number of live companies on the register increased by 118 from 32,998 to 33,116 during the second quarter of 2011.

Banking deposits decreased by GBP1.5bn (1%) during the second quarter of 2011 from GBP166.5bn to GBP165bn. However, deposits originating from the Far East and Middle East remained impressive, standing at GBP8.7bn and GBP20.4bn respectively. This continues to represent a combined total of around 18% of Jersey’s level of deposits and reflects the value of recent promotional activity in Hong Kong, Greater China and the United Arab Emirates.

Geoff Cook, Chief Executive of Jersey Finance Limited, commented: “There continues to be very positive news for the funds sector, which saw an increase in the total net asset value of funds under administration and management. New business instructions were up 25% and, subject to markets stabilising, we expect to see improvements in new funds numbers in the coming months.”

“Although the banking sector saw a slight decrease in deposits, the reduction amounted to just 1% and was driven by a decrease in deposits from other banks. In fact, if we drill down into the figures, customer deposits were up GBP1.2bn during the period, whilst weaker sterling added a further GBP0.9bn to the value of foreign currency deposits.”

“Given [that] most economies did not recover at the rate economic forecasters were predicting for the second quarter of 2011, these latest figures demonstrate a stable position with improvements in company formation numbers and investment management being sustained."

Cook also noted that company formations had increased for a third successive quarter, a good indicator, he said, of the health of an economy.

So is Jersey a suitable location for your assets? Should you establish a business presence there? It depends…due to a number of factors, including time zone, and language, which it shares with all of the Channel Island jurisdictions, Jersey is most suitable for UK (non-resident) expatriates, foreign residents living and working in the UK, expatriate consultants and business people and European citizens.

However, if you belong to any of the above groups, and have liquid assets which you would like to protect for the future, would like to establish a personal service company, or would simply like to take advantage of the tax advantages afforded to non-residents, then it could well be ideal. Below are just some of the factors in Jersey's favour:

• Favourable Location. As previously stated, Jersey is conveniently located for both Western Europe and the United Kingdom, being both within spitting distance of France and the UK (depending on how far you can spit, that is!). The climate is moderate, and political stability is a key advantage.
  
• Double Tax Treaties. In common with many offshore and low tax jurisdictions, Jersey does not enter into a great number of double taxation agreements. However, there are agreements in place with the United Kingdom and Guernsey (which do not follow the OECD model). There is also a limited agreement with France, which exempts shipping and air transport profits from tax.

• Regulatory Environment. Thus far, all of the Channel Island jurisdictions have a good reputation in the offshore world which they intend to keep, and as such it is in their interests to maintain a high regulatory standard. The financial sector in Jersey (which takes in banking, investment funds, insurance, and in some cases trust and company management) is regulated by the Financial Services Commission. Tellingly, unlike many other jurisdictions, Jersey banking law contains capital adequacy provisions tougher than those contained in the Basle requirements.

• Infrastructure. As previously stated, the business and financial infrastructure in Jersey is modern, efficient, and extensive. They've been doing it for a long time, and they do it well.

• Online Facilities And Telecommunications. Although until relatively recently, Jersey was not particularly noted in terms of online and e-commerce facilities on offer - perfectly respectable, and able to acquit itself compared to many offshore jurisdictions, but nothing special - the island has gone to great lengths to enhance its telecommunications system, and has invested millions per year in e-commerce development and telecoms, meaning that whether you want to check up on your business presence on the island, or just want to contact your bank manager, you should have no problems accessing a fast and reliable service. It seems that it may only be a matter of time before Jersey establishes itself as a Western European e-commerce hub, with the inherent affinity between offshore and the internet facilitating this.

• Established Stock Exchange. Jersey is a member of the Channel Islands Stock Exchange, which is based in St Peter Port, in Guernsey, and commenced operations in 1998. The 2,000th listing on the exchange occurred on April 16, 2007, when Isle of Man collective investment fund Lansdown Atlantic Life Settlement Fund was admitted to the Official List, and the number of listings reached 4,000 in May, 2011, with the listing of a GBP110m convertible debt bond by London Mining (Jersey) plc. The exchange has developed specialist niches in floating property funds, open and closed-ended investment funds, debt, securities and special purpose vehicles and is attracting increasing interest from alternative investment funds. The CISX also lists international trading companies and not just those based in Guernsey. In September, 2002, the US Securities and Exchange Commission awarded the Channel Islands Stock Exchange (CISX) designated offshore securities market status. The UK Inland Revenue (now HMRC) awarded the CISX recognised stock exchange status in the same year.

Wealth Management In Jersey

Although Jersey is widely recognised in the institutional investment world as one of the leading jurisdictions for pensions and insurance fund management, other areas of expertise perhaps more of interest to expats, international consultants, and HNWI include its banking sector, and its company and trust formation sectors. Foundations, a new product, have been available since 2009.

The majority of the banks established in Jersey are branches or subsidiaries of the world's top banking establishments, and as previously mentioned, are in the main well regulated and safe, with capital adequacy levels not seen in many offshore jurisdictions. Advantageous tax treatment of interest income from Jersey bank accounts - excepting, of course, the STD related retention tax - combined with this peace of mind, means that alone, or in combination with other offshore structures, bank accounts in Jersey are a good bet.

The efficient infrastructure, which includes internationally qualified IFAs, accountants, lawyers, and stockbrokers, is also an important factor, and they should be able to provide you with information and support both in deciding whether it is appropriate to locate your assets in Jersey, and in the succeeding years if you choose to do so.

Jersey can also be a beneficial location in which to establish an offshore structure, whether for the purposes of asset protection, or to serve as a business presence for global consultants and other such self-employed professionals. Due to the burgeoning e-commerce sector, it was becoming possible to establish a personal services company in Jersey (usually in the form of an IBC) to act as a repository for funds earned around the world, and to take advantage of the island's generous tax regime.

However, in accordance with Jersey’s commitment to the ‘Rollback’ provisions of the EU Code of Conduct for Business Taxation, the International Business Company vehicle was abolished to new entrants with effect from 1st January, 2006. Benefits for existing beneficiaries of the International Business Company regime will have been progressively extinguished by no later than the 31st December 2011.

In any case, tax evasion or money laundering via a Jersey offshore structure would be very difficult to accomplish, as beneficial ownership for all Jersey based companies and vehicles must be disclosed to the authorities. However, it will never be disclosed externally except by order of the Royal Court. Tax minimisation, in conjunction with the laws of the island, however, is eminently possible.

Obviously, though, you will need assistance in setting up and maintaining these structures, and what is appropriate for you will vary according to your personal circumstances and country of residence, so you should always consult a qualified professional before making any decision of this kind.

Permission to reside in Jersey on employment grounds (about which more later) is often negotiated when applications are made to establish a business presence on the island.

Probably the most appropriate vehicles in Jersey for expats or non-UK citizens in need of asset protection for estate planning or other purposes (and in addition to, or in combination with a Jersey bank account), is the Jersey trust. The normal form of trust in Jersey is a discretionary trust, and where the beneficiaries of the trust are non-resident, income arising from sources outside Jersey are not liable for income tax there, and neither are distributions to the beneficiaries.

Although the costs involved in setting up and maintaining a Jersey trust can vary considerably, the creation of such a structure is free from government duty at least. Trust law in Jersey explicitly excludes foreign inheritance laws, and except in cases of proven criminal wrongdoing, foreign judgements are rarely recognised.

The foundation may also be an attractive possibility. In introducing the Foundation, Jersey became the first Crown Dependency to offer the structure and according to Jersey Finance, there was keen interest in the new law from the start; five Foundations were established on the day that the law came into force and more than 40 registrations to allow practitioners to establish Foundations were approved in the week after the law was introduced.

Foundations have a long history in continental Europe. In medieval times they were used for charitable or religious purposes. They are now commonly used for wealth management, and residents of jurisdictions like the Middle and Far East are more familiar with foundations than with trusts, which do not exist in their legal systems.

The regulations will permit foundations to migrate in and out of Jersey. They also provide for existing Jersey companies to convert to foundations.

The approval of the Jersey Foundations Law by Jersey’s Privy Council was welcomed by Jersey Finance as a hugely positive step in affirming the island as a centre of excellence for private wealth management business.

It is also worth mentioning that Jersey has retained its position as the highest rated offshore international finance centre in the latest Global Financial Centres Index (GFCI) published on September 26, 2011.

Overall, Jersey is placed 21st in the competitive rankings, which are published every six months, ahead of Guernsey in 31st, the Isle of Man (40th), Cayman Islands (46th) and Malta (70th).

Welcoming the report, Jersey Finance, the promotional agency for the island's financial services industry, noted that Jersey has climbed into the top ten locations in the world for wealth management and private banking services, in eighth place, and is the fifth-highest ranked location overall in Europe, behind London, Zurich, Geneva and Frankfurt.

Jersey has also moved from being categorized as a ‘transnational specialist’ to a ‘global specialist’ centre, becoming the only offshore centre to achieve a ‘global’ profile, listed alongside centres such as Beijing, Dubai and Geneva. The Index also scores Jersey well in terms of stability and as the 16th highest ranked centre globally in terms of reputation - the only offshore centre to appear in the top 20 centres by reputational advantage.

Geoff Cook commented: “Jersey has performed extremely well in this latest Index, holding on to its position as the top offshore centre, which it has now held for five consecutive Indexes. To be listed ahead of major European centres such as Paris, Munich and Luxembourg, confirms that Jersey is incredibly well regarded on the global stage.”

“This is particularly pleasing when you consider that Jersey is one of the only offshore centres to have improved its global ranking and is now referred to as a global player and one of the top centres worldwide for wealth management services. That Jersey’s stability is also emphasised is extremely positive in the current climate, whilst the fact that the Index recognises Jersey’s reputation is testament to the hard work that goes in to promoting Jersey both at home and in key foreign markets.”

Jersey As A Location For Career Expats And Retirees

Jersey, in common with some of the other island jurisdictions, for example Guernsey, the Isle of Man, Bermuda, and the Cayman Islands, has a good standard of living but limited space and resources as a result of a comparatively dense population.

Therefore, although it is possible to achieve short-term residence for employment purposes, or long term residence if you are suitably qualified (in either the traditional or financial sense!), achieving permanent residence in Jersey is no mean feat…

For the majority of expatriates, the two issues mentioned above are inextricably linked, as there are really only two ways to obtain residence on the island; on economic grounds, or on employment grounds.

Initial enquiries regarding the possibility of gaining residence on economic grounds should be made to the Chief Advisor to the States of Jersey, as each case is considered on its individual merits. The Chief Advisor then consults with the Housing Committee. Although there are no hard and fast rules about who will be accepted, and normally only 5 or 10 approvals are granted each year, the following criteria may be considered when the application is being processed:

• Likely contribution to tax revenues (usually capital worth in excess of £10 million is preferred)
• Professional and social background
• Number of dependants
• Non-economic benefits which may be received by the island if permission is granted.

In addition to this, new residents accepted on economic grounds are expected to purchase a substantial luxury property, preferably with a value in excess of hundreds of thousands of pounds.

Achieving permission to reside and work on the island is a less expensive business, certainly, but is still not easy! Nationals of EU member states have free right of movement in Jersey, and do not need to apply for work permits (non-EU member country citizens must apply to the States Defence Committee of the Aliens Office for permission to reside and work on the island), but employers still need to apply for a license in order to employ them.

Residence in Jersey as an essentially employed individual is known as 'J category' residence, and permission is usually granted if the Housing Committee feels that it is in the best interests of the community to approve the application, if the employer has a good record in recruiting and training local people, if no suitably qualified local can be found to do the job, and finally, if the aforementioned licence has been granted to the employer.

If the Housing Committee is satisfied with an applicant, it will issue either time-restricted (usually 3-5 years), or open-ended consent. The former is more typical, although the latter is sometimes offered to senior or highly skilled employees, and permanent residential status is afforded after 10 years of continuous essential service on the island.

The Housing Committee also has the authority to grant or withhold permission to buy or rent property in the jurisdiction for J category employees, and can sometimes require employers to purchase or lease property in order to house their expatriate workforce.

In view of the limited space and resources available, and the desire to maintain the standard of living of existing residents, Jersey is of necessity not terribly family friendly. It is possible for the fiancé(e) or spouse of an expatriate who is coming to live and work in Jersey, to obtain entry by applying for a visa or entry certificate. Children of economic or J category migrants obtain residential status in their own right after an aggregate period of 10 years residence, provided that that residence began when they were under 18.

Residence And Taxation

Residence in Jersey for taxation purposes is divided into three categories: Residence, Ordinary Residence, and Non-Residence. Few jurisdictions employ the concept of ordinary residence any more, but it is not complicated, and really just implies a greater continuity than simple residence. A person is considered to be Jersey resident for tax purposes if they are:

• Physically present there for more than six months of the year
• Present in Jersey for an average of at least 3 months per year over a 4 year period
• Maintaining an abode in Jersey and visit the island at some time during the tax year, even for only one day.

Income tax is levied at one rate of 20%, and resident and ordinarily resident individuals are subject to tax on their world-wide income. Resident but not ordinarily resident individuals are subject to tax on Jersey-source income and foreign income remitted back to the island, and non-resident individuals are taxed only on Jersey income, with interest payments from Jersey-based bank accounts exempted from this by concession (but see above regarding the EU's Savings Tax Directive).

Although social security contributions are payable, and property owners may be liable for some parish taxes, there is no property tax, capital gains tax, wealth tax, or estate tax payable in Jersey, which may account for its popularity as a destination for HNWIs.

Jersey, like the UK's other Crown dependencies of Guernsey and the Isle of Man, is facing up to a moment of truth as it struggles to fit its corporate tax regime within the Iron Maiden of the EU's Code of Conduct Committee. For the last few years, Jersey has been operating a 'zero/10' regime in which the financial sector is taxed at 10% while other types of company are exempt from income taxation.

Jersey hoped this would be enough for it to escape the reach of the Committee, but it was not to be - the island has been too successful, so its competitors in Continental Europe insist on 'transparency' and a 'level playing field', hoping to force Jersey into taxing all companies the same.

You might wonder what power the EU has to force the Jersey to knuckle under, and indeed the formal answer is: 'none'. The reality, however, is that the island is reliant on approval or at least tacit acceptance of its regime by the OECD, the G20 and other embodiments of today's global moral financial police. And indirectly, pressure is exerted through the UK, which has an ill-defined but still fairly potent relationship with Jersey.

The Crown dependencies received some goods news in September 2011, or at least it sounded good on the face of it, when Jersey and the Isle of Man appeared to have been given the all-clear by the Code Group because both jurisdictions had committed to remove certain 'harmful' elements from their tax regimes, namely, in Jersey's case, the deemed distribution rules.

Jersey Chief Minister Terry Le Sueur said at the time: “Following the ongoing Review of our Business Tax Regime, the Treasury Minister proposed, and the States then agreed, legislative amendments which aimed to remove elements of our legislation that were considered harmful by the Code Group.”

"At its meeting [on] September 13, which was attended by Jersey officials, I am pleased to report the Code of Conduct Group accepted that our rollback proposal would remove the harmfulness of our regime. This has to be ratified by ECOFIN (the European Council of Finance Ministers) in December at the end of the Polish Presidency.”

"This is excellent news for Jersey, and vindicates the consistent stance maintained by the Treasury Minister and myself over a long period.”

"In these challenging times it is good to be able to present members with some very positive news, which should serve to significantly strengthen confidence in our island’s future."

One gets the feeling, however, that this isn't the end of the zero-ten saga, and it seems hard to believe that this legislative change, which leaves the zero-ten regime largely intact, will be enough to appease those EU member states which are most precious about the level playing field. This, therefore, could be merely a temporary reprieve for Jersey's corporate tax system.

So Jersey, small but increasingly wealthy, has already been forced to consider alternatives to zero-ten should the worst case scenario materialise, none of which would be without their difficulties. It could secede from the UK altogether, but no-one talks about that nuclear option; it could make all its corporate forms tax-transparent, like US LLCs or Limited Partnerships; it could impose 10% tax on all companies; or it could abolish corporate tax altogether.

The last option is the one the finance sector would like, probably, which would cock a massive snoot at the EU, but the revenue Jersey now gets from corporate tax would have to be replaced; and that is what the government is currently agonizing about. Will the island's citizens put up with major increases in taxes in order to favour the financial sector which is the backbone of the economy?

Theoretically, it should be possible: there are plenty of other 'low-tax' jurisdictions across the world which manage without corporate tax.

The Jersey government itself has outlined a number of new tax proposals in a Green Paper, summarizing the findings of a Fiscal Strategy Review, as part of a consultation with islanders on how best to generate additional tax revenues, and it's the outcome of that consultation that could largely determine its eventual choice among the various corporate tax options should it be compelled to dismantle the zero-ten regime.

The four major possibilities, as discussed in the document, involve increases to:

• Goods and Services Tax (GST);
• Social Security contributions;
• Domestic property rates; or
• Income Tax

Each of these could provide at least GBP30m to government coffers, says the document. Other possibilities include hikes to company registration fees, the introduction of business licence fees, and the removal of mortgage interest relief on a transitional basis.

In a parallel consultation aimed mostly at the business community, the government set out five proposals for change to the corporate tax regime:

• Flat rate of corporate tax: The corporate income tax rates currently imposed would be replaced with a positive standard rate of tax applicable to all companies, at a rate of no lower than 10%, imposed on the worldwide income of all Jersey resident companies, and on the local source income of Jersey branches of foreign companies.
• Transparent treatment for tax purposes: A tax transparent company would not be subject to Jersey corporate income tax but effectively treated the same as a limited partnership for tax purposes. This would mean that a company’s income would be assessable upon each beneficial owner in proportion to their holding in the company.
• A territorial system of tax: Companies would generally only be subject to tax on income that has its source in Jersey. Non-Jersey source profits would not be subject to Jersey corporate tax. Currently, a Jersey resident company is subject to Jersey tax on its worldwide income while a non-resident company is only taxable on income arising in the Island.
• A repayable tax credit system: Jersey resident companies would be subject to tax on their worldwide profits at the standard rate, with a credit for overseas tax suffered. On distribution, shareholders would be able to reclaim a proportion of the tax suffered, leading to a lower effective rate of tax overall.
• Abolition of corporate tax: Lastly, Jersey has proposed abolishing corporate tax entirely. Its consultation document notes that a number of jurisdictions, including the Overseas Territories of the UK, impose no direct taxes. Under such a system, Jersey resident companies would no longer be subject to income tax on their profits.

Last but best! The government however is keeping its cards close to its chest, and everything probably depends on the response of the islanders themselves to the prospect of increased personal taxation, whether that be through more income tax, more sales tax, more property tax or even all of them at once. It's going to be a very interesting time, if you live in Jersey.

For more detailed information on liability for tax in Jersey, please visit the Lowtax Jurisdictions Guide.

Conclusion

So, is Jersey a good final destination for you, your assets or your business? Unfortunately, on the first question, no definitive answer can be given, as the answer will depend very much on your personal circumstances, wealth, qualifications, and family situation. Each application is considered on its individual merits, and because of the high standard of living and relative wealth of the jurisdiction, it is quite a popular choice. But at the same time there are relatively few opportunities for obtaining permanent residence available. However, it is possible, so if you have a substantial liquid net worth, and are prepared to contribute to the community, or if you are a skilled career expat, used to moving around fairly frequently, it could be just the place for you.

On the issue of whether Jersey is a good location in which to locate your assets and/or personal service company, however, there really isn't much dispute. Although obviously there are no guarantees in the offshore world, especially with the OECD vacillating on various issues, Jersey, in common with the other Channel Islands has a reasonably calm relationship with the major multilaterals, is politically stable, experienced in the areas of trust management, company formation and administration, and banking, and should present no problems in the areas of telecommunications or support services. It isn't the cheapest jurisdiction in which to locate an offshore vehicle, but neither is it one of the most expensive; all in all, Jersey strikes a good balance.

For up-to-date news about the offshore and taxation regime, visit the Jersey section of Tax-News.com.

Other Useful Links:

This Is Jersey

The Tax-News Jersey Review 2010-2011