How Jersey strengthened amid a shifting wealth landscape

Jersey has long been considered a wealth haven for those seeking the most tax-efficient location to live in and run a business from. Retaining this status is no easy feat. New global competitors, ever-changing regulation, and economic pressures can lead jurisdictions to rise and fall in appeal.

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With this in mind, Jersey stands today as one of the most attractive locations for wealth management, helped by the evolving circumstances in nearbyUK and Monaco. Understanding this dynamic can help you to maximise your financial situation when considering a potential relocation.

Since the 1920s, Jersey has carefully tailored its tax structure to draw in wealth:

·       Personal income tax: At 20%, Jersey’s personal income tax is among the lowest in Europe

·       Inheritance tax: No inheritance tax is paid by Jersey residents, making it an attractive location for estate planning

·       Capital gains tax: Similarly, there’s no capital gains tax, which further supports the transfer of wealth between generations and long term investment planning

·       Corporate tax: The island’s corporate tax is zero for most businesses. Financial services firms pay 10%,while Jersey-based utility companies, large retailers, oil importers, and property income is taxed at 20%.

The Jersey Financial Services Commission regulates the island’s financial services industry with a progressive, risk-based approach, providing robust legal protections for companies and investors.

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What’s more, companies offering financial services in Jersey aren’ t required to register offshore trust accounts, bringing privacy to clients, simplifying administration, and reducing the compliance burden, all without compromising international standards.

Jersey’s high degree of privacy also contributes to its appeal. The island maintains a “centralised and secure beneficial ownership register”, according to Jersey Finance, that helps to combat economic crime. Unlike most EU nations, the register is not publicly available, and only accessed by tax authorities and law enforcement.

The UK vs Jersey

Although the UK can’t offer the same attractive taxation terms as Jersey, the country has traditionally been a popular location among business owners and high net worth individuals (HNWI). A business-friendly environment, access to global markets, and a skilled local workforce are among the reasons why. However, recent legal shifts have arguably damaged the UK’s competitiveness.

April 2025 saw a change in the UK’s non-domicile rules that abolished the Remittance Basis in favour of what’s known as the "10/4 Rules". The rules mean that individuals who have been a non-UK resident for 10 years prior to April 6, 2025, won’t be taxed on their world wide income for four years should they return to the UK. After four years, the exemption expires, and worldwide income will be subject to tax as a UK resident. Meanwhile, the exemption applies only to income and gains accrued after April 6, 2025, and claiming it results in the loss of Personal Allowance and Annual Exemption.

Monaco vs Jersey
Monaco remains one of Jersey’s closes competitors for wealth haven status, owing to its tax-efficient policies and proximity in Europe. Both locations offer zero capital gains tax and inheritance tax, although in Monaco, the exemption only applies to direct heirs. Meanwhile, there’s no personal income tax in Monaco, and a 20% flat rate applies in Jersey. However, recent setbacks have damaged Monaco’s reputation and status as a wealth haven.

In June 2024, Monaco was added to the Financial Action Task Force’s (FATF) grey list of jurisdictions for failing to take adequate measures to prevent money laundering from illegal activities committed overseas. The principality was also judged to have not done enough to seize illegal assets. One year later, the European Commission addedMonaco to its black list of countries with weak anti-money laundering regimes, citing “strategic deficiencies” in the nation’s approach.

These rulings spotlight one influential factor that sets Jersey apart: the sophistication of its legal framework. During July 2024, MONEYVAL, a monitoring body of the Council of Europe, published its Fifth Round Mutual Evaluation Report (MER) for Jersey.The report was hugely positive, highlighting the effectiveness of the island’s anti-money laundering and combating the financing of terrorism systems.

So how should you decide your domicile location?

Although Jersey’s position has strengthened in recent years, careful due diligence is still fundamental before you make a commitment. Here are some of the key factors to consider:

·       Taxation: Alongside the standard tax rates, income, corporation, capital gains, and inheritance, understand what double taxation treaties exist. It’s also wise to understand the stability or otherwise of the tax law, as uncertainty can introduce risk.

·       Legal and regulatory framework: Consider the compliance andreporting burden, and the associated costs and complexity this can bring. Anoverly cumbersome framework could impact your business and investment gains.Similarly, be sure to understand the reality of confidentiality and dataprotection.Discretionis an asset.

·       Business and investment environment: Alongside access to capital, quality of talent, and infrastructure, consider the breadth and sophistication of the financial services at your disposal, and their suitability to your needs.

·       Lifestyle and family considerations: Safety, healthcare, education, and the general standard of living can’t be an afterthought. Meanwhile, consider the long-term situation regarding visa options and residency, relative to you and your family’s medium and long-term plans. Flexibility is your friend.

The final word

For businesses and HNWI's, deciding where to be domiciled is financially significant. There are many nuances to consider: the international reach of your business, current successions plans, planned divestments, and much more. Finding the right fit can help you to maximise your circumstances.

Jersey stands today as the first choice for many who are seeking a secure and mature hub for growing their business and preserving their wealth in the long term. Still, deciding whether Jersey, the UK, or Monaco are right for you requires careful due diligence. Reckon is perfectly placed to help.  

Contact us today to discuss your goals and achieving them with Reckon’s partnership.