Jersey and Guernsey, the Channel Islands, are British Crown Dependencies that belong neither to the EU nor, for tax purposes, to the United Kingdom. They have their own legal system, based on English common law and Norman customary law, and have been regarded for centuries as reliable jurisdictions for trusts, foundations and discreet wealth structures.
Why the Channel Islands for asset protection?
The Channel Islands offer a unique profile: geographically close to Europe, legally and fiscally completely independent of the EU. Jersey is one of the oldest trust jurisdictions in the world; Jersey trust law protects assets against creditors, foreign judgments and state intervention. Guernsey offers similar structures, complemented by a modern foundation law. Both islands have reported account data under the OECD CRS standard since 2017, yet protect wealth structures towards third parties with a high degree of discretion.
The tax framework
Jersey and Guernsey levy income tax of 20% on local income, but no capital gains tax, no inheritance tax and no wealth tax. For offshore structures (trusts, foundations, holding companies) with non-resident beneficiaries and non-local income, the effective tax burden is usually zero. The islands have tax information agreements with many countries but are not part of the EU VAT system.
Practical uses
Channel Islands structures are particularly suited to: protecting property assets through Jersey Property Unit Trusts, holding shareholdings in British and European companies, the discreet management of family wealth through trusts with professional trustees, and as a basis for Family Investment Companies with a British connection.
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