Banks have played a key role in the development of the Channel Islands as an international financial centre. These institutions represent a range of countries and include a variety of banks with head offices all over the world.
Currency in Channel Islands
The official currency throughout the Channel Islands is the pound sterling, which is divided into 100 pence. Although it’s the same unit as used in the United Kingdom, the bailiwicks of Jersey and Guernsey produce their own notes and coins. British currency is accepted throughout the Channel Islands, but Guernsey (GGP) and Jersey (JEP) pounds can’t be used outside the islands.
Notes: 1, 5, 10, 20 and 50 GGP/JEP
Coins: 1, 2, 5, 10, 20 and 50 pence, and 2 GGP/JEP
Banking in Channel Islands
The Channel Islands boast a good selection of both local and international banks, including most of the big British banks such as Barclays and Lloyds.
The range of services offered is quite diverse. Some banks provide retail services such as savings and transactional accounts, mortgages, personal loans, and debit and credit cards, while others cater to the affluent expat market with offshore investment opportunities.
ATMs are widely available in Guernsey and Jersey, often located at the branches themselves, but may be harder to find on the smaller islands.
Taxes in Channel Islands
Taxes in the Channel Islands are considered relatively low, and there is no VAT, capital gains tax or inheritance tax. This is one of the biggest attractions to expats and offshore investors. Those working in the Channel Islands can benefit from a flat income tax rate of 20 percent. However, as the laws governing tax can be complex, it’s best for expats moving to the Channel Islands to get advice from a resident tax expert who will have access to the latest information.