Jersey
Jersey exhibits regulatory niche construction: a 119 km² Crown Dependency managing £1.3 trillion in global assets through 0% corporate tax and fund administration specialization.
Jersey exemplifies how a 119-square-kilometer island can punch enormously above its weight through regulatory niche construction. This Channel Island, a Crown Dependency that belongs to the British Crown but not the United Kingdom, manages over £1.3 trillion in global assets—ranking alongside Switzerland, Luxembourg, and Singapore as a premier offshore financial center despite having only 110,000 residents.
The island's economic structure shows extreme specialization. Financial services generate nearly 40% of gross value added, employing almost 14,000 people—roughly one-fifth of all jobs. Fund administration is the particular specialty, with investment funds holding net asset value exceeding £400 billion. Most companies pay 0% corporate tax; financial service firms pay only 10%. No capital gains, wealth, or inheritance taxes exist.
This niche depends on maintaining regulatory credibility while exploiting geographic ambiguity. Jersey is not part of the UK and never joined the European Union, yet the English Crown provides legal backstop. MONEYVAL's 2024 assessment rated Jersey among the highest globally for preventing financial crime. The Financial Times has shifted from calling Jersey a 'tax haven' to a 'low-tax offshore centre'—linguistic evolution that matters when your business model requires perceived legitimacy.
GDP reached £6.9 billion in 2024 (£65,800 per capita—higher than most OECD nations), though this contracted 0.7% from 2023. The 2025 implementation of OECD Pillar Two rules introduces 15% minimum effective tax for large multinationals, testing whether Jersey can adapt its niche as global tax coordination tightens. Like many island specialists, survival means perpetual regulatory arbitrage.