European Union Savings Tax Directive

The European Union Savings Tax Directive came into effect on 1 July 2005. Under this Directive, financial institutions in countries of the European Union (EU) are required to exchange information on the interest paid to customers who are individuals resident in other EU countries.

Initially it was agreed to offer a retention tax option (which is currently 35%) as an alternative to automatic exchange of information. Although Jersey and Isle of Man are not part of the EU, financial institutions in Jersey and Isle of Man are affected by the Directive. However, the Isle of Man Government announced that by 1 July 2011 retention tax would no longer be an option for individuals who hold their savings in the Isle of Man.

This means that all customers who are individuals resident in an EU country and hold an account with our Isle of Man branch, will with effect from 6 April 2011 have details of their identity, residence and interest paid disclosed to the Isle of Man tax authority who will forward this information to their home tax authority. Interest will be paid gross with no retention tax deducted. Additionally, individuals who are tax exempt (such as non-domiciled residents) will also be subject to exchange of information.

Jersey may move towards exchange of information in the future.

AIB Jersey & Isle of Man will therefore now only open new accounts at the Isle of Man branch for individuals who are EU residents on a disclosure basis, whereby automatic exchange of information will apply. 

You should note that you are responsible for ensuring that you fully understand your tax position and the tax implications of holding an offshore account.  You are also responsible for declaring any interest or other return on your accounts to any relevant tax authority whether in your country of residence or elsewhere.  AIB Jersey & Isle of Man does not give tax advice under any circumstances.  We recommend all customers obtain independent professional financial and tax advice relating to their individual circumstances.

For IOM Personal Banking Clients please click the link below which will take you to an external source.
IOM Finance

For Jersey Personal and Private Banking Clients please click the link below which will take you to an external source.
Jersey Finance