The Channel Islands are a group of British Isles consisting of the islands of Guernsey, Jersey, Alderney, Sark, Herm, Jethou, Brechou, and Lihou located in the English Channel west of Normandy.

Because of their location near both France and England, the official language is both English and French. Some of the more than 200,000 residents of the Islands also speak a patiois that is a blend of both.

One of the things that is not a blend of English and French culture is the official currency, with the British pound, which is divided into 100 pence, winning out. It has a conversion rate against the U.S. dollar of £ 1.00(GBP) = US$ 1.59

These islands are famous for their tax haven status and also their offshore banking for much of Western Europe. Their close proximity to the bigger nations and strong taxation and privacy laws make them a very attractive offshore banking and incorporating location. While finance makes up a large portion of the economy; it is also fueled by agriculture, including the growing of fruits, vegetables and the raising of dairy cattle. The tourism industry is also playing a large part in The Channel Islands growing economy.

Though they are close geographically to other European nations, the Islands are not part of the European Community. Heavily influenced by English Common Law, The Islands’ laws are a mixture of local legislation, customary law, and include legislation past in the UK.

People of the Channel Islands have full British Citizenship, but are not represented in the UK Parliament. Instead each Guernsey and Jersey have their own primary legislatures, with Chief Pleas in Sark and the States of Alderney.

Not all islanders are considered European citizens even though they receive full British citizenship. A passport printed with the words “British Islands”, “Bailiwick of Jersey” or “British Islands, Bailiwick of Guernsey” is issued to any British citizen who applies for it in the Channel Islands.

Real estate investors and those who have real estate trusts as part of their portfolios, are particularly fond of the Channel Islands. These types of investments are taxed at a far lower rate than they are in the UK.

Thanks to the low tax laws on estate trusts along with offshore banking connections to Britain and United Kingdom offered to individuals, and companies from other countries, they have instilled a certain amount of confidence in the security of making a private investment using their banking system. Add to that a legal system that many Westerners are more familiar with than that of Middle Eastern countries, the Channel Islands should be on everyone’s list as a offshore tax haven.