Skip to content
DIXCART DOMICILES DIXCART DOMICILES
  • Register
  • Contact
x
MENUMENU
  • Residence & Citizenship
    • Countries
    • Cyprus
      • Cyprus

        Cyprus sunset
      • Individuals wishing to move to Cyprus can apply for a Permanent Residence Permit which is useful as a means to ease travel to EU countries and organise business activities in Europe.

        FIND OUT MORE
    • Guernsey
      • Guernsey

        Guernsey
      • The island of Guernsey is the second largest of the Channel Islands, which are situated in the English Channel. British citizens, EEA nationals and Swiss nationals are eligible to move to Guernsey. Nationals of other countries require permission to “leave to remain” in Guernsey. A number of tax advantages exist for individuals who relocate to Guernsey permanently.

        FIND OUT MORE
    • Isle of Man
      • Isle of Man

        Isle of Man
      • EU Nationals have the right to reside in the Isle of Man. Non-EU nationals need to obtain a residence visa and there are two types of Isle of Man visa which are particularly attractive to high net worth individuals: Tier 1 Entrepreneur Route and Tier 1 Investor Route.

        FIND OUT MORE
    • Malta
      • Malta

        Malta
      • Malta has several different residence schemes, each offering the opportunity to move to Malta and some providing the option to gain Maltese citizenship.

        FIND OUT MORE
    • Portugal
      • Portugal

        Portugal
      • Portugal’s Golden Visa programme is the perfect solution for non-EU citizens, investors, and families looking for Portugal residency and the option to apply for citizenship after 6 years.

        FIND OUT MORE
    • St Kitts & Nevis
      • St Kitts & Nevis

        Nevis
      • One of the oldest and most respected programmes of its kind, the St Kitts & Nevis Citizenship by Investment Programme grants qualified applicants instant visa-free access and visa-free on arrival to over 150 countries. There is no requirement to travel to St Kitts & Nevis and there are no annual residency rules to maintain the passport.

        FIND OUT MORE
    • Switzerland
      • Switzerland

        Switzerland
      • Switzerland ranks among the top countries in the world in which to live, due to its high quality of living and reputation as a centre of international trade and finance. No restrictions are imposed by Swiss immigration law on permanent residence for financially independent EU citizens and individuals who choose to live there can benefit from the Lump Sum System of Taxation.

        FIND OUT MORE
    • UK
      • UK

      • There are two particularly popular types of UK visa for non-EU nationals: the UK Start-up visa and the UK Innovator visa.

        FIND OUT MORE
    • Other Countries
    • Programmes – Benefits & Criteria
    • Residence & Citizenship Planning
    • Real Estate
  • About
    • Our People
    • Our Offices
    • Contact Dixcart Domiciles
  • News & Media
    • Articles
    • Magazines
    • Videos

News & Media

Guernsey Tax – the benefits and tax efficiencies of moving to Guernsey

Moving to Guernsey – The Benefits and Tax Efficiencies

The island of Guernsey is the second largest of the Channel Islands, which are situated in the English Channel close to the French coast of Normandy. The Bailiwick of Guernsey comprises three separate jurisdictions: Guernsey, Alderney and Sark. Guernsey is the largest and most populated island in the Bailiwick. Guernsey combines many of the reassuring elements of UK culture with the benefits of living abroad. Find out more about Guernsey Tax in the article below.

Guernsey is independent from the UK and has its own democratically elected parliament which controls the island’s laws, budget and levels of taxation. Legislative and fiscal independence mean that the island can respond quickly to the needs of business. In addition, the continuity achieved through the democratically elected parliament, without political parties, helps deliver political and economic stability.

Guernsey – a tax efficient jurisdiction 

Guernsey is a leading international financial centre with a good reputation and excellent standards: 

  • The general rate of tax payable by Guernsey companies is zero*.
  • There is no capital gains tax, inheritance tax, value added tax or withholding tax.
  • Income tax is generally a flat rate of 20%. 

*Generally, the rate of corporation tax payable by a Guernsey company is 0%.

There are certain limited exceptions when a 10% or 20% rate of tax apply. Please contact the Dixcart office in Guernsey, for further details: advice.guernsey@dixcart.com.

 Tax residence and a significant tax advantage

An individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on Guernsey source income only, subject to a minimum charge of £40,000. In this instance any additional income earned outside Guernsey will not be taxed in Guernsey. 

Alternatively, an individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on his or her worldwide income. 

Special provisions are available for those who are resident in Guernsey solely for employment purposes. 

For Guernsey income tax purposes an individual is ‘resident’, ‘solely resident’ or ‘principally resident’ in Guernsey. The definitions relate primarily to the number of days spent in Guernsey during a tax year and, in many cases, also relate to the days spent in Guernsey in several preceding years. 

Precise definitions and current tax rates and allowances are available on request.

Attractive tax cap for individuals

Guernsey has its own system of taxation for residents. Individuals have a tax-free allowance of £13,025. Income tax is levied on income in excess of this amount at a rate of 20%, with generous allowances. 

‘Principally resident’ and ‘Solely resident’ individuals are liable to Guernsey income tax on their worldwide income. 

‘Resident only’ individuals are taxed on their worldwide income or they can elect to be taxed on their Guernsey source income only and pay a standard annual charge of £40,000. 

Guernsey residents falling under one of the three residence categories above can pay 20% tax on Guernsey source income and cap the liability on non-Guernsey source income at a maximum of £150,000 OR cap the liability on worldwide income at a maximum £300,000. 

New residents to Guernsey, who purchase an ‘open market’ property, can enjoy a tax cap of £50,000 per annum on Guernsey source income in the year of arrival and subsequent three years, as long as the amount of Document Duty paid, in relation to the house purchase, is at least £50,000. 

The island offers attractive tax caps on the amount of income tax payable by residents and has:

  • No capital gains taxes
  • No wealth taxes
  • No inheritance, estate or gift taxes
  • No VAT or sales taxes

Immigration to Guernsey 

The following individuals do not generally need permission from the Guernsey Border Agency to move to the Bailiwick of Guernsey: 

  • British citizens.
  • Other nationals of Member States of the European Economic Area and Switzerland.
  • Other nationals who have permanent settlement (such as indefinite leave to enter or remain in the Bailiwick of Guernsey, United Kingdom, Bailiwick of Jersey or the Isle of Man) within the terms of the Immigration Act 1971. 

An individual who does not have an automatic right to live in Guernsey must fall within one of the categories below: 

  • Spouse/partner of a British citizen, EEA national or settled person.
  • Investor
  • Person intending to set themselves up in business.
  • Writer, artist or composer. 

Any other individual wishing to move to the Bailiwick of Guernsey must obtain an entry clearance (visa) prior to his/her arrival.  The entry clearance must be applied for through the British Consular representative in the individual’s country of residence. The initial process generally starts with an online application via the British Home Office website.

Property in Guernsey 

Guernsey operates a two tier property market. Individuals who are not from Guernsey can only live in open market property (unless they have a work licence), which is generally more expensive than local market property. 

What other advantages does Guernsey offer? 

  • Location

The island is situated approximately 70 miles from the south coast of England and a short distance from the north-west coast of France. It has 24 square miles of beautiful countryside, a stunning coastline and a mild climate, courtesy of the Gulf Stream. 

  • Economy

Guernsey has a stable and diverse economy: 

  • Low tax regime which is compliant with international standards
  • AA+ credit rating
  • World class professional services with a global network
  • A pro-business attitude with easy access to government decision makers
  • Frequent connections to London airports
  • Part of the sterling zone
  • Mature legal system
  • Quality of Life

Guernsey is renowned for its relaxed, high quality standard of living and a favourable work-life balance. The following benefits are available: 

  • A wide range of attractive residential properties to choose from
  • A safe and stable place to live
  • High-powered “city” jobs without the downsides of commuting or inner city living
  • First rate education system and quality health care
  • Peter Port, one of Europe’s most attractive harbour towns
  • Breath-taking beaches, stunning cliff coastline and idyllic countryside
  • High quality restaurants
  • The natural resources of the island enable a variety of recreational and sporting activities
  • A strong sense of community with a charitable spirit 
  • Transport Links

The island is only forty-five minutes from London by air and has excellent transport links to the seven key UK airports, which enables easy access to European and international connections.

Find out more about living in Guernsey.

What does Sark offer? 

In addition to Guernsey, the island of Sark falls within the Bailiwick of Guernsey. Sark is a small island (2.10 square miles) with a population of approximately 600 and has no motorised transport. 

Sark offers a very relaxed lifestyle and a simple and low tax system. Personal tax per adult resident, for example, is capped at £9,000. 

There are laws which restrict the occupation of certain dwellings.

Dixcart Trust Corporation Limited, Guernsey: Full Fiduciary Licence granted by the Guernsey Financial Services Commission. 

Guernsey registered company number: 6512. 

Publication

18 January 2023

Reference

IN605

Country/Countries

Living in Guernsey.

For further information

Please contact Steven De Jersey.

Back

Related Articles

  • Significant Tax Advantages Available to Individuals Moving to Guernsey

    Read More
  • Guernsey and the Isle of Man: Convenient Choices to Reset the Clock for UK Non-Domiciles

    Read More
  • Facebook Share
  • Twitter Share
  • Linkedin Share

Register

Register to receive articles by email

Register Now
  • Home
  • Residence & Citizenship
  • About Dixcart Domiciles
  • News & Media
  • Dixcart Domiciles Offices
  • Contact Dixcart Domiciles
  • Privacy Notice
  • Terms & Conditions
  • Cookie Policy
  • Dixcart.com
  • linkedin
DIXCART DOMICILES

© 2023 Dixcart Domiciles Limited
All rights reserved.

This website uses cookies to personalise content
and to analyse our traffic.
View our cookie policy
Decline Optional Cookies Cookie settings Accept All Cookies
Cookie Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
CookieDurationDescription
__cf_bm30 minutesThis cookie, set by Cloudflare, is used to support Cloudflare Bot Management.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga_ZQJKVB4BD92 yearsThis cookie is installed by Google Analytics.
_gat_UA-2583253-161 minuteA variation of the _gat cookie set by Google Analytics and Google Tag Manager to allow website owners to track visitor behaviour and measure site performance. The pattern element in the name contains the unique identity number of the account or website it relates to.
CONSENT2 yearsYouTube sets this cookie via embedded youtube-videos and registers anonymous statistical data.
vuid2 yearsVimeo installs this cookie to collect tracking information by setting a unique ID to embed videos to the website.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
VISITOR_INFO1_LIVE5 months 27 daysA cookie set by YouTube to measure bandwidth that determines whether the user gets the new or old player interface.
YSCsessionYSC cookie is set by Youtube and is used to track the views of embedded videos on Youtube pages.
yt-remote-connected-devicesneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt-remote-device-idneverYouTube sets this cookie to store the video preferences of the user using embedded YouTube video.
yt.innertube::nextIdneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
yt.innertube::requestsneverThis cookie, set by YouTube, registers a unique ID to store data on what videos from YouTube the user has seen.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
Powered by CookieYes Logo