In 2018 Guernsey introduced a significant tax cap for new residents to the island.
Guernsey can often be overlooked as somewhere to relocate to in comparison to other countries around the world, however it has so much to offer and there are a number of very attractive tax reasons why it shouldn’t be ignored – there is more to the island than just the breath-taking views and coastline.
Guernsey is an independent country, with a straight-forward and beneficial fiscal regime. Being autonomous from the UK, it has its own democratically elected Parliament with full control over island laws, budgets and levels of taxation, and has introduced several appealing changes to the tax system over the last few years, especially for individuals relocating to the island.
There is no capital gains tax, inheritance tax, wealth tax, VAT or goods and services tax in Guernsey and individuals have a tax-free allowance of £12,175 on Guernsey source income. Income tax is charged at a flat rate pf 20%.
In 2018, Guernsey proved further its intention to encourage high net worth individuals to the island by introducing a new, very advantageous, tax cap for newcomers.
New residents who purchase an ‘Open Market Property’ and pay a minimum £50,000 document duty (currently the duty payable on a property worth £1.5 million) can benefit by capping their Guernsey source income tax liability at £50,000. The tax cap applies in the tax year of permanent arrival in Guernsey, and the subsequent three years.
In addition to the considerable tax advantages, there are some other great reasons to relocate to Guernsey. Located just off the northern coast of France, the island enjoys a lovely climate with warm long summers and short winters. Almost all outdoor activities are available on the island, so if you, and your family, enjoy an outdoor lifestyle, Guernsey is a fantastic place to choose for your next move.
It is also a hop, skip and a jump away from the UK, with only 45 minutes to London by air. The currency is sterling, the time zone is the same as Britain and it combines many of the reassuring elements of UK culture with the benefits of living abroad. It has a high standard of living, with a wide range of attractive residential properties, low crime rates, excellent education system, a thriving hospitality industry and eclectic social calendar.
If island life interests you and you are considering a move to Guernsey, or would like to set up a visit, please get in touch with our Guernsey office for a quick coffee and chat: email@example.com. We also work alongside Locate Guernsey and can put you in touch with them for further tips about the island and what you can expect from this alluring, family friendly destination.