Guernsey has a low tax regime for both individuals and corporate. There is no Capital Gains Tax, Inheritance Tax, Death Duties, GST or VAT, and there is a low Corporation Tax rate.

As a self-governing British Crown Dependency, the island’s own system of taxation offers a long-standing, competitive regime that meets OECD standards of transparency and information exchange.

Personal taxation

The personal tax rate is a flat 20%, after deduction of available personal allowances and reliefs.

individuals looking to relocate to Guernsey should consider the following:

As a taxpayer, if you spend under six months of the calendar tax year in the island (an 91 days or more in another jurisdiction), you can limit your Guernsey tax liability to just £40,000 p.a. known as the ‘standard charge’

• If a taxpayer is fully resident, a capping arrangement allows them to limit their liability to £160,000 p.a. on non-Guernsey income. Guernsey source income (excluding Guernsey bank interest) remains subject to Guernsey tax at 20%
• An individual with a combination of foreign income and substantial Guernsey source annual income can restrict their tax liability to £320,000 p.a.
  
• No minimum amount of tax contribution is required in order to become Guernsey resident. Residency is dependent on the number of days (midnights) spent on the island

Tax Cap for New Residents

There is a temporary tax cap of £60,000 per annum for any new resident (who is solely or principally resident) subject to certain conditions:

To be eligible for the open market tax cap you must have been non-Guernsey resident in the 3 years prior to the year of arrival;

You must have purchased and occupy an open market property in Guernsey and, as a result of the purchase, paid document duty of at least £50,000 (property transaction of circa £1,360,000).

You can claim this cap for the year you take up residence and the three consecutive years. Your property purchase must have taken place either within 12 months prior to, or 12 months after, your first arrival in Guernsey.

Property owners and occupiers may also be liable for tax on real property and parish rates, but these are very reasonable and particularly low in comparison with similar rates in the UK, as are excise duties charged on tobacco, beers, wines and spirits.

Company tax

Companies in Guernsey are subject to three different tax rates:

• A standard rate of 0% applies to most companies
• An intermediate rate of 10% applies to income from specific financial and insurance-related activities, including banking, domestic insurance, regulated fiduciary services, insurance intermediaries, and insurance management
• A higher rate of 20% applies to income from trading activities in utilities regulated by the Channel Islands Competition and Regulatory Authorities, as well as income derived from owning land and buildings in Guernsey