Guernsey has a low tax regime for both personal and corporate. No Capital Gains Tax, No Inheritance Tax, No Death Duties, No GST or VAT and Low Corporation Tax.
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.
The personal tax rate is a flat 20%, after deduction of personal allowances and reliefs.
A UK non-dom 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, 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 a taxpayer to limit their liability to £150,000 p.a. on non-Guernsey income.
- An individual with a combination of foreign and Guernsey source annual income (other than Guernsey property income) can restrict their tax liability to £300,000 p.a.
- No minimum amount of tax contribution is required in order to become Guernsey resident.
- 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.
Tax Cap for New Residents
There is a temporary tax cap of £50,000 per annum for any new resident (who is solely or principally resident) subject to certain conditions:
- You must have been non-Guernsey resident in the 3 years prior to the year of arrival;
- You must have purchased 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 £1,400,000) .
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
There are three tax rates for companies in Guernsey: a company standard rate of 0%, an intermediate rate of 10% on income from banking business, domestic insurance business, regulated fiduciary business, insurance intermediary business and insurance manager business, and a company higher rate of 20% on income trading activities at utilities regulated by the Channel Islands Competition and Regulatory Authorities, and income from the ownership of lands and buildings in Guernsey.