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 £30,000 p.a. as a ‘Resident Only’ taxpayer.
- If a taxpayer is fully resident, a capping arrangement allows a taxpayer to limit their liability to £110,000 p.a. on non-Guernsey income.
- An individual with a combination of foreign and Guernsey source annual income (other than Guernsey property income) totalling more than £1,100,000 can restrict their tax liability to £220,000 p.a.
- No minimum amount of tax contribution 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, spirits and fuel.
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.