Guernsey Key Characteristics

Geographical and Historical

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 islands are renowned for their temperate climate and relaxed, high quality standard of living. They are an attractive location for many holidaymakers and an appealing destination for many affluent individuals wishing to settle there permanently.

The history of Guernsey relates to both Normandy and to England, due to their ownership by the Duke of Normandy, who became King of England in 1066. The traditions and laws of Guernsey combine a fascinating blend of both cultures.

This history has helped to create the unique political and economic position of Guernsey today.

Law

Guernsey law is based on the Norman system, overlaid with English procedures and precedents. Members of the Legislative Assembly for the islands have complete freedom in matters of domestic and fiscal law, and this has generated a very straightforward and stable legislative framework. This has enabled Guernsey's position as an international financial centre and allowed the island to continue to develop and flourish.

European Union

The Channel Islands, including Guernsey, are excluded from all aspects of the European Union Treaty of Rome, except those relating to free trade, agricultural and industrial products. This leaves the islands with full access to their traditional trading markets, but without having to conform to harmonisation directives, which might have threatened their unique independence.

Taxation

Income tax for local residents is currently 20%. There are no capital taxes whatsoever and there are attractive limits set on the tax payable at source by non-residents using Guernsey as a financial centre. There is no withholding tax on locally generated bank interest.

Currency and Exchange Control

Guernsey issues its own currency, which is accepted throughout the Channel Islands. It is tied to UK Sterling at par. Both residents and non-residents may have foreign currency bank accounts on the island and invest and transfer anywhere in the world. They may promote trusts, companies and investment management services, which enjoy the same treatment.

There are no exchange controls.