Guernsey

Bailiwick of Guernsey

Guernsey has its own system of taxation for Guernsey residents. Individuals have a tax-free allowance of £13,025 (2023). Income tax is levied on income in excess of this amount at a rate of 20%, with generous allowances.

‘Principally resident’ and ‘Solely resident’ individuals are liable to Guernsey income tax on their worldwide income.

‘Resident only’ individuals are taxed on their worldwide income or they can elect to be taxed on their Guernsey source income only and pay a standard annual charge of £40,000.

There are other options for Guernsey residents falling under one of the three residence categories above. They can pay 20% tax on Guernsey source income and cap the liability on non-Guernsey source income at a maximum of £150,000 OR cap the liability on worldwide income at a maximum £300,000.

Significant benefits are available and we advise that you contact the Dixcart office in Guernsey to fully explain these options: advice.guernsey@dixcart.com.

A final advantage applies to new Guernsey residents, who purchase open market property. They can enjoy a tax cap of £50,000 per annum on Guernsey source income, in the year of arrival and subsequent three years, if the amount of Document Duty pain in relation to the house purchase, is equal to or greater than £50,000.

The island offers attractive tax caps for Guernsey residents and has:
• No capital gains taxes
• No wealth taxes
• No inheritance, estate or gift taxes,
• No VAT or sales taxes

Bailiwick of Guernsey

The following individuals do not generally need permission from the Guernsey Border Agency to move to the Bailiwick of Guernsey:

• British citizens.
• Other nationals of Member States of the European Economic Area and Switzerland.
• Other nationals who have permanent settlement (such as indefinite leave to enter or remain in the Bailiwick of Guernsey, United Kingdom, Bailiwick of Jersey or the Isle of Man) within the terms of the Immigration Act 1971.

An individual who does not have an automatic right to live in Guernsey must fall within one of the categories below:

• Spouse/partner of a British citizen, EEA national or settled person.
• Investor. A person seeking to enter and then remain in the Bailiwick of Guernsey must provide evidence that they have £1 million of their own money under their control in Guernsey, of which a minimum of £750,000 must be invested in a manner which is “of benefit to the Bailiwick”.
• Person intending to set themselves up in business. Individuals will be required to provide a business plan as the minimum entry level to show there is a genuine need for the investment and services in Guernsey and provide evidence of £200,000 of their own money under their control.
• Writer, artist or composer. Individuals must have professionally established themselves outside of Guernsey and do not intend to work except as a writer, artist or composer.

Any other individual wishing to move to the Bailiwick of Guernsey must obtain an entry clearance (visa) prior to his/her arrival. The entry clearance must be applied for through the British Consular representative in the individual’s country of residence. The initial process generally starts with an online application via the British Home Office website.

Bailiwick of Guernsey

• An individual resident in Guernsey for 182 days or more is considered ‘Principally Resident’.
• ‘Resident Only’: an individual resident in Guernsey for 91 days or more and 91 days or more in another jurisdiction during the calendar year.
• ‘Solely Resident’: an individual resident in Guernsey for 91 days or more per year and not resident in another jurisdiction during the calendar year of charge for more than 91 days.
• ‘Non-resident’: an individual not falling into any of the above categories, is generally only liable to Guernsey income tax arising from an unincorporated business, employment income, property development and rental income in Guernsey.

Island of Sark

Simple and very low tax system based on:

1. Property tax on local property – which is based on the size of the property
2. Personal tax per resident adult (or having property available) for over 91 days:
   • Based on personal assets or dwelling size
   • Capped at £9,000

There is a property transfer tax on property sales/leases.

Island of Sark

The following individuals do not generally need permission from the Guernsey Border Agency to move to the Bailiwick of Guernsey:

• British citizens.
• Other nationals of Member States of the European Economic Area and Switzerland.
• Other nationals who have permanent settlement (such as indefinite leave to enter or remain in the Bailiwick of Guernsey, United Kingdom, Bailiwick of Jersey or the Isle of Man) within the terms of the Immigration Act 1971.

An individual who does not have an automatic right to live in Guernsey must fall within one of the categories below:

• Spouse/partner of a British citizen, EEA national or settled person.
• Investor. A person seeking to enter and then remain in the Bailiwick of Guernsey must provide evidence that they have £1 million of their own money under their control in Guernsey, of which a minimum of £750,000 must be invested in a manner which is “of benefit to the Bailiwick”.
• Person intending to set themselves up in business. Individuals will be required to provide a business plan as the minimum entry level to show there is a genuine need for the investment and services in Guernsey and provide evidence of £200,000 of their own money under their control.
• Writer, artist or composer. Individuals must have professionally established themselves outside of Guernsey and do not intend to work except as a writer, artist or composer.

Any other individual wishing to move to the Bailiwick of Guernsey must obtain an entry clearance (visa) prior to his/her arrival. The entry clearance must be applied for through the British Consular representative in the individual’s country of residence. The initial process generally starts with an online application via the British Home Office website.

Island of Sark

There are no specific residence requirements. Tax is payable if an individual resides in Sark or has a property there which is available to him/her for over 91 days per annum.