Guernsey

Guernsey

Thinking beyond borders

Related content

 
Residents are taxed on their worldwide income less any deductions, such as double tax relief, personal allowance, contributions to personal pensions and mortgage interest. Non-residents are taxed on their Guernsey-sourced income, with certain exceptions. Depending on their circumstances, the tax payable by an individual can be capped at GBP 30,000 Guernsey pounds, GBP 110,000 or GBP 220,000.

Key message

Typically, individuals are subject to income tax at a flat rate of 20 percent. There are no taxes on capital gains, inheritance or gifts in Guernsey.

Income tax

Liability for income tax

The basis of an individual’s Guernsey tax liability is determined by their residence status. The criterion is the number of days of presence in Guernsey (at midnight at the end of the day).

Tax trigger points

Guernsey income is taxed on a receipts basis. A non-resident individual is only liable to Guernsey tax on income that arises or accrues in Guernsey, with the exception of dividends, royalties, bank interest and non-executive directors’ fees.

A person who is resident (but not solely or principally resident) in Guernsey may elect to be assessed on Guernsey-sourced income only (subject to a minimum charge of GBP 30,000), with no allowances, reliefs or deductions available. Alternatively, they are liable to Guernsey income tax on their worldwide income with allowances, reliefs and deductions (including double tax relief) available.

An individual who is resident (but not solely or principally resident), who comes to Guernsey wholly or mainly for employment reasons, may elect to be taxed on Guernsey-sourced income plus remittances of non-Guernsey income sources.

Married couples are assessed to tax jointly, in the husband's name, unless an election is made for separate assessment.

A solely or principally resident individual will be taxable on their worldwide income with appropriate allowances, reliefs and deductions (including double tax relief) available. Alternatively, an individual who is solely or principally resident may elect to pay tax in accordance with the tax cap of GBP 220,000 on worldwide income (subject to a maximum of GBP 110,000 non-Guernsey income sources); only income arising from land and buildings situated in Guernsey is taxed above this cap.

Types of taxable income

Employment/self-employment (including benefits-in-kind), bank interest, investment income, and rental income.

Tax rates

Guernsey has a flat tax rate of 20 percent for individuals. The standard rate of income tax on companies is 0 percent, with a rate of 10 percent applicable to certain banking profits, profits of certain domestic insurance, insurance intermediary businesses, insurance manager businesses and fiduciary businesses. From 1 January 2026, this has been extended to include the provision of custodial services. A rate of 20 percent applies to businesses regulated by the Office of Utility Regulation, and to profits derived from the exploitation of land and buildings situated in Guernsey; from 1 January 2016 this rate has been extended to the import of hydrocarbons and retail profits where a group's taxable profits are over GBP 500,000 for the year.

Guernsey tax residence flowchart for individuals

Guernsey tax residence flowchart for individuals

Social security

Liability for social security

Any employee working in Guernsey must register for Guernsey social security. In 2016, employees are subject to contributions of 6 percent of their gross salary capped at GBP 687.96 per month. Employer’s contributions of 6.5 percent of gross salary are capped at GGP745.29 per month. Reciprocal agreements with some jurisdictions allow an individual on a temporary secondment to continue to pay contributions in their home jurisdiction.

Compliance obligations

Employee compliance obligations

The tax year is a calendar year.

Individuals are required to complete and file an annual personal tax return by 30 November of the following year. Individuals who are not already registered are required to inform the Director of Income Tax of their liability to Guernsey tax by 14 July following the year in which any chargeable income arises.

Tax returns must be filed by non-residents who are in receipt of Guernsey-sourced income (except for dividends, royalties, bank interest and non-executive directors’ fees).

Employer reporting and withholding requirements

Tax and social security contributions are withheld from employment income and are separately reported to both departments either monthly or quarterly, depending on the size of the company.

Immigration

Work permit/visa requirements

The Guernsey housing market is divided into open market and local market sections. The open market amounts to approximately 10 percent of the total housing in Guernsey and is around 40 percent more expensive than local market housing. 

European Union (EU) citizens moving to Guernsey must obtain a Guernsey housing license in order to occupy a local market property. These generally last for a maximum of 5 years, although longer licences may be granted in some circumstances. Anyone can move to Guernsey if they buy and occupy an open market home, and any EU citizen occupying an open market home is eligible to work in Guernsey. 

If recruiting from outside the EU, proof of recruitment efforts within Guernsey, the United Kingdom and the EU must be provided and the work permit available is generally for a maximum of 4 years. There are also certain restrictions on accompanying partners/family members.

Other issues

Double taxation treaties

Guernsey has double taxation agreements with a number of countries, providing either exemptions from tax in one jurisdiction or relief from double taxation by way of credit.

 

top

Other issues

Double taxation treaties

Guernsey has double taxation agreements with a number of countries, providing either exemptions from tax in one jurisdiction or relief from double taxation by way of credit.

Permanent establishment implications

Companies are resident in Guernsey if they are incorporated in Guernsey or if they are controlled in Guernsey (i.e. the majority shareholders are resident in Guernsey).



A permanent establishment (PE) of a company which is non-resident for Guernsey tax purposes is subject to Guernsey tax on the profits of that PE arising in Guernsey.

Indirect taxes

Guernsey currently has no value-added tax (VAT) or goods and services tax (GST). There are indirect taxes on consumables such as tobacco, alcohol and petrol.

Transfer pricing

Guernsey has no specific transfer pricing legislation, though it does have general anti-avoidance legislation.

Work permit/visa requirements

The Guernsey housing market is divided into open market and local market sections. The open market amounts to approximately 10 percent of the total housing in Guernsey and is around 40 percent more expensive than local market housing.



European Union (EU) citizens moving to Guernsey must obtain a Guernsey housing license in order to occupy a local market property, and these generally last for a maximum of 5 years, although longer licenses may be granted in some circumstances. Anyone can move to Guernsey if they buy and occupy an open market home, and any EU citizen occupying an open market home is eligible to work in Guernsey.



If recruiting from outside the EU, proof of recruitment efforts within Guernsey, the United Kingdom and the EU must be provided and the work permit available is generally for a maximum of 4 years. There are also certain restrictions on accompanying partners/family members.

Local data privacy requirements

Guernsey has data privacy laws.

Exchange control

Guernsey has no exchange controls.

Non-deductible costs for assignees

Benefits provided to employees are generally taxable as salary unless specifically exempted. Specifically exempted benefits include:

 

  • the first GGP450 of benefits provided in a year
  • employer’s contributions to an approved pension scheme
  • business related entertaining
  • actual reasonable expenditure incurred in removal to Guernsey and the setting up of a property in Guernsey by a newly recruited/transferred employee
  • the first GGP12,940 (2013) of a disturbance allowance paid to such an employee
  • provision of temporary accommodation and/or travelling expenses for up to the first 4 months from commencement of employment (subject to a limit of GGP5,000)

Other

The provision of accommodation to an employee is a taxable benefit in Guernsey. The benefit is calculated as the lower of the open market rental value of the property and 15 percent (for unfurnished accommodation) or 17.5 percent (for furnished accommodation) of the employee’s total assessable remunerations.

 

top

Other issues

Double taxation treaties

Guernsey has double taxation agreements with a number of countries, providing either exemptions from tax in one jurisdiction or relief from double taxation by way of credit.

Permanent establishment implications

Companies are resident in Guernsey if they are incorporated in Guernsey or if they are controlled in Guernsey (i.e. the majority shareholders are resident in Guernsey).



A permanent establishment (PE) of a company which is non-resident for Guernsey tax purposes is subject to Guernsey tax on the profits of that PE arising in Guernsey.

Indirect taxes

Guernsey currently has no value-added tax (VAT) or goods and services tax (GST). There are indirect taxes on consumables such as tobacco, alcohol and petrol.

Transfer pricing

Guernsey has no specific transfer pricing legislation, though it does have general anti-avoidance legislation.

Work permit/visa requirements

The Guernsey housing market is divided into open market and local market sections. The open market amounts to approximately 10 percent of the total housing in Guernsey and is around 40 percent more expensive than local market housing.



European Union (EU) citizens moving to Guernsey must obtain a Guernsey housing license in order to occupy a local market property, and these generally last for a maximum of 5 years, although longer licenses may be granted in some circumstances. Anyone can move to Guernsey if they buy and occupy an open market home, and any EU citizen occupying an open market home is eligible to work in Guernsey.



If recruiting from outside the EU, proof of recruitment efforts within Guernsey, the United Kingdom and the EU must be provided and the work permit available is generally for a maximum of 4 years. There are also certain restrictions on accompanying partners/family members.

Local data privacy requirements

Guernsey has data privacy laws.

Exchange control

Guernsey has no exchange controls.

Non-deductible costs for assignees

Benefits provided to employees are generally taxable as salary unless specifically exempted. Specifically exempted benefits include:

 

  • the first GGP450 of benefits provided in a year
  • employer’s contributions to an approved pension scheme
  • business related entertaining
  • actual reasonable expenditure incurred in removal to Guernsey and the setting up of a property in Guernsey by a newly recruited/transferred employee
  • the first GGP12,940 (2013) of a disturbance allowance paid to such an employee
  • provision of temporary accommodation and/or travelling expenses for up to the first 4 months from commencement of employment (subject to a limit of GGP5,000)

Other

The provision of accommodation to an employee is a taxable benefit in Guernsey. The benefit is calculated as the lower of the open market rental value of the property and 15 percent (for unfurnished accommodation) or 17.5 percent (for furnished accommodation) of the employee’s total assessable remunerations.

 

top

Other issues

Double taxation treaties

Guernsey has double taxation agreements with a number of countries, providing either exemptions from tax in one jurisdiction or relief from double taxation by way of credit.

Permanent establishment implications

Companies are resident in Guernsey if they are incorporated in Guernsey or if they are controlled in Guernsey (i.e. the majority shareholders are resident in Guernsey).



A permanent establishment (PE) of a company which is non-resident for Guernsey tax purposes is subject to Guernsey tax on the profits of that PE arising in Guernsey.

Indirect taxes

Guernsey currently has no value-added tax (VAT) or goods and services tax (GST). There are indirect taxes on consumables such as tobacco, alcohol and petrol.

Transfer pricing

Guernsey has no specific transfer pricing legislation, though it does have general anti-avoidance legislation.

Work permit/visa requirements

The Guernsey housing market is divided into open market and local market sections. The open market amounts to approximately 10 percent of the total housing in Guernsey and is around 40 percent more expensive than local market housing.



European Union (EU) citizens moving to Guernsey must obtain a Guernsey housing license in order to occupy a local market property, and these generally last for a maximum of 5 years, although longer licenses may be granted in some circumstances. Anyone can move to Guernsey if they buy and occupy an open market home, and any EU citizen occupying an open market home is eligible to work in Guernsey.



If recruiting from outside the EU, proof of recruitment efforts within Guernsey, the United Kingdom and the EU must be provided and the work permit available is generally for a maximum of 4 years. There are also certain restrictions on accompanying partners/family members.

Local data privacy requirements

Guernsey has data privacy laws.

Exchange control

Guernsey has no exchange controls.

Non-deductible costs for assignees

Benefits provided to employees are generally taxable as salary unless specifically exempted. Specifically exempted benefits include:

 

  • the first GGP450 of benefits provided in a year
  • employer’s contributions to an approved pension scheme
  • business related entertaining
  • actual reasonable expenditure incurred in removal to Guernsey and the setting up of a property in Guernsey by a newly recruited/transferred employee
  • the first GGP12,940 (2013) of a disturbance allowance paid to such an employee
  • provision of temporary accommodation and/or travelling expenses for up to the first 4 months from commencement of employment (subject to a limit of GGP5,000)

Other

The provision of accommodation to an employee is a taxable benefit in Guernsey. The benefit is calculated as the lower of the open market rental value of the property and 15 percent (for unfurnished accommodation) or 17.5 percent (for furnished accommodation) of the employee’s total assessable remunerations.

 

top

Other issues

Double taxation treaties

Guernsey has double taxation agreements with a number of countries, providing either exemptions from tax in one jurisdiction or relief from double taxation by way of credit.

Permanent establishment implications

Companies are resident in Guernsey if they are incorporated in Guernsey or if they are controlled in Guernsey (i.e. the majority shareholders are resident in Guernsey).



A permanent establishment (PE) of a company which is non-resident for Guernsey tax purposes is subject to Guernsey tax on the profits of that PE arising in Guernsey.

Indirect taxes

Guernsey currently has no value-added tax (VAT) or goods and services tax (GST). There are indirect taxes on consumables such as tobacco, alcohol and petrol.

Transfer pricing

Guernsey has no specific transfer pricing legislation, though it does have general anti-avoidance legislation.

Work permit/visa requirements

The Guernsey housing market is divided into open market and local market sections. The open market amounts to approximately 10 percent of the total housing in Guernsey and is around 40 percent more expensive than local market housing.



European Union (EU) citizens moving to Guernsey must obtain a Guernsey housing license in order to occupy a local market property, and these generally last for a maximum of 5 years, although longer licenses may be granted in some circumstances. Anyone can move to Guernsey if they buy and occupy an open market home, and any EU citizen occupying an open market home is eligible to work in Guernsey.



If recruiting from outside the EU, proof of recruitment efforts within Guernsey, the United Kingdom and the EU must be provided and the work permit available is generally for a maximum of 4 years. There are also certain restrictions on accompanying partners/family members.

Local data privacy requirements

Guernsey has data privacy laws.

Exchange control

Guernsey has no exchange controls.

Non-deductible costs for assignees

Benefits provided to employees are generally taxable as salary unless specifically exempted. Specifically exempted benefits include:

 

  • the first GGP450 of benefits provided in a year
  • employer’s contributions to an approved pension scheme
  • business related entertaining
  • actual reasonable expenditure incurred in removal to Guernsey and the setting up of a property in Guernsey by a newly recruited/transferred employee
  • the first GGP12,940 (2013) of a disturbance allowance paid to such an employee
  • provision of temporary accommodation and/or travelling expenses for up to the first 4 months from commencement of employment (subject to a limit of GGP5,000)

Other

The provision of accommodation to an employee is a taxable benefit in Guernsey. The benefit is calculated as the lower of the open market rental value of the property and 15 percent (for unfurnished accommodation) or 17.5 percent (for furnished accommodation) of the employee’s total assessable remunerations.

Permanent establishment implications

Companies are resident in Guernsey if they are incorporated in Guernsey or if they are controlled in Guernsey (i.e. the majority shareholders are resident in Guernsey). 

A permanent establishment (PE) of a company that is non-resident for Guernsey tax purposes is subject to Guernsey tax on the profits of that PE arising in Guernsey.

Indirect taxes

Guernsey currently has no value-added tax (VAT) or goods and services tax (GST). There are indirect taxes on consumables such as tobacco, alcohol and petrol.

Transfer pricing

Guernsey has no specific transfer pricing legislation, though it does have general anti-avoidance legislation.

Local data privacy requirements

Guernsey has data privacy laws.

Exchange control

Guernsey has no exchange controls.

Non-deductible costs for assignees

Benefits provided to employees are generally taxable as salary unless specifically exempted. Specifically exempted benefits include:

  • the first GGP 450 of benefits provided in a year
  • employer’s contributions to an approved pension scheme
  • business related entertaining
  • actual reasonable expenditure incurred in removal to Guernsey and the setting up of a property in Guernsey by a newly recruited/transferred employee
  • the first GBP 13,453 of a disturbance allowance paid to such an employee
  • provision of temporary accommodation and/or travelling expenses for up to the first 4 months from commencement of employment (subject to a limit of GBP 5,000)

Other

The provision of accommodation to an employee is a taxable benefit in Guernsey. The benefit is calculated as the lower of the open market rental value of the property and 15 percent (for unfurnished accommodation) or 17.5 percent (for furnished accommodation) of the employee’s total assessable remuneration.

Thinking Beyond Borders: Management of Extended Business Travelers

As businesses become global, few organizations seem to understand the risks that business travel may bring.

 
Read more

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform