Guernsey tax

Guernsey Taxes: Factual Information for Foreign Investors

• Corporate Income Tax:
  • The standard corporate income tax rate is 0%.
  • Certain regulated financial services businesses are taxed at 10%.
  • Specific Guernsey-regulated businesses, such as utility companies and Guernsey property income, are taxed at 20%.
• Individual Income Tax:
  • The standard individual income tax rate is 20%.
  • There are personal allowances.
  • There is no capital gains tax.
  • There is no inheritance tax.
• Tax Residency:
  • Tax residency is determined by factors such as the number of days spent in Guernsey and the individual's ties to the island.
  • Specific rules apply to determine residency status.
• Document Duty:
  • Document duty is levied on property transactions.
  • Rates vary depending on the property's value.
• Property Tax (TRP):
  • Tax on Real Property (TRP) is applied to domestic and commercial buildings.
  • The calculation is based on the size of the property.
• Social Security Contributions:
  • Social security contributions are payable by both employers and employees.
  • Rates are set by the States of Guernsey.
• Guernsey Foundations:
  • Guernsey Foundations are subject to specific tax rules.
• Guernsey Trusts:
  • Guernsey Trusts are subject to specific tax rules.
• Economic Substance Requirements:
  • Guernsey has economic substance requirements for specific sectors.
  • These requirements aim to ensure that businesses have a real presence in Guernsey.
• Pillar Two:
  • Guernsey is implementing the OECD's Pillar Two global minimum tax rules.
  • This includes the introduction of a 15% Domestic Top-up Tax (DTT) and a Multinational Top-up Tax (MTT).
  • These regulations are effective from January 1, 2025.
• Rent-a-room relief:
  • Individuals can claim an exemption of up to £10,000 of income per room per annum, with certain conditions.