Tax

Tax residence in Guernsey

Guernsey income tax is due by reference to an individual’s residence position. For most people, residence is based on the actual days spent in Guernsey during a calendar year. However, Guernsey has two categories of residence plus special tax capping arrangements especially attractive for newcomers to the island.

The income tax rate is 20%. There is no capital gains tax, inheritance tax or VAT.

The island does not yet have separate taxation for couples (expected in a few years), so a wife’s income is generally taxed on her husband unless their residency statuses are different. There can be a form of raising seperate tax assessments, but the tax will remain the same overall.

Finally, don’t forget that Guernsey Social Security costs also arise, even for non-employed individuals and those above the age of 65. Further details can be provided on request.