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 separate 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.