Relocate Show 2024

Tax
As an independent, self-governing jurisdiction, Guernsey has
developed its own attractive system of taxation for residents.
The system is very straightforward and caps the amount of
income tax payable by residents.
18
Guernsey Residents pay:
• 0% Inheritance Tax
• 0% Capital Gains Tax
Personal income tax is charged at the
flat rate of 20% with caps available.
The basis on which income tax is charged
depends on the taxpayer’s residence
status and whether they are “resident
only” or “solely or principally resident”
in Guernsey for tax purposes.
Tax residency categories are based on
the number of days an individual spends
on the island.
Tax Capping for Guernsey
residents
It is possible to cap exposure to income
tax in Guernsey as an alternative to
paying a flat rate of 20%.
The maximum tax liability for any
individual who does not have Guernsey
source income will be £160,000 per
annum.
For those who have both Guernsey and
non-Guernsey source income (Guernsey
bank interest does not count as Guernsey
source income) the maximum tax liability
is £320,000 per annum.
Individuals who are “resident only” may
elect to pay a “standard charge” which is
currently set at £40,000 per annum.
At the time of writing, new Open Market
residents can benefit from a tax cap for
up to their first four years of residence.
The tax cap is currently set at £60,000
per annum. This is subject to the
conditions listed below.
An individual must:
• be principally resident in Guernsey
• pay £50,000 or more in document
duty for the purchase of an Open
Market Part A property - at the current
rates this equates to a property
purchase of about £1.4 million or more
• make the purchase either 12 months
before or after the date of taking up
residence in Guernsey
Foreign and worldwide tax caps
are not limited in duration and are
applicable no matter how many years
the individual has been solely or
principally resident in Guernsey.
Double tax treaty and pensions
Under the terms of the Double Tax Treaty
with the UK, pensions are only taxable
in the taxpayer’s country of residence.
Therefore, for individuals moving
to Guernsey from the UK, their UK
income tax liability will be replaced by
a Guernsey income tax liability and the
rate of tax will be 20%.
Important note
Please note that this information is a summary only and has been prepared for information purposes.
Locate Guernsey does not provide tax, legal or accounting advice. You should consult your own advisors
in relation to your personal situation. Locate Guernsey can put you in contact with Guernsey service
providers if you would like more detailed information.
Healthcare in Guernsey
Knowing that you and your family’s health is in good hands is of
paramount importance, so it’s reassuring to know that Guernsey has
an excellent healthcare system to help ensure a better life for you.
Although it is not part of the NHS,
Guernsey has an excellent healthcare
system employing best practice across
its network of medical centres and the
Princess Elizabeth Hospital (PEH). GP
appointments are easily available and
excellent specialist care is delivered via
the island’s Medical Specialist Group.
Healthcare is partly funded by
Guernsey’s Committee for Employment
and Social Security, with residents
paying into an income-related
contributions scheme.
GP visits, A&E visits, Ambulance use,
Dentists and physiotherapy requested
by the GP are all delivered privately in
Guernsey and referred to as “Primary
Care”. Residents receive a small grant
towards the cost of a GP consultation
but the remaining balance is paid by the
patient (or by private medical insurance
if they have subscribed to a suitable
policy). Prescription medicines are
capped at £4.90 per item.
Specialist care (also called “Secondary
Care”) is provided by The Medical
Specialist Group, a private practice
of specialist consultants. The cost
of treatment and hospitalisation for
Secondary Care when referred by a GP
or Consultant is covered by the States
of Guernsey and this includes any
treatment and care which may have to
be delivered in the UK.
The Medical Specialist Group also
provides treatment that can be paid
for by the patient, known as “private
patient care”. The PEH has a private
wing (the Victoria Wing) where private
patients may elect to stay for in-patient
treatment.
Please speak to Locate Guernsey for
further detailed information about
healthcare.
19