Taxation

Guernsey is a low tax jurisdiction. Residents pay an income tax of 20% and there is no capital gains tax, no goods or service tax, no estate tax and no value added tax. There is a Dwellings Profit Tax designed to curb speculation in property.

Guernsey has changed its tax system in 2008 and now all companies are taxed at a zero rate. This will bring the island into line with changes in Jersey and the Isle of Man. Guernsey is subject to the European Savings Tax Directive. An individual deriving savings interest from Guernsey sources has the option, if resident in a territory to which the Directive applies, of suffering a withholding tax on his savings interest or to have Guernsey report the interest to the tax authorities in his country of residence. Guernsey is following a path of transparency and openness and has recently signed a number of tax information exchange agreements with EU member countries.

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