Tax Residence and a Significant Tax Advantage

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An individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on Guernsey source income only, subject to a minimum charge of £40,000. In this instance any additional income earned outside Guernsey will not be taxed in Guernsey.

Alternatively, an individual who is resident, but not solely or principally resident in Guernsey, can elect to be taxed on his or her worldwide income.

Special provisions are available for those who are resident in Guernsey solely for employment purposes.

For Guernsey income tax purposes an individual is ‘resident’, ‘solely resident’ or ‘ malta mobile database principally resident’ in Guernsey. The definitions relate primarily to the number of days spent in Guernsey during a tax year and, in many cases, also relate to the days spent in Guernsey in several preceding years.

Precise definitions and current tax rates and allowances are available on request.

Attractive Tax Cap for Individuals

Guernsey has its own system of taxation for residents. Individuals have a tax-free allowance of £13,025. Income tax is levied on income in excess of this amount at a rate of 20%, with generous allowances.

‘Principally resident’ and ‘Solely resident’ individuals are liable to Guernsey income tax on their worldwide income.