Starting a business in
🇬🇬Guernsey
Checked November 4, 2026 · How we score
Corporate tax
0%
Top income tax
20%
Setup from
$3,000
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Guernsey
| Corporate income tax | 0% 0% standard rate; 10% for banking, domestic insurance, fiduciary and regulated activities; 20% for utilities, Guernsey property income and large retailers. A reform consultation in 2026 proposes extending the 10% band from 2027; large multinationals pay a 15% minimum tax from 2025. |
|---|---|
| Personal income tax (top) | 20% Flat 20% income tax on taxable income after a personal allowance, with a tax cap for qualifying residents under the Higher Net Worth / Open Market regime. |
| Tax system | Worldwide income |
| Capital gains tax | 0%No capital gains tax, inheritance tax or wealth tax. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | None |
| Social security | Social insurance contributions of about 6.8% employee and 6.6% employer of earnings up to a ceiling; no VAT or GST is charged in Guernsey. |
Forming a company in Guernsey
| Usual entity | Guernsey company limited by shares |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $3,000–$7,000 |
| Annual running cost | $7,000–$18k |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Guernsey restricts residence via a housing licence system (Open Market for wealthy newcomers, with a substantial tax contribution and property purchase) and an employment permit regime for local jobs.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 5/5 (1 = easiest) |
Special tax regimes
Zero/ten/twenty corporate regime
Most companies pay 0%, regulated financial and certain other businesses 10%, and utilities, property and large retail 20%.
Open Market housing regime
High-net-worth newcomers can buy Open Market property and become resident with a capped annual tax liability.
Economic substance requirements
Companies in scope must show real local management and control and adequate premises to maintain Guernsey tax residence.
Pros and cons
Why founders pick Guernsey
- 0% corporate tax for most companies
- No VAT, capital gains, inheritance or wealth tax
- Respected, well-regulated financial centre
- Stable legal system and pound sterling currency
Watch out for
- Local agent and resident director increase costs
- Company managed from abroad is taxed where it is managed
- Very restricted residency and housing market
- Corporate tax reform proposals may increase rates from 2027
Best for: Funds, insurance and holding structures with local substance · High-net-worth residents under the Open Market regime · Businesses wanting a no-VAT environment for international services
Guernsey: common questions
What is the corporate tax rate in Guernsey?
Guernsey's standard rate is 0%. A 10% rate applies to banking, regulated fiduciary and similar business, and 20% applies to utilities, Guernsey land and property income and large retailers. A 2026 consultation proposes extending the 10% band from 2027.
Can a foreigner open a Guernsey company?
Yes, through a licensed Guernsey corporate service provider, usually in about a week and without travelling. The company needs a local registered agent and, to qualify for 0% tax, must be genuinely managed and controlled in Guernsey.
Does Guernsey have VAT?
No. Guernsey has no VAT or GST, although a scheme to relieve international service entities from other regimes' tax has been discussed. Import duty is also limited.
What is the income tax rate in Guernsey?
The standard personal income tax rate is 20% after allowances, with a tax cap for some high-net-worth residents. There is no capital gains, wealth or inheritance tax.
Sources
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.