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With a favourable environment for business owners Guernsey is an ideal place to relocate your business. Locate Guernsey helps both individuals and businesses relocate to Guernsey and provides ongoing administrative support once the move is complete.
Guernsey sits in the English Channel between the UK and France, is 24 square miles (62km2) in size and has a population of just over 60,000. It is a British Crown Dependency, which means it is legislatively and fiscally independent of the UK and the EU and has its own democratic parliament.
Guernsey’s constitutional relationship with the EU, its political stability, skilled and experienced workforce and close proximity to UK and European markets provides a variety of unique business opportunities. The naturally beautiful landscape gave rise to the development of tourism in the 19th century which today still forms an important part of the local economy.
The States of Guernsey Commerce and Employment Department is committed to encouraging further business development that will contribute to a diverse and sustainable economy. The States of Guernsey’s Commerce & Employment Department has a policy of encouraging investment and strategies designed to promote a favourable climate for the Island’s economy and business community. These strategies are outlined in the Government’s Business Plan and Strategic Economic Plan.
It can be challenging establishing a business in Guernsey for those not familiar with the local business environment and regulation, and so it is best to seek advice from Locate Guernsey.
The finance industry in Guernsey is the mainstay of the economy. The Island plays host to many financial services businesses offering banking, insurance, investment, trust and corporate services. Businesses range from global institutions to small independent operations providing niche services. Guernsey also boasts a small but dynamic light industrial and services sectors encompassing electronics, plastic and pharmaceuticals manufacturing, together with franchising operations.
Over the last five decades the Island has established a reputation as a leading international finance centre providing a wide range of products and services to a global client base at the very highest standards. Guernsey was among the first to be placed on the OECD 'white list' and has consistently been recognised as a top-tier jurisdiction. Guernsey has a 'Zero-10' corporate tax regime, where there is a standard 0% rate for all companies, except certain regulated financial services businesses, which are taxed at 10%. At the time of writing Guernsey levies no capital gains, inheritance, capital transfer, value added/sales taxes or stamp duty. Guernsey's excellent links to several locations throughout the UK and Europe mean that travelling for business or to visit family and friends is quick and straightforward.
When you arrive in Guernsey you will need to complete form 1262 New Arrivals and submit it to the Tax Office. The Tax Office’s address is PO Box 37, 2 Cornet Street, St Peter Port, Guernsey, GY1 3AZ. Once form 1262 has been processed you will be issued with a Tax Reference Number which will be your reference for all Guernsey tax matters. Guernsey tax residence for individuals is established purely on the basis of the number of days spent in the Island. A tax year, or ‘year of charge’, in Guernsey is the calendar year, beginning on 1 January and ending on 31 December. Taxpayers are required to lodge returns with the Guernsey Tax Department on an annual basis. Whilst not strictly a tax, Guernsey residents and employers are also liable to pay social security contributions in respect of earnings.
Social Security is managed by the Social Security Department located at Edward T. Wheadon House, Le Truchot, St Peter Port, Guernsey, GY1 3WH. Like the UK and most other contributory based social security systems, contributions are made to the social security fund which in turn generate an entitlement to benefits such as old age pension, unemployment benefit etc. The full list of available benefits can be found here: http://www.gov.gg/benefits. The rates of contributions can found on the States of Guernsey website at www.gov.gg. In a similar manner to its tax treaty network, Guernsey has signed reciprocal agreements covering social security with other jurisdictions. On arrival you will need to register with the Social Security Department by completing form CF1. You will then be issued with a registration or contribution card.
More more information on relocating your business to Guernsey, contact Locate Guernsey.