Tax & Social Insurance

Personal income tax is charged at the flat rate of 20% for individuals, after applying personal allowances and other deductions, 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. Residents are taxed individually. 

Anyone considering relocation to Guernsey for tax purposes is strongly recommended to seek independent tax advice based on their specific personal circumstances from a Guernsey-based tax adviser.

Payment of Social Insurance contributions is mandatory and gives employer and employee insurance protection and provides individuals with a number of benefits. New residents in Guernsey must register with the Social Insurance office when relocating to the island.

Social Insurance contributions are income related. The contribution rate depends on whether you are deemed as employed, self-employed or non-employed. 

There are three rates of tax on companies in Guernsey, with the majority of companies paying the standard rate of 0%.