Guernsey


ESSENTIAL FACTS

LOCATION: 49 28 N, 2 35 W
Guernsey is a group of islands in the English Channel northwest of France.

POPULATION: 65,573

CURRENCY: Guernsey pound, although the British pound is accepted everywhere.

LANGUAGE: English, French, Norman-French dialect

CLIMATE: Guernsey has a temperate climate with mild winters and cool summers.

PUBLIC HOLIDAYS: Liberation Day, 9 May (1945)

HISTORY AND GOVERNMENT

HISTORY
Guernsey dates back to at least the 11th century, when it was territory fought over in the Battle of Hastings. Although Normandy was ceded back to France after being in English control, the Channel Islands, of which Guernsey is one, remained under British rule.

Guernsey has a convenient location between England and the continent, and has the added benefit of free movement and trade between the EU but is not actually a part of the EU.

POLITICAL SYSTEM
Guernsey, being a self-governing British Crown Dependency, has a parliamentary democracy ruled by the Queen, who is represented by a Lieutenant Governor. The Chief Minister is elected to be the head of the government. The cabinet is called the Policy Council and is elected by the States of Deliberation. The legislature is unicameral and is call the States of Deliberation.

JUDICIAL SYSTEM
The Royal Court administers the judicial branch, and the legal system is based on English law.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: Tomatoes, greenhouse flowers, sweet peppers, eggplant, fruit; Guernsey cattle
Industry: Tourism, banking

TRADE PRACTICES
Exports: Tomatoes, flowers and ferns, sweet peppers, eggplant to the UK
Imports: Coal, gasoline, oil, machinery and equipment from the UK

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
Almost a quarter of employment and over half of Guernsey’s revenue is derived from the financial industry, thanks to beneficial tax structures. Unemployment is less than 1 percent. For the most part, its economic stability and cycles are on par with the United Kingdom. The Guernsey Financial Services Commission oversees all financial transactions and business affairs in Guernsey.

STOCK MARKET
The Channel Islands Stock Exchange (CISX) has been in existence for 10 years. Its listing members are all based in the Channel Islands. Market capitalization stands at over US$17 billion. Guernsey trades represent the vast majority of trades on the Channel Islands Stock Exchange.

BANKING
The Guernsey Financial Services Commission has taken steps in recent years to stamp out money laundering; to advance Guernsey as a solid player in the international banking industry; and to protect banking clients’ investments and information. “Know Your Customer” due diligence rules apply in Guernsey, and I the last five years the screening process for new clients has become more rigorous.

REAL ESTATE
The real estate market is split into two categories - Local and Open Market. As the names would indicate, Local properties are available only to Guernsey citizens, or residents who have lived in Guernsey for over 10 years; Open Market properties are available to any individual who becomes a resident of Guernsey.

IMMIGRATION

VISAS
EU citizens have EU freedom of movement and rights in Guernsey. For all other nations, UK immigration rules apply.

EMPLOYMENT
EU nationals, UK citizens and Guernsey residents take precedence when being considered for employment. The most popular work permit is called a Keyworker Permit, which has a four-year maximum duration.

RESIDENCE
Any individual who lives in Guernsey for half a calendar year is considered a resident.

BUSINESS

BUSINESS ENTITIES
The main offshore company structure is called a Guernsey Exempt Company, and has the usual hallmarks of offshore structures - non-resident ownership, business transactions abroad only; tax exempt. A Guernsey Exempt Company can be formed in three weeks. The company name must include “Limited” at the end. Other name restrictions apply. While there are no explicit confidentiality rules, all transactions and communications between financial professionals and their clients are kept confidential in the same way as lawyers and their clients.

Other company structures include the Exempt Insurance Company (Also known as Category E companies), International Body, Exempt Private Limited Company (although there are no differences between public and private companies under Guernsey Company Law), Non-resident Foreign Company, Company Limited by Guarantee (for charity-based activity) and the International Company (for which tax rates can be negotiated with the government).

TRUSTS
Guernsey trusts mostly defer to English common law, although the Normandy influence is quite strong. Guernsey trusts to not need to register or perform any filing activity. There is a duration of 100 years for Guernsey Trusts, and trusts for the purpose of asset protection are not specifically allowed.

TAXATION

PERSONAL TAXATION
Any individual who lives in Guernsey for half a calendar year is considered a resident. Residents pay 20 percent on worldwide income. Non-residents are taxed only on income derived within Guernsey. Royalties and interest are exempt from tax.


CORPORATE TAXATION
Guernsey Exempt Companies pat a flat tax of GBP500 per year. All other corporate taxes are exempt. This has changed in 2008; previously, the tax rates were as high as 20 percent for offshore companies.

Depending on whether your company is an Exempt Insurer, International Body, Exempt Private Limited Company, Non-resident Foreign Company, tax rates can vary from 20 percent on Guernsey income to fees ranging from GBP600 to GBP10,000.