The International Comparative Legal Guide To: Private Client 2012 - Guernsey

1. PRE-ENTRY TAX PLANNING

1.1. In Guernsey, what pre-entry estate and gift tax planning can be undertaken?

Guernsey has its own independent system and law of taxation. The governing law is, inter alia, the Income Tax (Guernsey) Law 1975, as amended. There are no capital gains taxes, sales taxes, inheritance taxes or wealth taxes under Guernsey law.

1.2. In Guernsey, what pre-entry income tax planning can be undertaken?

Tax on income is charged at a flat rate of 20 per cent. It is payable by resident individuals on their worldwide income, including certain benefits in kind. Non-resident individuals are taxed only on income arising in Guernsey other than, by concession, interest arising on bank deposits. However, for those persons who are perceived to be 'highvalue' individuals seeking to take up residence in Guernsey, there are tax concession caps restricting an individual's liability to Guernsey income tax to ￡100,000 on non-Guernsey source income (and