Offshore Tax Strategies – Guernsey


Guernsey, an island in the English Channel independent of the UK but with close ties to the country, is a well-established financial centre offering many advantages for offshore investors. The local currency is the pound sterling, the same as that of the neighbouring UK, and the main local language spoken and used in business is English.

Guernsey is in the same time zone as the UK, operating the same working day as the London Stock Exchange. A favourable tax environment, an experienced and well-regulated finance industry, close ties to the UK and tax agreements with China, Hong Kong and Singapore all combine to make Guernsey a sound investment conduit both for Chinese outward investment and for the repatriation to China of profits and gains.

Tony Mancini
Tony Mancini

Tax environment

The main company rate of income tax in Guernsey is 0%, which will be applied in cases where overseas investors use Guernsey companies within a structure. Higher rates of tax are only applied to Guernsey-based banking, fiduciary and large retail businesses, and to income derived from Guernsey land and property. Guernsey does not tax capital gains or the movement of capital. There are no withholding taxes on the payment of interest or dividends, except where they are paid to Guernsey resident individuals, meaning money can both be invested and repatriated via Guernsey without any additional taxes arising.

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Tony Mancini is a tax executive director in KPMG’s Guernsey office. He can be contacted on +44 1481 741845 or by email at [email protected]

Sinéad Leddy is a tax senior manager in KPMG’s Guernsey office. She can be contacted on +44 1481 755788 or by email at [email protected]