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Guernsey tax guide 2026

Guernsey tax for companies: 0% today, and the reform on its way

Updated 10 November 2026October 2026 vote includedAbout 10 minutes to read
The short answer

A Guernsey company pays 0% tax on most profit, with nothing deducted from dividends to owners abroad. Regulated finance pays 10%; Guernsey property and utilities 20%.

Two changes are approved but not yet law: a wider 10% band from 2027 and a 3% GST from early 2029.

What changes for me? Dividends abroad
Reform ahead 3% GST Guernsey plans from early 2029, its first ever Approved on 2 October 2026, not yet law. Company tax on most profit stays 0%.

Guernsey is in the middle of changing its tax system. On 2 October 2026 its parliament voted for a 3% GST from 2029 and a wider 10% band from 2027, and neither is law yet. Most pages ranking today don't mention either. Here's where things stand, and what reaches a company run from abroad.

Key takeaways

  • The standard company rate is 0%; 10% for regulated finance; 20% for Guernsey property, utilities and big island retail.
  • From 1 January 2027 the 10% band is set to widen to accountants, lawyers and estate agents. The law isn't made yet.
  • Guernsey has no VAT or GST. A 3% GST is planned from early 2029, and must wait if household help isn't ready.
  • Dividends to owners abroad carry no deduction, with proof they live elsewhere.
  • The return is due by 30 November. Late costs GBP 300, then GBP 50 a day.
  • Residents pay 20%, capped at GBP 160,000 on foreign income or GBP 320,000 in total.
Chapter 1

Guernsey corporate tax rate: 0%, 10% and 20%

GBP 100,000 software profitToday
Company tax at 0%GBP 0
Deducted from your dividendGBP 0
GSTNone until 2029
In the wider 10% band from 2027?No
Approved policy, laws still to come. Where you live: pick it
0%Trading, services, software, holding companies
10%Banking, fiduciary, insurance, fund administration, custody, investment management, aircraft registry
20%Guernsey land and buildings, utilities, fuel, island retail over GBP 500,000 profit, cannabis

The three bands are set out in the Revenue Service's tax information for companies. The old exempt company status for ordinary businesses is gone. Exemption now only exists for investment funds, at GBP 1,600 a year.

1
Key takeaway

0% for most companies; the exempt company is now only for funds.

Chapter 2

Guernsey tax reform: what changes, and when

  1. 1 January 2025Minimum tax for large groupsA 15% domestic top-up tax and a multinational top-up tax, only for groups with EUR 750 million revenue.
  2. 2 October 2026Reform package approvedThe States voted 22 to 17 to direct a GST and a wider company tax band.
  3. 1 January 2027, planned10% band widensTo regulated accountants, lawyers, estate agents and similar, and to the whole profit of companies already at 10%. Law not yet made.
  4. Early 2029, plannedGST at 3%Stepping up towards 5% later. It must be deferred if help for households isn't ready.
  5. 2030 at the earliestConstruction and retailNamed for future consideration only.

The States' tax reform pages track each step. See what the plans mean for your company.

Your company is
Its customers are
2
Key takeaway

Approved isn't enacted. Check the dates before you plan around them.

Chapter 3

Guernsey company tax residence

A Guernsey company is Guernsey resident unless it proves it's managed and controlled, and resident, in a place with a top company rate of at least 10%, or a treaty puts it there, and not to avoid tax. The Revenue Service's circular on company residence sets out the test.

Stays Guernsey resident
  • Board meets and decides in Guernsey
  • Run from a country with no company tax, or under 10%
  • Run from abroad, but that country doesn't claim it
May move out
  • Run from a country taxing companies at 10% or more
  • And tax resident there
  • Then taxed there, at that country's rate
3
Key takeaway

Run from a 10% or higher country and resident there, it can leave Guernsey's net.

Chapter 4

Guernsey dividends: owners abroad and residents

$
Guernsey tax deducted from dividends
ShareholderDeducted by the company
Lives outside Guernsey, with evidence on fileNothing
Guernsey resident, from 0% profit20%
Guernsey resident, from 10% profit10%
Guernsey resident, from 20% profitNothing more

4
Key takeaway

Proof you live elsewhere, and the dividend goes out whole.

Chapter 5

Guernsey company tax return and annual validation

  1. 1 January to the end of FebruaryAnnual validationTo the Guernsey Registry, with the data as at 31 December. Automatic fines of GBP 450, 900 and 1,800 if late.
  2. 30 NovemberCompany tax returnFor the previous year, as the notice to file sets out, with economic substance answers inside. Late: GBP 300, then GBP 50 a day, under the penalty rules.

Companies in the nine relevant activities show their economic substance in that return; a consulting or software company answers and moves on.

5
Key takeaway

Validation by the end of February, the return by 30 November.

Chapter 6

Guernsey income tax and the tax cap

3,762

Residents pay a flat 20% after a GBP 15,200 allowance, and can cap the bill. Type your income to see where the caps start to matter.

GBP
GBP

The estimate takes a flat 20% before allowances, with the GBP 160,000 cap on income from outside Guernsey and the GBP 320,000 cap on worldwide income, as the Revenue Service's tax cap page describes. It's a rough guide; allowances and the open market cap change the figure.

6
Key takeaway

20% flat, capped at GBP 160,000 on foreign income.

Chapter 7

Guernsey tax questions, answered

?!
What is the corporate tax rate in Guernsey?
0% for most companies, 10% for regulated finance and the aircraft registry, and 20% for Guernsey property, utilities, fuel, large island retail and cannabis.
Is there VAT or GST in Guernsey yet?
Not today. The States approved a 3% GST from early 2029, but no law exists yet and it must be deferred if help for households isn't ready.
Is Guernsey a tax haven?
It charges 0% on most companies, but it's on no EU or FATF list, was rated compliant by the OECD in 2018 and received its MONEYVAL report in February 2025.
Does Guernsey tax dividends paid to non-residents?
No. The company keeps evidence that you live elsewhere and pays the dividend without deduction. How a company run from abroad opens the account it pays from is in our Guernsey company bank account guide.
When is the Guernsey company tax return due?
By 30 November of the following year: 2025 returns by 30 November 2026. Every yearly fee, date and penalty: Guernsey annual fees and filings.
Can I still get a Guernsey exempt company?
Only for an investment fund or a company in its structure, at GBP 1,600 a year. Ordinary companies pay 0% as standard instead.
Do you file the Guernsey return?
Yes. Our Guernsey company includes the licensed provider, annual validation and the tax return.

Changelog

  • 10 November 2026: first published.
  • 13 November 2026: official sources linked in the text.
Your Guernsey company

A Guernsey company with the licensed provider inside.

GBP 2,490 to start, then GBP 2,590 a year.

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