offshore relocations moving your business to guernsey€¦ · offshore relocations 03 moving your...

Offshore relocationsMoving your business to Guernsey

Guernsey is abeautiful andsecure islandoffering an idealbase forinternationalbusinesses andindividuals.

ContentsMoving your business toGuernsey 3Why businesses chooseGuernsey 4Establishing a Guernseyworkforce 6Establishing a business inGuernsey 7Understanding the local taxsystem 8Moving Your Family toGuernsey 10Contact us 11

Offshore relocations

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Moving your business toGuernseyWith an environment that helpsbusiness to flourish and a lifestyle thathelps you reconnect with the goodthings in life, Guernsey is the smallIsland that has so much to offer.

Those setting up a company in theIsland can do so quickly and with aminimum of fuss. It's all part ofthe Islands business culture whichis based on the can-do approach.The States of Guernsey and theprivate sector both see enablingbusiness to flourish as the keydriver.

Rules, regulations, fees andlicences to operate are in placeonly where strictly necessary. Infact for some businesses, all that isrequired is to register with IncomeTax and Social Security. Whilemost financial services businesseswill need to be registered with theGuernsey Financial ServicesCommission, there is no automaticrequirement for off–Island businessto register with government inorder to operate.

Organisations such as LocateGuernsey and Finance Guernseyaim to provide a service which canstreamline the transition of yourbusiness to the Island, pointingyou in the right direction inregards to key issues such asimmigration, tax, and companyregistry, so that moving is easyand stress free.

Among the first steps to takewill be:

Registering your business withIncome Taxregistering your business andyour staff with Social SecurityEmploying staffFinding premisesParticipating in the Guernseybusiness community


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Why businesses chooseGuernseyGuernsey offers a geographicallyconvenient business centre close tomany of the major European cities,but also a safe and friendly place inwhich to live.

The key factors makingGuernsey so attractive include:

Guernsey is self–governing andhas its own system of taxationand a long–standing, fair andcompetitive tax regime thatmeets 0ECD standards oftransparency and informationexchange;Guernsey has a favourablepersonal and corporate taxregime with no capital gains,inheritance or value-added taxesCompanies generally pay tax at0% although financial servicescompanies pay tax at 10% andutility companies at 20%Economic and political stability.Government which is willing andkeen to encourage inwardinvestment and businessrelocationProximity to London and anability to deal with New York andHong Kong in the same businessdayAbility to demonstrate realsubstance in the jurisdiction

The personal tax rate is a flat20%, after deduction of personalallowances and reliefs – notethere is the ability for those withhigh incomes to cap theirliability. Additionally there is aspecial regime for those who areresident in Guernsey, but notsolely or principally resident,where a single annual standardcharge of £30,000 is paid. Theseresidency definitions relatechiefly to the number of daysspent in Guernsey during a taxyear of charge and, in manycases, during a number ofpreceding yearsModern and flexible legislationGood supply of infrastructureresources including office spaceand support servicesSkilled local workforceGovernment which is willing andkeen to encourage inwardinvestment and businessrelocation

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Martyn BaudainsPartner and Head of Guernsey Property team

I have found him very easy to deal with - practical, helpful and quick to react.Chambers UK 2018


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Establishing a GuernseyworkforceGuernsey law requires everyone who isworking to obtain a document fromthe Housing Department to showthat they are lawfully housed.

If businesses intend to employnationals of countries outside theEuropean Economic Area, then awork permit will be required forthose people. This is separate tothe matter of Right to Worklicences administered byGuernsey’s Housing Department.Work Permits in Guernsey areissued by the Guernsey BorderAgency, part of the HomeDepartment.

All Open Market housing is listedon a register, and the HousingRegister can be searched on-line.Any housing not listed in theHousing Register is Local Market.There are a number of ways inwhich people living in Guernseycan be housed lawfully and fulldetails can be found on theHousing Department’s website.

There are no controls over who canown a property on the Island.However, there are controls onwho can occupy the property – thehousing market is split into twosectors:

Local Market – where there arecontrols on who can live in theaccommodation and for howlong;Open Market – whilst there aresome controls for Open Marketaccommodation, all OpenMarket Part A properties can beowned and lived in by anyone forany length of time.

If you need to bring over certainkey essential staff with yourbusiness then the HousingDepartment can grantEmployment Related HousingLicences, (also known as Right toWork documents) as these enableemployers to recruit staff who arenot resident in Guernsey. TheDepartment, when granting theselicences, will always have regard towhether the skills you need arealready available on the Island.

There are different types ofemployment-related licences:

Short term – these are grantedfor periods of up to 9 months orup to a maximum of 3 years.Essential – these are issued for upto 15 years but the vast majorityare granted for 5 years.

Depending on the nature of therole that requires an employmentrelated licence, there will be somerestrictions on the type and size ofaccommodation that theselicence holders can occupy, basedon the size of the property.


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Establishing a business inGuernseyGuernsey is open for business - theisland has invested time and effortinto making the relocation processseamless.

Foreign companies can conductbusiness in Guernsey and there isno requirement that a business beowned by a Guernsey company.However, many businesses doincorporate a new Guernseycompany to hold or operate thebusiness. Alternatively, it is oftenpossible to migrate a foreigncompany to Guernsey via a de-registration and re-registrationprocess.

It is often easier to relocate usingan English scheme of arrangementor a straight forward share swap(where there are not manyshareholders) and insert aGuernsey holding company. Ogierhas expertise in all these areas andwill work with your local advisers toimplement such structuring.

Guernsey has many financialservices industries. As aninternational finance centre, theisland provides first–rate services innumerous fields such as banking,fund management andadministration, private wealth andinsurance, amongst others. Formore than 50 years, Guernsey hasbeen one of the world's bestregarded and most successfulinternational finance centres.

Across the various industriesmentioned above, that strongreputation is based on five keystrengths:

Core services of a very highqualityHigh regulatory standardscompliant and transparent taxregimeInnovation as a hallmark ofproblem-solving and creatingnew opportunitiesGuernsey's positive relationshipwith the UK


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Understanding the local taxsystemIncome Tax in Guernsey is generallyless than the UK with a flat rate ofonly 20%. The Island has no CapitalGains, Inheritance, Value Added orWithholding Taxes.

There are also a number offavourable tax allowances and thefacility for those with highincomes, to “cap” their liability.Guernsey uses the pound sterlingwhich makes banking easier whenmoving from the UK.

The tax regime in Guernsey isdifferent to that elsewhere. Forfinancial matters that may becomplex, involve large sums orincome from a variety of sources,discussions with expert local taxadvisors are recommended. Ogierhas expertise in all these areas andwill work with your local advisers toprovide you with seamless advice.

Income Tax in Guernsey is generallyless than the UK with a flat rate ofonly 20%. There are also a numberof favourable tax allowances andthe facility for those with highincomes, to “cap” their liability.Guernsey uses the pound sterlingwhich makes banking easier whenmoving from the UK.

The tax regime in Guernsey isdifferent to that elsewhere. Forfinancial matters that may becomplex, involve large sums orincome from a variety of sources,discussions with expert local taxadvisors are recommended. Ogierhas expertise in all these areas andwill work with your local advisers toprovide you with seamless advice.

In order to determine the methodof assessment of an individualliable to pay Guernsey income tax,it is necessary first to consider thatindividuals residential status. Fortax purposes, an individual will beresident, solely resident and/orprincipally resident in Guernsey.

The definitions relate chiefly to thenumber of days spent in Guernseyduring a tax year and in manycases, during a number ofpreceding years. An individual whois resident but not principallyresident in Guernsey can eitherelect to pay a standard charge of£27,500, or is liable to Guernseyincome tax on their worldwideincome. Special provisions areavailable for those who are inGuernsey solely for employmentpurposes. Ogier has expertise inall these areas and will work withyour local advisers to provide youwith seamless advice.

An individual who isresident in Guernseymay qualify for a taxcap of £110,000 ayear in respect ofworld-wide income,or £220,000 a yearin respect of world-wide and Guernseyderived income.

If those relocating toGuernsey and buyingan open marketproperty during thesix-month periodbefore or after theyrelocate payDocument Duty (aform of stamp duty)of at least £50,000 -meaning they pay atleast £1.5m for anopen market house -they will be entitledto a tax cap of£50,000 for theirfirst four years ofresidency.

09

Jonathan HughesPartner and Head of Offshore Relocations

Our services to relocating families, individuals and firms goes beyond basic conveyancing - we advise on finding a property, and work with clients to introduce them to our trusted networks of local suppliers and professionals.


10

Moving your family to GuernseyGuernsey is a great place tolive and do business, wherepeople understand the needfor a good work life balance.

With plenty of sports and leisureopportunities as well as stunningcliffs perfect for sunset walks,there’s plenty to do to keep busy. Ifyou prefer to relax in your freetime, why not stretch out on oneof Guernsey’s 27 beaches, or visitsome of Guernsey’s many greatrestaurants and taste some freshGuernsey produce?

Your free time doesn’t have to bea rare treat. Forget motorwaysand long train journeys, atapproximately nine miles long, andsix miles wide, everything inGuernsey is just a short drive oreven just a walk away, allowingyou more time to spend withfriends and family.

When nowhere is far why notspend your evenings, or even lunchbreak, on the beach soaking upthe sun or at a watersiderestaurant sampling some freshseafood.

You’re spoilt for choice inGuernsey, from the beautifulbeaches of the west coast,stunning cliffs of the south andthe charming cobbled streets ofTown, ask anyone who lives here,there’s a lot to see in Guernsey’s 25square miles.

Guernsey is also known for its safeand friendly environment, crimerates are very low and with amaximum speed limit of 35mph,road accidents are rare. EvenHedge Veg – a tradition wherelocals sell their produce on theroadside for others to buy viapayment in an honesty box –shows what a trusting islandGuernsey is.

The beauty of Guernsey isn’t just inits scenery, it’s in the lifestyle theIsland offers as well. Whetheryou’re enthusiastic about sports,interested in history and culture,passionate about food and drink,or just looking for somewherequiet to relax, Guernsey is theplace for you.


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Contact us

Jonathan HughesPartnerT +44 1534 514336M +44 7797 [email protected]

Marcus LeesePartnerT +44 1481 737152M +44 7797 [email protected]

Martyn BaudainsPartnerT +44 1481 752217M +44 7797 [email protected]

Christopher JonesPartnerT +44 1481 752337M +44 7797 [email protected]

Rachel RichardsonCounsel*T +44 1481 [email protected]

Piers DerehamSenior AssociateT +44 1481 [email protected]

Ogier provides practical advice on British Virgin Islands,Cayman Islands, Guernsey, Jersey and Luxembourg lawthrough our global network of offices. Ours is the only firmto advise on these five laws. We regularly win awards forthe quality of our client service, our work and our people.Ogier Global is Ogier’s corporate administration business.Ogier Global (Cayman) Limited and its subsidiaries areregulated by the Cayman Islands Monetary Authority.Ogier Global (Jersey) Limited and its subsidiaries areregulated by the Jersey Financial Services Commission.Regulatory information can be found at ogier.com

ogier.com

Contacts

British Virgin IslandsRitter HouseWickhams Cay IIPO Box 3170Road Town, TortolaBritish Virgin Islands VG1110T +1 284 852 7300F +1 284 852 7450E [email protected]

Cayman Islands89 Nexus WayCamana BayGrand CaymanCayman Islands KY1-9009T +1 345 949 9876F +1 345 949 9877E [email protected]

GuernseyRedwood HouseSt Julian's AvenueSt Peter PortGuernsey GY1 1WAT +44 1481 721672F+44 1481 721575E [email protected]

Hong Kong11th Floor Central Tower28 Queen's Road CentralCentralHong KongT +852 3656 6000F +852 3656 6001E [email protected]

Jersey44 EsplanadeSt HelierJersey JE4 9WGChannel IslandsT +44 1534 514000F +44 1534 514444E [email protected]

London1st Floor99 BishopsgateLondon EC2M 3XDT +44 203 693 7178F +44 1534 514444E [email protected]

Luxembourg2-4 rue Eugène RuppertPO Box 2078L-1020 LuxembourgT +352 2712 2000F +352 2712 2001E [email protected]

ShanghaiRoom 3671Level 36 Shanghai InternationalFinance Centre Tower IINo. 8 Century AvenuePudong New AreaShanghai 200120ChinaT +86 21 6062 6294E [email protected]

TokyoNisso 23 BuildingSuite 801Toranomon 3-8-25, Minato-kuTokyo 105-0001JapanT +81 3 6430 9500F +81 3 6430 9501E [email protected]

offshore relocations moving your business to guernsey€¦ · offshore relocations 03 moving your...

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