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Guernsey: Country and Foreign Investment

Import of Foreign Capital

There are no exchange controls in Guernsey. Guernsey companies may be freely incorporated with share capital denominated in any currency and there are no restrictions on inward or outward investment or on the repatriation of dividends, interest and profits. Bank interest on deposit payable to non-residents is exempt from Guernsey income tax. Royalties are treated for the purposes of tax in the same way as interest. However, under the EU's Savings Tax Directive, from July 1, 2005, Guernsey was obliged to deduct withholding tax, initially at 15%, then 20% from July 1, 2008 and 35% since July 1, 2011 from returns on savings paid to citizens of EU Member States. However in November 2010, following consultation, the States of Guernsey announced the decision to move to automatic exchange of information. Paying agents were required to move to the new system no later than June 30, 2011.



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