Guernsey: Country and Foreign Investment
Relationship with the EU
Guernsey is not a member of the EU. Protocol No 3 of the UK's Treaty of Accession to the EU excludes the island from most of the effects of the Treaty, other than those concerning trade in goods.
There is free movement of industrial and agricultural goods between the island and the the UK; and between the island and EU and EEA countries. The island applies the external common customs tariff of the EU.
Guernsey does not impose Value Added Tax, and does not form part of the fiscal area of the EU, although it has been obliged to apply the EU's Savings Tax Directive, which came into force in July 2005.
The Guernsey's constitutional position in relation to the EU cannot be changed without unanimous agreement of the member states, including of course the UK. Along with its neighbour, Jersey, the island sees its current relationship with the EU as beneficial, and does not seek to change it.