Guernsey is one of the English Channel Islands and is most famous as an offshore international finance centre, in fact more than that, it is now recognised as one of the world’s leading international finance centres, attracting high class offshore investments from around the globe, and therefore earning itself the enviable reputation of being a well regulated environment for legitimate offshore business.
The advantages to investing in Guernsey finance, Guernsey funds, Guernsey trusts etc are many, but to list just a few:
The Bailiwick of Guernsey is politically stable and has a system of government without party politics. Upon the UK’s entry into the EU, terms for the Channel Islands were negotiated under Protocol 3 of the Treaty of Rome, which preserved their rights of internal self government including taxation and immigration, and these can only be altered with the approval of every EU member state which includes the UK.
Due to Guernsey’s fiscal independence, they have been able to maintain a 20% rate of taxation for over 40 years. Other fiscal advantages include no withholding tax on interest paid to depositors and special taxation provisions for international business.
Monetary union with the United Kingdom, plus abolition of exchange control.
Application of the OECD convention to Guernsey. Guernsey is not a signatory to the convention, but is covered by the UK’s membership. This further endorses the island as a legitimate international finance centre.
A large amount of freedom from controls placed on international banking activities.
Confidentiality, meaning that persons legitimately investing their finances in Guernsey can enjoy total confidentiality, although this privilege is denied to persons with a criminal record.
A time zone that is conveniently the same as the UK mainland, and therefore close to the Western European time zone. It is also conveniently placed between the US and far Eastern time zones.
A comprehensive range of communication methods such as, telephone, telex, telefax, Prestel, other viewdata and air services, making it easily able to communicate with other financial centres.
English as the native language, but with an ability to draw on most European languages when required.
A high quality of professional support services.
Effective, but not overbearing government controls.