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A Comprehensive Guide To Investing In Guernsey To Gain Residency 2022

A Comprehensive Guide To Investing In Guernsey To Gain Residency.

If you want to invest as an expat or high-net-worth individual, which is what i specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).

Nothing written here is formal advice, and the facts might have changed since we first wrote this article.


How does an uninhabited collection of islands, islets, and rocks become one of the world’s largest financial centres?

Guernsey has succeeded in doing precisely that.

This modest jurisdiction near the Normandy coast has attracted foreign investment for decades thanks to its robust and innovative approach to funds and other financial assets. Furthermore, financial management is something of a Guernsey expertise.

Guernsey is a wonderful alternative to the UK Tier 1 visa, as it competes with its slightly larger neighbour Jersey for investment cash.

You can gain residency in Guernsey for half the fee and yet enjoy most of the perks of being a UK resident.

Guernsey can be used as a more cost-effective option to go to the UK and Ireland while still providing a level of living that is unmatched elsewhere.

Guernsey is a safe, secure, and predictable jurisdiction where high-net-worth individuals travel to strike the proper balance between work and life.

What if you get tired of living on an island? In less than an hour, you may be in London or Paris, and the world is your oyster.

In this post, we’ll explain how you can obtain residency in the Bailiwick of Guernsey through investment, how much it will cost, and what measures you need take to obtain it.

What Exactly Is Guernsey

Guernsey, located near the Normandy coast in France, is a mix of British and French cultures.

As a result,

A 66,000-strong English-speaking island with a stable administration with a long-term vision, a secure environment in which to raise a family, and an enviable quality of life.

When you combine luxury residences, a vibrant arts and culture scene, Michelin-starred restaurants (or quiet pubs, if that’s more your style), and world-class sports facilities, you get what some refer to as the “playground of the rich and famous.”

Because Guernsey is an island, water sports play an important role in islanders’ daily lives. Sailing, surfing, paddleboarding, and kayaking lovers will all find ideal conditions for their leisure activities.

Guernsey may not be as alluring as some of the other investment immigration hotspots – like Greece and Monaco – but it continues to draw wealthy foreigners.

Guernsey is a strange island; it is not totally under its own governance, but it is also not a part of the United Kingdom.

It is a British Crown Dependency, which means that, while it is self-governing and has been for the past 800 years, it nevertheless has significant historical links with The Crown.

Guernsey benefits from the connection since it can rely on the UK for defence and use its currency (a version known as the Guernsey Pound), while still making its own laws.

And Guernsey has taken full advantage of it. Did you know it has long been regarded as one of the most popular offshore financial centres?

Why Guernsey As A Permanent Residence Location

Apart from tourism, which is a significant business for an island with stunning landscapes and attractive gastronomic offerings – welcome to scallop and oyster paradise – other light industries contribute a significant proportion to Guernsey’s GDP.

The financial sector, however, is the mainstay that keeps Guernsey not only afloat but growing.

Guernsey has always acknowledged the need to diversify its income due to its small size. As a result, it built and has successfully run its financial business alongside Jersey’s thriving financial industry for almost 50 years.

How did it manage to accomplish this? A couple of things spring to mind.

First and foremost, its political stability is commendable. Guernsey is politically and fiscally independent, despite its strong ties to the United Kingdom.

Its legal system is based on the United Kingdom’s Common Law, and its policymakers have long understood the value of predictability in international investment.

It has also created a highly beneficial environment for its investors because it is not bound by the UK or the EU and can fully establish its own regulations.

Second, Guernsey follows all international tax laws and standards to the letter.

The term “offshore” may turn some people off. At Nomad Capitalist, we don’t see of the phrase as having a bad connotation, but just in case you’re worried:

And Guernsey has taken full advantage of it. Did you know it has long been regarded as one of the most popular offshore financial centres?

The OECD and the EU have endorsed Guernsey’s transparency in financial services and fund management.

According to the Financial Action Task Force, Guernsey has been designated as one of the “highest quality financial centres” for combating money laundering and terrorism financing (FATF).

Guernsey also allows for the automatic sharing of data between tax authorities, ensuring that no dollar goes unaccounted for.

You should also know that our team is completely committed to following all applicable laws, and Guernsey is a reliable country in this regard.

Political stability and full international compliance should suffice to persuade you that Guernsey is a top-tier jurisdiction and one of the best financial centres in the world.

However, Guernsey has another trick up its sleeve: due to the favourable conditions, many international investors choose to domicile their funds in Guernsey. Approximately 1,300 funds are currently located and handled here, with a total worth of almost £324 billion – hardly small change.

Because of the significant amount of assets under management, Guernsey has a vast pool of professional fund management service providers, ranging from administrators to auditors.

So, if you’re looking for a site to set up or relocate a fund, Guernsey might be a better option.

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A Comprehensive Guide To Investing In Guernsey To Gain Residency 2022 3

Permanent Residence In Guernsey Through Investment

Some people are better suited to some residence by investment arrangements than others, and the Guernsey programme is no exception.

Here’s who it works best for:

Those seeking a residency that allows them to visit the United Kingdom, Ireland, and other Common Travel Area nations without needing a visa.

Those hoping to obtain British citizenship in the future.

Those looking to invest in or start their own business.

Those that want to profit from an established financial services industry.

Even if you don’t fit into one of these categories, there may be a case to be made for you to get residence in Guernsey through investment.

The’meaty section’ of this article is the information on Guernsey’s residence by investment programme, which is detailed below.

If you believe that living on the island will be beneficial to you and/or your family, you’ll be pleased to learn that rich foreigners have two immigration options:

A visa for investors. There are no surprises here: you can invest a certain amount of money to obtain temporary and later permanent residency in Guernsey. You must have a significant amount of money (at least £1 million liquid, which is roughly $1.2 million) and invest £1,000,000 ‘for the benefit of the Bailiwick of Guernsey.’ You have three different investment alternatives.

Deposit money in a local bank.

Purchase a property on the ‘open market,’ which is more expensive than a property on the ‘local market.’ To put it another way, open market homes are the only ones available to new Guernsey residents.

Invest in another acceptable financial asset as determined by the States of Guernsey on an ad hoc basis.

A visa for entrepreneurs. This method needs a more hands-on approach and requires a significantly smaller up-front expenditure of around £200,000 (roughly $255,000). You’ll be in charge of forming and running a new business in Guernsey, as well as registering it with the Income Tax Office. You must show that the business you start will generate jobs and assist the local economy. Alternatively, you can invest in an established firm, but you’ll need to be able to manage it full-time and actively, as well as own a majority part in it.

You can bring your dependents to live on the island under any of the visa options. This includes your spouse and any children under the age of eighteen.

Finally, with either choice, you must be fully committed to settling in Guernsey ‘for good’ and not rely on public funds to make ends meet.


While many other jurisdictions that provide residency by investment do not care about your nationality or age, Guernsey does.

Guernsey’s government actively governs who comes and lives on the island, based on the concept of population management and related regulations.

The goal is to strike the proper balance that benefits both the community and the local economy. The government has a list of vocations it is looking for, but it also strives to mix ages, genders, nationalities, and other factors.

And, because an ageing population is a significant worry in Guernsey, population management makes sense if the financial services business is to maintain its high standards.

Sure, the qualifications for foreign investors are less stringent, but make no mistake: all of your personal, demographic, and social variables are taken into account, especially if you’re applying for an entrepreneur visa.

The following are the formal eligibility requirements for applying for residence by investment in Guernsey:

A non-EEA passport holder is required.

You must be at least 18 years old to participate.

A clean criminal record is required, as well as no severe immigration violations.
Have a good personality.

Have all of the funds you’ll need for the investment liquid and ready to go.

You must pass an English language test if you choose the entrepreneur visa.

If you meet all of these criteria and can demonstrate it, you can apply for Guernsey residency.

Guernsey Residence Application Step-By-Step Guide

While remaining in your home country, you must apply for a Guernsey visa. In other words, you cannot apply from within the country while on a tourist visa.

Here’s how the process works once you’ve decided which investing path you want to take.

Visa Application

Put together your package of paperwork and mail it to the island’s Immigration Office.

The wait time is between 2 and 6 weeks, after which you will receive your investor or entrepreneur visa.

It has a three-year validity period.

Make The Move To Guernsey And Invest

You’ll need to make plans to relocate to Guernsey. We recommend staying at a hotel for the first few weeks as you settle in and establish your bearings.

You will be expected to invest £1,000,000 or utilise £200,000 to start that new firm within 90 days, which is plenty of time in our opinion.

If you wish to work your way up to permanent residence, you’ll also need to register your arrival at the Border Agency (within 7 days) and stay in Jersey for at least 10 months of the year.

Guernsey Hotel Reservations

Whatever investment path you take, you’ll need a home to live, and the only legal way to find one is through the ‘open market.’

It’s a market that’s distinct from the ‘local market,’ and it’s just for those who were born with the right to live in Guernsey – not you.

Successful applicants for the residency programme will quickly discover that the island’s housing stock is overpriced on the open market. Because it is aimed at wealthy foreign investors, this is the case.

Approximately 10% of Guernsey residents live in residences purchased on the open market.

However, there is some good news as well. First, some of the most coveted housing stock, such as villas with pools, is only accessible on the open market.

Second, you don’t have to buy a home because you can rent one on the free market. If you’re planning to do that, this can help you save money up front.

Renew Your Temporary Accommodations

Because the original visa is only valid for three years, you must renew it for another two-year period right before it expires.

It’s simple if you’ve upheld your half of the agreement and maintained your investment, whether it’s real estate or a company.

You should also have spent no more than two months a year outside of Guernsey. In other words, Guernsey should be evident as your permanent residence.

Obtain Permanent Residence In Guernsey

Foreigners can seek for permanent residence after five years of living in Guernsey. Indefinite Leave to Remain is how it’s termed around here (ILR).

You must have made Guernsey your principal residence for the whole five-year period to be eligible for permanent residency.

Because it is a considerably more entitle status, applicants aged 18 to 65 must pass the Citizenship Test to demonstrate that they speak English and are knowledgeable of living in Guernsey and the United Kingdom.

Applicants under the age of 18 can simply be added to the primary applicant’s application for residency.

If you have permanent residence in Guernsey, you must continue to be a tax resident on the island to keep your status, but you are not required to apply for citizenship.

Citizenship, as you may be aware, has numerous ramifications, not just for your personal life but also for your financial situation, and it is a decision that you must carefully consider.

Apply For Citizenship In Guernsey

Surprisingly, Guernsey citizenship is regarded as British by most standards. So, if you believe you’d like to seek for citizenship, you’d essentially be acquiring a British passport.

After six years of residence on the island, you will be entitled to seek for citizenship. When you initially enter the country as an investor or entrepreneur, the clock starts ticking.

Over the preceding five years (your temporary residency years), you must spend no more than 450 days away from the island (or the UK), and no more than 90 days in the year preceding your citizenship application (first year of your Guernsey permanent residence).

If you become a citizen, you (and your dependents) will be able to enjoy everything Guernsey has to offer for an infinite period of time.

Guernsey, fortunately, accepts dual citizenship. Unless your nation of origin prohibits dual citizenship, you can preserve both your original and Guernsey citizenships.

Residence In Guernsey And Its Tax Implications

One major distinction between Jersey’s and Guernsey’s residence-by-investment schemes is that Guernsey’s residence-by-investment programme does not require an individual to pay a minimum amount in tax each year to keep the residence.

As a result, it is undoubtedly the more appealing country for individuals looking to reduce their personal and business tax rates.

There are none in Guernsey:

Taxes on capital gains

Taxes on wealth

Taxes on inheritance, estates, and gifts

VAT (Value Added Tax)

If you live in Guernsey, you will pay a 20 percent flat income tax rate. That doesn’t seem very appealing, does it?

You can take advantage of a number of different caps. With no income from Guernsey, the maximum tax liability is £130,000 per year. This means that you must earn more than £650,000 each year to benefit from the tax cap.

Your maximum tax liability is £260,000 per year if you have both non-Guernsey and Guernsey income. Your annual income must be greater than £1.3 million to begin saving on taxes.

Furthermore, there is a £50,000 tax cap for new residents of the island for the first four years of their stay. To utilise it, you must meet the following requirements:

Guernsey is your primary residence and you live there full-time.

When you bought your open market home, you paid over £50,000 in duties. At current duty rates, this equates to a £1.32 million property purchase.

You bought your home 12 months before or after becoming a Guernsey resident.

If you ask us, that’s not a bad deal. Why not take advantage of the fact that you have to buy a home and get a tax break while you’re doing it?

Permanent residence (and the initial temporary residence) in Guernsey is not for everyone.

In fact, we strongly advise you to consider the major benefits and drawbacks of this residency programme before deciding whether or not to pursue it.

Guernsey’s Advantages

A half-price investment compared to Jersey and the United Kingdom. If you want to live in this region of the world but find Jersey or the United Kingdom to be too pricey, Guernsey may be the best option. It is the least expensive of the three options.

The Common Travel Area is accessible. Residents of Guernsey have free travel to the UK, Ireland, and other Common Travel Area nations. You can freely travel there, work there, and even let your children school there.

Tax system is favourable. One of Guernsey’s most appealing features is its simple and beneficial tax structure. Guernsey can offer effective tax rates of around 10% or even less if you take the time to properly map out your financial strategies.

Others will be envious of your lifestyle. Beaches, sports, the great outdoors, and easy access to Europe and the rest of the world… Guernsey appears to have everything. Guernsey people also have the financial means to enjoy life to the utmost, with a GDP per capita approximately 60% more than the UK and 14% higher than neighbouring Jersey.

Standard British education If you’re bringing your children to Guernsey, you can rest assured that they’ll be well cared for in either the public or private schools. Guernsey’s educational system is based on the British national curriculum, and island students consistently outperform mainland students in exams. After completing high school, students can pursue higher study at top-tier British colleges.

High-quality medical care. Guernsey has contemporary medical facilities as well as a large number of experienced healthcare experts. Although the majority of visits and treatments are free, residents are encouraged to purchase our private healthcare insurance to cover all of the “extras,” such as eye and dental appointments.

Financial industry and pro-business environment Guernsey is well aware that its economy is dependent on foreign investment, enterprise, and the financial services sector. Because of its political stability, talented workforce, and creative taxation policies, Guernsey has done everything it can to establish itself as a world-class jurisdiction in which to do business.

Cons Of Living In Guernsey

issue is that the costs are significantly more than those on the local market, which is not ideal.

It’s a really small island. Guernsey is tiny, no matter how nice and quaint you think it is. You might become bored living in Guernsey if no section of the island is more than a 20-minute drive away.

Frequently Asked Questions About Guernsey Residence Through Investment

Here are the answers to some of the most often asked questions about permanent residence in Guernsey via investment.

If you have any more questions, please leave them in the comments area below or contact our team.

What Exactly Is Guernsey
Guernsey is a self-governing island that is not part of the United Kingdom, yet it is a British Crown dependent. It’s a country with a lengthy history as an offshore financial hub, with a stable government, long-term policies, and complete openness.

What Is The Minimum Investment Required To Become A Resident Of Guernsey
You must invest at least £1,000,000 in Guernsey’s economy and hold that investment for at least five years. For individuals interested in starting a new business or investing in an existing one on the island, the financial requirements are lower. You’ll need at least £200,000 for it.

What Types Of Financial Assets Can I Invest In
If you choose the Investor Visa, you can deposit money in a bank, buy real estate, or participate in another pre-approved economic activity that benefits the island. If you apply for an Entrepreneur Visa, you have the option of starting a new business or investing in an existing one (you would need to have a controlling stake, though).

What Financial Services Does Guernsey Provide
The financial management and services industries are well-known on the island. Legal, accounting, valuation, registrar, secretarial, and audit services are among the services offered. On the ground, there are professionals that can assist you in establishing and growing your firm, fund, or other financial organisation.

What Makes Guernsey’s Finances Unique
Guernsey is well-known around the world as a good place to put one’s money. This is due not only to the advantageous tax system (zero or low tax), but also to the creative laws and regulations governing funds as an asset class.

In Guernsey, What Taxes Will I Have To Pay
In certain ways, Guernsey can be considered a tax haven because it has no VAT, capital gains, or inheritance taxes. There are no stamp or document duties, and there is no transfer tax. Individual income tax rates are regulated, and the overall tax situation in Guernsey is rather beneficial — everything is legal.

Is It Possible For Me To Bring My Family To Reside In Guernsey With Me
Yes. Each residence by investment candidate is allowed to bring their spouse and minor children to live in Guernsey. You will not need to make any further investments; you can simply bring your complete family.

Do I Need To Pass An English Test To Become A Permanent Resident Of Guernsey
To obtain an initial visa to remain in Guernsey, you do not need to know English. However, if you want to strive towards permanent residence in Guernsey, you’ll need to know English and be familiar with life in Guernsey and the United Kingdom.

What Are My Options For Obtaining A British Passport
Because Guernsey and the United Kingdom are so closely linked, a Guernsey passport is regarded equivalent to a British passport. You can apply for and get a Guernsey passport after six years of residence in the island. You can then dispose your funds and no longer be required to maintain physical presence. A British passport is also available to your family.

Is Permanent Residence In Guernsey Right For You

It’s indisputable that Guernsey boasts one of the world’s most thriving financial services industries.

You’d be forgiven if you didn’t know where it was.

This small group of islands, tucked away on the French coast but distinctively British, is where the privileged come to live and play.

If you’re looking for a well-established offshore jurisdiction to call home, Guernsey is a good place to start. It checks a lot of boxes.

The primary question is whether you can afford to spend £1,000,000 over the course of five years. Do you have what it takes to manage a business if you pick the entrepreneur visa? After all, it will have to be your full-time job.

Pained by financial indecision? Want to invest with Adam?

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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

This website is not designed for American resident readers, or for people from any country where buying investments or distributing such information is illegal. This website is not a solicitation to invest, nor tax, legal, financial or investment advice. We only deal with investors who are expats or high-net-worth/self-certified  individuals, on a non-solicitation basis. Not for the retail market.



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