About Guernsey...

Guernsey is one of the Channel Islands, situated in the English Channel between Great Britain and France; it is approximately 60 miles south of England, 26 miles west of northern France and 26 miles from Jersey.

Guernsey is the main island in the Bailiwick of Guernsey, which includes the other islands of Alderney, Herm and Sark. It is approximately 9 miles long, 5 miles wide and 26 miles in circumference. It covers an area of approximately 25 square miles or 67 square kilometres, and is divided into 10 parishes. It has a population about 60,000 and effective immigration controls exist to limit uncontrolled growth. The official and spoken language is English.

Although Guernsey is British, its unique history and constitution mean that it is not part of the United Kingdom nor the European Union.

History and Constitution...

Known as "Sarnia" to the Romans, Guernsey and the other Channel Islands became part of the Duchy of Normandy in 933 AD. In 1066 William of Normandy conquered England and joined it to Normandy. In 1204, King John of England lost continental Normandy but the Channel Islands remained loyal to the English Crown. The Channel Islands have, since that time, remained possessions of the English Crown, as distinct from colonial and overseas dependencies of the United Kingdom. Accordingly, the constitutional relationship between the Channel Islands and the United Kingdom is unique, whereby the respective legislative assemblies have the exclusive right to legislate on matters of domestic concern to the Islands, whilst the United Kingdom is responsible for the islands' external affairs and defence. This relationship has arisen over a period of time through custom and not through specific constitutional charter; in recent years, however, it has been subject to considerable scrutiny as a result of which it now appears to be more firmly established than before.

The Charters granted by successive Sovereigns, together with the gradual growth of the right to self-government, have resulted in the prerogative of the Island’s Parliament, the States of Guernsey, to promulgate laws and regulations to govern the Island’s internal affairs, including revenue and taxation matters. The legal system in Guernsey is now largely based on English Common Law, but still has significant elements of the old Norman French legal system.

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Relationship with the European Union...

Guernsey enjoys a special relationship with the European Union (EU). This is defined by Protocol 3 to the 1973 Treaty of Accession of the UK to the European Community, which can only be changed by the unanimous resolution of all the member states (including the UK). Although Guernsey is not a member state there are special arrangements under Protocol 3 for the free movement of manufactured and agricultural goods between Guernsey and the EU member states.

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Offshore Finance...

Guernsey has had a flat-rate income tax of 20% for almost 40 years. In addition, there is no capital gains, inheritance, capital transfer, value-added (VAT / TVA) or withholding taxes. Accordingly, the Island is an attractive and popular jurisdiction thanks to these low rate of taxes and other advantages being offered to companies wishing to set up offshore offices.

To service this finance industry, a whole professional infrastructure of accountants, lawyers and trust and estate practitioners now exist on the island, along with numerous banks and other financial institutions.

In addition, a strong regulatory environment under the auspices of the Guernsey Financial Services Commission has been established, as attested to by various reports from the Organisation for Economic Co-operation and Development, the International Monetary Fund, the Financial Stability Forum and the Financial Action Task Force on Money Laundering.

Guernsey is widely regarded as one of the leading offshore jurisdictions in helping to prevent activities such as money laundering and tax evasion, whilst still maintaining an environment which allows for a high level of discretion for individuals and companies.

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Currency...

The local currency is the Guernsey Pound (£), which has parity with the UK Pound. The Island issues its own notes and coinage which are freely interchangeable with the UK Pound in both Bailiwicks of the Channel Islands but not in the UK.

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Communications...

There are frequent air services from Guernsey to London Gatwick and other UK airports.

Guernsey also has passenger / car ferries linking the Island to various ports on the south coast of England and also to France; sea transportation is used for the importation of the majority of goods and materials.

The Island also enjoys excellent telecommunications links with the rest of the world, mainly via fibre-optic connections to the United Kingdom and France.

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Other...

Although the island's main income is derived from its flourishing finance industry, tourism, manufacturing and horticulture (mainly tomatoes and cut-flowers) provide a second and third leg to the economy, although these industries are some way behind finance in terms of the income they generate.

Efforts continue to be made to woo tourists, and once here the island has a lot to offer, from the spectacular coastal scenery in the south to the beautiful clean and sandy beaches of the west. It is also possible to enjoy day trips to the neighbouring islands of Herm, Sark and Alderney, as well as Jersey.

The tiny island of Herm is about 3 miles east of St Peter Port harbour. It is 1.5 miles long by 0.5 miles wide, and is reached in only 20 minutes by ferry from St Peter Port harbour. It has some beautiful beaches and crystal clear waters, and can be walked around in a couple of hours.

Some 9 miles South East of Guernsey is Sark, which is somewhat larger than Herm and perhaps even more peaceful. Although tractors are permitted on its roads there are no other motor vehicles allowed. Again, it is accessible by ferry from St Peter Port harbour.

The most northerly isle in the Bailiwick is Alderney. It is the third largest of the Channels Islands, about 20 miles north of Guernsey, and is accessible by air or sea. It has its own unique character, and there are more churches and pubs per head of population than anywhere else in the Channel Islands.

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Map...