Living in Guernsey: 91 days, 182 days, tax at 20 % and tax ceiling

In Guernsey, income tax is 20% of taxable income. A person is considered a resident after 91 days on the island in a calendar year, and a principal resident after 182 days. A tax cap exists for residents with high incomes, but the figures we have seen are from 2024. No double taxation agreement is listed between France and Guernsey: see our sister page on the absence of such an agreement.

Three levels of residence, counted in days

The Guernsey Revenue Service website defines residency by the number of days in a calendar year:

The page doesn't explicitly state the tax implications of each status; it refers to the Income Tax Act 1975 and the Director's practice statements. We draw no conclusions from this. A single statement appears on another page, the one concerning pensions: a principal resident is taxable in Guernsey on their worldwide income, with possible relief for tax paid in a country other than the UK.

The rate of 20 %, the allocation of £15,200 and its withdrawal

For 2026, the administration states: "Income tax is 20% of assessable income." The personal allowance amounts to £15,200. It is withdrawn above an income threshold set annually by the States of Guernsey: £90,000 in 2023, £80,000 in 2024, £82,500 in 2025, and £85,000 in 2026. Above this threshold, the allowance is reduced by £1 for every £5 of income above it.

These amounts are obtained by applying the page rule to the personal allowance only.

Foreign source income of £1,000,000 and tax ceiling: numerical example (fictitious profile)

Situation. A female executive, a fictitious profile, moves to Guernsey and becomes a resident. She receives £1,000,000 in income from sources outside Guernsey.

Issue. At 20 %, the tax would be £200,000. She wants to know if the tax ceiling changes this amount.

Strategy. She reads the administration's website. Sections 39B to 39E of the law limit a resident's tax liability on their qualifying income, generally income from sources outside Guernsey and Guernsey bank interest. The cap is £160,000 for 2024 (£150,000 for 2023). The website specifies that anyone with sufficient income to qualify is not entitled to personal allowances. She confirms the current year's amount, as the website doesn't provide figures for 2025 and 2026.

Result. With the 2024 cap, the tax on this income would be £160,000 instead of £200,000, a difference of £40,000. This figure is an illustration based on the previous cap amount; it does not predict the tax due for the current year.

Who can request the tax ceiling?

According to the same page, the cap applies to a resident of Guernsey (or Alderney for the island's own cap). The combined cap, which covers both local and foreign income, is £320,000 for 2024 (£300,000 for 2023). Other Guernsey income is taxed at 20% in addition to the cap on qualifying income. The cap is prorated based on the year of arrival or departure. Since January 1, 2023, each spouse or partner is treated separately and must claim the cap individually.

An "Open Market" cap exists for a new resident, who was not a resident in the previous three years, and who has paid at least £50,000 in document fees on an Open Market (Part A) property, purchased within 12 months before or after permanent residence. This cap is £60,000 for 2024 and can be claimed in the year of arrival and the following three years. Subsequent caps are set by the States of Guernsey.

Retirees: pensions, capital and transfers

The page on pensions sets out three key points:

• a person who lives in a jurisdiction other than the United Kingdom has their Guernsey pension subject to Guernsey tax at 20 %; ;
• up to 30 % of the fund's value can be withdrawn tax-free, up to a limit of £203,000 since 1 January 2020; ;
• The tax relief on contributions is limited to the lower of 100 % of taxable income or £35,000.

Approved outgoing transfers are not taxable under regulations in effect since June 1, 2025. The plan administrator must notify the tax authorities within 30 days. This page does not explain how these rules interact with French pension taxation.

To declare, and what individual taxation changes

Anyone who lives, works, or receives income in Guernsey must file a tax return every year, unless they have received a written exemption. The deadline for 2025 returns is November 30, 2026. An automatic penalty applies if the return is filed after the deadline. Individual taxation has been in effect since January 1, 2023: each person has their own tax reference number and tax return, regardless of their marital status. Couples can still share any unused benefits.

Leaving Guernsey

The administration requires completion of the "Leaving Guernsey" form. A permanent departure with only wages and bank interest does not require a separate declaration for the year of departure; in other cases, a declaration must be filed the following year. The personal allowance is reduced proportionally to the number of days spent on the island. No tax is due on Guernsey bank interest after departure, and rental income from Guernsey property remains taxed at 20% of the gross rent after the standard deduction for improvements. The page is dated October 2023.

Residence permit and social security contributions

A certificate or permit confirms the right to live and work in Guernsey. One is required for anyone aged 16 or over living on the island. An employment permit is only requested by the employer. This page does not mention French nationals; its online assistant helps determine the required document.

Social security contributions are divided into three classes. The 2026 rates could not be read; they are in downloadable files. A self-employed person who has passed retirement age does not pay social security contributions, but does pay health and long-term care insurance contributions. The CLEISS fact sheet on Guernsey is illegible.

What this page does not cover

It does not cover the 2025 and 2026 tax ceilings, contribution rates, capital gains and inheritances (none of the pages I read mention them), life insurance and local accounts, or social security between France and Guernsey. It is not a substitute for advice from a professional based in Guernsey.

What changes depending on your situation

• Your number of days on the island, and your days elsewhere.
• The nature of your income: local, foreign, pensions.
• Your eligibility for a tax ceiling, and its amount for the year in question.
• Your French tax residence on the date of installation.

An installation is prepared based on the facts of your case. No outcome is guaranteed in advance.