Mid-year update: Increasing number of corporate migrations into Guernsey

Migration, redomiciliation, continuation - the process which has many names is increasing in popularity.

Guernsey has experienced a notable increase in the inward migration of corporate vehicles from other jurisdictions. This trend reflects the island’s reputation as a trusted international finance centre with a stable, flexible and business-friendly legal and regulatory environment. The combination of political stability, a robust but pragmatic regulatory environment and geographic positioning make it an increasingly attractive jurisdiction for corporate structuring and cross-border investment.

We expand on these key themes below.

Reputational strength

As a self-governing jurisdiction with constitutional autonomy, having independent control over its domestic legislation, taxation and fiscal policy, Guernsey offers political and economic stability that is appealing to any business looking to plan for the long term.

The island's commitment to meeting international standards for transparency and information exchange, as demonstrated by its inclusion on the OECD whitelist for tax cooperation and its compliance with global standards for AML/CFT compliance, reinforces its reputation as a reliable jurisdiction. This reputation can make obtaining bank lending or investment from professional investors a much easier prospect than in other, less politically stable jurisdictions. Guernsey's stability is further supported by a skilled workforce and a business-friendly environment.

Fiscal environment

The general corporate tax rate is 0%, with exceptions for specific sectors such as financial services (10%) and utilities (20%). There is no capital gains tax, inheritance tax, or value-added tax making it an attractive destination for companies seeking tax efficiency.

The introduction of economic substance legislation in 2019 aligned Guernsey with international standards to prevent base erosion profit shifting, enhancing its reputation as a compliant jurisdiction.

Guernsey has also passed legislation to incorporate Pillar II, and having aligned this legislation with Jersey and the Isle of Man it has retained its competitiveness and focus on its reputation.

Efficient migration process

The Guernsey Registry has a fast, practical and efficient migration process. Applications are now submitted through an electronic portal, dramatically streamlining the application process. We are often seeing approvals within a matter of days of an application being submitted, with expedited applications usually accommodated.

Legal and regulatory attractiveness

Guernsey offers a sophisticated and well-established legal system rooted in English common law, complemented by bespoke local legislation tailored to suit an international market.

The Companies (Guernsey) Law, 2008 provides corporate flexibility and clarity, supporting a wide range of commercial objectives, including private equity, investment funds, joint ventures, family offices, and asset-holding structures. The law caters for efficient corporate migrations through straightforward continuance provisions, without the need to liquidate or re-incorporate.

Guernsey's Limited Partnerships (Migration) Regulations, 2020 also allow for the migration or continuation of foreign limited partnerships into (or out of) Guernsey using a statutory process similar to that of companies.

When dealing with the migration of regulated entities, the Guernsey Financial Services Commission's pragmatic approach facilitates a smooth and efficient migration process, with companies being able to approach the GFSC and engage with them regarding any proposals in advance of submissions. A fast-track approval process is available for certain fund managers when migrating into Guernsey.

Strategic location and connectivity

Located in the same time zone as London, Guernsey's unique geographic location offers strategic advantages for businesses. Situated just 30 miles off the Normandy coast, it provides easy access to both the UK and mainland Europe. Six daily flights to London and proximity to major European markets make it convenient for companies to maintain international operations. It is not part of the UK or the EU, but maintains strong links to both, providing legal certainty while avoiding the risks and volatility often associated with larger jurisdictions. This connectivity and alignment enhance Guernsey's appeal as a hub for businesses with global reach.

How we can help

We advise on all types of migrations into and out of Guernsey. As an international law practice, we work closely with teams in our other jurisdictions, in particular BVI, Cayman, Jersey and Bermuda and have streamlined processes across these jurisdictions.

Our experience means we have dealt with migrations into and out of most jurisdictions where it is legally possible, and so, while overseas advice will always be required, we are best placed to facilitate a smooth and fast migration.

We also have experience with the necessary corporate 'tidy-ups' required ahead of migrations especially where advice is required on the 'solvency test'.

The steady stream of migrations of corporate vehicles into Guernsey reflects global recognition of its combination of legal and regulatory sophistication, political stability, and strategic accessibility. For businesses and investors seeking a secure and efficient jurisdiction from which to operate and grow internationally, Guernsey offers a compelling choice.