Author: Gareth Bell, www.legalweek.com
25 Feb 2010
Golden sandy beaches, a warm climate and a flat tax of 20%... and it’s just off the UK coast. Gareth Bell describes the benefits of life and work in Guernsey
With the recent introduction of the 50% tax rate, Guernsey has already welcomed a number of high-profile new residents and the trend is expected to continue throughout 2010 and beyond.
While HMRC and the likes of Terra Firma’s Guy Hands have ensured that the island has received many more column inches of late, there’s no doubt that Guernsey is proving to be an attractive alternative to the UK’s gloomy economic climate and the increasing strain on taxpayers’ wallets.
There is, however, so much more to this beautiful little island than meets the eye and thankfully you don’t need to be one of the wealthy elite to benefit from what Guernsey has to offer. For the majority of Guernsey’s 60,000 or so residents and for many UK citizens looking to relocate, Guernsey offers an ideal solution and a quality of life that is second to none.
The island is a place where vibrant business and work/life balance meet; where breathtaking scenery and glorious beaches are in abundance; where fabulous food, sports and entertainment abound; and where the climate boasts more hours of sunshine and higher average temperatures than anywhere in the UK.
It would be disingenuous to say that the low levels of personal taxation in Guernsey are not attractive as well. In a nutshell, there are no capital gains, inheritance or value-added taxes, and personal income is taxed at the flat rate of 20%.
So near, yet so far
The first thing you’ll realise when you get off the plane or ferry is just how accessible the island really is. Whether by sea or air, travel to and from Guernsey for business or pleasure is often as easy as the average commute into central London. And with flights taking as little as 40 minutes from London (even less from other UK cities), you are never far away.
The benefits of Europe are right on your doorstep, too, as flights and ferries head to the continent regularly. Whether you plan to visit Switzerland for business, the Alps to ski or France for a weekend getaway, it is all within easy reach. You don’t even need to leave the Bailiwick if you want a break from the pace of Guernsey, though - the tranquillity and beauty of Alderney, Sark and Herm are within sight, but you’ll feel like you’re a million miles away when you’re there.
Making Guernsey your island home
The island may be small, but there’s never any chance of over-population becoming an issue since housing on the island is subject to some unique and interesting restrictions on the occupation of property. Anyone can purchase a property on the island but legislation exists to control who can legally occupy certain properties.
In simple terms, there are two housing markets: the local market and the open market. The local market is available for locally-qualified residents and those who have obtained a housing licence. These licences are typically issued to people brought to the island to fill positions considered to be essential to the well-being of the community. Those individuals offered positions in companies on the island will generally be issued with this type of licence, which can vary from nine months to 15 years, depending on the position.
For those who cannot obtain a housing licence, there are a number of dwellings that are freely available for purchase and occupation. These are the open market properties, and are generally larger, executive dwellings with a relatively high price tag.
With miles of stunning cliff walks, dozens of natural coves and harbours, a dramatic coastline and golden sand beaches, Guernsey will never cease to appeal to the outdoor enthusiast. From beautiful Petit Bot Bay, voted one of Sunday Times’ 20 best secret beaches in the British Isles, to cliff walks at Icart Point, and from L’Ancresse beach to the stunning countryside around the island’s reservoir, Guernsey offers a unique natural beauty.
Sports, food and entertainment
The island may be small in size but it’s big on activity. You don’t have to look very hard for something to do in Guernsey. For those who love the outdoors, there is no better place to be. The natural coastline is a draw for lovers of all water sports, whether surfing, sailing, kite or windsurfing, diving, kayaking or just swimming - all are very popular. For those looking for a more leisurely way to spend their free time, Guernsey is home to a few great golf courses - or perhaps a day angling in a secluded part of the island is more your pace. There are also active leagues for almost every sport you care to mention, from football and rugby, tennis and cricket, to hockey and basketball.
Guernsey is packed with restaurants to suit all tastes and occasions: lunch at the award-winning Beach Cafe at Fermain Bay, after-work cocktails looking out over the harbour or an evening trip to Herm for dinner. Or if you fancy a pint and bit of music, you’ll find no shortage of local venues and bands to keep you entertained.
Legally speaking
It would be strange not to mention the employment opportunities when so much has been said about work/life balance. The legislation in Guernsey differs considerably from that in the UK, and is not without its quirks. With the flexibility to respond quickly, Guernsey’s government has ensured a number of progressive laws governing trusts, companies, intellectual property and anti-money laundering issues have been introduced over recent years.
To appear before Guernsey courts or become a partner in a Guernsey law firm, you must be an advocate. Because Guernsey’s law has its roots in Norman law, becoming an advocate requires three months’ study at the Universite de Caen Basse-Normandie followed by completion of the Guernsey Bar examinations.
Guernsey law firms are particularly active in a number of key areas, including investment funds, banking, trusts and other fiduciary services, property and intellectual property. In particular, in the current economic climate, litigation departments are very busy handling disputes relating to non-contentious practice areas. Some areas of Guernsey law will be quite familiar to any lawyer trained in common law (albeit with a few quirks), whereas others, such as property and succession, are significantly different from that of England and Wales due to the influence of Norman law, which remains strong to this day.
Roughly speaking, less than half of the qualified lawyers working in Guernsey are qualified as Guernsey advocates and there is a cosmopolitan mixture of English, Scottish, Irish, South African, Antipodean and Caribbean lawyers currently practising. Many have relocated from the City or equivalent backgrounds in order to seek the work/life balance that was previously either unbalanced or completely missing.
Gareth Bell is a partner at Collas Day.