Buying In Guernsey
Ownership of Property in Guernsey
What restrictions are there in ownership of Property?
None. Property can be owned by anyone or by companies or trustees.
The restrictions imposed are on occupation rather than ownership. Control of Occupation (Guernsey)
Law 1994 dictates that the occupation of local market properties is limited to persons having the necessary
residential qualifications or persons having been granted a licence to occupy a local market dwelling by the States
of Guernsey Housing Authority (it is important to note that some licenses may in themselves contain certain
restrictions). For clarity on residential qualifications we would recommend contacting the States of Guernsey
Housing Authority.
The Local and Open Markets
There are two "tiers" of residential properties in Guernsey known as open and local market and whilst
there are no restrictions on ownership, there are on occupation.
Residential local market properties can in general be occupied by locally born people or those who have resided in
Guernsey for a certain time, or by people who have proven parentage or ancestral links between certain dates.
"Local market" properties may be occupied by "non local" people who have obtained the necessary licences
from the States of Guernsey Housing Authority and are locally known as "Licence Holders". These people are
in general specially qualified in certain jobs and are considered to be essential to the island. As mentioned
above certain restrictions on licences apply and we recommend dialogue with the States of Guernsey Housing
Authority to clarify any queries you may have.
"Open market". There are no restrictions on the purchase or occupation of "open market" properties and they are
in general occupied by non local residents, however they do command a higher price than that of local
market properties.
Tax Restrictions on Ownership
Known locally as Dwelling Profits Tax, should a continuation of twelve consecutive months of occupation
(a year and a day) be proven then no dwelling tax is payable or in the case of buying for investment purposes,
a restriction of a period of ownership of five years may apply. Failure to meet either of the above exemptions
invariably results in a 100% rate of tax on any capital gains made. There is no taper relief in respect of
partially meeting the timescales, though different rules do exist for property developers and companies. For
more details, persons should contact the Income Tax Authority on 01481 724711, or seek professional advise.
The Legalities of Purchasing
Rather than write many paragraphs, we would recommend "giving us a ring" where we will be happy to explain
simply the steps that should be taken.
Document Duty
The following document duties apply to purchases in Guernsey:
| Value |
Percent |
| £0 - £150,000 |
2% |
| £150,000 - £250,000 |
2.5% |
| £250,000 and above |
3% |
| Land |
3% |
In addition, the legal (advocates) fee is 0.75% of the cost of realty of the property plus £92.50 for
Court, Greffe & registration fees.
For example: An acceptable offer of £250,000 is made, a normal allowance of 5% is made for personalty i.e.
carpets, curtains, light fittings etc, therefore the realty would be £237,500; total fees 3.25% plus £92.50 as above.
Estate Agents fees are normally only occurred by property vendors.