Guernsey or Cayman Islands: where should you start a business?
Guernsey ranks higher in the index, 02 against 08. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
The standard rate is 0%, with 10% on banking, fiduciary and some financial services and 20% on land, utilities and large retail. There is no GST or VAT.
Companies pay no corporate income, capital gains or withholding tax, and no VAT is charged. Individuals pay no income or inheritance tax.
Set-up
Standard incorporation costs £100 and takes 24 hours, with faster paid services. The annual validation fee ranges from £260 to £1,050.
Registration costs CI$700 to CI$2,568 by capital band. An express service completes within 24 hours for CI$500 more, and no minimum capital applies.
On the ground
Incorporation is only through a licensed fiduciary, and a company needs a registered office and resident agent in Guernsey. Substance depends on the activity.
Directors need not live in the islands, but the company must keep a registered office there. Economic substance requirements depend on the activity.
Ownership
The beneficial ownership register is not public. It is open to relevant authorities, and obliged entities have been able to request information since August 2025.
Since 28 February 2025 the beneficial ownership register is open only to persons with a legitimate interest, including journalists, at CI$75 an application.
Residence
An entrepreneur visa is available with a Population Management permit, which anyone living and working there needs. No threshold is published.
The Certificate of Direct Investment requires at least CI$1,000,000 invested in a licensed business that generates employment.
Living and working
Currency
Pound sterling and the Guernsey pound, at par.
Cayman Islands dollar.
Time zone
UTC+0, or UTC+1 in summer.
UTC-5.
Personal tax
Flat 20% income tax with a £15,200 personal allowance (2026 Budget) and a tax cap. No capital gains, inheritance or wealth tax.
There is no income, inheritance, capital gains, gift or property tax, but most real estate sales carry 7.5% stamp duty.
Flights
Services include British Airways to London via Nassau and Delta and JetBlue to New York; there is no Dubai or Singapore service.
Guernsey vs Cayman Islands: common questions
Guernsey: The standard rate is 0%, with 10% on banking, fiduciary and some financial services and 20% on land, utilities and large retail. There is no GST or VAT. The Cayman Islands: Companies pay no corporate income, capital gains or withholding tax, and no VAT is charged. Individuals pay no income or inheritance tax.
Guernsey: Standard incorporation costs £100 and takes 24 hours, with faster paid services. The annual validation fee ranges from £260 to £1,050. The Cayman Islands: Registration costs CI$700 to CI$2,568 by capital band. An express service completes within 24 hours for CI$500 more, and no minimum capital applies.
Guernsey: Incorporation is only through a licensed fiduciary, and a company needs a registered office and resident agent in Guernsey. Substance depends on the activity. The Cayman Islands: Directors need not live in the islands, but the company must keep a registered office there. Economic substance requirements depend on the activity.
Guernsey: The beneficial ownership register is not public. It is open to relevant authorities, and obliged entities have been able to request information since August 2025. The Cayman Islands: Since 28 February 2025 the beneficial ownership register is open only to persons with a legitimate interest, including journalists, at CI$75 an application.
Guernsey: An entrepreneur visa is available with a Population Management permit, which anyone living and working there needs. No threshold is published. The Cayman Islands: The Certificate of Direct Investment requires at least CI$1,000,000 invested in a licensed business that generates employment.
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