Isle of Man or Guernsey: where should you start a business?
Guernsey ranks higher in the index, 02 against 03. 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%. Banking and large retail profits are taxed at 10%, income from Isle of Man land and property at 20%, and VAT is 20%.
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.
Set-up
Standard incorporation takes 48 hours and costs £100, with a two-hour service available. The annual return costs £380, and there is no minimum capital.
Standard incorporation costs £100 and takes 24 hours, with faster paid services. The annual validation fee ranges from £260 to £1,050.
On the ground
A 2006 Act company must keep a licensed registered agent and have at least one director. An economic substance regime applies to relevant activities.
Incorporation is only through a licensed fiduciary, and a company needs a registered office and resident agent in Guernsey. Substance depends on the activity.
Ownership
The beneficial ownership database is not public. Obliged entities have had access for due diligence purposes since 31 December 2024.
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.
Residence
The Business Migrant (Innovator) visa requires at least £50,000 of investment funds and endorsement, with initial leave of three years.
An entrepreneur visa is available with a Population Management permit, which anyone living and working there needs. No threshold is published.
Living and working
Currency
Pound sterling and the Manx pound, at par.
Pound sterling and the Guernsey pound, at par.
Time zone
UTC+0, or UTC+1 in summer.
UTC+0, or UTC+1 in summer.
Personal tax
Income tax of 10%, then 21% above £6,500 (single, 2026/27), with an optional £220,000 cap. No capital gains, estate or wealth tax.
Flat 20% income tax with a £15,200 personal allowance (2026 Budget) and a tax cap. No capital gains, inheritance or wealth tax.
Isle of Man vs Guernsey: common questions
The Isle of Man: The standard rate is 0%. Banking and large retail profits are taxed at 10%, income from Isle of Man land and property at 20%, and VAT is 20%. 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 Isle of Man: Standard incorporation takes 48 hours and costs £100, with a two-hour service available. The annual return costs £380, and there is no minimum capital. Guernsey: Standard incorporation costs £100 and takes 24 hours, with faster paid services. The annual validation fee ranges from £260 to £1,050.
The Isle of Man: A 2006 Act company must keep a licensed registered agent and have at least one director. An economic substance regime applies to relevant activities. 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 Isle of Man: The beneficial ownership database is not public. Obliged entities have had access for due diligence purposes since 31 December 2024. 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 Isle of Man: The Business Migrant (Innovator) visa requires at least £50,000 of investment funds and endorsement, with initial leave of three years. Guernsey: An entrepreneur visa is available with a Population Management permit, which anyone living and working there needs. No threshold is published.
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