An Island of Taxation Relaxation
Guernsey experiences great relaxation when it comes to taxes.
Taking up approximately 30 square miles and one of only seven islands within the English Channel, Guernsey boasts a beautiful coastline as well as a spectacular main town. Guernsey was once part of Normandy, hence the French street names, but now exists outside of the European Union. St. Peter Port, where Victor Hugo wrote “Les Misérables”, has a variety of wine bars and restaurants, as well as shopping, golf, tennis, horseback riding, and sailing opportunities. The homes on this gorgeous island range from 17th-century granite farmhouses to Victorian townhouses and from Regency townhouses to Georgian manors. Decorate your home with stunning flowers grown on the island and sold roadside or gaze at the chestnut and white cattle that are native to the island.
The demographic is mostly seniors 55+ that are looking for more of an old-fashioned lifestyle. Approximately 80% are Britons, with the other buyers being sprinkled in from North America, South Africa and New Zealand. Island home owners with a European passport must enjoy the island for at least 91 days out of the year if they wish to also enjoy the amazing tax break (those without an EU passport will also need their Visa).
Guernsey is definitely a favorite among financial advisers for its easy going tax climate. The island has no inheritance tax or capital gains tax as well as a 20% cap on income tax. These breaks attract a more mature crowd that can afford a more expensive home due to the lack of taxes. Along with the system of relaxed taxes comes the 2-tiered property market that allows locals to pay considerably less for their homes, even those comparable in size and location, than foreigners. Approximately 21,000 of the islands homes are designated as “local market”, where as foreigners may only be privy to 1,600-or-so homes on the “open market”. Homes on the open market tend to be considerably more expensive as well as larger in size and the system was put in place because it has been difficult in the past to sell these homes strictly to locals. Since the 2-tiered system was established in 1950, demand for these large open market homes has overpowered supply, creating the high premium that you can see today. The island’s market fluctuates every 2 – 3 years, but usually not by much. Typical island home sales only range from about 50 – 100 homes per year.
Montrêux is another taxation haven (and much closer than its English Channel counterpart). Nestled near the Nevada-California border, Montrêux offers all of the tax advantages of Nevada with the beauty of the Reno-Tahoe area. Among these great benefits of living in Nevada is the extremely relaxed tax climate. The Silver State is becoming more and more of a draw for individuals and businesses alike, due to the rising taxes in neighboring states. Here are a few of the tax-friendly aspects of the great state of Nevada:
- No personal income tax
- Low property taxes
- No corporate income tax
- No tax on corporate shares issued while living in Nevada
- No tax on sale or transfer of shares
- No inheritance tax
For more information on Nevada’s tax advantages, head over to our tax blog to get first-rate advice from Ashley Quinn, CPAs.
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For real estate inquiries, stop by the beautiful Montrêux Welcome Center at 16475 Bordeaux Dr. in Reno, NV or call us at 775.849.9444. The Welcome Center is open 7 days a week, from 9:00 am – 5:00 pm.