Although foreign affairs and defence are dealt with by the UK, Guernsey is self-governing and has its own parliament, known as the States of Guernsey. It also has its own separate legal judicial system as well as its own legislature. It is fiscally independent from the UK and has enjoyed continuity and stability of government for over 800 years.
Guernsey enjoys a special relationship with the European Union (EU) which excludes Guernsey from most of the effects of the Treaty of Rome. There are, however, special arrangements under Protocol 3 for the free movement of manufactured and agricultural goods between Guernsey and the EU member states. Guernsey has a flourishing finance industry with a maximum income tax rate of 20% and no capital gains, inheritance or withholding taxes.
Guernsey is in the same time zone as the UK, and frequent air links to London and other UK airports permit one-day business trips, and for those that wish to stay longer there is a wide range of top quality hotels and restaurants available to meet all the needs of the business traveller.
Finance business in the Bailiwick of Guernsey is regulated to the highest international standards with a diverse and innovative environment. Guernsey now has a worldwide reputation for international business and has achieved a unique combination of stable government, careful regulation and a distinctive style that is the envy of many. Fiduciary services are regulated by the Guernsey Financial Services Commission. Guernsey is at the top of the table of compliant jurisdictions based upon recent reviews by the Financial Action Task Force.