What is Document Duty in Guernsey?

## Document Duty in Guernsey 2026

Document Duty is a transaction tax charged on instruments (legal documents) effecting the transfer of property in Guernsey. It is the island's equivalent of the UK's Stamp Duty Land Tax (SDLT), though the rates and structure differ.

## Current Residential Property Rates (2025)

Document Duty on residential property is calculated on a banded marginal basis — the rate for each band applies only to the portion of the purchase price within that band, not the whole price.

| Band | Rate | |------|------| | Up to £250,000 | 0% | | £250,001 to £400,000 | 1% | | £400,001 to £750,000 | 1.5% | | £750,001 to £1,500,000 | 2% | | Above £1,500,000 | 2.5% |

### Example: Purchase Price £600,000

| Band | Amount in Band | Rate | Duty | |------|---------------|------|------| | Up to £250,000 | £250,000 | 0% | £0 | | £250,001 to £400,000 | £150,000 | 1% | £1,500 | | £400,001 to £600,000 | £200,000 | 1.5% | £3,000 | | Total | | | £4,500 |

## Commercial Property Rates

Commercial property transfers (offices, retail, industrial) attract different rates: - 0.5% on the first £50,000 of consideration - 2% on the excess above £50,000

A £500,000 commercial property purchase: £250 (0.5% on £50,000) + £9,000 (2% on £450,000) = £9,250.

## Who Pays Document Duty?

The buyer of the property pays Document Duty. It is a transaction cost, not an annual tax.

## The Payment Process

Document Duty is not self-assessed in the same way as UK SDLT. In Guernsey: 1. The advocate (solicitor) handling the conveyance calculates the duty 2. The advocate presents the instrument to the Revenue Service for stamping 3. The advocate remits the duty to the States of Guernsey 4. The stamped instrument is then registered at the Guernsey Land Registry

An unstamped instrument cannot be registered or used in court as evidence of title. This ensures payment.

## Guernsey Document Duty vs UK SDLT

| Feature | Guernsey Document Duty | UK SDLT | |---------|----------------------|----------| | Entry threshold | £250,000 (0% below) | £250,000 (0% below for next 12 months from April 2025) | | Top rate | 2.5% | 12% (above £1.5m residential) | | Additional property surcharge | No | 5% surcharge | | Non-resident surcharge | No | 2% surcharge | | First-time buyer relief | No equivalent | Up to £500,000 at 0% | | Annual charges (ATED) | No | Yes (for enveloped dwellings) |

Guernsey's Document Duty is materially lower than UK SDLT for most property values, particularly for higher-value properties where the UK's rates and surcharges compound.

## Share Transfers and Enveloped Property

Transfers of shares in companies are generally not subject to Document Duty in Guernsey. However, the transfer of shares in a property-holding company (where the substance of the transaction is the transfer of Guernsey land) may be treated as an indirect property transfer and attract Document Duty.

This is an area of complexity — always take specialist Guernsey legal advice on structuring property transactions.

## Historical Context

Guernsey property prices are high relative to the island's size. The Guernsey property market is regulated by a system of Local Market and Open Market designations, limiting who can buy what type of property (relevant to migration to Guernsey). Document Duty is a significant transaction cost for Open Market (international buyer eligible) properties, which are typically more expensive.