Sark & Herm: Doing business & staying in touch

Sark and Herm both have economies which are primarily dependent on tourism. There is some farming on both islands, although most local produce is grown to supply the hotels and restaurants. Sark has also attracted wealth from overseas through its status as a tax haven – it has been described as the only true remaining ‘fiscal paradise’ in the world, and residents pay an annual property tax, but there is no requirement to disclose income or keep accounts. To claim residency and take advantage of the tax benefits, it is necessary to buy a property or purchase a long-term leasehold on the island. Other cottage industries on Sark and Herm include chocolate-making  and fishing.

The Sark economy suffered a major blow in 2008, when the Barclay brothers resident on neighbouring Brecqhou pulled their investments from the island after local voters did not support their candidates in government elections. They have since re-established their operations in Sark, and now own a third of the island including hotels, restaurants and vineyards. The brothers have reportedly invested £30 million in Sark since 2007.