The Isle of Man is a one of the British Isles within a one-hour flight away from three London airports and a 30-minute flight from Dublin. It is also accessible from many other locations.
The island is within the Common Travel Area with the UK, Ireland and the Channel Islands. There is no immigration control between the UK and the Islands or between the Islands themselves.
Persons that have close connections with the UK, the Isle of Man and the Channel Islands (in particular, holders of passports issued in the Isle of Man) are British citizens under the UK British Nationality Act 1981.
As a British Crown Dependency, the Isle of Man is not part of the United Kingdom but a self-governing territory with its own legislation, income tax system and courts of law.
The UK Government is responsible for the island’s defence and international relations, but the Isle of Man can sign specific international agreements when entrusted to do so by the UK (as it has been in the case of tax information exchange agreements and double taxation agreements with EU Member States, the Organisation for Economic Co-operation and Development (OECD) and the G20 member countries). As confirmed by the UK on 19 July 1990, after consultation with the Island’s government, the OECD Convention extends to the Isle of Man. By its inclusion in the international legal network, the Isle of Man aims to retain its position as a reputable international financial centre with full access to global markets.
Isle of Man legal entities and individuals qualify as ‘GB’ applicants for international intellectual property protection under the international agreements made by the UK, which it extended to the Isle of Man.
The Isle of Man has never been a member of the European Union, but it was part of the EU Customs Union, benefiting from the freedom of the provision of goods throughout the EU. In contrast to the Channel Islands, the Isle of Man was within the EU VAT area and for VAT purposes is treated as part of the UK. This made the Isle of Man a popular jurisdiction for VAT-efficient import of goods, including high-value assets, into the EU. The Isle of Man Government cannot make any decision on its new relationship with the EU until the nature of the UK’s relationship is settled after Brexit.
Key advantages of the Isle of Man include:
- Political and economic stability:
- more than 1000 years of continuous parliament (Tynwald)
- A GBP 1.2 billion budget focused on health, education and full employment
- Aa3 Moody’s credit rating
- Zero corporation tax for most companies, no capital taxes and its own tax treaty network
- Personal safety and security, high quality of life and low crime and unemployment rates
- Reliable financial services and infrastructure
- English is state and business language
- GBP is main currency
- Same time zone as London and Dublin
- On the OECD whitelist
- Compliant with
- FATF AML standards, as most recently confirmed by MONEYVAL, the Council of Europe body for anti-money laundering and counter-terrorist financing,
- the Basel Core Principles for Effective Banking Supervision,
- Insurance Core Principles (per IMF findings) and
- the AIFMD criteria.
- Member of the International Organisation of Securities Commissions (IOSCO)
- Law based on the principles of English law
- Legislation similar in many aspects, although not identical, to that of the UK
- Developed and respectable international financial centre with a diversified economy
- State of the art IT and telecoms infrastructure
- Well-educated workforce
- Opportunity to bring own qualified key personnel, as well as hire local professionals
Diversification of the Isle of Man economy makes the island more resilient than other compact jurisdictions to crisis in one sphere of economy.
Key sectors include banking, fund administration, corporate service providers, insurance; however, the island’s diverse economy does not entirely rely on the finance sector but includes the following:
- Manufacturing, including high technology, clean technology and biotechnology sectors
- Ship and superyacht management
- Aircraft registration
- Space commerce
- Film production
- Entrepreneur/trading gateway
- Quality food producers and manufacturers