The Isle of Man is a leading international business centre renowned for its innovation, professionalism and long-standing policy of positive engagement with international initiatives and standards:
The Isle of Man has its own democratically elected Parliament and judicial system. In addition, the Isle of Man has a stable and diverse economy with 31 years of economic growth.
The Isle of Man has a clear and simple tax regime with no Capital Gains Tax, Withholding Taxes or Wealth Taxes.
The Island recognises that the most effective way to create a successful business environment it to engage with its stakeholders and has formed positive relationships with the private sector. Ministers are accessible, which means ideas are heard and acted upon. This enables us to be agile, responsive and well placed to react to the challenges of the global economy.
The Isle of Man strives to be a model of political stability, transparency and financial supervision. We are at the forefront of best practise in international regulation and have been praised by global bodies including the OECD, G20 and IMF for our commitment to financial and supervisory standards. The Isle of Man has been the pioneer in introducing pragmatic regulation and consumer protection priding itself in being responsive to international needs.
The Isle of Man have signed a number of international tax agreements which reflect the Island’s commitment to complying with international standards.
The Isle of Man has an excellent telecoms and power infrastructure which has benefited from hundreds of millions of pounds worth of public and private sector investment in recent years. It is this infrastructure which has helped provide the foundation for the Island’s success as a major centre for e-business activities. In addition, the Island offers internationally orientated service expertise and global client base.
The Island enjoys excellent transport links to major transport hubs in the UK and Ireland with 50 flights to London per week and 30 to Manchester, making the Isle of Man an ideal gateway from which to travel to Europe and the rest of the world.
Excellent quality of life
With beautiful countryside, very low crime rates and excellent public services including health care and high educational standards, there is a relaxed and peaceful way of life in the Isle of Man. The Island boasts a fine selection of restaurants, shopping and leisure facilities, yet away from the busy commercial centres, the Island has retained a pace of life which is the envy of most urban dwellers.
If you are relocating your business to the Island or starting a new business, additional support in the form of grants may be available.
Please also see Visa & Immigration to the Isle of Man
The Isle of Man operates a simple taxation regime with a lower rate of tax on individuals of 10%, a higher rate of 20% and an election for a tax cap of £125,000 on personal income for the current tax year 2016-2017.
Read more about individual taxation on the Isle of Man Treasury website.
For companies the standard rate of corporate income tax is 0%. A 10% rate of tax applies to income received by a company from any of the following sources:
- Banking business
- Retail business, with profits above £500,000 (including supermarkets, car sales, petrol sales, convenience stores, online sales and mail order)
The rate of tax on income from land and property is 20% (including income derived from mining and quarrying, landfill, property development, commercial property letting and rental income).
Resident and non-resident companies are subject to Manx income tax on the same basis and at the same rates.
Additionally, there is no capital gains tax, wealth tax, stamp duty, death duty or inheritance tax in the Isle of Man.
Read more about corporate taxation on the Isle of Man Treasury website.
Full details about National Insurance on the Isle of Man can be found on the Treasury’s website.
The Isle of Man is at the forefront of efforts to implement the international standard on exchange of information in tax matters. The Isle of Man is an active member of the OECD’s “Global Forum on Transparency and Exchange of Information for Tax Purposes” and is currently a member of the Global Forum Steering Group. The effectiveness of the Isle of Man’s implementation of the international standard is reviewed by the Global Forum and to date more than 85 reviews have been completed, with the Isle of Man’s review being one of only 22 reviews to achieve the top ‘Compliant’ rating.
The Isle of Man’s commitment to international standards extends to automatic exchange of information that is emerging as a new international standard. In 2013 Tynwald approved the Isle of Man Government policies in relation to joining the OE CD Convention on Mutual Administrative Assistance in Tax Matters (in force since 1 March 2014) and to work with others on the development of systems similar to the US FATCA, including the Common Reporting Standard for Automatic Exchange of Financial Account Information, or ‘CRS’.
The Isle of Man has concluded agreements with more than 40 jurisdictions and is party to the OECD Convention. These agreements provide for exchange of information with respect to taxes with approximately 100 jurisdictions. The full list of international agreements is available via the on the Isle of Man Income Tax Division website.
Relationship with UK & EU
The Isle of Man operates a value added tax (VAT) regime which is essentially identical to, and interlinked with, that of the UK.
VAT in the Isle of Man is levied at the same UK standard rate, currently 20%.
By virtue of the Customs and Excise Agreement with the UK the Isle of Man has the benefit of being regarded as part of the European Single Market for Customs and Excise purposes, such that transactions involving the Isle of Man are treated by EU Member States as if they involved the United Kingdom (UK).
In addition, through the Agreement with the UK the Island has secured specific reduced 5% VAT rates (not available in the UK) for repairs and maintenance of domestic accommodation for its citizens and on hotel/bed and breakfast accommodation for visitors to the Island. These complement the existing IOM/UK lower rates for social benefit including zero rates for food, certain charitable activities, children’s clothing and written media amongst others.
Businesses trading in the Isle of Man, or in both jurisdictions, may apply to register for VAT in the Isle of Man providing that they can show that day to day management and control of the business is effected from the Island. For example by showing that all record-keeping, bank accounts, premises, directors, invoicing and administration take place in the Isle of Man.
Once VAT-registered, any Isle of Man business is subject to the normal UK/EU VAT rules.
Isle of Man businesses trading outside UK/EU
For Isle of Man businesses that are trading outside the UK and Isle of Man, their trading would normally be outside the scope of UK and Isle of Man VAT, and so they would not be required to register in either territory unless they wished to do so on a voluntary basis – usually in order to recover any VAT they may incur (for example on fees from lawyers, company administrators, etc).
Those wishing to work in the Isle of Man but who are not classified as an “Isle of Man worker” will require a work permit before starting employment or self-employment in the Island. Qualification as an “Isle of Man worker” applies through satisfaction of any one of the following criteria:
- born in the Isle of Man;
- resident for at least 5 years (and not having lived elsewhere more than once in the following 15 years);
- married to or the civil partner of an Isle of Man worker;
- having received full-time education during residence (and having remained in the Isle of Man thereafter)
- having an Isle of Man-born parent who spent the first 5 years of their life in the Isle of Man
Work Permit Exemption For Certain New Businesses
The Isle of Man offers many benefits to attract new businesses and ventures, so it also offers flexibility for businesses establishing in the Island a branch or subsidiary of a business carried on elsewhere or relocating a business in the Island from elsewhere. The exemption is subject to conditions such as:
- it may be claimed for up to three persons, or 10 per cent. of the persons employed in the business in the Island, whichever is the greater, subject to a maximum of 10 persons;
- the actual turnover of the business in the Island in the previous year (or, in the case of a business in its first year, the projected turnover) must not be less than £100,000 for each person employed in the business in the Island;
- not later than 31st January in each year the person claiming the exemption must provide the Department with a return in writing giving in respect of the previous year accounts or other information verifying that the turnover requirement was fulfilled.
Additional Work Permits Exemptions
There are a certain limited number of occupations for which permits are not required such as doctors, dentists, ministers of religion or the police.
There is a wide variety of temporary work permit exemptions which are intended to ensure that a business established in the Island can operate effectively.
For further information on exempted employments go to Work Permit Exemptions.
Cost & Processing Time
The cost of a work permit is £60 which is payable on submission of an application. The fee is usually paid by the employer. 75% of work permit applications are processed within 10 working days of receipt.
The Isle of Man offers an excellent quality of life. Residents enjoy relatively short commuting times, low personal taxes and one of the lowest crime rates in the British Isles making it ideal place for families and for those seeking a safe environment in which to live and work.
The Island also prides itself on being a caring society and offers excellent standards in both health care and education.
There are no restrictions on buying property in the Isle of Man. Property purchasers will find a comprehensive range of properties available on the Island including apartments, bungalows, traditional terraced, semi and detached houses as well as quaint country cottage retreats and many large premium country and coastal properties.
The Isle of Man’s website Locate.im is full of facts and figures where you will find all the practical advice you’ll need for moving to the Isle of Man and learn how the Island is a great place to live, visit and work.