Isle of Man

ESSENTIAL FACTS

LOCATION: 54 09 N 04 29 W
The Isle of Man is the geographic center of the British Isles, and is located in the Irish Sea between England, Ireland and Scotland.

POPULATION: 80,058

CURRENCY: Manx pound (MXP), equal to the British pound sterling (GBP)

LANGUAGE: English, Manx Gaelic, Manx English

HISTORY AND GOVERNMENT

POLITICAL SYSTEM
The Isle of Man is a Crown Dependency and not a part of the UK under British law, although it is represented internationally by the UK; also, it is not a part of the European Union. It has a Parliamentary democracy consisting of a Lieutenant Governor, Chief Minister, and Council of Ministers. Tynwald is the name of its parliament - the oldest continuously running parliament in the world - that is bicameral, with a House of Keys and Legislative Council.

COMMERCE AND TRADE

FREE TRADE ZONE
There is duty-free trading between the Isle of Man and the United Kingdom as well as the EU. The Freeport has excellent security, storage facilities and infrastructure.

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
The Isle of Man is extremely stable economically, with 25 consecutive years of a growing GDP.

BANKING
The Financial Supervision Commission oversees the banking industry on the Isle of Man.

FOREIGN INVESTMENT
The Isle of Man offers incentives, including loans, training subsidies, rent reduction and grants for foreign businesses that show a plan of profitability without damaging the environment or amenities of the country, and/or whose goods or services are of high value. Filmmakers also receive a variety of incentives.

IMMIGRATION

IMMIGRATION FACTS
Manxes carry UK passports, but with provisions if the holder does not have at least one grandparent born in the UK.

VISAS
EU citizens can move freely in and out of the Isle of Man; UK visa, immigration and residency rules apply.

BUSINESS

BUSINESS ENTITIES
Under the umbrella of an Isle of Man International Business Company are the choices of a non-resident company and an exempt company. The incorporation process takes about two weeks. In general, the regulations applied to these companies follow closely with US LLC rules.

While both categories can be owned by non-residents of the Isle of Man, the officers and management of a non-resident company do not have to be Manx, while in an exempt company Isle of Man residents should hold the secretary position and at least one directorship.

A detailed annual return is due to the government by end of fiscal year. Certain name restrictions apply. A company incorporated on the Isle of Man must have a legally registered address on the island. Shelf corporations are available.

A license is needed for companies with the following words in their titles: bank, building society, savings, loans, insurance, assurance, reinsurance, co-operative, council, Chamber of Commerce, trust, municipal and finance or their foreign-language equivalents.

TAXATION

PERSONAL TAXATION
There are no capital gains, wealth, gift or inheritance taxes. Income is taxed at a maximum rate of 18 percent.

CORPORATE TAXATION
The Isle of Man levies a yearly fee to all Exempt companies of GBP300; otherwise, there are no taxes on profits. Bank profits are taxed at 10 percent. The OECD recently pressured the Isle of Man to include a withholding tax.

OTHER TAXATION/DUTIES
VAT applies to goods and services. Income from real estate is taxed at 10 percent.

DOUBLE TAXATION
There are no double tax treaties with which the Isle of Man complies.