Why move to the Isle of Man?
About the Isle of Man
The Isle of Man is situated in the middle of the Irish Sea and is approximately 32 miles long by 12 miles wide with a population of almost 86,000 people.
The Island is not part of either Great Britain or the UK but is known as a “Crown Dependency”. It is self-governing and is independent in all matters except for foreign relations and defence. The Head of State is the Queen who holds the title “Lord of Mann”.
The Island itself has a relaxed pace of life and is a secure place to live with low crime levels. However, behind this laid-back life style is a vibrant and successful international business community that has generated over 30 consecutive years of economic growth for the Isle of Man.
Why start your business on the Isle of Man?
There are many reasons to start your business on the Isle of Man, these include:
- Stable Government and growing economy;
- Clear and simple tax regime;
- Supportive and accessible Government;
- Pragmatic regulation and consumer protection;
- Solid infrastructure for transport and technology; and
- Government support, including loans, grants and equity support.
Registering a company in the Isle of Man is simple and straightforward and Isle of Man companies are available from service providers, like Peregrine, who are licensed by the Financial Services Authority to undertake such work.
It is possible to relocate your existing business to the Isle of Man with the help of a professional firm and the Isle of Man Government. We have built up a good working relationship with Government representatives, so we can put you in touch with the relevant people. The Government also offer a number of grants and incentive schemes which businesses can apply for to enable them to invest in new operations on the Isle of Man. These include:
- Enterprise Development Scheme;
- Financial Assistance Scheme; and
- Business Support Scheme.
Benefits to living on the Isle of Man
The most often highlighted financial benefit of the Isle of Man is the tax regime. There is no estate tax, inheritance tax or succession duties on the Isle of Man. Together with no capital gains tax, a 0% income tax for most companies and low rates of personal income tax (higher rate of only 20%).
The Island also has a tax cap system for High Net Worth Individuals, which is subject to an election for it to apply for five years. The tax cap system guarantees that a resident person’s Manx tax liability for a year is capped at £125,000 no matter how much income they earn. If the tax due on actual income is less than the cap on average over the five-year period, the taxpayers can elect to pay on an actual basis rather than a capped basis if it is beneficial. If a taxpayer ceases residence partway through the five year period, there is no need to pay the tax cap for the remaining years of assessment after the year of departure. For more information about income tax, please go to the Government website.
Things to do and see
You’ll never be short of something to see and do during a visit to the Isle of Man whether you’re looking for action packed fun or the opportunity to enjoy the peace and tranquillity of the countryside. Thrill seekers can try their hand at water sports, mountain bikers can explore some of the best trails in the British Isles and walkers can scale the spectacular coastal footpaths. You’ll find an activity to suit you and your family.
The Island’s legislation allows for free movement for most nationals to relocate to the Isle of Man and take up residence without the need for permission. However those moving to the Isle of Man to take up employment will require a Government issued work permit. With effect from the 1 November 2017, changes were made to the work permit system which include:
- Simplified employer only application form;
- Simplified list of matters to be taken into consideration by the Department;
- Simplified fees to encourage multi-year permits;
- Automatic one-year permit for cohabiting partners of Isle of Man workers upon application;
- Automatic one-year permit for cohabiting partners of work permit holders and exempt persons upon application;
- Introduction of a register of exempt persons;
- Remove the requirements for visa holders with permission to enter the Island under Tiers 1, 4 and 5 of the Points Based System to obtain an additional work permit.
Work permits are a regular topic of conversation and the policy is continually reviewed by the Isle of Man Government in order to make working on the Isle of Man easier and more attractive.
If you would like to speak to one of our team to find out more information about moving yourself or your business to the Isle of Man, then please do not hesitate to get in contact with one of the Peregrine team who will be delighted to help you and answer any queries you may have.
Peregrine Corporate Services Limited is licensed by the Isle of Man Financial Services Authority.