Isle of Man

The Isle of Man is a traditional tax haven principally used by the UK and Ireland, and the bulk of its wealth comes from UK property holding structures. Its main features are 0% tax companies, a residency programme with a cap on income tax aimed at High Net Worth Individuals, 0% tax trusts and is also a popular choice for online gaming. The Isle of Man is a large offshore banking center and has a significant Maritime practice. For more information on offshore centers generally (and particularly why we do not recommend their usage for EU nationals) please see our main article. The Isle of Man is unique amongst offshore centers in allowing access to EU VAT system (despite not being a member the Isle of Man is part of the UK for VAT purposes only). It is our contention that if access to the EU VAT system is required an EU company will generally be more appropriate. It is true that no EU company offers 0% tax however the rate can be low as 5% in Malta or even effectively 0% through the use of a UK LLP. The Isle of Man has survived many attacks from the international community mainly lead by the UK. Currently the Isle of Man along with the Channel Islands are coming under renewed pressure. In anticipation of this the Isle of Man is currently reviewing its tax system in anticipation of another attack. In spite of all those concerns the Isle of Man remains one of the most well-regulated offshore centers and local providers are generally very diligent in applying the highest international standards of Anti-Money Laundering (AML) and Preventing the Financing of Terrorism (PFOT) rules.