Unique in Europe, the Isle of Man is a self-governing dependent territory of the British Crown. With its own thousand year old parliament, the Tynwald, overseeing all internal administration, fiscal and social policies, the Island, is by consent, within the EU Customs Union, giving it an attractive VAT status.

The Island has a well-balanced economy, which combines traditional industries such as agriculture, fishing and tourism with areas of recent growth such as financial services and manufacturing. Finance and manufacturing are now particularly important contributors to the Island's National Income.

Finance and economics

The Isle of Man has developed a distinctive financial services regime which currently comprises:

• A basic 10% rate of income tax with a higher rate of 18%
• Company taxation of either 0%, 10% or 15% depending upon business activity, moving to a 0% company taxation for most companies from April 2006
• Generous personal taxation allowance
• No capital gains tax, estate tax or inheritance tax
• Depositor Compensation Scheme
• Retention Tax on deposits and certain investments for EU residents
• Attractive VAT status within the EU customs area
• No exchange control restrictions
• A low cost register for the shipping industry, but with strong regulation and "Red Ensign" status

For further information on the Isle of Man's finance industry, you might like to visit www.gov.im.

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