Executive Summary
The Isle of Man (a self-governing British Crown Dependency) is one of the top offshore jurisdictions to form a company, hence it has a higher formation fee in comparison to tax havens not well regarded internationally.
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It is not blacklisted, which allows you to profit internationally from a reputable image.
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0% tax rate on most type of business income, including foreign income.
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Capital gains are not taxed.
- 1 owner and 1 director minimum is required.
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It is not part of the European Union, which is a plus for tax purposes since it will not be bound to EU laws.
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Relatively Crypto Friendly in comparison to other jurisdictions. By forming a company in the Isle of Man it is easier to open a bank account in banks in Liechtenstein, Switzerland, Singapore, and alike, without a problem in regards to country of formation.
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Good jurisdiction for e-gambling (online casino)
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It has a few tax information exchange agreements.
Company Formation
Company type: Private Limited by Shared, 2006 Act Company.
Shareholder: 1 shareholder
Registered Agent licensed and located In the Isle of Man.
Director: one director minimum required. It can be an individual or a corporate director, the latter has to be licensed in the Isle of Man. Name of Director(s) is publicly available.
Taxation
Corporate Tax rate: 0% on most activities. A 10% income tax rate is applied only to businesses engaged in the banking sector or retail in the Isle of Man, and 20% on real estate income
Capital Gains Tax: exempt.
Dividends: no tax paid on dividends received or paid.
Economic Substance Requirement
A company tax resident company in the Isle of Man that has income from “relevant sectors” will considered “relevant sector company”, and relevant sector companies will be required to have adequate substance (Economic Substance Requirements) in the Isle of Man.
Relevant sector is:
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(a) banking;
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(b) insurance;
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(c) shipping;
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(d) fund management;
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(e) financing and leasing;
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(f) headquartering;
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(g) operation of a holding company;
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(h) holding intangible property; and
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(i) distribution and service centre business.
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For a relevant sector company to have adequate substance in the Isle of Man, the following must be
it is directed and managed in the Island;
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(b) there is an adequate number of qualified employees in the Island (whether or not employed by it or another person and whether on temporary or long-term contracts);
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(c) it has adequate operating expenditure proportionate to the level of activity carried on in the Island;
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(d) it has an adequate physical presence in the Island; and
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(e) it conducts core income-generating activity in the Island.
Pure equity holding companies will be subject to a more relaxed adequate substance requirement:
