The Isle of Man is a British Crown dependency, situated in the Irish Sea between England and Northern Ireland. The Isle of Man is a "self-governing possession" of the British Crown and is considered internationally as a "territory for which the United Kingdom is responsible" rather than a sovereign state. The Isle of Man is not a part of the European Union, although it's within the European Union's customs area.
Key sectors of the Manx economy are offshore banking, manufacturing and tourism.
The Isle of Man is a well established international banking and finance center. Banks in the Isle of Man cover the areas of retail banking, commercial banking, private and expatriate banking. Almost all of the banks operating in the Isle of Man are foreign-controlled, with the majority of banks having their head offices in the United Kingdom.
The Isle of Man issues its own currency, the Manx pound (IMP) which is pegged at parity to the Pound sterling (GBP): 1 IMP = 1 GBP. However, the Manx pound can not be spent outside of the Isle of Man. The Pound sterling is also used on the island.
1 IMP = 1 GBP
|Nominal GDP (2014)||Real GDP Growth (2014)|
|4.3 bln GBP (+0.06%)||4.5 % (2013: 2.9 %)|
According to The Government of the Isle of Man, nominal GDP of Isle of Man in 2014 was 4.3 bln GBP.
Isle of Man outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.2% over the past 2 years (2012 - 2014). In 2014 real GDP growth was 4.5% which was above the Euro Area average (0.9%) and above the European Union average (1.3%).
|CPI, Year Average (2015)|
|-1.6 % (2014: 0.2 %)|
According to The Government of the Isle of Man, inflation rate in Isle of Man in 2015 expressed as annual percentages of average consumer prices was -1.6% which was below the Euro Area average (0.0%) and below the European Union average (0.0%).
|Unemployment Rate (2015)|
|1.9 % (2014: 2.0 %)|
|-||Aa1 (high grade), outlook negative||AA+ (high grade)|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Isle of Man signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Isle of Man and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Isle of Man signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Isle of Man and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Isle of Man signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in the Isle of Man|
|IGA in effect since 13 December 2013, Model 1|
Isle of Man has FATCA agreement with the U.S. in effect since 13 December 2013 (Intergovernmental Agreement Model 1). Financial institutions operating in Isle of Man are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Manx financial accounts hold in U.S. financial institutions will be reported to Manx authorities.
|Maximum Protected Amount|
|50 000 GBP|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Isle of Man are summarised in Table 1.
|Scheme Participants||all credit institutions operating in Isle of Man (including branches of foreign banks), branches of Manx banks abroad|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||any credit balance on an account with a bank (for example, current accounts, notice accounts and fixed term accounts)|
|Maximum Protected Amount||50 000 GBP|
|Paid In Currency||GBP|
Table 1. Deposit guarantee scheme in Isle of Man.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Manx pound)||Foreign Currency|
|Aaa (prime)||Aaa (prime)|
Local currency (Manx pound) deposit ceiling for Isle of Man is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Financial Services Authority
|Number of Banks|
|Consolidated Assets (2016)|
|57 900.00 mln GBP (-2.36%)|
Currently there are 19 credit institutions operating in Isle of Man.
All the credit institutions operating in Isle of Man can be classified into several categories. Table 2 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||10|
There are 10 branches of foreign banks from 4 different countries in Isle of Man. Table 3 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|