Why HNW Business Migrants are relocating the Isle of Man rather than the UK
Guy Wiltcher
by Guy Wiltcher
The UK has always been a popular destination for high-net-worth individuals (HNWIs) from around the world due to its attractive cultural, educational, and legal environment.
The UK Tier 1 Investor Visa programme closed in February 2022, leaving the primary remaining entry option is now the Business Migrant Visa route. This can lead to indefinite leave to remain in the UK (ILR) after 3 years, and full citizenship after a further 12 months.
However, restrictions on the types of businesses eligible for this visa, and the need for external endorsing bodies, are causing problems for even well-funded and robust proposals.
UK visa restrictions and obstacles have led to an upsurge in the number of HNWI business migrants applying to the Isle of Man. The Isle of Man is a self-governing British crown dependency with easier visa requirements, a very favourable lifestyle, and attractive taxation benefits. This makes the Isle of Man an appealing entry point for a visa that can also lead to a full British passport.
Reasons why the Isle of Man is an attractive place to live and do business
The Isle of Man is the only territory designated a UNESCO Biosphere.
It has a very low crime rate and is ranked the safest place to live in the British Isles.
It has an open housing market with no stamp duty.
The Isle of Man has no capital, inheritance, or wealth taxes, and a top income tax rate of 22%, compared to 45% in the UK. Additionally there are tax caps and concessional treatment options.
The Isle has seamless business transactions with the UK. There is a full double tax treaty and a common Customs and VAT area. Compatible common law legal systems offer excellent security for investments.
Corporate profits are subject to income tax of 0% and there is no withholding tax on dividend or interest payments.
The Isle of Man was voted “the best place to live in the British Isles for expats” (HSBC expat survey 2019).
A comparison of the UK and Isle of Man Business Migrant Innovator routes
Both jurisdictions require an innovative, viable, and scalable business idea to qualify for visa consideration. However there are differences in the application process, scope of eligibility, and the targets to be achieved.
UK applications must be endorsed by an external body, whereas the Isle of Man processes applications internally, allowing a greater degree of responsiveness and communication. The Isle of Man route, in contrast to the UK, potentially allows for:
Investment in, or takeover of, an existing business;
Establishment of a branch or holding company for an overseas enterprise;
Franchised businesses;
Setting up a family office.
After three years in the UK, a business migrant must meet two out of seven performance measures, of which the creation of five jobs is one. By contrast, the Isle of Man’s main requirement is the creation of at least three jobs.
The Isle of Man’s minimum investment of GBP 50,000 is very cost effective compared to, for example, the UK’s recently closed Tier 1 “citizenship by investment” visa programme which required a minimum GBP 2 million investment.
Sole Representative of an Overseas Business route
This alternative visa route as the “sole representative of an overseas business” enables a person to migrate for work at a specific business and can also lead to permanent residence. In the UK, this option is currently only open to representatives of news agencies. However, in the Isle of Man any type of business can still qualify.
Read the full article here.
Greystone LLC is a leading independent accountancy firm on the Isle of Man which provides auditing and accounting, tax advisory, fiduciary, and estate planning services.
GGI member firmGreystone LLC, Chartered AccountantsDouglas, Isle of Man T: +44 1624 620711 (ext. 256)
Advisory, Auditing and Accounting, Tax
Guy Wiltcher is a chartered accountant and chartered tax advisor. He is a former managing partner of Greystone LLC Chartered Accountants, for whom he now works as a consultant.Contact Guy.
