You are relocating to the Isle of Man: this may be a daunting prospect – uprooting children and family and choosing a new life here. There may be many reasons why you are doing this: new job, retirement, tax reasons; however, whilst your objective is to move may be clear, there are many other things to think about when relocating. It is a well-known fact that new arrivals to the Island are more likely to stay if they are settled and comfortable. Mary Linehan and her team at b-localiom.com can assist. They take the hassle out of moving and settling in so you can get on with living here: this is their specialism.
It is not only arriving on the Island that may be your focus: you may be leaving – the same principles apply and b-localiom.com can help.
We, at Hotchkiss Associates, are proud to work closely with Mary and her team at b-localiom.com. Anything we suggest from a tax perspective needs to be implemented efficiently, smoothly and with care. Whether you are becoming or ceasing Isle of Man residence, have employees coming and going or are wishing to acquire a new domicile on the Island: implementation of your plan is key.
Key Employee Tax Concession
You may be able to benefit from the key employee tax concession (KEC) available from the Isle of Man Government, the KEC can be extremely beneficial to new arrivals on the Island.
If the KEC applies to an individual, they will only be liable to Manx income tax on Manx source income that they would have been liable to Manx tax on if they had been non-Manx resident (ie there will be a Manx tax liability in respect of Manx remuneration and benefits in kind, but not on non-Manx source income or Manx source income that is “excluded” income such as Manx dividends and bank interest), rather than their worldwide income as is normally the case for an Isle of Man resident. The KEC currently applies for 3 tax years.
The KEC applies to individuals who are required to move to the Isle of Man by their employer and who are essential to the implementation and operation of new business in the Island. In order to grant the KEC, the Treasury must be satisfied that the new business is in the economic interests of the Isle of Man and will provide additional productive employment on the Island. This is a bit like the UK remittance basis, except the non-Manx income can be remitted without taxation.
An application will need to be made to the Income Tax Division in order to benefit.
Please click below for further details:
Isle of Man Work Permits
Except in the case of a small number of occupations, anyone who is not defined as an Isle of Man worker requires a permit to take up both employment and self-employment in the Isle of Man.
An “ Isle of Man worker” is an individual:
• who was born in the Isle of Man
• who has been ordinarily resident in the Isle of Man for at least 10 consecutive years
• who has been ordinarily resident in the Isle of Man for at least 5 consecutive years and not having lived elsewhere more than once in the following 15 years; (residence in the Isle of Man before 1963 does not count for this purpose;)
• who is married to an Isle of Man worker
• who has been married to an Isle of Man worker, has lived in the Isle of Man for at least 3 years immediately before becoming widowed or divorced and continued to live in the Isle of Man thereafter
• who is a child of an Isle of Man worker who, at the time of the child’s birth, was serving, or married to a person serving, in the armed forces
• who is a person, one of whose parents was born in the Isle of Man, where that parent was ordinarily resident on the Isle of Man for 5 consecutive years immediately after their birth; or
• who, whilst ordinarily resident in the Isle of Man, has been receiving full time education either in the Isle of Man or elsewhere; (a person who ceases to be resident in the Isle of Man ceases to be an Isle of Man worker under this heading).
Application for work permits should be made to the Department of Economic Development employment division. For more information, please visit the Department of Economic Development on the below link: