The Isle of Man has enjoyed 24 years of unbroken economic growth. The Island's economic progress in recent years has achieved a rapidly rising National Income, GDP is 107% of the UK, we have virtually full employment and low inflation.
While the Isle of Man will be affected by the global depression, the diversification of its economic base, the existence of key growth sectors and its inclusion on the White List at the G20 meeting in April 2009 give solid reasons for optimism for the future of the economy
International Finance Sector
The Isle of Man is an established international finance centre with a secure base built on political stability, low taxation and a firmly established fiscal and regulatory environment independent of the UK. In relation to providing international services it is fully supported by a modern infrastructure.
The Isle of Man is one of the few international finance centres where Government’s objectives for economic growth are matched by the physical space and labour resources needed to sustain them.
Successful Economy
The Island's economy is currently in its twenty fifth consecutive year of growth. The period since the mid-90’s witnessed a particularly impressive economic performance with real growth averaging almost 10% p.a. between 1997 and 2002 and although there followed a minor slowdown, the economy is currently back up to a growth rate estimated to be of around 8%p.a .
The key sectors in generating this performance have been financial services (this sector has grown by around two-thirds in the last six years) and professional services (growth of 50%). Banking generates typically around one fifth of the Island’s gross domestic product, with the rest of the finance industry adding another 15 to 20%.
The Island enjoys a balanced economy combining traditional industries such as agriculture, fishing and tourism with areas of recent growth such as financial services, e-commerce and the film industry.
Continued positive economic performance has resulted in ongoing strengthening of public finances. Over the last seven years alone Treasury’s receipts more than doubled to stand at over £0.6bn in 2007.
An important element of the Island’s fiscal strength is the long established and self imposed legislative requirement that Government must budget for a surplus in respect of its annual revenue spending. Whilst meeting this requirement Government has continued to invest in developing and updating the Island’s infrastructure, for economic as well as social benefit.
This overall strength in the public finances has been recognised in the continued triple A ratings from credit agencies S&P and Moodys.
AAA Ratings
The Island has an AAA Sovereign Credit rating from Standard and Poors and AAA from Moody's. These ratings reflect the Government's prudent fiscal and economic policies. This has enabled taxation to be reduced and spending on public services to be increased at well above the rate of inflation and for significant public revenue reserves to be created.
This provides a sound platform for business to flourish and the Island has actively sought to create a diversified economy that is not heavily reliant on any one sector, thus allowing us to react swiftly and effectively to events in world markets.
Investment and Taxation Strategies
In addition to the introduction of new investment and taxation vehicles designed to maintain and develop the Island’s status as one of the premier offshore locations, the Isle of Man Government was the first international business centre in close proximity to the UK to introduce zero rate business tax strategy.
The Island has its own Income Tax and Customs and Excise services and is an established low tax area enjoying total independence from the UK on matters of direct taxation.
These measures complement a commitment to low personal taxation and the annoucement in the February 2006 budget of the introduction of a personal tax cap of £100,000.
This combined with no capital gains, inheritance or wealth taxes, means the Isle of Man is the ideal location for a tax neutral platform for you and your business.
An Ideal Location to Live and Work
The Isle of Man offers an ideal location as a place to live and work. The Island combines a successful mix of a first class, business environment and high quality facilities across the board including education, health, leisure as well as a stunning natural environment.