Why Aren’t you Banking Offshore in the Isle of Man?

The banking sector in the Isle of Man accounts for 20% of its GDP - now that’s an impressive figure - and recently the amount of money inward flowing into the island has been increasing impressively which leads us to ask, why aren’t you banking offshore in the Isle of Man?  Everyone else seems to be!

The popularity of the jurisdiction has a great deal to do with the fact that it is so highly respected within the offshore industry – the regulations, privacy protection and availability of professional services in the Isle of Man are second to none, and even in spite of the EU Savings Tax Directive the amount on deposit in offshore banks on the island is increasing.

Last year there was an almost 16% increase in the amount placed on deposit within banking institutions in the Isle of Man taking the amount held in offshore banks up to 43.39 billion pounds - and interestingly enough, the final quarter of 2006 saw the strongest upsurge in the amount of foreign funds being committed to the island suggesting that 2007 will be another strong year for this particular offshore tax haven.

Offshore banking is the number one segment of the entire financial services industry upon which the Isle of Man economy is largely built…meaning that banking underpins the economy and also provides strong support for sectors downstream of it such as funds and investment, insurance and reinsurance and corporate services.

Naturally enough the government in the Isle of Man are pleased that their jurisdiction’s economy is doing so well on the back of the entire offshore banking industry and they are keen to further develop the attraction of their financial services industry and secure their favourable financial situation for the future.  To that end they are constantly looking at and taking measures to improve the overall taxation and security advantages that their island has.

As a result of the government’s commitment to the financial services industry, the Isle of Man wins and retains significant business at levels over and above those enjoyed by other similarly superior tax havens, and as long as the government and financial services sectors continue to respect the key position each other plays in the future success of the island, banking offshore in the Isle of Man will continue to be a popular choice for many offshore, onshore, international and expatriate clients.