Savings Introduction
Political independence and economical stability have traditionally made the Isle of Man an attractive choice for a diverse range of savings and investments.
The Island’s tax regime and secure regulatory environment have further consolidated its appeal to both corporate and individual interests.
On an ongoing basis, the Isle of Man Government co-operates nationally and internationally with industry bodies and other governments to ensure that the Island remains a compliant and transparent yet competitive jurisdiction.
The Island is home to the subsidiaries or branches of many main UK clearing banks and building societies, as well as UK and foreign banks.
Non-residents of the UK - as well as many former UK taxpayers, including expatriates and those who have retired to the Island or elsewhere - choose to protect the value of their savings by taking advantage of the wide range of investment vehicles available on the Isle of Man through some of the world's leading financial organisations.
The Isle of Man Government also offers a Depositor Compensation Scheme, which guarantees up to £50,000.
The Isle of Man and the EU Savings Tax Directive
Under the European Union Savings Tax Directive (which requires automatic exchange of tax information between EU member states), tax is deducted at source from income earned by EU resident individuals on savings held in other EU countries.
Since 2008, the Isle of Man has applied withholding tax, which is automatically deducted at source from interest earned on savings at a current rate of 20%.
From 1st July 2011, the Island will move to automatic exchange of information within the EU, putting it at the forefront of international tax co-operation and transparency allowing for free exchange between countries.