Overview

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.

It 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.

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 is already well advanced in the implementation of a new and dynamic zero tax strategy. To encourage further inward investment the Government has also initiated a strategy and provided funding to establish the Isle of Man as a leading e-commerce platform.

Key Economic Data and Standards

• Resident Population: 76,315 (Isle of Man Census Report 2001)
• Land Area: 572 sq. km/ 227 square miles
• Population Density: 133 people per sq. kilometre or 336 people per sq. mile
• Location: The centre of the Irish Sea - 50 km (31 miles) from Ireland and 50 km (31 miles) from the U.K.
• Chief Minister: Hon J A Brown MHK
• Status: An internally self-governing dependent territory of the Crown which is not part of the United Kingdom
• Currency: Sterling (the Isle of Man issues its own bank notes)

Economic Stability

The Isle of Man economy is currently in its twenty first 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. Although the rate of growth has slowed over the last few years it is estimated that the economy is still expanding at something around 5% p.a. in real terms.

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 quarter of the Island’s gross domestic product, with the rest of the finance industry adding another 15 to 20%.

One consequence of the economy’s performance has been an ongoing strengthening of public finances. Over the last six years alone Treasury’s receipts have increased from £300 million to over £475 million.

The Island’s unemployment rate has been below 1½% (of an economically active population of 40,000) for over six years. But labour market conditions for employers are considerably eased through the freedom to recruit and transfer personnel from off-Island. Although the Island operates a work permit system, it does so liberally, as evidenced in the information that shows around 13,000 permits being granted annually and refusals running at below 100 a year.