Island life beckons if you’re an entrepreneur or investor...

Are you a non-EU resident? If so, it may be that you haven’t previously considered the option of moving to the Isle of Man. PHAEDRA BIRD of Barnett & Turner’s Associates, Crowe Clarke Whitehill reveals the ‘Enterprise Isle’ initiatives that are designed to boost inward investment. Have you ever considered becoming a resident in the Isle of Man? New tax incentives and changes in financial regulation certainly make it an attractive option. But what practicalities are involved?

There are two types of residence visas you can potentially obtain from outside the EU.

The first is the Tier 1 Entrepreneur Visa, which you can obtain for three years and four months initially by investing £200,000 in a new or existing business. The company needs to be registered, pay tax and have a bank account in the Isle of Man.

You also have to meet certain other criteria, such as proving you haven’t been absent from the IOM for more than 180 days in any 12-month period.  (The Isle is, however, inside the Common Travel Area which includes the UK, Ireland and the Channel Islands, and if you spend time in this zone, that doesn’t count as an absence. So if you wanted to visit London for the weekend, for instance, it wouldn’t set the clock running on the 180-day limit.)

You can make an application to extend the visa for another two years, provided you remain engaged in the business and have created at least two full-time jobs lasting more than 12 months.

After five years, you can apply for Indefinite Leave to Remain in the IOM and this process can be accelerated if the business expands or more jobs are created.

The other option is a Tier 1 Investor Visa by making a qualifying investment of £2 million in the IOM within three months of arrival. Again, the initial visa is for three years and four months and the same absence criteria apply.  If the money remains invested throughout the period, then you can apply to extend the visa by another two years. And, once again, application for Indefinite Leave to Remain can be made after five years, with the possibility of speeding up the process by increasing the level of funds.

So, what about dependants?

Well, a spouse and children under the age of 18 can accompany the holder of either type of visa.

As an additional incentive to Tier 1 applicants, the IOM Government is also considering exempting people who come to the Island under the visa arrangements from the requirements to obtain the work permits that are generally required for all non-IOM workers.

If you would like to discuss anything related to this article please do not hesitate to call Barnett & Turner on 01623 659659 or email Jonathan at jwilson@barnettandturner.co.uk