The Isle of Man is a small island nestled between the UK and Ireland in the Irish Sea. Although the Island’s name may suggest otherwise, there is a diverse population of around 85,000. Despite the geographical location, the IOM is not part of the UK or the EU – and actually has never been part of either, so there was no Brexit for us!
It is one of three ‘Crown Dependencies'—the others being the Channel Islands of Jersey and Guernsey. So, while we do recognise the King as our Head of State, we are self-governing through our Parliament, Tynwald. Tynwald has been around for over 1,000 years, claiming to be the world’s oldest continuous parliament. It is made up of 24 elected Members who represent 12 constituencies forming the House of Keys, with a further 11 Members who make up the Legislative Council: 8 indirectly elected and 3 ex officio members. For the most part, Tynwald operates completely independently of the UK; only the Island’s foreign affairs and defence are dealt with by Westminster.
The primary source of legislation on the Island is Acts of Tynwald, and although many are based on equivalent law in England and Wales, there are often differences. Manx law is based on the English common law system and will generally follow English case law if there is no Manx precedent already set. Advocates on the Island fulfil the dual roles of solicitors and barristers and have exclusive rights of audience in the courts. Deemsters preside over all court matters, both civil and criminal, but ultimately the final Court of Appeal is the Judicial Committee of the Privy Council in England.
Throughout Tynwald’s existence, the Island has gone through various different constitutional changes. In the early 1400s, the Island was gifted to an Englishman to pass down his lineage. From 1765, the Island was taken back under the control of the British Crown after they became unhappy with the smuggling trade that had developed as a response to the Crown’s own importation and customs laws. During this period, attempts were made to annex the Island to become part of an English county, but this was unsuccessful – likely to the delight of the Manx, who have never taken kindly to being mistaken as English!
By the late 1800s, the Island had moved out from under the control of the UK and had developed its own system of self-governance, with Tynwald becoming popularly elected by the House of Keys Election Act 1866, and select women becoming enfranchised in 1881—very much ahead of the times.
In the Victorian era, the Island was very much a hospitality hotspot, something that continued throughout the early to mid-1900s. Tourism was a huge portion of the local economy, with guest houses lining the seafront towns and hundreds of thousands of visitors taking the ferry over during peak years.
Following the rise in popularity of European destinations for UK holidaymakers in the late 20th century and the subsequent decline of the Island's tourist numbers, the Island rebranded to establish itself as a respected offshore financial jurisdiction. It was during this period that the Isle of Man government modernised to how it would be recognised today, with the introduction of the Government Departments Act in 1987 which created the familiar cabinet-style structure that we have today.
Recognising the potential that the Island offered, the late 20th century saw the arrival of many of the big insurance players and banks, which kicked off the development of the Island’s reputation as a leading offshore jurisdiction. While tourism, agriculture, and fishing were once the dominant industries here, the booming insurance, banking, and financial services industries have replaced them over time.
The Island offers both political and economic stability and now finds itself home to many of the world’s leading companies. It offers pragmatic regulations that allow for a business-centred approach while offering compliance with respected international standards of compliance. This landscape offers businesses "freedom to flourish" and has resulted in more and more businesses in eGaming, Cryptocurrency, Telecoms and Fintech relocating to call the Isle of Man their home.
Like many offshore jurisdictions, the Isle of Man previously had a reputation as a so-called ‘tax haven' but has worked hard to dispel this over the past couple of decades. We may be a comparatively ‘low-tax’ jurisdiction compared to our neighbours, but we are transparent and cooperate fully with international regulatory authorities. We were among the first to start signing the OECD’s Tax Information Exchange Agreements and are now party to 17 such agreements—more than much larger countries like the United States and Germany. We are recognised as meeting the IMF, FAFT, and EU requirements for conducting business, so contrary to what you may have previously believed, you won’t find us on any grey or black lists!
Despite the rapid rise of digital and technological industries on the Island, much like many other Western nations, there is an ageing population that the government is trying to combat. The most recent "Island Plan" set out by the government aims to increase the population over the next 15 years, with the goal of developing the infrastructure and services to support a population of 100,000. The government is making a push to attract a younger, diverse workforce, with immigration routes offered for high achievers and those wishing to develop their start-up using the Island as their home base.
Alongside the stable economic conditions and the ever-growing eGaming and financial services industries, the Island offers an attractive way of life away from the hustle and bustle of bigger cosmopolitan cities. Work-life balance is strongly valued, and the average commute time is just 20 minutes. You’re never far from the coast or the country, and you never know what the Island has in store for you—wild wallabies can be seen roaming the north of the Island, and dolphins are known to make appearances off the coast.
Every day is different when it comes to island life, but the IOM has developed a robust regulatory landscape that allows it to keep pace with the technological advances and ever-changing trends of industry—a trait in keeping with the motto associated with the iconic Three Legs of Mann found on our flag, "Quocunque Jeceris Stabit" (‘Whithersoever you throw it, it will stand’).