04 September 2024 Relocating to the Crown Dependencies: benefits and how Oak can help

Isle of Man 

Located in the Irish Sea, the Isle of Man is the largest of the Crown Dependencies offering plenty of space for those considering moving to the island, providing a multitude of opportunities for entrepreneurs, families and businesses. 

The island's offerings and close ties with the Department of Enterprise translate into tangible benefits for those looking to conduct business or relocate to the Isle of Man.  

Family offices are drawn to Isle of Man for a range of reasons, including tax, good infrastructure, professional service availability, global connectivity, and access to talent. The location of a family office determines how well it does in relation to its ability to protect and grow its wealth. The Isle of Man is a good option due to the favourable tax rates for corporates and limited income tax, as well as easy access to professional services like banks, accountants, lawyers and administrators, and has good connections to global locations either direct or via major cities like London. 

Advantages are not limited to the favourable tax regime; features of which include: 

• Residents can limit income tax liability to £200,000 per annum over 5 consecutive tax years 
• Income tax is capped at 10% and 22% rates, depending on your annual income 
• 0% capital gains tax 
• 0% inheritance tax and stamp duty 
• No withholding tax on majority of dividends and interest payments 
• Businesses can also benefit from 0% corporation tax – excluding property rental. 

The Isle of Man government offer incentives for businesses relocating to the island, including: 

• Relocation incentives 
• Supportive environment from Government 
• Financial assistance and support schemes 
• Non-restrictive work permits for certain exemption categories such as teachers, hospitality workers and international group executives 

It's the quality of life, including a range of activities for all ages, excellent work-life balance on an island just 47 x 14 miles in size, and connectivity to the EU and major UK cities, that initially brings people to the Island and keeps them here. 

Oak takes pride in supporting business setups and family relocations, ensuring good governance. The island's incubation hub assists start-ups in navigating challenges, while government initiatives aim to increase the population through grants, sponsorships, and personalised guidance on business planning. 

In summary, the Isle of Man is a thriving business centre, with a low tax rate and world-renowned expertise, maintaining excellent travel connections to Ireland and the UK, which remain invaluable in the post-Brexit landscape.  

Jersey 

Jersey is one of the most successful international finance centres in the world and is the biggest island in the Channel Islands. The island is a relaxed, beautiful, and secure location offering an ideal base for international businesses, families, and individuals.  

Jersey's allure as a business hub is amplified by its business-friendly environment and quality lifestyle, attracting a diverse range of sectors. Key organisations like Locate Jersey and Digital Jersey are instrumental in driving inward investment, welcoming new businesses across various industries. 

With the financial sector employing more than a quarter of the island’s workforce, Jersey is seen to be a centre of excellence for company administration, compliance, legal, accountancy and investment advisory services. 

Key factors contributing to Jersey's attractiveness include: 

• 0% corporate tax for foreign-owned businesses and low personal tax rates 
• No capital gains, inheritance tax, or stamp duty on non-real estate transactions 
• Modern and flexible legal and regulatory framework 
• A robust professional services and digital infrastructure 
• Availability of resources such as office space and support services 
• A broad base of professional service providers with high expertise levels 
• A skilled local workforce 
• A government that actively encourages inward investment and business relocation 
• Proximity to London and the ability to conduct business globally within the same business day 
• Economic and political stability 
• Strong transport links to London and other European centres, with 12 flights a day to London airports 

Jersey's strategic position and tax-neutral status make it an attractive choice for international businesses looking to relocate or open an offshore branch. 

When it comes to family relocation, the decision goes beyond tax benefits; it's about finding a place that suits your wealth and your family's well-being. Jersey offers a cosmopolitan lifestyle with traditional values at its core, ensuring a secure, respectful, and private community with abundant business and leisure opportunities, excellent schools, and first-class health services.  

Guernsey 

The Bailiwick of Guernsey, which is comprised of the main islands of Guernsey, Alderney, Sark, and Herm, lies in the English Channel and shares the same time zone as the UK. It is easy to access mainland Britain and continental Europe by air and sea from the islands, with daily flights to central London.  

The Island’s status as a top international finance centre has created a successful business community that is known for its innovation, stability, and skilled workforce. Many wealthy individuals, entrepreneurs and financial services principals have decided to move to Guernsey with their families, and some have also moved their businesses to the Island.  

The island has its own elected parliament called the States of Guernsey and has full control over its money, laws, and taxes. UK taxes do not apply to people in Guernsey so, local goods and services do not have UK customs duties or VAT. Other attractive features include: 

• a self-governing jurisdiction with its own tax system, meeting OECD and other international standards for transparency and information exchange 
• The island offers economic and political stability, actively encouraging inward investment and business relocation 
• The tax regime is favourable for both individuals and companies, with no capital gains, inheritance, or value-added taxes 
• Companies typically pay 0% tax, financial services companies pay 10%, and utility companies pay 20% 
• Guernsey's time zone allows for business dealings with New York and Hong Kong within the same day 
• The jurisdiction demonstrates real substance with modern and flexible legislation, good infrastructure, and a skilled workforce across all aspects of financial services 
• Personal tax is a flat 20%, with the option for high-income individuals to cap their liability 

Alongside the attractiveness for business, Guernsey has a beautiful natural environment with outstanding beaches, picturesque countryside, and a warm micro-climate, alongside the island’s high standards of living, prosperous business environment and rich cultural heritage, making the ideal work-life balance a reality.  

How Oak can support 

At Oak, we understand the intricacies of relocating both personally and professionally to the Crown Dependencies. With the capability to operate across different jurisdictions, our team offers expert guidance and extensive transaction experience, ensuring a seamless transition, regardless of the office your enquiry reaches. We provide clear, comprehensive solutions and facilitate connections with essential contacts, including tax and financial advisors, lawyers, immigration specialists and regulatory authorities globally.  

We provide services throughout the lifecycle of a structure, adding value through early engagement in the formation stage, ongoing support during the life of a company or trust structure and assistance with the wind-up process to ensure a thorough closure of all matters, leveraging our local knowledge in every office to support every step of your relocation journey.  

Our solutions are never off-the-shelf. Whenever we are asked to implement a solution – whether it’s a family trust, private trust company, corporate entity or fund– it's designed to meet the needs of you and your family members. 

Contact us to find out more information on how our teams can support your relocation journey. View Oak's Private Client services.

Useful sources 

Discover your work life balance in the Isle of Man - Locate Isle of Man 

Locate Jersey. For Business. For Life