Specialist Services > Real Estate & Property

Benefits of Isle of Man Structures for Real Estate Investment

The Isle of Man has developed a variety of structures for international property investment. It is fast becoming the jurisdiction of choice for real estate investment structures, property funds and special purpose vehicles.

Reasons for this popularity include:

• "AAA" Rated Jurisdiction - Standard and Poor's, the external ratings agency, gives the Isle of Man a ‘AAA' rating, the highest rating that it awards 
• Favourable Tax Regime - Including zero percent tax for companies, no capital gains tax, no inheritance tax, no stamp duty, including share transfers or Stamp Duty Land Tax (SDLT)
• Legal System- The Isle of Man legal system is based on the principals of English common law from which the Island has freely borrowed. Company Law in the Isle of Man is broadly similar, although not identical, to that of the United Kingdom
• Time Zone and Access to Markets - Although offshore, the Isle of Man is in the same time zone as the City of London and provides direct access to capital markets. The Island has become the leading jurisdiction for companies admitted to the London Stock Exchange Alternative Investment Market (AIM)
• New Funds and Collective Investment Scheme Legislation- Purpose designed legislation for Funds and Collective Investment Schemes which allow for the establishment of open-ended property funds
• Innovative and Flexible Company Legislation- The 2006 Company is a modern vehicle for business incorporation has been specifically designed for today's fast-moving and sophisticated global market. It has now become a corporate vehicle of choice for real estate investment.
• Isle of Man Trusts - A portfolio of trusts vehicles suitable for real estate investment
• Real Estate Investment Trusts - An Isle of Man vehicle may be established as a UK Real Estate Investment Trust (REIT) without obtaining prior regulatory approval - if close ended
• Shares - An Isle of Man company may have its shares denominated in any currency
• VAT - The Island's relationship with the UK is governed by Protocol 3 to the UK's Act of Accession to the EU. This means that (unlike the Channel Islands) the Isle of Man may be treated as if part of the Single Market for trade in goods. This also allows an Isle of Man company to VAT group with other Island registered companies or UK companies

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