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Key Employee Incentive

Available for entrepreneurs and key employees

The Special Treatment of Key Employees (Key Employee Incentive) can be extremely beneficial to new arrivals to the Island, if they are an entrepreneur setting up a new business, or a key employee being hired to develop or expand a new or existing company.

The incentive provides that an individual will only be liable to Manx income tax on Manx source income.

In essence, only the individual’s Manx source employment income, including benefits in kind and rent arising from property in the Island is subject to Manx income tax. This means that an individual’s non-Isle of Man source income (and certain Isle of Man source income such as dividends and interest) is not subject to Manx income tax. The special treatment applies for a maximum of the first three years after the date of commencement when the relevant individual becomes resident for tax purposes in the Isle of Man. It will cease to apply if the individual leaves the employment of the new business or employer within the three year period.

The special treatment is aimed at individuals who are or will be new residents and who are essential to the implementation and the operation of new business in the Island. This could be an entrepreneur setting up the new business itself or a key new employee that an existing business requires to move to the Island in order to expand or develop into a new area or market.

The business must be establishing or developing itself in the Island and its activity be in the interests of the Island’s economy. Furthermore, the business must provide additional productive employment in the Island.

This could be beneficial to those who have substantial income streams from global sources. Key workers and entrepreneurs must become Isle of Man resident, must be employed by the business on the Island and must be receiving a salary which reflects their key status.

It must be noted that the key employee special treatment is granted at the discretion of the Assessor of Income Tax. Applications are handled directly by the Assessor; however, there are a number of on-Island intermediaries and advisors who are able to provide further information on eligibility.

  • Eligible individuals must become Isle of Man resident

  • Most income, except Isle of Man employment income, is tax free

  • Maximum of 3 tax years

  • Employment must be in the interests of the economy of the Island

  • Suitable for key employers

Well Connected

The Isle of Man is centrally located in the Irish Sea and benefits from more than 200 flights per week, providing direct links to the UK and Ireland, and connections to the rest of the world.

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Space to Breathe

In the Isle of Man, we appreciate that life is about more than just boardrooms and meetings. Whether you want to live fast or take it easy, the Island offers an unbeatable quality of life. It also benefits from very low crime rates, making it one of the safest places to live in the British Isles.

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Reside in Tranquility and Privacy

At 33 miles long and 13 miles wide, you are never too far from home in the Isle of Man - in fact, the average commute time is just 20 minutes. There are a number of professional and experienced estate agents working in the local market who are on hand to assist you in your property search, discover more about the properties available in the Isle of Man.

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Thrive in Business

The Island’s mature and globally connected financial sector ensures that there is a comprehensive range of services on offer for those considering relocating their existing business or establishing a new operation in the Isle of Man. Commercial activity within the Island spans a wide range of sectors and a skilled workforce and supportive Government make way for a thriving commercial economy.

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A Place to Belong

Relocating with your family and settling into a new home can be challenging; however, the Isle of Man encourages its people to reach their full potential, at any stage of their life. Those calling the Island ‘home’ engage in a fast paced and vibrant global economy but live in an island that values community spirit.

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Simple, Unrestricted and Welcoming

Our team provide a comprehensive and highly confidential service which supports and guides individuals and businesses through the process of relocating

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Tax Cap Election

Alongside tax benefits including 0% capital gains, 0% corporate income tax and 0% inheritance/wealth tax, the Isle of Man offers a Tax Cap for new and existing resident individuals of £200,000 per annum, specifically introduced for those who have annual income such that their tax liability would otherwise exceed the Tax Cap.

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Meet the Team

Andrew Stewart
Head of Locate Isle of Man
Nick Preskey
Senior Manager Locate & Inward Investment
Alison Teare
Marketing Manager
Key Benefits

A unique combination of space to thrive, financial reward, simple taxation and a well-connected, safe community set within a sustainable UNESCO Biosphere.

  • Superb quality of life with space to breathe, space to thrive
  • Financially rewarding, exceptional business environment
  • Well connected to the UK and the rest of the world
  • Crime rates amongst the lowest in Europe
  • Rated best place to live in British Isles in the 2019 HSBC Expat survey
  • Key Employee Concession
  • Low tax rates, 0% capital gains tax & Tax cap of £200,000
  • Financial assistance available for relocation businesses

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