35 South African businesses moved to new safe haven

Isle of Man representatives said many South Africans and their businesses have moved to the European island, and this number is expected to rise over the coming years.

The Isle of Man is a self-governing British Crown dependency in the Irish Sea between England and Ireland.

According to the latest Isle of Man population census, approximately 1,218 South African residents live on the island, representing 1.45% of its population.

Alison Teare, Head of Locate Isle of Man, the Department tasked with attracting individuals, businesses, and investors to the island, told BusinessTech that there are several reasons why South Africans choose to relocate to the Isle of Man.

The main drivers are an established South African community, attractive business and employment opportunities, and a good work-life balance.

Teare noted that the island’s robust economy offers diverse job opportunities across various sectors, including finance, technology, and even eGaming.

Additionally, the Isle of Man is known for its high living standard, low crime rates, and excellent healthcare and educational facilities.

“The Island also offers a range of vocational and higher education qualifications through institutions like the University College Isle of Man, enhancing its appeal to families and individuals seeking a balanced lifestyle,” said Teare.

However, while these are drawing many individuals to the European island, she added that major South African businesses are increasingly moving to the Isle of Man for many of the same reasons.

Teare highlighted that over 35 South African-run businesses, including Nedbank, Standard Bank, and Derivco, operate in the Isle of Man or across both jurisdictions.

“The Isle of Man offers good work opportunities for South Africans, including options for innovators, investors, business start-ups, relocating businesses, and skilled workers,” she said.

Teare also said the island has prioritised its visa processes to favour skilled workers and businesses considering the move.

Financial ‘safe-haven’

Richard MacNee, Chief Commercial Officer of The ILS World, a firm specialising in international logistics and business services, also highlighted the island’s ease of doing business and favourable tax climate.

In South Africa, well-performing companies must pay up to 27% of their profits to tax, while high-earning individuals must pay up to 45% of their income to tax.

Additionally, The IMF recently measured South Africa’s ease of doing business against 49 other countries, and it came to last. 

The IMF and other stakeholders in South Africa blamed this on the country’s restrictive business regulations and policies, which caused significant red tape for investors.

In contrast, the Isle of Man is becoming a notable financial ‘safe haven’ for skilled South Africans and their businesses.

“In the Isle of Man, the vast majority of companies pay 0% corporation tax, and individuals face a top rate of 21%, along with 0% inheritance tax (IHT) and capital gains tax (CGT),” MacNee previously told BusinessTech.

Because of this, both MacNee and Teare expect more skilled South Africans and their businesses to make the move to the European island in the coming years.

The Isle of Man has outlined an ambitious Economic Strategy aiming to double its GDP to £10 billion and create 5,000 new jobs by 2032.

“This initiative focuses on expanding existing sectors and developing new industries to achieve these targets. This means that the Isle of Man is always seeking to attract skilled workers, which include South Africans,” said Teare

“The Isle of Man has a diverse and thriving economy and is keen to attract graduates and professionals into careers such as precision manufacturing and engineering, digital, and finance.”

She added that in the public sector, the island is particularly focused this year on attracting healthcare staff, including paramedics and midwives, as well as police officers and teachers.