Douglas, the tiny capital of the Isle of Man, might seem an unlikely destination for South African expats. But the pull of its offshore economy and the push of South Africa\u2019s struggles means hundreds have headed to the 33-mile-long Crown Dependency in the middle of the Irish Sea in recent years.<\/p>\n\n\n\n
The island of 85,000 people, which is perhaps best known as home to a breed of cats without tails and a daredevil motorbike race, is seeking skilled professionals in finance, insurance, technology and gaming to help bolster its economy. It is part of a drive to increase the population to 100,000 by 2027, double the size of its economy to \u00a310 billion and create 5,000 jobs by 2032.<\/p>\n\n\n\n
South Africans \u2014 who made up 1,218 of the residents in the 2021 census \u2014 may not seem like natural candidates, but links between the two go back more than a century when Manx engineers and miners relocated there. One of those immigrants reportedly even gave the rand its name.<\/p>\n\n\n\n
South Africans are the Isle of Man\u2019s \u201clargest overseas population outside of the British Isles now,\u201d according to Alfred Cannan, the island\u2019s chief minister. That\u2019s despite a climate as windy and rainy as South Africa is sunny.<\/p>\n\n\n\n
Jobs are one attraction. \u201cThere isn\u2019t an unemployment issue here,\u201d says Yash Naidoo, a South African professional who moved in January 2022. There\u2019s \u201chuge demand\u201d in general.<\/p>\n\n\n\n
Naidoo relocated to the island last year to become the international business development manager at Johannesburg-based Nedbank Group Ltd. The bank is among more than 35 South African businesses that have operations in the self-governing British crown dependency, drawn to rock-bottom tax rates, the proximity to European markets as well as demand from clients for funds that provide international diversification and hedge against rand depreciation. <\/p>\n\n\n\n
As a crown dependency, its taxation system is entirely separate from that of the UK. There\u2019s no capital gains tax, withholding taxes or wealth taxes, and most businesses pay 0% tax on profit. <\/p>\n\n\n\n
\u201cThe Isle of Man is potentially a great place for African businesses that need a base closer to Europe but don\u2019t necessarily want to be based in Europe,\u201d said Werner Alberts, deputy chief executive officer at Capital International Group, which has more than $4.5 billion of assets under administration, according to its website. <\/p>\n\n\n\n
Alberts moved to the island in 2017 with his family after previously working for Old Mutual Ltd. in South Africa, Namibia, Zimbabwe and Kenya. Capital International is headquartered in the Isle of Man, with offices in South Africa, and provides corporate finance and investment management for individuals and clients.<\/p>\n\n\n\n
As part of its pitch, the Isle of Man is hosting trade shows in major South African cities. On frequent display: the centre\u2019s potential to structure investments into Europe and its tax advantages.<\/p>\n\n\n\n
The British Crown Dependency also likes to tout a political stability like few other offshore centers. Its parliament \u2014 Tynwald \u2014 is of Norse origin and dates back more than 1,000 years, according to its website. That makes it the oldest parliament in the world with an unbroken existence.<\/p>\n\n\n\n
While the Isle of Man is cheaper than the other Crown Dependencies of Jersey and Guernsey, the price of housing may still come as a shock to incoming South Africans. The average purchase price for a home in South Africa was 1.4 million rand ($74,000) in the last three months of 2022, according to ooba Home Loans. That compares to \u00a3386,955 ($493,329) in the Isle of Man at the end of 2022, according to a May government report.<\/p>\n\n\n\n
South Africa has witnessed a surge in emigration as security concerns and economic downturn triggered an upswing in exits from the country. The number of South Africans who emigrated from the country has surged 87% in the two decades to 2020, with more than 900,000 people leaving to go work and live in other countries.<\/p>\n\n\n\n
Thando Lamula, a 36-year-old chartered tax adviser who has previously worked for the South African revenue service as well as PwC, visited the Isle of Man in July and plans to relocate by next year. <\/p>\n\n\n\n
\u201cIt is the fact that they want people that is making me anxious and eager to go,\u201d she says, voicing her frustration at the country\u2019s continual power cuts.<\/p>\n\n\n\n
Corruption, crime and policy paralysis have all encouraged the exodus. About half of the nation\u2019s top earners and university graduates considered emigrating last year as citizens lost faith in the country\u2019s future, according to a survey by the Social Research Foundation. <\/p>\n\n\n\n
\u201cLeaving South Africa is very difficult for most people because of the lifestyle, the weather,\u201d says Niall Jacobs, who has lived on the Isle of Man for 22 years and works at B-Local, a relocation agency his mother started in 2005 that helps individuals, businesses and families emigrate to the Isle of Man. \u201cBut unfortunately because of the political landscape and the crime, it\u2019s quite an easy decision if given the opportunity to move.\u201d<\/p>\n\n\n\n