A scheme that offers a tax break to people moving to the Isle of Man (IOM) for work will be renewed in the next financial year, Treasury minister Alfred Cannan announced when presenting the 2020-21 budget.
The national insurance holiday scheme was introduced in 2019.
It is aimed at people who relocate to the island for full-time permanent employment with an annual salary of at least £21,000 ($27,068, €25,070), and who have not been a tax resident for the last five years.
They will be able to receive a refund on their national insurance contributions, capped at £4,000, as long as they remain in continuous employment for at least 12 months.
For example, an employee earning £30,000 a year will take home £27,450 and save £3,650 in contributions during their first year working in the crown dependency.
In comparison, a person with the same earnings in the UK, will receive a net annual salary of £23,800, the IOM government said.
Nigel Danzelman, marketing services and communications manager at RL360, told International Adviser this is not the only measure available to people who relocate for work purposes.
“The national insurance holiday extension, together with the three-year tax exemption for non-IOM income, may help some companies recruit staff.
“In particular, we hope the legislation attracts back to the island recent Manx graduates who left to go to university,” he added.
Attract more talent
Peter Kenny, chair of the Manx Insurance Authority (MIA) and chief executive of Quilter International, said that the government’s scheme had the full backing of the private industry.
“The Isle of Man has enjoyed sustained consecutive growth for many years across most of the sectors of its economy, not least financial services,” Kenny told IA.
“This has led to a growing demand for a talented and well-educated workforce, the organic supply of which is limited.
“In response to this, the Isle of Man government, in partnership with private industry, has devised the national insurance holiday incentive to attract new residents and Manx nationals who are considering returning to the island, following completion of education or professional qualifications in the UK.
“The national insurance incentive is keen to attract a broad range of experience, with a particular emphasis on part and fully qualified accountants,” he added.
“From an MIA perspective, we are very supportive of this industry and government partnership initiative that is designed to attract additional talent to the island.
“Such an initiative will benefit all employers and the economy as a whole.”