Isle of Man Finance

The European Savings Tax Directive is an agreement between the Member States of the European Union (EU) to automatically exchange information with each other about customers who earn savings income in one EU Member State but reside in another. Three EU Member States (Austria, Belgium and Luxembourg) have opted to apply alternative arrangements, the retention or withholding tax option.

Tax is deducted at source from income earned by EU resident individuals on savings held in other EU countries. The Isle of Man applied for the withholding tax option which means that tax is automatically deducted at source from interest earned on savings at a current rate of 20% since July 2008.

Please see The European Savings Tax Guide for more detailed information. Clients should always seek professional advice regarding their tax matters.

From 1st July 2011, The Isle of Man will move to automatic exchange of information within the EU in its application of the European Union Savings Directive (EUSD), putting it at the forefront of international tax co-operation and transparency allowing for free exchange between countries. For more information click here.