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Isle of Man Private Wealth Report 2020/21

A new, independent study called the Isle of Man Private Wealth Report has been published highlighting the importance of affluent residents on the economy.
14th July, 2020

Its publication comes in the wake of the Island having had considerable success in attracting high value residents with its excellent standard of living, low crime rates, open spaces and its own, unique heritage and culture.

The investigation into the Isle of Man's private wealth sector has been produced by Gibson Strategy, a business consulting firm specialising in the financial services industry, and was compiled from interviews with 42 Island-based individuals including ILS World Chief Executive Officer, Chris Eaton, who has been advising high-net worth individuals for more than 30 years.

The report findings show the Island's unique advantage is the safety and security it offers. One of the people quoted said: "My weakest link is my kids and my wife. I want to live somewhere where it is safe." Another who was interviewed said parents are able to give their children more freedom than if they lived elsewhere and another made mention that children of high value residents are able to grow up anonymously. The report also said many participants think the Isle of Man as safer than the Channel Islands.

Historically new residents came from the north of England says the publication but this has changed over the past decade with the growth in eGaming and digital businesses enticing younger people from further afield. These people tend to be far more active and, "get involved in the local community and buy investments."

In a chapter on the property market it concluded many prefer to build bespoke homes rather than live in existing property. Whilst another person was quoted as saying: "You can sell your business, jump on a plane, move over here, find a nice house for a couple of million in the countryside, register with the tax office, apply for the tax cap and that is you, resident."

Chris Eaton said: "The Island has attracted new residents because it is beautiful, inspiring and safe. A survey of expats in 2019 by HSBC ranked the Isle of Man as the best place to live in the British Isles and the 12th best in the world. The 2019 police chief's annual report revealed the Island had the lowest number of recorded crimes in the British Isles.

"Safety has always been at the top of the agenda but events this year are making it an even higher priority. We will continue to attract people who are looking for a better of quality of life, who are interested in outdoor activities and who enjoy living in a place recognised as UNESCO biosphere."

The report says the last 10 high net worth entrepreneurs that moved to the Island have created around 1000 jobs with some establishing new businesses or creating joint ventures with other high net worth individuals and existing residents. Research also found the Island's abundant space was an "important distinction" for those living and wanting to establish businesses.

The study said there is a perception the Island attracts those seeking anonymity rather than notoriety as opposed to Jersey. One person who was quoted, said: "There are some properly wealthy people who just love the fact they have a secure lifestyle, they can wander around, they don't have any pressures of people running around after them, any paparazzi or anything like that." Another person said, "they wanted to stay under the radar," and another said they enjoyed the fact, "there is plenty of privacy."

The 75-page report includes an overview of the Isle of Man and its private wealth sector, as well as looking at private wealth themes and future trends following the Covid-12 pandemic.

To read the full report please click here.