Isle of Man moves to automatic info exchange

Isle of Man will automatically share bank account information with European Union member states under the EU Savings Directive, making it one of the first non-EU countries to do so

This means that as of today, any EU citizen opening an account in the Isle of Man will automatically have his or her account details and information sent to their home tax authority.

Until now, EU citizens with IoM bank accounts had a withholding tax option, meaning that they had a choice between having their details handed over to their home countries, or paying a withholding tax instead, a large part of which was remitted to the country where they lived and paid tax.

Under this system, as an alternative to information disclosure, foreigners with accounts in the Isle of Man could opt to pay a withholding tax at a rate of 15% for the first three years of the EUSD (until 30 June 2008) and 20% for the following three years (until 30 June 2011). Thereafter, until now, the withholding tax has stood at 35%.

The Isle of Man’s parliament approved the plan to move to full automatic exchange of information in June 2010.