Isle of Man: An alternative jurisdiction for non-EU superyacht owners

Since Brexit, the Isle of Man is gaining traction as an attractive jurisdiction for non-EU corporate structuring.

Post Brexit, the Isle of Man’s non-EU status has led to a rise in demand from non-EU resident superyacht owners looking to benefit from its non-EU ownership structures. Offering many different types of corporate structuring that an owner may require, Hill Robinson Limited is headquartered in the Isle of Man and has seen this increased activity first hand.

Callum Carine, Manager at Hill Robinson Limited, explains how the Isle of Man’s non-EU status now allows non-EU resident owners of private yachts to benefit from the Temporary Admission (TA) regime. “Temporary Admission enables private yachts with no connection to the EU to operate within EU waters for 18 months at a time without having to pay VAT on the value of the yacht,” advises Callum.

“To qualify for TA, the criteria are that the yacht has to be privately operated and flagged outside of the EU; the yacht’s ultimate beneficial owner must be a non-EU resident; and the owning company must be non-EU – that’s where the Isle of Man comes in.”

The Isle of Man’s non-EU status now allows non-EU resident owners of private yachts to benefit from the Temporary Admission (TA) regime.

Pre-Brexit, Hill Robison Limited could only offer corporate structuring for yachts owners looking to utilise the TA regime from its partner firm in the Cayman Islands, but the company can now offer it from the Isle of Man as an alternative. “What the Cayman Islands has been advertising for the past ten years, the Isle of Man can do now as well,” explains Callum. “We’ve essentially got a new market to do business with.”

Brexit has also meant UK-resident yacht owners can utilise the TA regime as non-EU UBOs. “It’s a very compelling arrangement,” adds Callum. “One of our latest clients, as a UK resident, was weighing up commercial versus private operation and decided on private so that they can use their yacht in the EU for 18 months at a time.”

Hill Robinson Limited is happy to assist any yacht owners in finding the most suitable and efficient corporate structure for them.

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