The Isle of Man is not part of the United Kingdom. The Isle of Man is located in the Irish Sea equidistant from England, Scotland and Ireland. Its area is 588 sq. km. The population is about 70,000 resulting in a population density of roughly 120 people per sq. km. A third of the population live in the capital, Douglas, and its suburbs. The official language is English.
The Isle of Man is politically very stable. Constitutionally it is a self-governed territory within Commonwealth, although the Queen of England holds the title Lord of Man and is ultimately responsible for the island's defense and foreign affairs. The Tynwald, the Island's two-tier parliament, was founded by the early Vikings over 1000 years ago, and boasts the longest history of any legislature in the world. Today, the Tynwald legislates on all domestic matters affecting the Isle of Man, including taxation. The system of law in the Isle of Man is Common Law, based on English Common Law. The government of the Isle of Man follows the British legislature, and decrees relating to the British Courts apply also to the Manx Courts.
The Isle of Man is not a member of the EU, although it has "special relationship" status. This guarantees free trade between the island and the countries of the EU, while absolving the island from involvement with the EU budget and long-term programmes such as harmonisation of taxation. The Isle of Man is an excellent, highly regarded jurisdiction for the establishment of a range of corporate structures with differing tax status, as outlined below.
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