Placing your money with Standard Bank Offshore can provide expatriates with a range of offshore banking benefits including:
- Security and confidentiality
- No exchange control restrictions, allowing capital to be freely moved without formality
- Interest on your savings and investment accounts may be paid gross, without deduction of tax at source (although you may have a liability to tax elsewhere)*. If you reside in the European Union, the European Union Savings Directive will apply to interest earned on your account.*
- Holding assets offshore may have some tax planning advantages*
- There may be inheritance tax benefits for clients dependant upon domicile*
- Sophisticated worldwide communication links facilitating ease of access
*Note: Standard Bank Offshore is not a tax adviser and we recommend that if you are in any doubt as to your tax position you should seek independent advice from an accountant or other suitably qualified adviser. The level and bases of taxes may change.
Modern legislation in the Islands of Jersey and Isle of Man
The islands have modern legislation on banking, collective investment funds, insurance, investments and trust companies to protect the investor and ensure that the industry is highly regulated. In addition, specific legislation exists to maintain the reputation designed to keep the Islands free of the proceeds of drug trafficking, insider dealing and money laundering.
The Manx exercise their extensive political and legislative independence through their ancient parliament, Tynwald. Moody's have awarded the Island a Aa1 sovereign credit rating. Visit the Isle of Man Government website for more information.
Standard Bank Isle of Man Limited (“SBIoML”) is licensed by the Isle of Man Financial Supervision Commission. The Isle of Man has a Financial Services Ombudsman Scheme covering disputes relating to financial services offered in or from the Isle of Man to individuals. Deposits made with SBIoML are covered by the Depositors’ Compensation Scheme as set out in the Depositors’ Compensation Scheme Regulations 2010.
Both Islands possess a highly skilled population to support the continued success of the industry. The Isle of Man Government’s policy is to be both economically competitive and internationally responsible in supporting the interests of our people. Please visit the Freedom to Flourish website for more information.
The European Union Savings Directive was introduced in 2005 and is an agreement between the EU Member States to automatically exchange information between states about individuals who reside in one EU Member state but earn interest in another.
In addition to the EU Member states' application of the EUSD, some jurisdictions outside of the EU, including the Isle of Man and Jersey, elected to apply the EUSD but with additional transitional options including the application of a 'retention' tax on interest earned until full exchange of information was subsequently introduced by the jurisdiction. These jurisdictions also made provision for individuals to claim an exemption from the EUSD.
Changes to EUSD legislation in the Isle of Man
The Isle of Man Government subsequently passed legislation in 2010 to implement a change of policy in relation to the EUSD and move fully to the automatic exchange of information from the 1st July 2011.
This means that the retention tax and exemption options available to customers resident in an EU member state who have accounts with any financial institution in the Isle of Man are not available from the 1st July 2011.