IFLR 1000
The Guide to the World's Leading Financial Law Firms

The Isle of Man legal market is fairly small, unsurprisingly, but the firms that are to be found on the island offer services in general financial and corporate, funds, property transactions and other areas such as legal and tax. Most of the island's work is connected to its favourable tax regime and the country is similar to other so-called 'offshore' jurisdictions in this respect....

The Isle of Man legal market is fairly small, unsurprisingly, but the firms that are to be found on the island offer services in general financial and corporate, funds, property transactions and other areas such as legal and tax.

Most of the island's work is connected to its favourable tax regime and the country is similar to other so-called 'offshore' jurisdictions in this respect.

Most of the firms present have a complimentary London office and many have connections with City firms and outfits in other offshore jurisdictions. Appleby is the only firm with a broader network of its own.

CONTEXT AND TRENDS Firms report a decent level of financing work this year, which is surprising given the general climate in the global markets. Property transactions though have not been as healthy and with most of the islands firms possessing a dedicated practice in this area, those lawyers have been living off scraps....

Firms report a decent level of financing work this year, which is surprising given the general climate in the global markets. Property transactions though have not been as healthy and with most of the islands firms possessing a dedicated practice in this area, those lawyers have been living off scraps. "In property transactions, it's quite a low point at the moment in terms of volumes," confirms one partner.

Like other 'offshore' jurisdictions the country is also coming under increasing scrutiny from both the UK government and the EU in regard to its tax regime. While being in the EU will be a bonus for the island when new rules such as the AIFMD (Alternative Investment Fund Managers Directive) come in, there is still likely to be a lot more scrutiny of companies and funds registered there as the various EU member states try to increase their tax revenues and reduce loopholes.

The Isle of Man did receive a boost however in June 2012 when the OECD (Organisation for Economic Co-operation and Development) Global Forum on Transparency and Exchange of Information for Tax Purposes released its 2012 Progress Report which confirmed that the island was among the top 12 countries in the world for tax information exchanges. Only Ireland and the Seychelles, among other fund focused jurisdictions, made it onto the list.

Practitioners also report an increase in both corporate insolvencies and litigation, which while keeping the island's lawyers busy is not particularly positive for the economy.

One of the Isle of Man's unique features is its status as the 'Space isle'. What this means is that the island has carved out a small but profitable niche as a centre for small-scale technology companies in this sector. The island's low corporate tax rate has attracted many entrepreneurs and in 2012 one Isle of Man registered company Excalibur Almaz unveiled plans to offer shuttle flights into space by 2015. With the space industry in UK estimated to be worth £8 billion, the opportunities for corporates and the associated legal work that comes with it are huge.