The Isle of Man is a tiny island of 221 sq miles of extension located in the Irish Sea, just between Great Britain and Northern Ireland. Even though it's under the reign of the British Queen, the Isle of Man is not part of the United Kingdom as it maintains an independent government and a parliament. This aspect is a key reason why we have become interested in this little island. ***

It is an independent jurisdiction with its own tax system and legislation. However, it enjoys a special relationship with the United Kingdom because it is still under the rule of Queen Elizabeth II. 

Therefore, this small island enjoys a unique position to do business in the United Kingdom, as it presents an opportunity for escaping from capital gains and inheritance taxes. 

***This service is no longer available. Mundo is always finding the best services for entrepreneurs and nomad capitalists and this demands constant updates on our experts' products and services. Please contact your Mundo expert so that they can provide an alternative. 

In this article we will cover such a topic as yacht registration. In a nutshell, we will tell you some of the extraordinary advantages that the Isle of Man has regarding yacht registration:

- Low operation costs for ships involved in the island

- Registration grants the “Red Ensign”, which grants access to the British consular services and protection of the British Royal Navy.

- The isle is under a lower tax regime compared with the other British Islands.

- A strategic location. The Isle of Man is in the middle of the UK and just a few hundred miles from the Continental Europe.

- A long standing political and economic stability. This island is a fully whitelisted OECD jurisdiction.

The Isle of Man is the ideal place to register a yacht. In fact, this small territory was ranked as 1st in the Paris MoU report on Port State Control. Here, we will tell you all you need to know about the registration process.

Why the Isle of Man?

The Isle of Man has been established as one of the main ship registers in Europe. This island’s authorities accept a wide range of vessel types, such as merchant ships, commercial yachts and offshore vessels.

Its services include a full range of professional assistance on the registration and management of the vessel. There are three main reasons on why the Isle of Man is the ideal jurisdiction to register your yacht:

-A world class service. The Isle of Man offers simple regulation, low costs of operation, a wide network of representatives scattered around the planet, technical expertise and a great response time for any issue when registering the ship. Also, registering a ship in the Isle of Man grants having the British Red Ensign, a luxurious and powerful sign of wealth.

-Flexibility is the key. Their approach is simple: anywhere, anytime. You can suit shipyard meetings wherever you want. Also, it allows a wide range of potential owners, such as LLCs or individuals. The IOM offers a 24/7 emergency response by Principal Surveyors.

The best advantage the Isle of Man has to offer is its competitive tax regime. Continue reading and we will give you more details about this.

Step by step: How to register a Yacht in the Isle of Man?

Below, we will detail the registration procedure for a Yacht in the Isle of Man according to the Isle of Man Ship Registry. All the forms are accessible through iomshipregistry.com. 

1. Apply for registration to the Registrar of Ships. The ship may be registered in the Castletown, Douglas, Peel or Ramsey ports.

2. Provide a Certificate of Survey detailing the parameters of the ship. This is commonly prepared by a Classification Society.

3. Provide evidence of the title of ownership. 

4. Companies must provide a Certificate of Incorporation and an appointed officer.

5. Make a Declaration of ownership. The forms to fill will depend if the owner is a company, individual or LLC.

6. If needed, appoint a representative in the IOM.

7. For a pleasure vessel, declare that the intended use is filling the REG form.

8. In the case of a ship from a foreign flag, you must provide evidence that the previous registry is closed or a Deletion Certificate.

9. You must apply at the Spectrum Licensing to obtain a new call sign and MMSI number. The equipment must be re-programmed at registration.

10. Pay the fees prior to the inspection and register of the ship (fees are detailed below). Those fees are based on a fixed fee for registration and hourly rates for the inspections.

Once the procedure is completed, the ship will obtain an Official Number and be registered in the Certificate of Registry. If you want more info about this topic, check the Yacht Registration Guide of the IOM Ship Registry.

About the fees

The fees will depend if the yacht is for pleasure or commercial purposes.

For pleasure yachts:

For commercial yachts: