Investment Holding

An Isle of Man company may be formed to own assets which would otherwise be held by individuals. This provides some notable advantages. For example, if it is subsequently desired to transfer the investment assets to a third party, instead of transferring the assets themselves, economic ownership of the assets can pass by transfer of the shares in the company. This can reduce transfer costs and mitigate any transfer duty that would be payable on the transfer of the assets themselves.

Also, ownership of assets by a company means that the sole asset held by the individual is the shares in that company. Because the Isle of Man has no estate taxes, liability to pay estate taxes upon death may be avoided in some jurisdictions.