Registering a trust in the Isle of Man: for what purposes to use
Registering a trust in the Isle of Man is relevant to establishing a system of relationships whereby property previously owned by the settlor will be transferred to the trustee, with income accruing to the beneficiaries. Trust property is used to provide privacy, share ownership of property, preserve capital and property, and reduce tax burdens.
Why open a trust?
Opening a trust in the Isle of Man is relevant because it is the leading offshore jurisdiction for these structures, with its own corporate legislation. The territory is politically stable and has a regulated legislative framework.
The main objectives of the trust are the following:
- Protecting and securing valuables;
- Succession planning of companies and other assets;
- Protection of assets from strategic risks;
- Reduction of taxation;
- Ensuring anonymity.
In addition, trusts are opened to create charitable foundations to pay pensions, awards to employees, etc. To clarify the nuances of opening such a structure, contact our experts at IT-OFFSHORE.
Advantages of opening and nuances of registration
The main advantage of opening is that the structure is not liable to pay taxes if there are no resident beneficiaries and no taxable income. Non-residents are not required to pay income tax. There is no capital gains or inheritance tax and no limit on income accumulation.
Registration of the structure is simple enough. Applicant needs to provide documentation that is required to enter into an agreement and choose the best form of trust.
A notarized copy of passport, information about place of residence, and documents to confirm the legality of the origin of assets are required. With the help of trusts it is possible to legally optimize tax fees and ensure the safety of capital.