Ownership through an offshore company will also ensure that, on death, property will pass to intended heirs. It will overcome forced inheritance provisions found in civil law and in Sharia law.

Purchasing through a company does increase cost. The purchase may attract a higher rate of stamp duty, company will need to be professionally managed and it may be required to file a tax return. These costs are however generally modest in relation to potential tax saving.

Some words of caution

Some countries, whether in an attempt to prevent tax evasion by their residents, as part of increased international co-operation against tax avoidance or merely to raise revenue from non-voting foreigners, impose taxes on a notional income of companies incorporated in tax- free centres, but not against companies formed in taxing locations. Examples are France, Spain, Portugal, Greece and Argentina.

Others, such as U.K. have hit on wheeze of taxing their residents on a notional benefit, where property is owned by a company rather than by taxpayer personally, and no occupational rent is paid. Foreign investors in U.K. property are not discriminated against however. The answer, as always, is to take advice before acting.

The Isle of Man recognises following Classification Societies

•Lloyds Register of Shipping •Germanischer Lloyd •Bureau Veritas •Det Norske Veritas •American Bureau of Shipping •Registro Italiano Navale •Nippon Kaiji Kyokai

Registration

Owners have option of registering either on main register or on Demise (Bareboat) Charter Register.

The registration process is in two main steps

•Incorporation of a company on Isle of Man. There are no nationality restrictions on ownership of shipping companies. •Registering vessel. The majority interest in vessel must be owned by one of following, oA company incorporated in Isle of Man and having its principal place of business within Island oA company incorporated in U.K. Channel Islands, any British Dependant Territory, or in a Member State of E.U. or E.E.A. and having its principal place of business in one of those territories oLimited Partnerships established and registered in Isle of Man