Isle of Man
Isle of Man exhibits island biogeography niche exploitation: zero corporate tax and the world's oldest parliament (979 AD) on 572 km² generate a quarter of GDP from finance.
The Isle of Man demonstrates how small islands can exploit regulatory niches that larger nations cannot. Positioned in the Irish Sea between Britain and Ireland, this 572-square-kilometer territory hosts the world's oldest continuous parliament—Tynwald, established by Vikings in 979 AD—yet maintains zero corporate tax, zero capital gains tax, and personal income capped at £200,000 per year.
The island's survival strategy mirrors island biogeography's predictions: too small to compete on scale, it evolved radical specialization. Financial services generate roughly a quarter of GDP. Online gambling companies cluster here because the Isle of Man pioneered e-gaming regulation when larger jurisdictions hesitated. Insurance, ICT, and offshore banking complete an economy that aims to double to £10 billion by 2032.
This niche construction rests on a peculiar legal status. As a Crown Dependency, the Isle of Man is neither part of the United Kingdom nor ever joined the European Union—yet British courts provide ultimate legal backstop. It occupies a regulatory ecotone: close enough to major financial centers for credibility, distant enough from their tax authorities for advantage. The OECD's Global Forum rates it 'top compliant' for transparency—one of only three jurisdictions to achieve this status twice. Vikings who settled here by 850 AD (after initially raiding) ruled until 1266, leaving Tynwald and a tradition of fierce autonomy. The Manx language—a Celtic tongue that 'died' with its last native speaker in 1974—has been revived to 1,800 speakers. The annual TT motorcycle race averages 200 mph on public roads, attracting enthusiasts that no risk-averse jurisdiction would permit.