MINISTERS have declined to confirm whether Jersey has quietly opened the door to wealthy individuals fleeing conflict-hit regions as one of the world’s most powerful hedge funds considers moving staff from the Middle East to the Island.
US investment giant Millennium Management is exploring plans to relocate employees currently based in Dubai to Jersey.
And it is rumoured that changes are being made to how high-value residency applications are handled for those caught up in conflict.
The government did not respond to queries from the JEP on whether individuals in conflict-affected regions would be allowed to request advance permission to relocate to Jersey for up to six months whilst their high-value residency application is pending.
Ordinarily, high-value residency applications must be approved before a person relocates to the Island.
External Relations Minister Ian Gorst said: “It is not surprising given the current conflict in the Middle East that the stability offered by Jersey will be seen as attractive.
“Our thoughts are with those affected by the current situation in the Gulf.”
It comes as the Island is increasingly being lined up as a safe alternative for finance workers leaving Dubai.
As first reported by the Financial Times, £65 billion hedge fund Millennium Management is exploring plans to relocate employees currently based in Dubai to Jersey amid war in the Middle East.
Dubai – long seen as a safe, tax-free haven for global financiers – has been targeted by Iranian drone activity, with part of the Dubai International Financial Centre reportedly damaged by debris from one such incident.
Employees who once flocked to Dubai for its zero income tax and high salaries are now considering where else they can maintain favourable tax arrangements without compromising safety – with Jersey emerging as one of the main jurisdictions under consideration.
United Arab Emirates authorities have indicated they will allow expats to spend more time abroad without losing their tax status.
And Millennium, which employs more than 6,000 staff worldwide, is considering expanding its Jersey footprint to accommodate relocating employees, according to the FT.
The hedge fund currently has a Jersey office registered to IFC6 at The Esplanade in St Helier.
Millennium declined to comment when contacted by the JEP yesterday.
It comes after a record number of high-value resident applications were accepted in Jersey last year – with 36 super-wealthy families approved to arrive on the Island.
To be eligible to apply for the high-value residency scheme, applicants must have a “comfortable and sustainable” annual worldwide income of £1.25 million, personal wealth of more than £10 million in assets, and generate an annual minimum tax contribution of £250,000.
On arrival in Jersey, they must either buy a house over £3.5 million or an apartment worth more than £1.75 million.
High-value residents are taxed at 20% on the first £1.25m of worldwide income, then 1% on any worldwide income.
