Select a region
The public purse will get an extra £1.2m each year if plans to increase the minimum tax paid by new high-net-worth residents to £250,000 are approved, according to Ministers.
Previously, those wishing to apply for high-value residency – known as 2(1)(e) status after the relevant article in the law – had to contribute a minimum of £170,000 in income tax.
Additionally, they were required to rent or buy houses worth at least £2.5 million or flats costing more than £1.25 million.
Under new proposals put forward today by Treasury Minister Deputy Ian Gorst, the minimum tax requirement for new arrivals would rise by £80,000 to £250,000 – a 47% increase. The minimum property purchase price would also rise to £3.5 million for houses, and £1.75 million for apartments.
The proposed legislation also sets out a new formal expectation that applicants should have a net worth of at least £10 million, excluding their place of residence.
Existing 2(1)(e) residents will continue to be taxed at their current rate, however.
If approved by States Members in July, the changes are estimated to generate an extra £1.2 million in income per year.
Pictured: Treasury Minister Deputy Ian Gorst, has lodged legislation to increase the minimum tax payable by new 2(1)(e) residents under the High Value Residency Scheme.
In 2021, islanders granted high-value resident status paid a total of £24 million in income tax – 4.7% of all personal income tax paid on the island.
The new proposals were driven forward by the Chief Minister, as Chair of the Housing and Work Advisory Group, which also includes the Ministers for Economic Development, Home Affairs, Social Security and Housing.
In October 2022, Deputy Moore pledged to reduce the number of super-rich immigrants allowed into the island each year and review the available data about their value to the island.
“This Government welcomes people who generate wealth and contribute to sustainable economic growth, whether home-grown or those who want to make Jersey their home and become part of our community," Deputy Moore commented.
"We believe we have a package of measures that will maintain a stable and supportive environment for relocation and investment, whilst requiring a modest increase to their contribution to the public purse."
Deputy Gorst added: “I am pleased to support the Housing and Work Advisory Group, ensuring that new residents contribute even more to the public purse. Our 2(1)(e) residents already deliver significant benefits to Jersey, both economically and socially, and are very much welcome as part of our diverse community.”
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.