Jersey minister for treasury and resources Ian Gorst has lodged legislation to increase the minimum tax payable by new residents under the high-value residency (HVR) scheme.
The minimum tax paid by new high net worth residents (HVRs) would rise from £170,000 to £250,000 ($311,000, €287,000) a year under the legislation proposed.
The rise will not affect HVRs already living on the island.
Kristina Moore, chief minister of Jersey, said: “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.
“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.”
Moore added that the changes reflected Jersey’s offer in return, of “a safe, stable and welcoming community; natural beauty; and excellent health and education systems, in a well-connected location”.
Other planned changes
The proposed legislation follows a review by the housing and work advisory group (HAWAG), chaired by the chief minister.
The review included looking at the number of applications and house prices data. Views of recent applicants and industry professionals were also considered.
Other planned changes following the review include increasing the minimum price of a property new HVRs can buy, from £1.75m to £3.5m and a new formal expectation that applicants should have a net worth of at least £10m, excluding their place of residence.
Ministers have also asked for more work to be done to better identify the levels of charitable giving by HVRs, through a kitemark scheme.
