Iran war: Staff at hedge fund Millennium weigh swapping Dubai for Jersey
Hedge fund Millennium is exploring possible ways to settle staff who do not wish to return to Dubai in Jersey, as firms seek tax-favourable alternatives as the Middle Eastern conflict rages.
The multi-manager firm, which had over 100 employees based in Dubai before the war broke out just under a month ago, is prepared to expand its presence in Jersey to accommodate those who have requested a move away from the UAE.
Employers have come under increasing pressure to find permanent solutions for those employees who have left Dubai, as its status as a safer tax haven for expats has been thrown into doubt by attacks from Iran.
Many expats remain abroad, leaving them at risk of higher tax bills if they are unable to return to the UAE.
Millennium is one of the world’s largest hedge funds, managing $87bn (£64.9bn) in assets and invests in bonds, equities and commodities. The company is expected to continue to have a presence in Dubai.
Other destinations
The hedge fund was discussing other destinations in Europe and Asia, according to reports in the Financial Times, with staff some seeking alternative countries in the Middle East, said one person familiar with the matter.
The firm also has offices in Puerto Rico, Geneva and Singapore, but allows staff to work from more than 140 locations around the world.
Dubai has become an increasingly popular hub for traders in recent years, as they look to maximise earnings while taking advantage of the nation’s attractive zero income tax policy.
But expats are now eyeing other tax havens to call home, albeit potentially temporarily, as Iranian drones continue to target the city.
Damage from drone debris to a building that includes Millennium staff in Dubai’s international financial centre is said to have added to fears about safety, according to a person with direct knowledge of the firm’s plans.
Authorities in the UAE have privately indicated that they will allow expats to spend more time abroad without losing their tax status, in a bid to lure back those who have moved away since the start of the war.
Jersey potential
Jersey, an island located off the north coast of France, is a British Crown Dependency but not part of the UK, meaning it can offer more favourable taxes, with maximum personal tax rate set at 20 per cent.
British and Irish citizens alongside EU passport holders with UK settled status, do not need immigration permission to live or work in Jersey, with the island also offering a high-value residency visa scheme for wealthy individuals.
But only 37 applications were approved last year, with applicants having to show annual income “comfortably in excess of” £1.25m per year and buy a property on the island for more than £1.7m.
Those who receive the visa are taxed at 20 per cent on the first £1.25m of worldwide income, then one per cent on any worldwide income above that.