For decades, Jersey has opened its doors to a limited number of individuals and businesses attracted not only by the Island's charm and beauty but also by the many advantages to be gained from its location. Here, Carey Olsen property partner Christopher Philpott summarises some of the key points to consider.
How does Jersey's residential property market operate?
Special housing rules have been introduced and developed to aid population control in the Island and to maintain housing supply at affordable prices for locally qualified residents. The legal framework which prescribes an individual's residential status is embodied within the Control of Housing and Work (Jersey) Law 2012 and its associated regulations. The authorities allow restricted housing access to people who are not otherwise entitled to reside in the Island by granting residential status to certain categories of people. The category which is available to prospective high-net-worth individuals, whose residence is justified on social or economic grounds, is known as the '2(1)(e)' status or 'high-value' residency.
Who decides who gets granted 2(1)(e) residential status?
Relocation to Jersey on this basis is at the discretion of the Jersey Housing Minister and there is no prescribed limit on the number of high-value residency qualifications that the Minister may grant each year. Each application is considered on its own merits, with key considerations to include:
- the applicant's likely contribution to tax revenues
- the business/social background of the applicant
- the applicant's likely business activities (if any) in Jersey
- any other non-economic factors from which the Island may benefit if the qualification is granted
Successful applicants retain their residential status as long as they remain resident in Jersey. The conditions of 2(1)(e) residential status may include a stipulation of minimum property purchase price or rental, and a requirement that only one property be purchased and owned at any given time. Carey Olsen has excellent relationships with the key individuals who are involved in processing an application for a high-value residency and can help to put together an application designed to put forward the strongest possible case. We always recommend that an early dialogue with the relevant parties is a key consideration.
What houses are available to those granted 2(1)(e) residential status?
Only certain properties in Jersey meet the criteria for being available for purchase by people approved for high-value residency. The current position is that these high-value properties, which include many of the finest properties in the Island, should be at least £1.75 million for a house and £900,000 for an apartment; however, consultation is currently underway that would likely see these amounts increase.
Most local property agents offer a discreet and confidential service to assist in finding the perfect home for new residents and Carey Olsen can assist in providing introductions. Once a suitable property has been identified, our property team can give clear and comprehensive advice on the acquisition process, from start to finish.
Whether a property is acquired directly or through a holding company, a significant amount of research and drafting is required to ensure that a client's position is protected as a purchaser under the unique Jersey conveyancing system. Our property team in Jersey includes some of the most experienced lawyers and conveyancers in the Island. With considerable experience in Jersey property negotiations, we have a particularly strong record in assisting successful 2(1)(e)/ high-value residency applicants in their residency application and their subsequent property acquisitions.
Originally published July 28, 2020.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
