Important factors to consider in residence planning
The Channel Islands, including Jersey and Guernsey, are situated about 14 miles from the coast of France and 120 miles from Southampton, England. A modern airport and an advantageous location enable Jersey to benefit from frequent and regular air services to London, Paris, Zurich, and other airports in the United Kingdom, France, the other Channel Islands, and Ireland, with regular sea travel to England and France.
The island of Jersey is not only known for its scenic beauty, but it also enjoys a high European standard of living and offers a variety of options for leisure, cuisine, and cultural activities. It is a paradise for golfing enthusiasts and people interested in water sports. Residents also benefit from a high level of modern communication and associated facilities.
All financial institutions are regulated and supervised in Jersey by the government's Finance and Economics Committee. Supervision is implemented by the Jersey Financial Services Commission, which exerts close control over all financial institutions and trust companies.
The purchase and occupation of all residential real estate in Jersey is controlled by the Jersey government, through its housing committee. Essentially, only persons possessing Jersey housing qualifications are granted consent to purchase property.
It is possible, however, for high-net-worth individuals to obtain the 2(1)E license, which derives its name from Jersey’s current housing law.
To achieve high-value residence status and be eligible to purchase property in Jersey, the prospective applicant must make a major contribution to the island’s tax revenues. At the present rates of tax, the annual tax contribution would be in the region of GBP 125,000, calculated on a sliding scale based on 20% of the first GBP 625,000 of worldwide income and 1% on all income thereafter. Applicants are required to provide financial and other information in support of their application to take up residence in Jersey, evidencing sufficient capital wealth in order to produce in excess of GBP 125,000 in tax revenues for the island.
Once high-value residence status has been granted, the applicant may apply for consent to purchase a property and will be granted the same status as other residents on the island. Residents can be employed and are able to employ and set up their own business on the island and will be expected to purchase or lease a single residential property worth more than GBP 1.75 million.
Before contracting the purchase of a prospective property, it is recommended that a prospective resident should first obtain approval in principle from the Jersey authorities before they take up residence. Henley & Partners is experienced and able to assist in this matter. To find out more about your possibilities to acquire resident status and substantial real estate in Jersey, contact us today.