Important changes to Jersey’s High Value Residency (HVR) regime have now taken effect under the Control of Housing and Work Law, introducing a revised stream lined framework for high net worth individuals seeking to relocate to Jersey.
Key changes
The former 2(1)(e) permission has been removed. Existing 2(1)(e) residents are now classified as Entitled under Regulation 5. The Government will also now refer to new applicants as High Net Worth Individuals (HNWIs).
The previous political Housing and Work Advisory Group (HAWAG) process has also been abolished.
New framework
Applications will now be considered by a new Housing and Work Control Panel, which is expected to comprise the same Ministers who previously formed HAWAG. The Panel will recommend the grant of status where justified on economic or social grounds and is in the best interests of the community. Following assessment and recommendation (subject to any conditions) by the Panel, the Housing Department will grant the status unless satisfied there are reasons why the recommendation can’t be given effect.
New criteria
Perhaps most significantly, the approval criteria are expected to become more streamlined and objective, with considerably less emphasis on subjective or discretionary factors.
In practical terms, applicants who are expected to
- generate more than £1.25 million of taxable income per annum in Jersey for at least 10 years; and
- make philanthropic contributions of at least £100,000 per annum, or an equivalent time contribution
should benefit from a strong presumption in favour of approval, subject of course to satisfactory due diligence and KYC requirements.
Relocation to Jersey support
Locate Jersey has advised that HNWI candidates will be supported through the process and welcomed to Jersey as soon as possible. There is a timely turnaround of 15 working days once an application is received. Locate Jersey have reiterated that there is no cap on grants.
The Panel is also understood to be considering the removal of other pre-application conditions and reviewing whether property value thresholds should instead apply following approval.
These changes represent a significant development in Jersey’s approach to attracting HNWIs and should provide greater clarity and certainty for prospective applicants considering relocation to the Island.
The Collas Crill relocations team advises individuals and families considering relocation to Jersey on all aspects of the process, including residency, property and related legal requirements.
Please get in touch with Pamela Doherty if you would like further information about the changes or assistance with an application.
