Real Estate 2026 Comparisons

Jersey property law is derived from Norman customary law, and has also been influenced by the French Code Civil as well as more recently by English and Scottish common law.

Jersey legislation and case law are the main sources of real estate law, but it is a small jurisdiction and so does not produce extensive case law. For matters where Jersey authorities and Norman customary law are silent, the courts may look to other jurisdictions such as France, England or Guernsey.

Key pieces of legislation include:

• the Code of 1771, which mandated that all contracts of immovable property are to be passed at the Royal Court of Jersey and registered in the Public Registry;
• the Loi (1880) sur la propriété foncière, which amongst other things provides the basis of the current legal framework for taking security over immovable property;
• the Loi (1991) sur la copropriété des immeubles bâtis, which established flying freehold property structures;
• the Planning and Building Law 2002, which regulates property development;
• the Residential Tenancy (Jersey) Law 2011, which regulates residential leases; and
• the Control of Housing and Work (Jersey) Law 2012, which sets out who can own and occupy property in Jersey.

The real estate market in Jersey has bounced back in the past 12 months. With increases in transaction volumes following a low in 2024, commercial investment transactions have increased. Prices have undergone a correction, following unsustainable increases in the immediate aftermath of COVID-19, which peaked in 2022, but seem to be stabilising to a “new normal”.

The (possibly temporary) 1% reduction of the higher rate of stamp duty payable on the acquisition of buy-to-let or second homes, together with the introduction in 2025 of intra-group stamp duty relief, may also have helped contribute to the increase in transaction volumes.

The prime office lettings market has been strong, and an offshoot of this has been that landlords have been more willing to make concessions to try to fill non-prime office space.

There has also been a sustained year-on-year increase in the arrival of high-value residents, which has provided a welcome boost to the high-end residential market. At the other end of the residential market, there has been an increase in the supply of first-time buyer-targeted homes, which can be credited at least in part to the Jersey government’s First Steps assisted home ownership scheme.

Significant deals in the last 12 months include the highest value residential property purchase at the end of 2025, rounding off a standout year for that market. A major site on the Esplanade has also changed hands, with the purchaser intending to create a mixed-use development linking the Esplanade to the retail centre at King Street. Behind the scenes and yet to be announced, there are advanced discussions between landowners and potential tenants for works to redevelop major office space on the Esplanade.

Disruptive technologies such as blockchain have had little impact so far in Jersey’s real estate market, although they are more relevant to Jersey-based structures acquiring property in other jurisdictions.

Jersey does not provide a permitted development right for the conversion of commercial property to residential accommodation, so any proposals must go through the usual planning routes. Full conversions are still fairly rare, although there has been an increase in residential accommodation being developed above ground floor retail or commercial premises.

The market has been affected by inflation and increasing interest rates insofar as developers and landlords have been very keen to get building contracts signed and tenants lined up, so as to lock-in prices for contractors and secure financing. Ordinary residential purchasers are also becoming more cautious as the cost of borrowing increases.

Whilst traditional lenders have been fairly cautious in the past year, there has been an increased use of alternative and non-bank financing, such as from private lenders.

Changes are on the horizon in planning law, permitting greater flexibility for changes to the Island Plan, the planning policy document that guides how land is used and developed. In addition, building bylaws are currently under review, and updated guidance is also expected.

The government has committed to significant investment in the island’s public infrastructure and capital projects, which will be welcome news to the construction industry.

Proposals for the introduction of mandatory Jersey Energy Performance Assessments at the point of sale and rental were initially slated to be introduced in 2026, with minimum standards to be introduced in 2028, however this has been delayed; the regime will still be introduced, on a timetable yet to be confirmed.

Details on the establishment of a consumer credit regime to regulate consumer lending are also expected in 2026, and proposed changes to company law will make Jersey a more attractive destination for corporate vehicles.

The most common property rights are as follows:

Freehold

Whilst the term “freehold” is frequently used, the actual term in Jersey law is propriété a fin d’heritage, or ownership in perpetuity. This is similar to freehold ownership in other jurisdictions and is the most comprehensive form of ownership in Jersey, granting the holder ownership of the land and everything above and below it.

Flying Freehold

This form of ownership was introduced in 1991 by the Flying Freehold Law which provides for the division of properties (typically apartment and mixed-use blocks) in order for the units to be owned separately. An owner of a flying freehold unit (known as a “share” or “lot”) has exclusive ownership of that unit together with a percentage interest in the common property – comprising the building(s) structure and the land on which it is established. The structure is defined and described in a co-ownership declaration, which also governs the rights and obligations of each co-owner; the declaration is registered in the Public Registry.

Share Transfer

This mode of ownership was essentially developed as a means of subdividing buildings prior to the introduction of the Flying Freehold Law. It does not create a tenure in immovable property. It is characterised by a Jersey company owning the freehold of a property, and that company being structured so that shares confer express rights to use and enjoy a specific private unit. New share transfer structures have been phased out since December 2021, with the government requiring developers of multi-property dwellings to establish flying freehold structures instead. However, many developments on the island have been structured in this way, so share transfer will continue to be a feature of the Jersey market for these existing developments.

Long Leasehold

Unlike in the UK, it is rare to see long leaseholds (eg, in excess of 99 years) of land in Jersey, as interests in multi-dwelling properties are more likely to be structured by way of share transfer or flying freehold. Some larger commercial estates, including those established on reclaimed land at Jersey’s waterfront and financial centre, are structured as long leasehold estates.

The transfer of freehold, flying freehold and leasehold title is governed by a mix of customary law and statute. There is no legal distinction between the processes applicable to specific types of real estate, and so the purchase of a residential apartment is conveyed in the same manner as industrial or other commercial real estate.

The transfer of freehold, flying freehold and long leasehold title requires the passing of a hereditary contract before the Royal Court of Jersey. The court sitting for immovable property transactions is on a Friday afternoon. There is no concept of exchange and completion, although increasingly the market is seeing reliance on “preliminary” agreements establishing a contractual commitment between parties to conclude a transaction.

Title passes for such transactions once the relevant conveyance (or, in the case of long leasehold, the lease or assignment) is sworn and passed before court. Once passed, the relevant contract is registered in the Public Registry, which serves as a record of all transactions relating to immovable property. Such registration is essential and is prima facie evidence of title, although there is no system of “registered” title. Stamp duty must be paid on all registered contracts.

Share transfer transactions (or the acquisition of other property-owning companies) are affected by private agreement, and the usual requirements for transfer of shares apply. Payment of Land Transaction Tax or Enveloped Property Transfer Tax (as applicable) – at equivalent rates to stamp duty – is required for such transactions.

As there is no system of registered title, there is also no state guarantee of title to immovable property in Jersey. It is the responsibility of the purchaser’s lawyer to undertake research within the Public Registry to track the routes of title to ascertain the past ownership of the property, confirm the boundaries and the servitudes, rights and covenants that attach to the property. In addition to title research, due diligence involves enquiries of the seller and a search of the various utility providers and government departments (including planning and infrastructure).

A buyer’s lawyers will attend on site to undertake a physical review of the property’s boundaries and to consider other title-relevant matters (such and physical encroachments).

Share transfer and other corporate transactions have an added layer of corporate due diligence.

The recent introduction by the Law Society of standard forms of pre-contract due diligence requests, in the form of a standardised questionnaire, applies to all residential transactions. Commercial real estate transactions are not subject to prescribed forms of due diligence requests, and such requests are typically customised to reflect the asset in question and the nature of its use.

Beyond the remit of real estate lawyers, buyers will typically procure valuation and survey reports (of varying degrees of detail and complexity), and specialist surveys such as drainage surveys and (where relevant) asbestos and geotechnical reports.

It is common practice for conveyances to contain a statement that the property is sold with all apparent or hidden defects (vices cachés) and so the burden is on the purchaser to satisfy themselves as to the nature and condition of the property (in addition to the legal title). This statement however would not prevent a claim for misrepresentation.

Where a property is sold by transfer of shares in a property holding company, in addition to the above due diligence, there would need to be specific enquiry of the property holding company to ensure that it has been administered in a manner compliant with law.

The responses provided by sellers within pre-contract questionnaires are treated as representations but are typically subject to limitations and qualifications.

Other than property law advice in relation to title due diligence and transaction perfection requirements, there are a number of areas of law that may be relevant, depending on the nature of the underlying asset. Residential investors, for example, will need to ensure that appropriate licences and safety certificates are in place, and commercial development investors frequently need to consider construction or planning law compliance.

Investors should seek specialist accounting advice in relation to tax, to ensure that the appropriate structures are being used for the purchase and on-going ownership and use of the property.

A buyer of real estate may be responsible for soil pollution or environmental contamination of a property even if they did not cause the pollution or contamination. There is no statutory “bona fide purchaser” exemption for such matters, and so a buyer may be required to remediate existing contamination and/or take steps to prevent future or further contamination, as owner of the property.

The use of land is regulated by the island’s planning laws. Jersey does not operate a zoning code in the traditional sense, and land use is assessed by reference to permissions affecting the site in question as well as historic use.

The compulsory purchase or expropriation of land in Jersey is subject to the requirements of the Compulsory Purchase of Land (Procedure) (Jersey) Law 1961. This legislation does not in itself confer a general power to expropriate land but provides that compulsory purchase is only available where another statute (referred to as a “Special Law”) expressly confers that power. The Compulsory Purchase Law itself sets out the procedure, the method of compensation for landowners and the process for resolving disputes.

A proposal to compulsorily acquire land requires engagement with the owner in the first instance, and if a negotiated acquisition cannot be agreed the matter may then go before the States Assembly for approval. If approval is given, the land is vested in the public (as landowner) by legal process and title passes regardless of owner consent. Compensation is payable.

Goods and Services Tax (GST)

Depending on the nature of the property and the GST status of the parties to the transaction, GST may be payable. A supply of commercial real estate (either by sale or lease) is a taxable supply and will be subject to GST at the standard rate (currently 5%). The factual circumstances may allow a transaction to be treated as a transfer of a going concern, and thus outside the scope of GST. The supply of residential property will typically be zero-rated for GST.

Stamp Duty

Stamp duty is payable on all acquisitions or transfers of freehold and flying freehold immovable property. Stamp duty is ordinarily payable by the purchaser and must be paid in full at the time the contract is passed before the Royal Court.

The amount payable depends on the purchase price (or market value of the property in the event of a gift or sale at an undervalue), and there are different rates depending on whether the property is residential or commercial.

There are certain concessions or exemptions available (for example where a purchaser meets first time buyer criteria). Where a residential property being acquired will not be the main residence of the purchaser, higher rates of stamp duty apply. In addition, as of 1 January 2025 intra-group relief is to be available in specific circumstances.

For long leases, stamp duty is payable on the passing of the lease before the Royal Court (or on the assignment of an existing Contract Lease). If a premium is to be paid, the stamp duty is calculated at the same rates used for freehold/flying freehold acquisitions (including higher rates where the lease is for a residential property which is not the tenant’s main residence). Otherwise, stamp duty on long leases is calculated by reference to the commencing annual rent.

Short leases (under nine years in length) are not within the scope of stamp duty.

Land Transaction Tax (LTT)

LTT is governed by the Taxation (Land Transactions) (Jersey) Law 2009, which was designed to bring the tax treatment of share transfer property transactions in line with that of freehold/flying freehold transactions. Before the introduction of LTT, no tax was paid on share transfer transactions.

Enveloped Property Transactions Tax (EPTT)

EPTT was introduced by the Taxation (Enveloped Property Transactions) (Jersey) Law 2022, which came into force in April 2022.

Previously, the acquisition or transfer of shares in a corporate entity which owned or leased property in Jersey was generally outside the scope of stamp duty or LTT. The EPTT law was introduced to address this perceived inequity by bringing in a tax equivalent to stamp duty/LTT that will be payable on such transactions.

Generally, EPTT will apply where a party acquires a significant interest (eg, 50% or more of the total issued share capital) in an entity owning enveloped property in Jersey, or in an entity which controls the enveloped property-owning entity, provided that the market value of the enveloped property is above the threshold.

EPTT will apply where the enveloped property is held under a contract lease which meets the valuation threshold. 

Paper leases are outside the scope of EPTT.

Rates

There are no business rates or council taxes in Jersey. Instead, each parish in the island levies annual rates, which are governed by the Rates (Jersey) Law 2005, on both the owner and occupier of property (commercial and residential).

Income Tax

Under Jersey’s zero/ten tax regime, a company resident in Jersey is generally liable to income tax at a rate of 0%. There are however exceptions to this, so that income earned from land (including rent received pursuant to a lease and development profits) is taxed at the standard rate, which is currently 20%.

Non-resident landlords who receive rental income from Jersey property may be liable to have tax at the standard 20% rate withheld from rental payments.

Due to the size of Jersey and the resulting scarcity of land, the real estate market is regulated by the government. The majority of transactions involving the acquisition, lease or transfer of immovable property in Jersey are subject to regulations and/or will require consent of the Government of Jersey. There is not, however, a specific foreign investment approval or screening regime.

Residential property ownership is tightly regulated, and investment is primarily limited to individuals with local residential status under the Control of Housing and Work (Jersey) Law 2012. Purely commercial real estate is not subject to such requirements.

Commercial real estate acquisitions in Jersey are financed using structures that will be familiar to UK and international investors but adapted to Jersey’s immovable property and security regime.

Jersey does not recognise the concept of a “mortgage”. For freehold and flying freehold properties, security is registered in Jersey by way of hypothec. Hypothecs can be secured against a specifically defined property owned by the debtor or as a general charge against all immovable property (or immovable property interests) owned by the debtor as at the date of registration. It is not possible to register a hypothec over future property. Hypothecs are registered in the Public Registry and once registered are a matter of public record.

For share transfer properties (and often for corporate vehicles holding commercial real estate), security is perfected by way of security interest over the shares in question. Since 2012, it has been possible to register the interest of the secured party on a publicly searchable register maintained by the Jersey Financial Services Commission.

Commercial lenders may also seek to take security over contract rights (such as rental income), bank accounts or insurance proceeds. Such security is perfected by security interest agreement under the Security Interests (Jersey) Law 2012.

There are no restrictions on granting security over Jersey real estate to foreign lenders.

Stamp duty is payable on the creation of a hypothec over immovable property and is calculated by reference to the amount of the debt secured.

An equivalent tax (LTT) is payable where security is created over shares relating to a share transfer property. In addition, registration of security with the Jersey Financial Services Commission (JFSC) attracts a nominal registration fee.

Before an entity can validly grant security over real estate in Jersey, there will be corporate law and governance requirements that must be satisfied. These are primarily concerned with corporate capacity, corporate benefit, financial assistance rules (where applicable), as well as internal approvals, rather than regulatory consent.

In order to enforce a judicial hypothec action needs to be taken before the Royal Court, either through a general bankruptcy process of the debtor (désastre), or via a disencumbrance process known as dégrèvement.

Désastre

A désastre is a general bankruptcy process pursuant to which all of the debtor’s worldwide property (not just Jersey immovable property) vests as a matter of Jersey law in the Executive Officer of the Royal Court, known as the Viscount. The Viscount acts as an equivalent to a trustee in bankruptcy and liquidates the debtor’s assets to satisfy the creditors, by reference to their security (if any) and then in order of priority.

A désastre is commenced by an ex parte application to the Royal Court by a creditor with a liquidated claim of no less than GBP3,000. At least 48 hours’ notice must be given to the Viscount prior to such application. A supporting affidavit is required which must state that to the best of the creditor’s knowledge and belief the debtor is insolvent but has assets. Insolvency is assessed on a cash-flow basis. In certain circumstances, a debtor itself can make the application seeking to be declared en désastre.

A désastre can be a relatively expensive process with the Viscount able to levy a charge of 10% of the value of goods realised plus a further 2.5% on amounts paid out, together with being able to obtain an indemnity from the petitioning creditor for their fees and charges. In practice, the Viscount will always engage professionals and seek to defray those costs out of the bankrupt estate. A désastre is often a lengthy process and, significantly, there is little a creditor can do to control or expedite resolution.

Dégrèvement

Dégrèvement is a court adjudicated process by which creditors’ claims in the secured asset are removed by offering all creditors the opportunity to take the secured asset in satisfaction of their claim in reverse order of priority, but subject to an obligation to satisfy all claims which rank in priority.

The process starts with a creditor obtaining a judgment for the outstanding debt. If this judgment is not satisfied within one month, the creditor can apply to the Royal Court for an acte Vicomte chargé d’écrire. This entails the court putting the debtor on notice that, if the debt remains unpaid for a further two months, the property in question may be considered to be relinquished (or renounced) and become subject to a dégrèvement.  In straightforward cases the process takes a minimum of four months from date of judgment owing to the timetable prescribed by law.

At the hearing, interested parties (intéressés) are called in reverse order of priority, namely unsecured creditors (as a group), followed by secured creditors and other parties who have entered into transactions with the debtor (in reverse date order). When called, each has the option of becoming tenant apres dégrèvement (ie, the legal owner) of the property or can renounce their claim. If renounced, the property is released from that particular claim, but the creditor is still free to pursue the debtor personally for the outstanding debt.

Whichever of the intéressés elects to take the property does so free of any claims which have been renounced but becomes responsible for settling any debts with prior ranking security (together with up to three years’ interest).

Once a creditor takes possession of assets under a dégrèvement they can dispose of those assets at their discretion. However, if a creditor takes possession of a leasehold interest under a dégrèvement, the terms of the lease continue and in most cases those terms are likely to restrict alienation of the whole or parts of the property in question.

A dégrèvement can be interrupted by the debtor at any time during the process (until the asset vests in the relevant intéressé) if the debtor obtains a remise des biens, which is a process whereby the court affords a debtor an indulgence of time (up to a year) in which to sort out its affairs. A debtor may also be able to avoid a dégrèvement by declaring itself en désastre, provided the application is made before the property is renounced.

Share Security and Creditors’ Winding Up

Other enforcement options may include enforcement of share security (if held) or application of the creditors’ winding up regime.

For share transfer properties or commercial real estate SPVs, security is often taken by security interest over the shares in question. Since 2012, it has been possible to register the interest of the secured party on a publicly searchable register maintained by the JFSC. Detailed priority rules are set out in the Security Interests (Jersey) Law 2012. Enforcement may be exercised by appropriation or sale (including self-sale) of the collateral or proceeds, along with other ancillary actions (such as exercising voting rights etc).

A court ordered creditors’ winding up is a relatively new insolvency regime in Jersey, having been introduced in 2022. Under the regime, a creditor with a debt of over GBP3,000 may apply to the Royal Court for an order to commence a creditors’ winding up of a Jersey company.  This application can only be made where:

• the company is unable to pay its debts;
• the creditor has evidence of the company’s insolvency; or
• the creditor has the consent of the company.

The company is deemed to be unable to pay its debts for these purposes if:

• the creditor has served on the company a statutory demand (in the prescribed form) requiring it to pay the sum so due; and
• for 21 days after service of that demand the company has failed to pay the sum or dispute the debt due to the reasonable satisfaction of the creditor.

Where the court makes an order to commence a winding up, it will also appoint a liquidator (or liquidators), in each case being a person who is either nominated by the applicant creditor, or a person selected by the court.

Bringing an application for a court ordered creditors’ winding up can be advantageous as, unlike the position under a désastre whereby the Viscount has the ability to levy certain charges according to the value of goods in question and the amounts paid out , a creditors’ winding up is pursued without the involvement of the Viscount. This often has the effect of realising more assets for the benefit of the company’s creditors. The process is only available where the debtor is a company. It does not apply to natural person debtors.

Existing secured debt can be subordinated to newly created debt under Jersey law primarily by agreement and, in limited cases, by structural or procedural mechanisms. Priority is otherwise fixed by registration order.

A lender holding security (ie, a hypothec) over real estate is not an “owner” or “occupier” of land. Unless and until a lender takes ownership of the asset or enters into occupation, it should not be liable under environmental laws.

Validly created security interests granted by a borrower in favour of a lender will continue to be effective if the borrower becomes insolvent. However, security may be challenged or set aside in limited circumstances under Jersey insolvency law, particularly where it falls within the statutory categories of preferences, transactions at an undervalue, or invalid security.

Registration of real estate security will give rise to stamp duty, payable at the time of registration. There are no other taxes or on the creations of loans.

Planning, land use and zoning are regulated under a comprehensive statutory regime. Jersey has a “plan-led” (ie, policy based) planning system, whereby the statutory requirements for development are subject to overarching and island-wide policies set out in the Island Plan.

The planning and building regime also includes a system of registration and regulation of sites of special interest (including historical, ecological or archaeological interest, as well as sites of architectural and artistic interest).

Development rights are not automatic and must generally be obtained through planning and building permissions, assessed against the statutory Island Plan and administered by public authorities under the Planning and Building (Jersey) Law 2002.

Planning Permission

Most development requires planning permission, unless it falls within limited permitted development rights.

In general, planning permission is required for:

• new buildings and extensions;
• engineering and excavation works;
• demolition; and
• material changes of use of land or buildings.

Applications are assessed against:

• the Island Plan (the primary statutory policy document);
• any supplementary planning guidance;
• environmental, heritage, highways and amenity considerations; and
• any applicable Environmental Impact Assessment (EIA) requirements.

Building Permission

Planning permission does not authorise construction by itself. Separate building permission is required for:

• structural works;
• technical construction matters; and
• compliance with safety, fire, drainage and accessibility standards.

Building permission is assessed against:

• building bye–laws; and
• approved technical guidance documents.

Both planning permission and building permission are typically needed before works commence.

Objections

Neighbours and the wider public may submit representations during the statutory consultation period.

Appeal Rights

Applicants and, in limited cases, other affected persons may appeal against:

• the refusal or grant of planning permission;
• any conditions imposed on a permission; and
• certain enforcement notices.

Appeals are conducted under procedures set by statute and subordinate legislation and are determined independently of the original decision–maker.

Further challenges may be brought before the Royal Court on public law grounds.

Ownership and occupation of land in Jersey is tightly regulated. The limited availability of both residential and commercial real estate means that the acquisition, leasing or transfer of immovable property in Jersey is subject to statutory regulation and/or requires ministerial consent.

Residential Property

The ownership and occupation of residential accommodation is subject to strict controls under the Control of Housing and Work (Jersey) Law 2012 (CHWL), reflecting a policy objective of prioritising housing for individuals with local residential qualifications.

While it may be possible for individuals without the necessary housing status to acquire share transfer properties, occupation of those properties will generally still require specific consent. In practice, consent for the acquisition of residential property by foreign entities is rarely granted.

Commercial Property

By contrast, commercial property is more accessible to non-local purchasers. Acquisitions of commercial real estate are subject to consent under the CHWL and, where the purchaser is a corporate or other non-natural person, information regarding the ultimate beneficial ownership must be disclosed to the Housing Minister. Leases of commercial premises do not generally require CHWL consent except where the premises include residential accommodation, in which case the consent regime will apply.

Non-Jersey resident investors may acquire the freehold of Jersey commercial real estate directly into their existing structures, but it is more usual for a Jersey company to be used as an SPV to hold the investment.

Other investment vehicles, such as limited partnerships, are rarely used to acquire Jersey real estate.

It is not possible, under the provisions of the Trusts (Jersey) Law 1984, to have a direct trust of immovable property in Jersey.

Income from Jersey property (including rental income) is subject to tax at the standard rate of 20%, regardless of the nature of the vehicle or entity (subject to allowable deductions). The acquisition of immovable property attracts stamp duty, which is charged on an ad valorem basis.

It is not possible to have a direct trust of immovable property in Jersey.

There are no statutory minimum capital requirements applicable to Jersey companies or partnerships.

As noted in 5.1 Types of Entities Available to Investors to Hold Real Estate Assets, the most common type of entity used to invest in real estate in Jersey is a Jersey registered company.

The Companies (Jersey) Law 1991 imposes core governance requirements such as the following.

• A Board of directors with statutory duties to the company.
• Articles of Association governing internal management.
• Decisions to be taken by board and shareholder resolutions (ordinary or special, depending on matter).
• An annual confirmation statement and ongoing filings with the Jersey Financial Services Commission (JFSC).
• Maintenance of statutory registers (members, directors, beneficial owners).

Disclosure

• Beneficial ownership information must be filed with the JFSC.
• Accounting records must be maintained; accounts are not generally public unless regulated.

For Jersey incorporated companies, including property-owning SPVs, there are modest statutory fees applicable. Following initial incorporations fees (which are a one-off expense payable to the Jersey Financial Services Commission) the only recurring statutory annual fee is that payable on filing the company’s annual confirmation statement with the JFSC.

The annual confirmation fee covers the entity’s continued entry on the Jersey Companies Register. There are no statutory fees linked to share capital size or value, and there is no statutory filing fee for private accounts.

A person (whether an individual or a corporate body) may occupy and use real estate it does not own as either a tenant under a lease or as a licensee under a licence. 

A licence is an agreement where the licensor grants the licensee a right to occupy or use property for a fixed or periodic term, but without granting the licensee exclusive possession of the property. Any other agreement will be treated as a lease. 

Even if the agreement is stated to be a licence, the courts would look to the reality, not the appearance, of the agreement to determine if exclusive possession is actually granted.

There are two types of commercial leases in Jersey.

A contract lease confers an immovable real right and must be passed as a contract at the Royal Court of Jersey. Any lease with a term of greater than nine years must be registered as a contract lease.

A paper lease does not need to be registered at the Royal Court and can only be for a term of nine years or less. Unlike a contract lease, this only confers a movable right. There are no prescribed formalities for a paper lease.

Rent and lease terms for commercial leases are freely negotiable in Jersey. There is very little statutory intervention in the commercial landlord/tenant relationship in Jersey. Unlike in the UK, there are currently no proposals to ban or limit upwards only rent reviews.

Many commercial leases in Jersey are paper leases with a term of nine years and are let on a Full Repairing and Insuring lease, which provides flexibility for newer entities. Depending on how established the tenant company is, many finance firms and banks prefer to take a longer lease, contract leases of 12, 15, 18 or 21 years are also common.

Repair and maintenance responsibility varies depending on if the building is multi-let. The landlord will generally retain repair and maintenance of the building structure and common areas, the costs of which are recovered from the tenant(s) through a formal service charge, with the tenant remaining responsible for the repair and maintenance of its internal demised premises. 

Rent is generally payable quarterly in advance on the usual UK quarter days.

Most commercial leases in Jersey provide for the rent to be reviewed every three years during the term. It is extremely unusual to see a lease with a flat rent for the entire term unless the term is very short.

Rent is reviewed on an upwards-only basis, usually either by reference to the rent which could be achieved on the open market for a similar lease, or by reference to the increase in the Jersey Retail Prices Index (JRPI) in the preceding period. 

Occasionally the parties may agree stepped increases at specific dates to pre-agreed amounts, but most often the review will be either open-market based or JRPI based (or sometimes the higher of the two, although this is not as common).

Most amounts payable under a lease in Jersey are expressed to be exclusive of GST, but will include a clause requiring the tenant to also pay GST on the rent in the event the landlord is liable to GST. Registration is required where a party’s yearly taxable turnover exceeds GBP300,000, unless certain exemptions apply, eg, where the entity is an International Service Entity.

Certain leases that predate the introduction of GST in 2007 may not contain a provision allowing the landlord to recover future taxes, and it will depend on the wording in the lease if the landlord is entitled to pass on GST to the tenant. Many pre-2007 leases that remain in place have since been varied to allow for GST recovery on rent.

On entering into a new lease, a tenant may be required to pay a deposit, although this is less common in Jersey than in some other jurisdictions.

Other costs which a tenant may be required to pay at the start of a lease include the costs of fitting out the premises to the tenant's specifications, which may also include the landlord's costs in granting a licence for alterations for the fit out. Each party usually pays their own costs where the licence is granted at the same time as the new lease.

In addition, a tenant will likely also be required to pay an advance estimated service charge payment and a contribution to the building's insurance premium.

If the lease is for a term greater than nine years and so registrable in the Public Registry, then the tenant will need to pay stamp duty on registration.

The responsibility for maintenance and repair of common areas, such as parking lots and landscaped areas, will fall to the landlord, and this is usually recovered from the tenants by a service charge.

Service charges are usually paid by the tenants in advance on an estimated basis. At the end of every 12-month service charge period, the advance payments are reconciled with the actual costs incurred in carrying out the services, with any shortfall or overpayment being repaid or allowed. 

Each tenant’s contribution is usually a fair and reasonable proportion based on usage and/or the proportion the tenant’s demise bears to the property as a whole. It is unusual to see a flat service charge fee, or a service charge which is expressed as a percentage of the rent.

The tenant will be responsible for any utilities and telecommunications used in or at its premises. If these are not separately metered and/or billed directly to the tenant, it will need to reimburse the landlord for such costs. 

Utilities and telecommunications that serve the property common areas will likely be payable by the landlord and recoverable from the tenants, most likely under the service charge, with each tenant paying a proportion based on usage and/or the proportion the tenant’s demise bears to the property as a whole.

Tenants will typically be responsible for the foncier rates and occupier’s rates (there are two of each, one for the parish the property is located in and one that is island-wide). These are annual taxes assessed on the owners and occupiers of property in Jersey.

Under the Rates (Jersey) Law 2005, it is the owner, and not the occupier, of land who is liable for the foncier rates, but most commercial leases will require the tenant to pay and/or reimburse these rates.

The landlord will typically be responsible for any tax on rental income. If a landlord is not resident in Jersey, and does not have an agent, then the tenant may be required to withhold the 20% income tax from their rents, and pay this to Revenue Jersey, submitting a return each year in this connection. A non-resident landlord can however obtain a certificate from the Comptroller of Taxes permitting the landlord to receive the gross rent from the tenant.

In most cases the landlord will obtain buildings, loss of rent and public liability insurance and recover the cost from the tenants. In some cases where the entire property is demised to the tenant, the tenant may be responsible for obtaining and paying the insurance.

Usual insured risks include fire, lightning, explosion, storm, flood, bursting or overflowing of water tanks apparatus or pipes, earthquake, impact by aircraft (but not hostile aircraft) and other aerial devices, riot and civil commotion, labour disturbances, impact of road vehicles, heave and subsidence. Terrorism cover usually depends on whether it is available at reasonable rates and conditions.

Tenant clients have generally not been able to recover rent or other costs under business interruption insurance due to office closures/clean-up costs incurred during the COVID-19 pandemic.

Most leases require the premises to be used for a specified purpose, and any changes to that use require the landlord’s consent (often at its discretion).

The Planning and Building (Jersey) Law 2002 is the primary law controlling development and use of property in Jersey, and planning applications must be in line with the Island Plan. The Planning and Building (General Development) (Jersey) Order 2011 sets out what development and changes of use can proceed without requiring a full planning application.

As noted, the use and occupancy of residential premises are tightly regulated in Jersey. Short term holiday letting of residential premises is governed by the Planning and Building (General Development – Short–term Holiday Lets) (Jersey) Amendment Order 2024.

The use of a property may be restricted where it is a listed building, or it sits within a conservation area.

The sale, letting and use of agricultural land is heavily regulated, and permission to change its use is generally difficult to obtain.

Tenants are usually permitted to make internal non-structural alterations with the landlord’s prior consent, not to be unreasonably withheld or delayed, and in accordance with plans and specifications approved by the landlord. Structural alterations are almost always only permitted at the landlord’s discretion. Usually, a tenant may erect or remove non-structural internal partitions below ceiling height without prior landlord consent provided they notify the landlord and do not overload the floors.

Consent is usually granted by way of a licence for alterations, and the tenant must pay the landlord’s legal and professional costs in granting such consent. The landlord will usually reserve the right to require the tenant to remove the alterations and reinstate the premises at the end of the term. 

Occasionally a provision will require the tenant to pay a security deposit where the works are extensive, but this is fairly unusual. The landlord may also expressly require any works to be carried out by a competent contractor in accordance with an occupier’s fit-out guide.

Residential leases are governed by the Residential Tenancy (Jersey) Law 2011, which sets out details to be specified in a residential lease (eg, rental and frequency of payment/reviews, landlord details, commencement date) and certain provisions which must be included (eg, the tenant is not required to pay any premium or key money, or purchase any fixtures, fittings or movables).

In addition, it details the procedures to be followed for ending a tenancy, restricts the frequency and level of rent increases and remedies available for both tenants and landlords in the event of a breach, including eviction.

Non-residential leases are generally not specifically regulated (as distinct from the above-noted regulations as to occupation and use of property as a whole), but there are some exceptions.

• Premises which sell alcohol (either for on-site or off-site consumption) will require a licence under the Licensing (Jersey) Law 1974.
• The Tourism (Jersey) Law 1984 provides for registration and control of visitor accommodation, save in the case of certain short-term holiday lets, which can be permitted under the Planning and Building (General Development – Short–term Holiday Lets) (Jersey) Amendment Order 2024.
• Lodging houses are subject to the Lodging Houses (Registration) (Jersey) Law 1962, which requires the owner to keep a register of lodgers.
• Leases of agricultural land (which is broadly defined and can include any land which is capable of being used for agriculture or horticulture) require Ministerial consent pursuant to the Agricultural Land (Control of Sales and Leases) (Jersey) Law 1974.

During COVID-19, the government issued separate guidance for residential and commercial premises, and government measures particularly affected asset classes such as hospitality, entertainment and leisure, which were more likely to be subject to premises closure and other restrictions.

Most leases permit the landlord to take steps to cancel (forfeit) the lease in the event of tenant insolvency. Generally, the landlord will require the court to cancel the lease, and the landlord will usually seek an order for possession at the same time. If the tenant occupies a non-residential premises on a paper lease, then the landlord may seek to terminate the lease without reference to the court, but it is generally cleaner if it does go through the formal court process.

Under the Bankruptcy (désastre) Law 1990, the landlord can pursue a claim for unpaid rent arrears with the Viscount (who is responsible for administering the assets of the insolvent debtor) but cannot take other steps for enforcement without engaging with the Viscount. The law also enables a contract lease to be disclaimed, which can bring the tenant’s ongoing obligations to an end and leave the landlord to make a claim for the resulting loss.

The Companies (Jersey) Law 1991 also contains powers for disclaimer of a lease in the event of a creditor's winding up of an insolvent company. In such circumstances the landlord would be a creditor and can prove in the liquidation.

If there was a guarantor, the terms of the guarantee may contain a provision whereby the landlord can require the guarantor to take a new lease on the same terms for the residue of the term or otherwise pay the landlord a loss-based amount.

For non-residential premises, a tenant generally has no right to remain in occupation of the property after the end of the term. However, where a tenant remains in occupation after expiry and pays rent, which is accepted by the landlord for any appreciable period (generally a month), a further tenancy arises under principle of tacite réconduction (tacit renewal).

The new lease created by tacite réconduction will be on the same terms as expired lease save as to duration and any guarantees and will be terminable in accordance with the provisions of the Loi (1919) sur la location des biens-fonds.

If the landlord has not accepted rent and made clear that no tacite réconduction has arisen, and the tenant still remains in occupation, then if the tenant had a paper lease, the landlord must follow the eviction procedure set out in the Loi (1946) concernant l’expulsion des locataires réfractaires. If the tenant had a contract lease, then the landlord would need to obtain an order for eviction from the Royal Court.

If the property is residential, then the Residential Tenancy (Jersey) Law 2011 (the RTL) will apply. The landlord must give the tenant three months’ notice prior to the end of the initial term that the term will end on that date. After that date, if the tenant remains in occupation, it will become a periodic tenancy. The landlord will then be required to give a specified period of notice which will vary from seven days to 12 months, depending on if there is a statutory reason for ending the tenancy, and if so, which reason applies. A residential tenant who does not voluntarily vacate the premises must be evicted in accordance with the procedure set out in the RTL.

Most leases permit the tenant to assign the whole of its leasehold interest (as opposed to a part, which is virtually always prohibited), subject to prior landlord consent. Consent is generally stated not to be unreasonably withheld or delayed where:

• the Landlord (acting reasonably) is satisfied that the assignee is of sufficient financial standing to enable it to discharge the tenant obligations, or provides a guarantor(s) who are of such standing;
• the assignee covenants directly with the landlord to comply with the tenant covenants for the residue of the term; and
• there are no arrears of rent or service charge at the time of the assignment. 

Occasionally, the lease will impose stricter financial tests, such as requiring income to be at least three times the passing rent, although this is less common than it once was. There is no statutory provision in Jersey for an assignor to act as guarantor for the assignee.

Consent is usually granted by the landlord being party to the assignment.

A tenant will usually only be permitted to terminate a non-residential lease if there is an express break clause in the lease, which is usually a matter of negotiation between the landlord and the tenant at the heads of terms stage. However, the Jersey remedy of résolution allows for the termination of a contract by the innocent party, due to non-performance or breach by the other party, so if the landlord breached its lease obligations, the tenant could make an application to the court to terminate the lease.

The lease will usually contain a provision permitting the landlord to terminate the lease where the rent and other sums are not paid when due (although usually there is a grace period), the tenant breaches its obligations, the tenant becomes insolvent, or the tenant suffers a financial judgment which remains unsatisfied within a specified period.

Residential tenancies must be terminated in accordance with the provisions of the RTL, which permits a tenant to terminate at any time on giving one months’ notice. The landlord however must give three months’ notice if it is within an initial fixed term, but if it is a periodic tenancy the landlord will only be permitted to end the term on giving one year’s written notice if one of the specified reasons do not apply (eg, sale of the property, serious tenant breach, etc). If one of the specified reasons do apply, then the landlord will be required to give the specified notice period, which ranges from seven days to six months depending on the reason.

Any lease with a term greater than nine years must be passed before the Royal Court and registered in the Public Registry of Jersey (as must an assignment or variation of any such lease). Stamp duty is payable on registration, calculated by reference to the annual rent. If a premium is paid, then the stamp duty will be paid on the premium at the same rates as for a freehold acquisition. In most cases, this is payable by the tenant but can be a matter of negotiation between the parties.

Paper leases for a term of nine years or less do not require registration and so remain outside the scope of stamp duty.

A tenant may only be evicted by a court order for possession. There is no fixed timeline for the process and the court has discretion to refuse to grant an order, or to grant the order but to delay its execution.

There are no continuing COVID-19 eviction moratoriums or related restrictions.

A lease cannot usually be terminated by a third party, but the States of Jersey can effectively bring a lease to an end by exercising its rights under the Compulsory Purchase Law – which itself only applies where a subsequent “special law” confers such rights on the States.

Compensation is payable as part of the process. If the landowner doesn't agree with the proposed compensation, the matter will be referred to the Board of Arbitrators for determination.

The compulsory purchase process has no fixed timeframe, so timing will depend on how quickly the States’ approval is obtained, the time period the landowner is given to respond to a compulsory purchase notice and if compensation is agreed or must be determined by the Board of Arbitrators. 

There is no statutory limitation on damages, and the landlord is entitled to make a claim for all arrears as well as its costs in obtaining the eviction order (and potentially the Viscount may seize the tenant’s movables and assets to covers such items).

Damages for other lease breaches such as dilapidation will generally be pursued as contractual damages. Jersey case law is clear that damages can only be awarded for the loss arising from the breach itself. The landlord has a duty to mitigate its loss, with the burden of proof on the tenant or guarantor to show what mitigation steps the landlord could have taken in this connection.

The landlord can also call on a guarantee (if one exists) as an additional remedy.

Deposits are very common in residential leases and must be administered and deposited with the MyDeposits Jersey scheme, in accordance with the Residential Tenancy (Deposit Scheme) (Jersey) Regulations 2014. They are less common in commercial leases but generally take the form of cash held by the landlord in a separate account. There is no statutory regime applicable to commercial lease deposits.

There is no single dominant pricing model, with some construction projects based on a fixed-price model, and others based on actual costs of work and supplies. In practice, the fixed-price model does seem to be used more frequently.

Design and construction responsibility will be allocated by the agreed form of construction contract, with most projects in Jersey using Joint Contracts Tribunal (JCT) or New Engineering Contract (NEC) forms, adapted to include Jersey-specific amendments. JCT design and build contracts are frequently used, so that responsibility for both design and construction will lie with the contractor.

Construction risk can be managed by bespoke amendments to the standard forms of contract, setting out clear allocation of responsibility and liability. Where sub-contractors are used, ensuring back-to-back warranties or indemnities are included in the sub-contracts is crucial for managing contractor-risk. 

From a statutory perspective, the Health and Safety (Management in Construction) (Jersey) Regulations 2016 allocates specific responsibilities for designers and for contractors/principal contractors in managing health and safety risk.

A particular risk is if the works commence prior to the parties formally entering into the building contract and proceed on the basis of a letter of intent. This can open up scope for disputes, and the mechanism for determination of disputes can itself be unclear.

Limitations on liability and waivers of certain types of damages are points to be negotiated between the parties. Jersey has no statutory limitation on damages, but general contractual principals as to remoteness of loss and mitigation of loss will apply.

Schedule risk is usually dealt with by the extension of time provisions in the building contract, either using the standard form or as amended. This is a matter of negotiation between the parties, and there is no law in Jersey which would prohibit the parties agreeing to monetary compensation in the event of delays.

Where a landowner is engaging a contractor to redevelop or construct a property that is subject to an agreement to lease, it is often the case that the landlord may be required to pay damages to the tenant under the agreement to lease (ATL) if the property is not completed by a specific date. In those circumstances, the landlord must ensure that it is able to recover equivalent compensation under the building contract.

A client is entitled to seek any additional form of security it chooses, such as letters of credit, parent company or third-party guarantees, performance bonds or escrow accounts. Of these, guarantees and performance bonds are the most commonly used.

A contractor or designed that is owed money from a client may obtain judgment against the client and register the judgment in the Public Registry. A Royal Court judgment will act as security over the immovable property of the debtor.

When the debt is extinguished, the creditor must cancel the registration in the Public Registry and can be compelled to do so by the court if necessary.

Generally, prior to occupation, the premises must first be inspected by a building control surveyor at completion, and if the surveyor is satisfied, they will then issue a completion certificate.

Occupation before the issue of the certificate is generally not permitted. However, there are exceptions where building control will permit earlier occupation if the property is considered safe and suitable for occupation and the outstanding works do not affect life safety or essential services. Any exemption is at the discretion of building control.

The equivalent to VAT in Jersey is the Goods and Service Tax, or GST. The standard rate of GST is currently 5%. GST is charged by the party making the supply, ie, the vendor in the case of real estate, and payable by the party receiving the supply, ie, the purchaser.

Residential dwelling sales are generally zero-rated, but commercial property sales are deemed to be a taxable supply at the standard rate of GST.

There are exemptions which may apply, depending on the value of the property being sold, the GST status of the parties and whether or not the sale may be treated as a transfer of a going concern.

If the transfer is effected by way of acquisition of the shares in the property-owning company (rather than an outright purchase of the property) this will be outside the scope of GST.

If the term is nine years or less the lease will not need to be registered in the Public Registry and so stamp duty will not be payable. The downside of course is the reduced security of tenure that comes with a shorter term.

Otherwise, stamp duty will be payable on the purchase of immovable property in Jersey, as well as on loans secured over immovable property. An equivalent land transaction tax applies for the acquisition of share transfer properties. In both cases higher rates are payable on the acquisition of residential property which is not to be occupied by the borrower as their main residence.

Previously, rather than acquiring a property outright, a purchaser would acquire shares in the property-owning company, as this was outside the scope of stamp duty. However, the introduction of enveloped property tax has removed this incentive.

There is no bulk or portfolio relief of stamp duty or LTT as such. Splitting or bundling acquisitions does not reduce the rate applicable to the transaction. The applicable rate is determined by reference to the value of the transaction and whether the property is commercial or residential, and if residential, if it is to be used as the buyer’s main residence. The authorities may require further payment if they consider that prices have been artificially apportioned between properties for the purpose of lowering the stamp duty payable.

There are certain circumstances where a reduced rate may apply. For example relief is now available for certain intra-company transfers, a welcome change introduced in 2025.

In addition, property developers who acquire residential property as trading stock are not subject to the higher stamp duty rates which would otherwise apply to residential property that is not the buyer’s main residence.

Jersey levies parish and island-wide rates for all premises, whether used for domestic or non-domestic purposes, although the actual rates charged differ between the two use categories.

The foncier parish and island-wide rates are the responsibility of the owner of the land, although in practice this will usually be recovered from the tenant if the property is let. The occupier parish and island-wide rates are (as to be expected) the responsibility of the occupier of the property.

There are are limited exemptions, for example for places of worship, and land owned or occupied by the Crown or other governmental/parochial authorities, including schools.

Owners of property in Jersey that are not tax-resident in the island will be taxed on profit from Jersey property income at a rate of 20%. This includes rental income, receipt of a lease premium and development profits.

If the non-resident owner is a landlord and has no appointed agent, the tenant may be required to withhold the 20% income tax from the rent and account to Revenue Jersey by way of an annual return. To avoid this, a non‑resident landlord can instead apply to the authorities for a certificate allowing the rent to be paid gross.

Jersey has no capital gains tax as such. The requirement to pay tax on income from property development includes all annual profits or gains accruing from transactions carried out in the trade of dealing in or developing land in Jersey.

Exemptions apply where the income is derived from property belonging to various charitable entities, the Crown and various governmental/parochial entities. There is also an exemption for people who rent a room in their principal residence where the gross rent is GBP10,000 per annum or less.

Government guidance identifies a number of deductions/allowances that can reduce taxable rental profit, specifically noting the following: maintenance and repairs (like-for-like replacements, not improvements), property insurance, management and service charges, mortgage interest (but not capital repayments) and capital allowances on machinery or plant used for maintenance, repair or management of the property.

A landlord can also deduct interest paid under a mortgage (but not capital repayments). Where it is a fully furnished residential property, the landlord can deduct 10% against gross rental income for “wear-and-tear”, in addition to like-for-like replacement of fixtures.