Wealthy incomers are ready to pay rents of up to £12,500 a month for luxury homes in Jersey.
Estate agents say the number of wealthy individuals looking for prestigious homes on the island is increasing - up from 119 in 2016 to 151 last year.
One agent - Bradley Vowden, a partner at Gaudin & Co – reports that he has eight prospective tenants prepared to pay six-figure rents while they look to buy or build a home on the island.
And although incomers can only own one home, buy to let investors are buying two out of three new homes built in Jersey.
Gross annual returns stack up to between 4.5% and 5% for investors.
Many incomers are ready to pay millions of pounds for the right home - Savills is offering a 58-acre estate with a seven-bedroom house and stone chapel in St John for £22 million.
A more modest six-bed home with sea views, an infinity pool and a 1,800 square foot master suite planned for land overlooking St Brelade Bay is priced at a comparatively modest £3.5 million by Vowden’s firm.
Besides a laid-back lifestyle and miles of beaches, another draw for the most wealthy is Jersey’s tax system.
The island has no capital gains or inheritance taxes and incomers pay income tax at just 1% after handing over an annual contribution of £145,000.
But they must have an annual income of at least £725,000 and spend £1.75 million on a house or £900,000 on an apartment.
Incomers are skewing the top-end of Jersey’s housing market as developers, mindful of what investors are prepared to pay, build luxury homes for this market, knowing demand is greater than supply.