For many, Mauritius may just be a small country of only 1.2 million people. However, the island is becoming increasing popular among foreign investors. It is recognised by experts in the offshore sector as one of the leading African markets for business-owners. The country has recently seen a sudden rise in interest from expatriates. This is due to an amendment in the laws related to the purchase of property on the island. The change sets a low threshold for obtaining residency on the island. The minimum amount is now at $500,000. Following this, the government has reported a significant increase in the number of foreign investors purchasing local properties, in particular along the country’s coastline.
Why set up your business and reside in Mauritius?
By several measures, Mauritius is already the leading African economy. According to a report by New World Wealth, it has the highest GDP per capita of $25,700. Moreover, The World Economic Forum ranks the island as the most competitive market in Africa. Besides being one of the continent’s fastest-growing economies, the country is also at the 25th position internationally on the World Bank’s table for ease of doing business.
An expert from a local property agency advanced that Mauritius is an “idyllic Indian Ocean Island destination, close to the continent and is arguably the top offshore property attraction”. When opting for the island, foreign investors will be able to benefit from a perfect living environment, from the advantages offered by its financial regime and from a dynamic bi-lingual workforce. The government has recently changed the property legislation and is working on an aggressive economic and investment strategy to establish itself as the new luxury destination in the African continent. Thanks to the new laws, it is easier for non-Mauritian citizens to obtain residency permits. They are eligible for these when purchasing a property under the government’s Property Development Scheme (PDS) with a minimum investment value of $500,000. The country has no Capital Gains Tax, dividends or inheritance tax and a universal tax rate of 15%.
According to the chief executive officer of residency and citizenship at an investment facilitator firm, foreign investors can get into the market for as little as $176,000 (this is approximately 6m Mauritian rupees), excluding taxes and legal fees, for a beach property that would be popular for rentals. For a commercial office, the amount quite less. It is at around R2.3m. Nonetheless, if they want to obtain permanent residency, higher levels of investment would be required.
Permanent residency permits
For details about Permanent residency permits, you can have a look at our previous articles. With so many benefits for foreign investors, both on professional and personal levels, it is not a surprise that investors are becoming increasingly interested in Mauritius and that it has become the new property hot spot in the African continent
Feel free to get in touch with us for any piece of advice regarding how to set up a company in Mauritius or how to apply and obtain any of the above-mentioned permits.