- January 29, 2024
- Posted by: Aurélie
- Category: Investment
Mauritius stands out for its remarkable economic recovery post-pandemic challenges, underscoring economic diversification and inflation control priorities. The island nation remains attractive for foreign investments, backed by an investment-friendly environment and a steadfast commitment to international trade.
Streamlined business procedures
Fueled by robust growth, particularly in tourism, Mauritius not only fortifies its economic position but also aligns with sustainable development goals, fostering transparency through streamlined business procedures. Indeed, eliminating unnecessary bureaucratic hurdles has reduced the time and paperwork required for the registration process. This promotes a quicker turnaround for foreign investors seeking to establish their presence on the island. The process of obtaining necessary licenses and permits has also been streamlined to ensure a more straightforward and transparent experience, whether it’s securing industry-specific permits or complying with regulatory requirements.
A competitive business climate
Mauritian authorities actively strive to create a competitive and attractive investment climate, emphasizing high-quality investments. Achieving these goals involves diversifying investment opportunities and simplifying processes facilitated by the Economic Development Board (EDB). Plus, the government has implemented business-friendly laws, providing a transparent and reliable legal system that supports fair business practices and protects the rights of investors.
Mauritius has also developed a robust financial services sector, including banking, insurance, and offshore financial services. The country’s well-regulated financial industry contributes to a stable economic environment, offering a range of financial solutions for businesses.
Business facilitation measures
To facilitate sustainable recovery, Mauritius has recently enacted various measures, such as removing the minimum turnover requirement and extending the validity period for the Occupation Permit. Noteworthy adjustments include reducing the minimum investment from US$100,000 to US$50,000 for non-citizens establishing or investing in existing companies.
The minimum real estate investment for obtaining a permanent residence permit has also decreased to $375,000. Additionally, non-residents holding an Occupation Permit can now include their parents as dependents, and spouses of Occupation Permit holders no longer need a specific permit to work in Mauritius.
Foreign investors in Mauritius are entitled to tax exemptions and investment credits:
- Exemption of interest earned by Collective Investment Schemes or Open-Ended Funds established in Mauritius has increased from 80% to 95%.
- Manufacturing companies can now benefit from an annual investment credit of 15% for three years on expenses related to new facilities and machinery.
- Protected Cell Companies (PCC) and Variable Capital Companies (VCC) are now treated as independent entities for tax recovery purposes.
Overall, foreign investors enjoy a robust environment, further supported by trade agreements with China, India, as well as Africa, along with double taxation avoidance treaties with several countries.
Promising global rankings
Mauritius holds positive rankings in several categories, such as being the freest and most business-friendly country in Africa, high in the Human Development Index and economically free. In fact, the island ranked 1st in sub-Saharan Africa and 30th globally in the Heritage Foundation Report 2023). It’s also worth noting that the country was ranked 13th out of 190 countries in 2020 for its ease of doing business.
The bottom line
In 2024, Mauritius will solidify its position as a favorite investment destination. With a commitment to diversification, streamlined procedures, tax benefits, and specific incentives for investors, Mauritius provides a strategic environment for foreign investors to nurture and expand their enterprises. But to benefit from all the advantages mentioned above and ensure the viability of your investment project, seeking professional advice is vital.
Blue Azurite is here to guide you from deciding on your investment type to settling in Mauritius and making your business thrive. Get in touch with our team of experts to start your investment journey.