Booming Mauritius ‘tailor-made’ for SA expats and business owners

Dani van Vuuren, Business Development Consultant at Sovereign Trust

For South Africans looking to relocate or start a business in another country, the answer could be closer than they think.

Mauritius is rapidly emerging as one of Africa’s big economic success stories, with its wealth growth rate expected to increase by 75% in the coming decade – and it’s attracting growing numbers of people seeking alternative residencies and business jurisdictions.

Mauritius has long boasted an attractive tax regime, a stable economy and low barriers to entry for both businesses and individuals. But its rapid economic growth is making it a haven for high-net-worth individuals: they come for the business opportunities, and stay for the idyllic island lifestyle.

Occupation and residence permits are freely available to foreigners wishing to work, invest, live or retire in Mauritius. Sovereign Trust’s Dani van Vuuren says South Africans are already among the leading foreign buyers of property on the island. Setting up a business there is efficient, and there’s already a sizeable community of South African expats, making it familiar and easily accessible.

“Mauritius is almost a tailor-made destination for South Africans. It’s a diverse and multi-cultural nation, with excellent infrastructure that enables safe, comfortable lifestyle for work and family alike. It’s a business-friendly jurisdiction with a range of investment opportunities in different sectors. And, of course, it’s close to South Africa,” says van Vuuren.

The island nation has a fast-growing financial services sector and stock market, and ranked first in Africa - and 13th worldwide – for ease of doing business. More than that, it ranks as the safest country in Africa and is among the 20 safest countries on Earth.

Part of the attraction of Mauritius for foreign investors has always been its simple taxation system: corporate and personal income tax are all taxed at a rate of 15%, with further tax concessions available. Mauritian tax residents are taxed on Mauritius-sourced income only, and there is no capital gains tax or inheritance tax. In addition, there are no foreign exchange controls, which offers the ideal gateway for international business expansion.

Mauritius offers a range of residency programmes to cater to different income brackets, including residency by investment, occupation, professional, retirement or premium travel visa.

Residency by property investment involves the purchase of property on the island with a minimum value of USD 375,000. This purchase can be made in certain property development or smart city schemes, and local banks are willing to lend non-citizens the money needed to make the acquisition and depending on the bank, require a 30% contribution needed from the investor.

Residency by occupation is given for up to 10 years to investors who can invest at least USD 50,000; professionals who come to live and work in Mauritius; and people who want to start their own businesses on the island.

Residency by retirement is an option to non-citizens aged 50 and over, while residency by premium travel visa is a temporary visa for up to a year, which is ideal for digital nomads.

“Mauritius is open for both business and leisure. It’s a world-class investment destination, that welcomes investment and residency opportunities from around the world. South Africans looking for opportunities outside the country need look no further,” said van Vuuren.