The Benefits of Investing in Mauritius
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For South African investors seeking new ventures, Mauritius offers an array of compelling benefits, which we're breaking down in this week's article. Since extending our reach to the idyllic island of Mauritius through a strategic partnership established in November 2023, The Agency is excited to share some of the top reasons for South African investors to invest in Mauritian property.
Paradise Destination
Mauritius, long celebrated as a holiday spot, is increasingly capturing the attention of South African investors looking to diversify their real estate portfolios.
With 150 kilometers of pristine coastline and turquoise lagoons, the island offers unique advantages for those seeking both financial growth and personal enjoyment.
From a lifestyle perspective, Mauritius offers an unmatched experience. With a wealth of outdoor activities to enjoy - from water sports to world class golf courses, and a lively social scene, Mauritius is truly the place to build the lifestyle of your dreams.
Stable Political System and Attractive Business Environment
Mauritius operates under a stable parliamentary democracy, providing a foundation of political stability. The island's economy has demonstrated sustained growth and has been recognized as the best country for doing business in Africa by the World Bank's Doing Business 2018 report.
Additionally, Mauritius offers an attractive tax regime with low tax rates, currently set at 15%, making it an enticing destination for individuals and businesses.
The nation has also established a network of double taxation and bilateral agreements with more than 36 countries, fostering a conducive business environment and international collaboration.
Welcoming Environment
Mauritius provides a welcoming environment characterized by its bilingual population, proficient in both French and English. Renowned for its hospitality and service sector, the island ensures a warm and inviting atmosphere for visitors and residents alike.
With a low crime rate and recognition as one of the world's ten conflict-free nations, Mauritius offers peace and security.
Situated in the Indian Ocean, the island is constantly developing its modern infrastructure to enhance the quality of life, including private international English schools available throughout.
The Residency Permit
A residence permit under the Immigration Act is granted to a non-citizen upon acquiring a residential property valued at over USD 375,000 or its equivalent in other freely convertible currencies.
Every family member dependent on the buyer is eligible to apply for the residency permit, with no age limit.
The residency permit remains in force as long as the non-citizen holds the residential property.
Attractive Legal Framework
Mauritius boasts an attractive legal framework for investors, including double taxation agreements with more than 45 countries, a flat income tax rate of 15%, and no taxes on dividends, capital gains, or inheritance.
Full tax exemption is granted for select imports/exports, and customs duties are exempted on merchandise imported through the free port. Additionally, administrative assistance supports the Ease of Doing Business with management companies facilitating procedures.
Understanding Property Schemes
Mauritius offers various schemes to acquire residential property on the island, catering to different preferences and investment levels:
Schemes (IRS, RES, PDS, Smart City):
Foreigners can buy various types of residential properties in these projects, gaining a residence permit upon a minimum investment of USD 375,000. Owners can rent their property, become tax residents, and have no restrictions on fund repatriation.
Ground +2 Apartments:
Foreigners can purchase apartments in condominium developments (G+2) for a minimum of MUR 6 million, entitling them to a residence permit as long as they own the property.
Senior Living Residence:
Mauritius is an attractive retirement destination, offering homes for adults aged 50+ under the PDS for Senior Living scheme. Non-citizen retirees can acquire residential units or life rights in approved projects with a minimum investment of USD 200,000, applying for residence permits for themselves and their spouses or partners.
Additional Costs and Funding Your Investment
Investors should consider additional costs when purchasing property in Mauritius, including a finder's fee, government tax, notary costs, EDB fees, and a valuation report for G+2 purchases.
Mauritian banks are willing to finance up to 70% of the total price, and South African residents can leverage various allowances to finance their property investments.
ROI - A Lucrative Investment
Properties in Mauritius have shown an average annual appreciation of 8-10%, making it a lucrative investment for those seeking long-term growth. Additionally, rental returns average between 4-6% per year, offering a dual benefit of capital appreciation and consistent income.
The Agency's expansion to Mauritius presents an exclusive opportunity for South African investors looking to set up offshore investments with a great ROI. Mauritius provides lucrative and promising opportunities for South African and other foreign investors.
Interested in relocating or expanding your property portfolio to Mauritius, we've got the knowledge and know-how to guide you through the process.
Contact us today for more information.
Author: The Agency Property Group
