Forget about the enticing culinary delights, low crime rates, sustainable living, and breathtaking scenery… because while those are certainly worthy reasons to relocate to and invest in Mauritius, it’s really about benefits like the ease of doing business, the strong economy, and the fact that Mauritius is the leading country in Africa for Good Governance (Ibrahim Index of African Governance) and hosts several internationally recognised banks.
These kinds of advantages are part of why Mauritius continues to attract more high net worth individuals, family offices and investors, and is one of the two wealthiest countries in Africa (World Bank Group – GDP per Capita) according to the 2021 Africa Wealth Report by AfrAsia Bank and New World Wealth.
But these examples are merely scratching the surface. Here’s a closer look at why more high net worth individuals are considering relocating to Mauritius.
Let’s Talk Location
When it comes to location, there’s are a number of very good reasons why you should consider Mauritius for your next property investment – many of which are related to its ideal positioning for foreign investment.
These reasons include:
· Mauritius is a corridor between Asian and African countries, and a mere three-hour flight from Johannesburg, South Africa and a four-hour flight from Nairobi, Kenya, making it suitably positioned as a central country from which to operate.
· The country’s positioning also makes it ideal for expansion into Africa, and also from Africa into the rest of the world.
· Major global brands have recognised Mauritius as both an ideal location and efficient business environment, including Huawei, Broll, Apple, and Expedia who have set up their offices.
On these three points alone, it’s really no surprise that Mauritius has become one of the most popular places for individuals and families to bring and invest their wealth.
Let’s Talk Taxes
High net worth individuals rank as the wealthiest members of society and as a result pay a relatively large proportion of income tax to their respective governments. In Germany, for example, the top 0.1% of taxpayers pay 8% of the country’s total income tax. In America that percentage is much higher, with 1% of society paying 40% of the nation’s total federal income.
Considering this, and the fact that high net worth individuals often face more complex financial affairs than other sections of society, it makes a lot of sense for these individuals to seek out ways to maximise and strategically grow their wealth. One of the more common avenues of exploration is for wealthy individuals and investors to cast their eyes to foreign jurisdictions. Particularly given that these individuals are often internationally mobile and frequently have multiple business interests.
That said, it’s important to understand the benefits and compliance regulations that are attached to the jurisdiction that you are interested in. Ideally, you would look to settle on shores that offer simple investment solutions, higher returns, and tax benefits that are amenable to your tax planning initiatives.
Significantly, when it comes to personal income tax rates in Mauritius, the tax rate of 15% was reduced to 10% on annual net income derived by an individual of up to MUR 650,000 (Mauritian rupees) in July 2018.
For those with a net income derived above MUR 650,000, the tax rate sits at 15%, up until a threshold of MUR 3,000,000. Additionally, income that is already taxed will not be double taxed, unless the income sits over a threshold of MUR 3,000,000. In that case, the individual will be taxed an additional solidarity levy of 10%.
Mauritius is certainly an attractive land of plenty, so to speak. However, it can be challenging to understand all the benefits that a move like this could provide. At Loita Management Services, we offer a range of advisory and administrative services in the global business, trust, and global financial sectors – and not just to international organisations, corporates, and multi-nationals working in multiple jurisdictions. We also provide services to individual investors and high net worth individuals who wish to establish a presence in or related to Mauritius.
We are well positioned to advise any individual on their relocation journey, as well as providing relocation services, such as assistance with permits and visa applications – including premium visas.
We welcome the opportunity to discuss your future with you. To attain our services, get in touch with us at Loita Management Services at your convenience.
By Shanil Ramtohul