Luxury island homes attract foreign investors

Mauritius has long been a key focus for South Africans looking to invest in luxury island homes. There are several reasons for this. Among them are safety and location close to their home country. However, they are not the only ones enamoured with island life. Mauritius ranks among the Top 5 best African islands, according to Condé Nast Traveler’s Reader’s Choice Awards 2020 survey.  

There are substantial motivations for living the island dream beyond the sheer natural beauty of the destination. Mauritius has attracted a steady number of HNWIs since 2010, perhaps due to the ease of doing business in the country. Notably, Mauritius ranked first in Africa and 13th worldwide in the World Bank’s 2020 Doing Business Report. New World Wealth analyst Andrew Amoils says, “The country is now home to around 4,000 HNWIs (as at June 2020), compared to 2,500 HNWIs a decade ago.” 

The Indian Ocean island is located on the Asia-Africa Growth Corridor (AAGC). This paves the way for access to Africa, Europe, Asia, and Australia. The AAGC is designed to foster sustainable and innovative development across Africa and Asia. Development projects in health and pharmaceuticals, agriculture and agro-processing, disaster management and skill enhancement take priority.  

Safe space, happy place 

Mauritius is also known for its fast-growing financial services sector. However, beyond business, people continue to search for stress-free living and better work-life balance. The World Happiness Report 2020 ranks Mauritius as the happiest country in Africa, according to citizens’ ratings of quality of life. 

English is one of the island’s official languages. Upmarket developments encourage social interaction through exclusive beach clubs and communal spaces. International schools and university campuses broaden the education offering. In addition, there is a well-developed healthcare system, and driving is on the left-hand side of the road. What’s not to love? 

Mauritius is multi-ethnic, multi-religious, and multicultural. You’re spoilt for choice when it comes to cuisine with so many influences. Outdoor enthusiasts, bird lovers, water-sports junkies, golfers, beachgoers, hikers, climbers, trail-runners, and cyclists have endless opportunities to keep fit and relaxed. 

Luxury island homes

If you’re undecided about whether to move permanently to Mauritius, this may be the time to do it. The 2008/09 crisis actually pushed more buyers towards luxury island homes. Investors saw the opportunity to spend their retirement years in a different environment. 

Mauritius consumer prices may be higher than in South Africa, but island inflation rates have been lower over the past decade. They stood at 2.2% in February/March 2020 compared to South Africa’s 5.2%, which suggests the cost-of-living differential between the two countries is closing. 

One of the major incentives to move to Mauritius, particularly for South Africans, is the tax regime. Mauritian tax residents are taxed on Mauritius-sourced income only. There are no foreign exchange controls.  

Favourable tax regime

Personal and corporate income tax is capped at 15%. There is no inheritance tax or capital gains tax on properties purchased.

In addition, the entry point for permanent residency with property investment dropped by USD125,000 with the Mauritius 2020/2021 Budget.

Now, when you invest USD375,000 in property earmarked for foreign investment, you qualify for a permanent residence permit for yourself, your spouse, your children up to the age of 24, and your financially dependent parents.

This is subject to Economic Development Board (EDB) approval.  

Why expats love living in the north

Setting up a business in Mauritius is quick and easy, and there’s already a sizeable community of South African expats in the north. This makes it familiar and easily accessible. Many have taken advantage of the EDB’s real estate development schemes devised to encourage foreign investment in a luxury island home. 

Over time, the Property Development Scheme (PDS) has replaced the Integrated Resort Scheme and Real Estate Scheme. It enables the development of a mix of residences for sale to noncitizens, citizens and members of the Mauritian diaspora. 

Mix of residences

The PDS provides for the development of luxurious residential units on freehold land of at least 0.4220 hectares (1 arpent). It also allows for the development of at least six residential properties of high standing. The project must incorporate high–quality public spaces that help promote social interaction and a sense of community. There must be high-class leisure, commercial amenities and facilities for residents. Day-to-day management services must be offered to residents. These include security, maintenance, gardening, solid waste disposal and household services. Finally, there must be a social contribution in terms of amenities and community development. 

Where to buy

Ki Resort is the only cosmopolitan, resort-style living environment in the north that is within the budget for permanent residency. Residents enjoy services similar to those you’d get at an upmarket hotel and access to an exclusive beach club.  

Serenity Villas is an alternative if you want more exclusivity. The project features only 10 well-appointed, three- and four-bedroom homes on plots ranging from 800m² to 2,000m². The villas are positioned in a beautifully landscaped garden, just 600 metres from the premier 2Beach Club.  

Contemporary chic

2Beach Residences, in Pereybere, has a more contemporary look with chic modern architecture featuring solid wood and black stone wall cladding. Spread across three blocks incorporating 24 two-bedroom residences, these are perfect for short-term rental returns. What’s more, these homes are within walking distance to restaurants, bars, beach and water sports, and more. 

For the pride of place at one of the last available beachfront locations in Mauritius, look no further than Casa Alegria. Here homeowners indulge in the best of seaside living, with direct access to Pereybere Beach and spectacular views of Coin de Mire offshore. Indoors, the luxuriously appointed residences combine comfort and modernity. A private rooftop terrace ups the ante for penthouse owners.  

For property investment opportunities, contact 2Futures consultants Rinie at +230 5817 75 or rb@2futures.com or Sandra at +230 5474 0302 or sc@2futures.com.