Mauritius has long been a key focus for South Africans looking for an island home, because of its proximity to their home country. They are not the only ones enamoured with island life though. Mauritius ranks among the Top 5 best African islands, according to Condé Nast Traveler’s Reader’s Choice Awards 2020 survey.
There are substantial reasons to motivate for the realisation of the island dream beyond the sheer natural beauty of the destination. Mauritius has attracted a steady number of HNWIs over the past decade, 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 strategically located on the Asia-Africa Growth Corridor (AAGC), paving the way for access to Africa, Europe, Asia, and Australia. The AAGC is designed to foster sustainable and innovative development across Africa and Asia, giving priority to development projects in health and pharmaceuticals, agriculture and agro-processing, disaster management and skill enhancement.
Mauritius is also known for its safety, and fast-growing financial services sector. However, beyond the business element, 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; the healthcare system is well developed, and driving is on the left-hand side of the road. What’s not to love?
What’s more, Mauritius is multi-ethnic, multi-religious, and multicultural so you’re spoilt for choice when it comes to cuisine. Outdoor enthusiasts, bird lovers, water-sports junkies, golfers, beachgoers, hikers, climbers, trail-runners, and cyclists have endless opportunities to keep fit and relaxed.
Into the future
If you’re one of the buyers on the fence about whether to move permanently to Mauritius, this may be the time to do it considering the 2008/09 crisis that actually pushed more buyers to Mauritius. Investors were inspired to make the change with a view to spending 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. In addition, there are no foreign exchange controls.
Personal and corporate income tax is capped at 15%, and 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 a whopping USD125,000 with the Mauritius 2020/2021 Budget. That means you get permanent residency for yourself and your dependants (your spouse, your children up to the age of 24, and your parents) when you invest USD375,000 in property earmarked for foreign investment, subject to Economic Development Board approval.
Why expats love living in the north
“South Africans are among the leading foreign buyers of property on the island,” says Tim Mertens, chairman of Sovereign Trust SA. “The most important thing is not to make life-changing decisions based on a friend’s recommendation. You have to take advice from the experts, who can unpack the various country and investment options available to you based on your specific needs. That way, you can end up unlocking a range of benefits you didn’t know were even possible.”
Setting up a business in Mauritius is quick and easy, and there’s already a sizeable community of South African expats in the north, making it familiar and easily accessible. Many have taken advantage of the EDB’s real estate development schemes devised to encourage foreign investment. Over time, the Property Development Scheme (PDS) has replaced the Integrated Resort Scheme and Real Estate Scheme, and allows the development of a mix of residences for sale to noncitizens, citizens and members of the Mauritian Diaspora.
The PDS provides for the following:
the development of luxurious residential units on freehold land of at least 0.4220 hectare (1 arpent);
the development of at least six residential properties of high standing;
high-quality public spaces that help promote social interaction and a sense of community;
high-class leisure, commercial amenities and facilities intended to enhance the residential units;
day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services; and
social contribution in terms of social amenities, community development and other facilities for the benefit of the community.
Ki Resort is the only cosmopolitan, resort-style living environment in the north that is within the budget for permanent residency. Here you will also enjoy the type of services you’d get at an upmarket hotel and exclusive access to a stylish beach club.
Serenity Villas
Serenity Villas is one alternative if you want more exclusivity, featuring only 11 well-appointed, three- and four-bedroom homes on plots ranging from 1,000m² to 2,000m².
The villas are positioned in a beautifully landscaped garden, just 600 metres from the premier 2Beach Club.
2Beach Residences, in Pereybere, has a more contemporary look with chic modern architecture featuring solid wood and black stone wall cladding as focal points. Spread across three blocks incorporating 24 two-bedroom residences, these are the perfect investment for short-term rental returns. What’s more, these homes are in walking distance to everything – restaurants, bars, beach and water sports, and more.
For 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.
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