Mauritius is seeing an increase of South Africans investing in its property. With the goal of becoming Africa’s luxury destination and attracting further investment into the continent, Mauritius adjusted the legislation at the beginning of 2017 to bolster property investment. We take a look at what makes this South Africa’s first choice as an offshore property investment destination.
Stable economy
South Africans are attracted to countries that boast a stable economy; Mauritius not only boasts stability, it also reflects a GDP growth rate of 4% for the first quarter of 2018. New World Wealth, along with AfriAsia Bank, have recently revealed a new report focusing on ‘The rise of Mauritius’ over the last 10 years. Its findings show that Mauritius is the fastest growing wealth market in Africa.
Property ownership rights
There have been a variety of property ownership options within Mauritius for those who are non-citizens, the most popular are namely the Integrated Resort Scheme (IRS), Real Estate Scheme (RES) and Property Development Scheme (PDS) developments. All new projects developed will be done so under the PDS structure. Recent changes to the Non-Citizens (Property Restriction) Act also allows those outside of Mauritius to invest in apartments from R2.2 million. The PDS developments do attract more investment as these are generally over $500 000 and come with many added benefits; of which permanent residency is the most sought-after.
Residency
When purchasing through PDS development that is more than $500 000, investors are given the opportunity to gain permanent residency. This automatically gives investors and their spouse and children (under 24 years) this permit, which is valid for 10 years and can thereafter be renewed. The investor will be able to take up residency in Mauritius and benefit from the tax incentives, on condition that they reside within Mauritius for more than 183 days per year.
Attractive taxes
Through permanent residency investors can benefit from the attractive taxes in Mauritius; which include the maximum income and corporation tax of 15%, no capital gains tax, no inheritance tax, no exchange control, as well as tax free dividends.
While there are many reasons why the Mauritian lifestyle and business sectors would be attractive to South Africans, the property market is a big draw card as well.
