South African investors are becoming savvy to the long and short-term financial gains of investing in Mauritius. A significant advantage to a Mauritius property investment is that it allows South Africans to use their Rands to invest in a dollar-based property market.
Taxation in Mauritius is favourable to both individuals and corporate entities, which are taxed at a flat rate of only 15%. There is also no Capital Gains Tax.
Mauritius is an island and because most commodities are imported, one disadvantage is that the cost of living is slightly higher than in South Africa, but it seems to be a small price to pay in exchange for the benefits of low taxation, a safe environment, unparalleled lifestyle, connectivity to Europe and UAE and second homeownership with permanent residency abroad.
Most South Africans are aware that they are restricted in terms of the flow of their funds out of South Africa, with the current out-bound allowance being a maximum of R4 million per person per year. However, many aren’t aware that the SADC property allowance, which came into effect in 2010, allows individuals to invest in excess of the R4 million minimum in property without impacting on the designation or extent of their offshore allowance.
