South Africans who wish to diversify their investment portfolio with lifestyle benefits to match will find that buying property in Mauritius to be a viable option. The Mauritian government has introduced various schemes and incentives to promote foreign investment. These schemes enable non-citizens to buy high-end villas and apartments supported by world-class services and leisure activities, with other benefits including a residency permit. Of course its white sandy beaches, turquoise waters and island life don’t hurt its attractiveness either.
5 reasons why investing in Mauritius is a smart decision for South African investors
1. Secure a permanent residence permit:
When buying a property through Mauritian real estate investment schemes, a residence permit is automatically granted to the purchaser if the property value exceeds USD 500 000, and the residence permit will be valid for as long as ownership is maintained. For South Africans planning on diversifying their investment portfolio abroad, foreign residency is often an attractive value proposition along with full ownership. Mauritius arguably has the least barriers for non-citizens to obtain a residence permit, with the additional benefit of the permit being valid for the property owner’s spouse and children up to 24-years of age.
2. Invest in a stable and growing economy:
Combined with the Mauritian property market expecting to grow at approximately 40% over the next couple of years, a continuously steady demand from tourists and a stable political and economic environment makes Mauritius an attractive alternative for South Africans wanting to mitigate risk in their investment decisions. Whilst still celebrating local culture and diversity, Mauritius is a fairly ‘bilingual’ country with English as primary business language, comparable to South Africa. Furthermore, according to the Global Peace Index, Mauritius was named one of only four countries in the world in 2017 which has had no involvement in ongoing international or domestic conflict and no tensions with neighbouring countries.
2. Tax benefits:
The Mauritian tax system presents numerous advantages to investors compared to the tax implications for South African property owners. The benefits include:
• Income tax not exceeding 15%
• No capital gains tax (a significant benefit, compared to capital gains tax implications for South African property owners now including 2nd homes)
• No inheritance tax
• No residential or property tax
• Agreement to avoid double taxation with over 40 countries.
4. Unique ownership advantages:
• Rental Pool – Option to participate in Rental pool managed by a professional management company.
• The ability to resell in a foreign currency – provided the asset is acquired and disposed of in the same foreign currency, the currency gain or loss is not taxed.
• Relative close proximity to South Africa. Mauritius has strong and positive ties to South Africa, with a relatively close travel distance compared to other popular destination offering for foreign residency such as Portugal or Spain.
5. Lifestyle benefits:
One cannot exclude the benefit of owning a property in one of the world’s most sought-after lifestyle and holiday destinations. Positioned in the heart of the Indian Ocean, the country of Mauritius consists of the islands of Mauritius, Rodrigues and the outer islands of Cargados Carajos Shoals and Agalega Islands.
A popular Mauritian destination is Grand Baie, a coastal village in northern Mauritius – highly popular for its cultural diversity, white sandy beaches and turquoise waters. Fine & Country and the EVACO group are offering South Africans an exclusive opportunity to own a property in the Secret Villa Resort, at a launch price of R5,5 million for the first 20 units.
Every Secret Villa is a jewel of sophistication, featuring the luxury and comfort offered by a 5-star resort in complete privacy. The launch price excludes notary fees, government taxes and other optional items with 12 units signed already. After 20 properties are reserved, the asking price will increase to R6,7 million. Therefore, buyers considering an investment opportunity in Mauritius stand a chance to achieve a capital gain of nearly 22%.