Reasons to invest in island homes hold water
Category Property Developments
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.
Safe space, happy place
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, your spouse, your children up to
the age of 24, and your dependent parents when you invest USD375,000 in property earmarked
for foreign investment, subject to Economic Development Board approval.
Author: Rinie Boshoff