Mauritius Property attract Global Investor interest
Category Investment
When it comes to attracting investment – particularly in property – it seems the tropical island of Mauritius fails to disappoint.
The stability and growth of the economy has encouraged many to invest in Mauritius and even make a life in the country.
The island is also ranked most competitive economy in Sub-Saharan Africa, beating powerhouse South Africa, according to the latest ranking of ‘The Global Competitiveness Index,’ by the World Economic Forum (WEF).
A vibrant growing economy, low taxation rates of only 15 percent, a thriving financial services sector, ease of doing business and idyllic environment for permanent residence or leisure use all contribute to an enabling environment for investment.
No housing or property tax, no inheritance tax on properties purchased and no capital gains tax speaks directly to property investors, particularly those looking to relocate for retirement or simply a highly appealing lifestyle in a sought after international location.
Coupled with this, for a minimum investment of US$500 000 – assuming you retain your property acquisition - foreigners are entitled to a residency permit and may then apply for a Mauritian passport after five years.
The low tax rates encourage business formation and naturally appeals to retirees, while the island’s corporate tax rate of 15% has made it attractive to foreign investors. There is also no withholding tax on dividends.
As a result of all these distinct advantages, Mauritius is drawing an increasing number of global and South African property buyers of high net worth, making property acquisitions from the threshold investment to in excess of US$5 million.
Meanwhile, Eris Property Group recently launched the Business Gateway, a flagship industrial development located inside the Mon Trésor Free Trade Zone in Mauritius.
The 25 hectare development in a prime location for businesses involved in international trade, only 5 minutes drive from Mauritius’ main international airport and a 40 minute drive from the harbour. All goods that enter the zone are exempted from Mauritian custom duties and taxes.
Multi-listed Real Estate Investment Trust (Reit), Mara Delta also announced on Tuesday last week that it had entered into negotiations with New Mauritius Hotels Limited to acquire a 45% interest in an entity owning three hotel assets in Mauritius.
The announcement follows another deal it concluded earlier in October, acquiring the Tamassa Resort for $40 million, located in Bel Ombre on the southwestern coast of Mauritius, through a sale and leaseback agreement.
Author: Richard Haller