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Why the world's ultrawealthy are investing in Mauritius

Category Buying

Mauritius is renowned for its idyllic island lifestyle, mild tropical climate, and stunning landscapes, but it also stands as one of Africa's great success stories. Since gaining independence in 1968, the country has harnessed its strategic location at the crossroads of Asia, Europe, and Africa to diversify its economy, establishing itself as a premier financial hub. In 2024, Mauritius was recognized as a top destination for millionaires worldwide, with over 5,000 high-net-worth individuals calling the island home.

A recent report on global wealth migration by Henley & Partners highlights Mauritius as a sovereign state that boasts high levels of safety and security, insulated from global political and economic turbulence. Known for its political, social, and economic stability - an increasingly rare commodity - Mauritius is expected to continue attracting ultra-high-net-worth individuals, with the millionaire population projected to nearly double over the next decade.

Henley & Partners attributes this appeal to the island's top-tier governance, high living standards, and sophisticated financial infrastructure. The jurisdiction is becoming a prime choice for the global wealth management community, offering a secure platform to preserve and grow assets in a world fraught with geopolitical tensions, economic uncertainty, and less favorable tax policies in traditional markets.

Economist Tom Hopgood of GlobalData notes that Mauritius ranks among Africa's most business-friendly destinations, supported by a robust legal system that blends the French Code Civil and British Common Law. Its independent judiciary and solid democratic institutions further bolster investor confidence, with commercial litigation cases eligible for appeal to the Privy Council in the UK. The country's regulatory framework has earned recognition from global institutions like the World Bank, Moody's, and the OECD.

In the 2024 World Bank Ease of Doing Business report, Mauritius ranked 13th globally, a testament to its competitive tax system. With no capital gains tax or dividend and interest withholding tax, and tax exemptions for non-residents, the island has solidified its reputation as a leading destination for wealth management. The absence of estate duty, inheritance tax, and a network of double tax treaties further enhance its appeal for global investors seeking to structure their investments into fast-growing, higher-risk markets in Africa and Asia.

The financial services sector contributes approximately 14% to Mauritius' GDP. Private banking and family offices have been earmarked as key growth areas by the Mauritius International Financial Centre (IFC) and the Economic Development Board (EDB). In 2024, the EDB, alongside the Financial Services Commission (FSC) and the Ministry of Financial Services, will lead a delegation to the Africa Financial Services Investment Conference (AFSIC) to promote the wide range of investment vehicles available through the Mauritius IFC. These include trusts, special purpose funds, Variable Capital Company (VCC) structures, family office services, and cutting-edge digital finance opportunities under the VAITOS Act framework.

Mauritius also offers several residency programs, making it an attractive destination for individuals looking to live, work, or retire in a secure, prosperous environment.

Mauritius' appeal extends beyond its financial advantages, offering a lifestyle that blends luxury, security, and opportunity. If you're considering purchasing property or relocating to this island paradise, look no further than RE/MAX 24, the proud winner of the Luxury Lifestyle Award for Best Luxury Real Estate Brokerage in Mauritius. Contact us today for expert assistance in finding your dream home or making your move to Mauritius as seamless as possible.

Author: EDB Mauritius & Jay

Submitted 18 Oct 24 / Views 175