WORDS: DEBBIE HATHWAY :: PHOTOS: SUPPLIED
The strength of the Mauritius Residency-by-Investment Programme and the stability of its real estate sector makes Mauritius one of the top destinations for HNWIs
Mauritius is top-rated by high-net-worth individuals (HNWIs) whose numbers on the island have almost doubled in the last decade. Figures published in The Africa Wealth Report 2022 reflect 78% growth, with around 150 millionaires, mainly from South Africa and Europe, expected to move to Mauritius that year.
Andrew Amoils, Head of Research at New World Wealth, says Mauritius was one of the top destinations for net inflows of HNWIs in 2022 because of the ease of conducting business there, competitive tax rates, a fast-growing financial services sector and its reputation for safety and low crime rates. These accolades bode well for the economy’s health, the barometer influencing investment decisions.
GOVERNMENT COMMITMENT TO GROWTH
La Pointe, Pointe Aux Cannoniers
“Over the years, the Mauritius government and the Economic Development Board (EDB) have shown their commitment to strengthening the Mauritius Residency-by-Investment programme. They clearly aim to drive FDI into the country and move Mauritius to higher per capita income levels,” says Richard Haller, director at Pam Golding Properties (Mauritius).
There is a trend towards tightening controls of some popular citizenship and residency programmes with the recent closure of the Irish Immigrant Investor programme, the possible closure of the Portuguese Golden Visa programme, and pressure from the European Union to reconsider similar programs within Europe.
“It is important to note that the Mauritius Residency-by-Investment programme is fully independent of any global body. The Mauritius government and EDB have full control. Given their propensity for improving the programme, this is comforting to know,” says Haller.
Two years ago, the EDB dropped the threshold to achieve permanent residency through investment in residential real estate from USD500,000 to USD375,000. Moreover, this status enables investors to work without applying for a separate work visa, as was the case previously. Adds Haller: “Essentially, with permanent residency through property investment, you can move to Mauritius tomorrow and start looking for a job. This is a very comforting plan B option.”
MONEY TALKS
Amari Bay, Tamarin
The primary focus points of the government’s income strategy include welcoming investment into the country through business opportunities, real estate that offers foreigners permanent residency for property purchases over USD375,000, providing tax incentives for new business, and generally providing a low-income tax jurisdiction that falls in line with the global tax treaties currently unfolding.
The invitation extended to HNWIs to invest in Mauritius is more favourable because of their ability to reside full-time on the island with the acquisition of property over USD375,000 or investments into other sectors of the economy. The buyer, their spouse and children under 24 are granted permanent resident status for as long as they own the qualifying property.
WEALTH MAGNET
Amari Bay, Tamarin
The comparative pricing of Mauritius residential property is enlightening. The price per square metre for apartments, well-appointed and well-located new developments on the Atlantic Seaboard in Cape Town can start at R65,000 per square metre. For example, a three-bedroom unit of 190 sqm will cost you in the region of R12.8 million. By comparison, you can purchase a three-bedroom unit of 240 sqm within the prestigious Mont Choisy Golf and Beach Estate in Mauritius for USD3,820 per square metre. That converts to around R70,000 per square metre for prime real estate in Grand Baie, a popular area in the north, coupled with permanent residency.
If you want to purchase within a smaller resort-style complex, such as La Pointe Residences in Pointe aux Canonniers you can get in at USD3,000 per square metre (R55,000 per square metre). “This is worth serious consideration as the pricing is similar, but it’s a USD investment and gives you and your family an alternative permanent residency plan,” says Haller.
Knight Frank’s research published in The Wealth Report 2022 substantiates the reasons for investment in Mauritius by HNWIs. Globally, HNWIs consider residential property the safest asset class. However, according to the report, Europeans make investment choices based on improved lifestyle (23%) and safe-haven appeal (19%), which rank above the global average. Other incentives for residential property investment are job relocation (9%) and education (8%).
Amari Bay, Tamarin
