A Mauritius Work Permit is an official authorisation issued by the government, granting foreign nationals the legal right to work and reside in Mauritius for a specified duration. To qualify for a work permit in Mauritius, foreign employees need to have relevant experience and qualifications tied to their job roles. If an employee is paid over MUR 30,000 and has necessary academic qualifications, then a better option would be the Occupation Permit Mauritius, subject to different criteria. If a company wants to bring in foreign workers in bulk, they first need “permission in principle” before applying for a Mauritius Work Permit.

It’s important to note that the application process for work permits in Mauritius has evolved over the years, and there are now options for third-party assistance. At TBI Mauritius, we assist in applications for Mauritius work permit for foreigners. For a better understanding of the current rules and procedures related to a Mauritius Work Permit, contact us.

Please note that we do not assist with getting jobs in Mauritius.

 

Eligibility for a Mauritius Work Permit

The Mauritius work permit requirements for a foreigner are:

• Have the right skills and experience for the job.
• Be between 20 and 60 years old, with exceptions for specialised skills and investors.
• Tourists cannot work in Mauritius.
• Health clearance is a must for new applicants. This also applies to expatriates married to Mauritian nationals or deputed by foreign companies.

Mauritius Work Permit Requirements

The Mauritius Work Permit requirements for foreigners include:

• Copies of press advertisement and outcome of selection exercise.

• A copy of the Lodging and Accommodation Permit  in Mauritius/Place of Accommodation Letter.
• Latest CSG Receipt with list of local workers registered with NPF.
• Particulars of Recruiting Agent, Local and Overseas, where applicable
• Turnover figures of the company for the last 3 years
• Authorisation letter from employer/sponsor
• Certificate of Incorporation/Business Registration Card
• NIC / Passport number of registered user
• Additional documents for specific professions

To get a Mauritius work permit, foreigners should also provide the following:

• Passport sized photo

• Passport (valid for at least six months)

• Certified copy of academic and professional qualifications and details of work experience

• Job profile (where applicable)
• A provisional health clearance from the Ministry of Health & Quality of Life

• Contract of Employment duly vetted by the Labour Division of the MLIRET if salary of expatriates is MUR 30,000 or less. If salary is more, documentary evidence from the employer certifying that the expatriate will earn a monthly salary of more than MUR 30,000.

• For professionals having dependents: in case of spouse, the marriage certificate should be submitted and for children less than 18 years old, the birth certificate must be submitted (for Residence Permit Application).

• Additional documents for specific professions

Additional documents for specific sectors

• Tourism (Tour Operator), Hotels and Restaurants: Copy of valid Tourist Enterprise License delivered by the Tourism Authority and Latest receipt showing contributions to the Tourism Employees Welfare Fund.

For Restaurant:

–  Testimonials/Documentary evidence of experience/expertise for at least 3 years in respective field

–  Vocational qualifications in respective filed

• Construction Sector/ICT/Engineering (for project basis): Covering Letter specifying the project on which the expatriate would be employed, Copy of Letter of award specifying completion date and value of project

Authorised Recruiting Agent

Additional Documents in respect of Bangladeshi workers

The recruitment of Bangladesh workers should be done through licensed recruitment agencies authorised by the Bangladeshi.

Additional documents in respect of Chinese Workers

Following an agreement signed between the People’s Republic of China and the Government of Mauritius, the recruitment of Chinese workers should be done through recruitment agencies authorised by the Chinese authorities.

Mauritius Work Permit Processing Time

Generally, the Mauritius work permit processing time can take a few months with the lodging and accommodation permit proving to be particularly lengthy.  It can vary depending on several factors, including obtaining “permission in principle” and fulfilling various eligibility criteria. Additionally, the involvement of different government departments and the verification of documents can contribute to variations in processing times.

Additional Information

Requirements for Overseas Companies

If an overseas company wants to get Mauritius work permits for its employees, it must be incorporated as a foreign company under Mauritian Company Laws or open a Mauritian branch of its existing company.

Work and Residence Permits

Before coming to Mauritius, foreign workers need both a Mauritius Work Permit and a Residence Permit. Employers should apply for both permits at the same time.

Renewing Your Work Permit

When renewing Mauritius Work Permits, employers need to inform about any changes in the employment contract. Some positions may require training a local counterpart.

Work Permit Details and Ratios

Mauritius Work Permits have a specific duration and cannot be transferred. The ratio of local to expatriate workers varies by sector.

 

Frequently Asked Questions

How do I get a work permit in mauritius?

To get a work permit or work visa in Mauritius, you should have relevant skills and experience, health clearance, accommodation permit, among others.

How much is the work permit in Mauritius?

The cost of a work permit in Mauritius varies based on the industry. Foreign workers in the manufacturing industry can expect to pay the government Rs 1000 for the 1st to the 5th year. Employers need to  pay a processing fee of Rs 700 for the application of each work permit.

How long is a work permit valid in Mauritius?

A work permit for foreign workers is usually valid for a maximum period of 4 years. In the textile manufacturing sector, foreigners are allowed to work for a period of 8 years, leave the country on expiry, stay abroad for 1 year and may come back to work for another 8 years. An occupation permit in Mauritius can be granted for a few months, up to a maximum period of 10 years.

What is the difference between work permit and occupation permit in Mauritius?

A work permit in Mauritius is given to foreign workers by the Ministry of Labour whereas an occupation permit is given to foreign professionals, investors and self employed individuals by the EDB.

How long does it take to get an occupational permit in Mauritius?

The processing time of an occupational permit in Mauritius can be anywhere from 4 to 6 weeks. You do not need to be in Mauritius to start the application and submit your documents. TBI will deal with the authorities and any complexities that may arise. You will then have 90 days to come to Mauritius and submit the original documents.

 

What TBI Business Advisors can do for you:

• We will have a Zoom/ Teams call or email exchange to understand your requirements.

• We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.

• TBI will advise on the appropriate permit or visa for coming to Mauritius.

• We will send a detailed proposal with clear costs, timeframes and explanations.
• We will assemble the documents and make the application on your behalf.

• If you need assistance with setting up companies whether as an investor or just creating a business here.

• We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.

• The directors can act as Commissioner for Oaths.
• We can assist with other business advice and can bring in law firms as and when required.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

While every effort is made to ensure that the information given is accurate, the information on this site does not contain legal, tax or any other professional advice. We accept no responsibility or liability due to any information or representation, whether accurate or not, relied upon in the contents. It is an information guide to provide the reader with a useful general, but basic understanding of the different considerations. You must seek local legal, tax or other professional advice before relying on the contents of this site.

 

Moving to Mauritius from South Africa brings its own set of considerations. Despite recent challenges with electricity, safety, and stability, it is hard to replace the love you have for your home country. But facing reality, things are likely to get worse, and moving to Mauritius offers relief from many of those stresses.

In Mauritius, you can walk to an ATM at night without worrying about safety. Your kids can go to school without concerns. Banking is secure, and power cuts will not disrupt your daily life. In simple terms, Mauritius offers a much better quality of life. Sure, moving to Mauritius has its challenges. The cost of living, including food and wine, may be higher. The size of the property you can afford might be different, and job opportunities may require adjustment. To know more about the cost of living in Mauritius, read here.

The best way to know if Mauritius is right for you is to experience it first-hand. Consider an extended holiday, rent a villa, and immerse yourself in the local lifestyle. You will appreciate the absence of power cuts, the tropical weather, and the beautiful beaches. Take your time to see if Mauritius meets your personal and professional needs. The Premium Visa has been a popular option for many South Africans wanting to test the waters before making a long-term decision. Contact us to discuss the best way to move to Mauritius from South Africa.

 

Immigrating to Mauritius from South Africa

Before you begin immigrating to Mauritius from South Africa, it is important to familiarise yourself with the Mauritius immigration requirements and procedures. Here are the key aspects you need to consider when moving to Mauritius from South Africa:

Occupation Permit

If you are planning to immigrate to Mauritius to work here, you will need to apply for an Occupation Permit. This permit is available for professionals, investors, and self-employed individuals. The specific requirements vary for each category but generally include:

• Providing proof of a valid job offer or investment opportunity in Mauritius.
• Demonstrating relevant qualifications and experience in your field.
• Complying with health and security checks.
• Showing financial capacity to support yourself and any dependents.

Residence Permit

If you want immigrate to Mauritius and live here, you will need to obtain a Residence Permit. As a South African, there are a few ways to obtain a Residence Permit in Mauritius:

1. Through an Occupation Permit: If you hold an Occupation Permit, you will be automatically allowed to live in Mauritius while working on the island.

2. Residency by Investment in Mauritius: South Africans can obtain residency in Mauritius by making a minimum investment of USD 375,000 in specific schemes approved by the Economic Development Board (EDB). These schemes include the Property Development Scheme (PDS) or a Smart City. This option also allows you to work in Mauritius.

3. Mauritius Retirement Permit for South Africans: If you are 50 or older and do not plan on working in Mauritius, you can apply for a Retirement Permit. You can still work for companies outside of Mauritius. Just make sure that you can transfer an average of USD 1,500 per month during your stay. To learn more about retiring in Mauritius as a foreigner, read here.

4. Mauritius Permanent Residence for South Africans: The Mauritius Permanent Residence Permit allows South Africans to live in Mauritius with their family for 20 years. To learn about the requirements, visit this page.

Mauritius Citizenship by Investment

Mauritius offers a Citizenship by Investment program, which allows eligible individuals to acquire Mauritian citizenship through investment. To qualify for Mauritius citizenship by investment as a South African, you must meet the following requirements:

• You need to have invested a minimum of USD 500,000 in Mauritius.
• You must have lived continuously in Mauritius for at least two years before applying for citizenship.

It is important to note that while this immigration regulation exists, obtaining Mauritian citizenship is not an automatic entitlement. There are numerous challenges and requirements that must be handled successfully and we recommend the residency by investment as an objective to aim for.

Frequently Asked Questions

Can South Africans buy property in Mauritius?

Yes, South Africans can buy and own property in Mauritius. Buying property in Mauritius as a South African is similar to buying property in Mauritius as other foreigners. Click here to learn more about buying property in Mauritius as foreigners. The government has implemented various schemes to encourage foreign investment in the real estate sector. However, it is essential to consult with a reputable real estate agent and make sure to follow all the legal rules.

Can South Africans retire in Mauritius?

South Africans can retire in Mauritius at 50 years old by showing a minimum of USD1500 monthly or USD18,000 in their bank account. The Retirement Permit is for 10 years with an option to apply for a 20-year Permanent Residence Permit after three consecutive years of residency. South Africans can also retire in Mauritius on a Premium Visa for 6 months up to a year, by showing at least USD1,500.

Is it cheaper to live in Mauritius or South Africa?

Although living costs, like food, cars, and electricity, can be expensive, a simple lifestyle can still offer a good quality of life. The country provides free healthcare and education, though few expats use these services. While living costs are relatively lower compared to Europe, it may not be the cheapest option for South Africans seeking a high-quality lifestyle. Expenses for relocating, including buying a car, health insurance, household insurance, and others, need to be considered.

For a 4-person South African family (2 children) living in a 3-bedroom villa in a pleasant complex in Grand Baie, and attending private schools, a monthly budget of MUR 100,000 to 200,000 would provide a good but not extravagant life.

Can I bring my family with me when moving to Mauritius from South Africa?

South Africans can move to Mauritius with their family. Spouses, dependent children, and parents can apply for Residence Permits as dependents. The criteria for eligibility and the documents required can differ, so it is essential to carefully examine the guidelines provided by the authorities in Mauritius.

Where is the best place for South Africans to live in Mauritius?

Deciding where to live in Mauritius depends on your lifestyle, budget, and personal preferences. The North of Mauritius is more developed, with a vibrant nightlife and modern amenities, while the West of Mauritius is quieter and more focused on outdoor activities and nature. Both regions have their own unique charm, and it is worth exploring them both to decide which one is right for you. Read more here.

Are there any restrictions on foreign property ownership in Mauritius?

There are restrictions on property ownership for foreigners in Mauritius. These restrictions include buying land next to the ocean, the minimum amount of money required for property investment and limitations on purchasing agricultural land. Consulting with legal professionals and real estate agents can help you navigate the process smoothly.

Does Mauritius offer dual citizenship?

Yes, Mauritius allows dual citizenship, meaning you can retain your South African citizenship while obtaining Mauritian citizenship. It is important to review the regulations and requirements of both countries to follow the laws of both countries regarding dual citizenship.

 

Moving to Mauritius from South africa with TBI Mauritius

Moving to Mauritius from South Africa is a very personal choice, and it is crucial to think about all aspects of your life and future before starting such an important journey. We, at TBI, have assisted a lot of foreigners in moving to Mauritius from South Africa. We can help transition your business, assist in setting up a company in Mauritius as well as create a bespoke immigration strategy that works for you and your family.

 

What TBI Business Advisors can do for you:

• We will have a Zoom/ Teams call or email exchange to understand your requirements.
• TBI will advise on the appropriate permit or visa for coming to Mauritius.
• We will send a detailed proposal with clear costs, timeframes and explanations.
• We will assemble the documents and make the application on your behalf.
• We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.
• We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.
• If you need assistance with setting up companies whether as an investor or just creating a business here.
• The directors can act as Commissioner for Oaths.
• We can assist with other business advice and can bring in law firms as and when required.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

While every effort is made to ensure that the information given is accurate, the information on this site does not contain legal, tax or any other professional advice. We accept no responsibility or liability due to any information or representation, whether accurate or not, relied upon in the contents. It is an information guide to provide the reader with a useful general, but basic understanding of the different considerations. You must seek local legal, tax or other professional advice before relying on the contents of this site.

The latest Budget Measures were announced last week and there have been lots of positive changes, many of which are beneficial for foreigners living in Mauritius. Please note the following points before you pop open the champagne.

Although some of the rules such as with the new tax system can come straight into operation on 1^st July without many obstacles, it can be more complex with many of the other rules. Once the measures are announced, they don’t become law until they are debated, voted and promulgated. That is normally enough, but even then, some items do not quite properly come into force like the new rules about buying property outside the scheme from 2022.  We suggest you to be patient before making any bold moves.

 

Rules for Personal Tax for Foreigners in Mauritius

From July 1st, 2023, the Solidarity Levy will be abolished and a progressive Income Tax system will be introduced. The individual’s annual chargeable income will be subject to the following tax rates.

Income Range (Rs)	Tax Rate (%)
0 – 390,000	0%
390,001 – 430,000	2%
430,001 – 470,000	4%
470,001 – 530,000	6%
530,001 – 590,000	8%
590,001 – 890,000	10%
890,001 – 1,190,000	12%
1,190,001 – 1,490,000	14%
1,490,001 – 1,890,000	16%
1,890,001 – 2,390,000	18%
Above 2,390,000	20%

 

Latest Rules for Foreigners Buying Property in Mauritius

If you’re interested in buying property in Mauritius as a foreigner, here are some important updates:

Property for Sale to Foreigners in Mauritius outside current schemes

Resident non-citizens can now apply to purchase a residential property with a minimum value of USD 500,000 (previously USD 350,000) outside the existing schemes. However, they will need to pay an additional registration duty of 10%. The main holder of a resident permit is allowed to acquire only one property outside of current schemes, and this allowance doesn’t extend to their spouse or children.

Property for Sale to Retired Non-Citizens in Mauritius

Retired non-citizens and their families can obtain a residence permit upon purchasing a property in a PDS project focused on senior living. To be eligible, the acquisition price must exceed USD 200,000, and the non-citizen must be above 50 years old. The resident status will remain valid as long as the property is owned by the buyer.

Property for Sale to Foreigners under the Sustainable City Scheme

The Non-Citizens (Property Restriction) Act will be amended to allow non-citizens to acquire residential property in a sustainable city in the same manner as an acquisition under the Smart City Scheme. The Immigration Act will be amended to grant a residence permit to a non-citizen and their family upon the acquisition of a property with a minimum price of USD 375,000 under the Sustainable City Scheme. The resident status will remain valid as long as the buyer holds the property.

Processing costs for Buying Property as Foreigners in Mauritius

To cover processing expenses, a new fee of Rs 25,000 per application will be introduced for non-citizens acquiring “Ground plus two apartments” and for residence permit applications under the residential schemes.

 

Rules for Occupation Permits in Mauritius

Some changes have been made to the Occupation Permit rules:

• The salary threshold for obtaining an Occupation Permit as a professional will be reduced to Rs 30,000.
• The Young Professional Occupation Permit (YPOP) will be available for individuals from all fields of study.

Rule for Residence Permit in Mauritius

• Retired non-citizens will have the option to provide a bank statement and a written undertaking to open a bank account within 2 months, instead of having to open a bank account at the initial stage.

 

Rules for Work Permit in Mauritius

The following updates relate to obtaining a work permit in Mauritius:

• A “silent is consent” principle of 4 weeks will be applied for Work Permit applications.
• Non-citizens holding a tourist or business visa will now be eligible to apply for a work permit.
• The maximum duration of stay of 4 years has been eliminated for carers on a Work Permit. They will now be permitted to work as long as their services are needed.

 

Mauritius Visa Rules for Foreigners

Some changes to Mauritius visa rules have also been introduced:

• Occupation Permit applicants will be granted a Business Visa of 120 days without needing to leave Mauritius.
• An International Expert Training Visa, valid for 18 months, will be introduced.
• Medical patients, retirees, and up to 2 accompanying caretakers will be eligible for a Premium Visa.

 

Other Tax Measures for Foreigners in Mauritius

Tax Exemptions for Foreigners in Mauritius

There are some great tax exemptions for foreigners too. For instance, the exemption for interest earned by Collective Investment Schemes or Closed End Funds established in Mauritius will be increased from 80% to 95%. This means a larger portion of your interest income will be exempted from taxation. Moreover, the exemption for interest income from Green Bonds used for renewable energy projects will be extended to cover all other sustainable projects.

Investment Tax Credit for Foreigners in Mauritius

If you’re an investor or a manufacturing company, you’ll be happy to know that there’s an investment tax credit available. Manufacturing companies can enjoy a yearly tax credit of 15% for three years on expenses related to new plant and machinery, excluding motor cars. This opportunity is valid until the financial year 2025/2026. Additionally, companies producing both alcoholic and non-alcoholic beverages can claim an investment tax credit for the costs of purchasing new plant and machinery used in the production of non-alcoholic drinks.

Protected Cell Company (PCC) and Variable Capital Company (VCC)

The MRA will not use assets from other cells or non-cellular assets of a PCC to recover taxes owed by a specific cell. Similarly, each sub-fund or special purpose vehicle of a VCC will be treated as an independent entity for tax recovery purposes.

Mauritius VAT Rules for Foreigners

There are some changes in VAT rules too. The VAT exemption, which previously applied only to the construction of purpose-built buildings for tertiary education, will now extend to constructions for primary and secondary education. Additionally, instruments and appliances used in medical, surgical, dental, or veterinary sciences (HS Code 90.18) will be zero-rated for VAT purposes instead of being VAT exempt. The special levy imposed on banks will be standardized at 5.5% for all banks, regardless of their operating income.

Extension of the Tax Arrears Settlement Scheme (TASS)

Good news! The Tax Arrears Settlement Scheme (TASS) has been extended. Under this scheme, taxpayers can have all penalties and interests waived for their outstanding tax arrears under the Income Tax Act, Value Added Tax Act, and Gambling Regulatory Authority Act. To benefit from TASS, you need to register by December 31, 2023, and pay your taxes in full by March 31, 2024. TASS is also applicable to assessments that are currently pending before the Assessment Review Committee, Supreme Court, or Judicial Committee of the Privy Council.

 

What TBI Business Advisors can do for you:

• We will have a Zoom/ Teams call or email exchange to understand your requirements.
• We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.
• TBI will advise on the appropriate permit or visa for coming to Mauritius.
• We will send a detailed proposal with clear costs, timeframes and explanations.
• We will assemble the documents and make the application on your behalf.
• If you need assistance with setting up companies whether as an investor or just creating a business here.
• We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.
• The directors can act as Commissioner for Oaths.
• We can assist with other business advice and can bring in law firms as and when required.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

While every effort is made to ensure that the information given is accurate, the information on this site does not contain legal, tax or any other professional advice. We accept no responsibility or liability due to any information or representation, whether accurate or not, relied upon in the contents. It is an information guide to provide the reader with a useful general, but basic understanding of the different considerations. You must seek local legal, tax or other professional advice before relying on the contents of this site.

Mauritius, an island nation located in the Indian Ocean, is a popular destination for tourists and expatriates alike. With its stunning beaches, lush greenery and friendly people, it’s no wonder that many foreigners choose to settle down in Mauritius. Moving to Mauritius requires a lot of research and preparation, which is thoroughly explained on this page. However, one of the major challenges that foreigners face when buying a home in Mauritius is obtaining a home loan. In this article, we will provide useful information on obtaining a home loan as a foreigner in Mauritius, including the requirements, process and benefits.

 

Requirements for obtaining a home loan in Mauritius

Foreigners who wish to obtain a home loan in Mauritius must meet certain requirements, which may include the following:

1. Valid passport: Prospective borrowers must have a valid passport issued by their country of origin.
2. Proof of income: Applicants must provide proof of their income, which may include salary slips, bank statements, and tax returns.
3. Good credit history: Prospective borrowers must have a good credit history and a positive credit score.
4. Proof of property ownership: The borrower must provide proof of ownership of the property they wish to purchase.
5. Adequate deposit: The borrower must have an adequate deposit, typically up to 30% of the property value

It is also important to note that foreigners do not need a residence permit to obtain a home loan in Mauritius. However, you may be able to get a residence permit if you invest at least $375, 000 in a property under approved schemes in Mauritius. For more information on latest rules and requirements for buying a house for sale in Mauritius, check out this article.

 

Process for obtaining a home loan in Mauritius

The process for obtaining a home loan in Mauritius typically involves the following steps:

1. Research and comparison: Prospective borrowers should research and compare the home loan options offered by various banks in Mauritius to find the best rates and terms.
2. Application: Once a suitable lender has been identified, the borrower can submit a loan application along with the required documents.
3. Approval: The bank will review the loan application and may request additional information or documentation. If the borrower meets the lender’s criteria, the loan will be approved.
4. Valuation: The lender will conduct a valuation of the property to determine its value and the loan-to-value (LTV) ratio.
5. Disbursement: If the valuation is satisfactory, the lender will disburse the loan amount to the borrower.

 

Benefits of obtaining a home loan in Mauritius as a foreigner

1. Competitive interest rates: Although interest rates have risen dramatically over the last few years, they are still viable for investors.
2. Investment opportunities: Mauritius is known for its robust real estate market, offering excellent investment opportunities for foreigners seeking to invest in property.
3. Tax benefits: Foreigners who purchase a property in Mauritius may be eligible for tax benefits, such as reduced rates of property tax and stamp duty.
4. No residency requirements: Foreigners do not need to be residents of Mauritius to obtain a home loan, making it easier for non-residents to invest in property on the island.

 

IMPORTANT NOTE ABOUT INTEREST RATE AND LTV

The interest rates for home loans in Mauritius vary depending on the bank and other factors such as the loan amount, repayment period, and the creditworthiness of the borrower. As of February 2023, the interest rates for home loans in Mauritius range from around 6% to 6.5% per annum.

It is important to note that these rates are subject to change and may differ based on the lender’s policies and market conditions at the time of application.

Regarding the loan-to-value (LTV) ratio, this refers to the maximum percentage of the property value that the bank is willing to lend to the borrower. In Mauritius, the LTV ratio for home loans is typically up to 70% of property value.

It is important to note that the LTV ratio may also depend on other factors such as the borrower’s creditworthiness and the purpose of the loan.

Therefore, it is advisable to consult with a qualified financial advisor or a property agent to better understand the loan terms and conditions before applying for a home loan in Mauritius. This is where TBI Business Advisors can assist you. With more than 10 years of experience in the local market, TBI has gained a wide network of trusted professionals and has a well-defined process for you to apply and qualify for a home loan. Get in touch to know more.

 

FREQUENTLY ASKED QUESTIONS

Can foreigners get home loans in Mauritius?

Yes, foreigners can get home loans in Mauritius. However, the loan application process may differ from that of Mauritian citizens. The bank will evaluate your creditworthiness and the purpose of your loan. You may also be required to provide additional documentation.

What is the maximum loan amount that foreigners can get in Mauritius?

The maximum loan amount that foreigners can get in Mauritius varies from bank to bank. Typically, the loan amount is up to 70% of the property value. Some banks may offer higher loan amounts for high-net-worth individuals or for properties with a high value.

What is the interest rate on home loans for foreigners in Mauritius?

The interest rate on home loans for foreigners in Mauritius is similar to that of Mauritian citizens, from 6% to 6.5% as of March 2023. The rate may vary depending on the bank, loan amount and repayment period. It is important to compare the interest rates of different banks before choosing a lender.

What are the eligibility criteria for foreigners to get home loans in Mauritius?

To be eligible for a home loan in Mauritius as a foreigner, you must have a good credit score and a stable income source. Additionally, the property you wish to buy must be located in a designated area, as specified by the bank.

Can foreigners get home loans for buying land in Mauritius?

Yes, foreigners can get home loans for buying land in Mauritius. However, the loan amount may be lower than that for buying a property, and the interest rates may be higher. It is important to check with different banks to compare their loan terms and conditions.

What are the repayment terms for home loans for foreigners in Mauritius?

The repayment terms for home loans for foreigners in Mauritius may vary depending on the bank and the loan amount. The repayment period varies according to the borrower’s age; if they are 55 years, the repayment period will be 10 years, considering that borrowers can only be a maximum of 65 years. Some banks may offer a grace period of up to six months before the first repayment is due. It is important to check with the bank about their repayment terms before applying for a loan.

Can foreigners get home loans for buying a second property in Mauritius?

Yes, foreigners can get home loans for buying a second property in Mauritius. However, the loan amount and interest rate may differ from that for buying a primary residence. Some banks may offer lower loan amounts and higher interest rates for second properties.

 

How TBI can help

With its extensive network of trusted professionals, TBI will make the process of applying and qualifying for a loan smooth and stress-free. As a foreigner, it can be daunting to take a loan or invest in a property in Mauritius. With TBI having expertise in the local market, you can ensure that you connect with the right people and that you get a good value on your investments.

 

This blog article is a complete guide to obtaining a Mauritius visa for Indians. It discusses the different types of visas for Indians, the eligibility criteria, the documents needed to apply, and the process of getting the visa.

Mauritius is a small island in the Indian Ocean, approximately one and a half times bigger than Delhi. It is also one of the most popular tourist destinations amongst Indian travelers. Mauritius Visa for Indians is obtained upon arrival in Mauritius and is a single-entry visa. Indians cannot obtain the visa before their trip commences. However, they should arrange for the necessary documents required. Indians can then arrive at the Mauritius Airport and pick up their visa document from the immigration desk.

Types of Visa for Indians in Mauritius

Indian citizens can apply for different types of Mauritian visas. Each visa has a different purpose, hence it is important to be aware before applying for a specific visa.

Tourist Visa

Ideal for Indian citizens who wish to visit Mauritius for tourism, sightseeing or visiting relatives and friends. A maximum of 6 months is usually granted; however, in some cases, the immigration allows only a few weeks in the country. In this case, the visa can be renewed. It is important to keep in mind that a Tourist Visa is not to be used for business purposes.

Business Visa

This is for Indian passport holders who want to visit Mauritius for business purposes such as attending meetings, conferences, and participation in exhibitions, seminars or any other commercial activities. A maximum of 120 days in a calendar year is granted, with a limit of 90 days in a single visit. Indian citizens who are looking to apply for a Residence Permit or Occupation Permit in Mauritius are advised to come to the island on a Business Visa.

Medical Visa

A Medical visa is granted to Indians coming to Mauritius for medical treatment to be provided in private health care institutions which are duly registered with the Ministry of Health and Quality of Life under the Private Health Institutions Act. This visa is given upon arrival, for the duration of the treatment with a maximum of 6 months.

Student Visa

A Student Visa allows eligible Indian citizens to enter and stay in Mauritius to study full-time or part-time in a tertiary educational institution registered with the Tertiary Education Commission, or in a Technical and Vocational Educational and Training (TVET) institution registered with the Mauritius Qualifications Authority, or to follow a practical training course which forms part of higher studies.

Social Visa

The Social Visa is granted to Indian citizens who are part of socio-cultural organisations for a maximum period of 45 days, to carry out social and religious activities.

Eligibility criteria

The Mauritius Visa Requirements for Indians to be eligible are:

• Indian Passport that is valid for at least 6 months from the date of travel
• Proof of accommodation in Mauritius (hotel bookings)
• Confirmed return tickets within the 60 days for which the visa is valid
• Proof of funds for the duration of stay (bank statement)

Documents required

To ensure a hassle-free process to obtain a visa on arrival at the Mauritius airport, you should keep certain documents ready. Below is a list of all the relevant documents:

• Filled-in visa forms with all necessary details and information
• Two recent passport-sized photographs
• A passport that is valid for at least 6 more months from the date of travel
• If you are travelling to another destination from Mauritius, you must show a valid visa for that nation. Otherwise, you will need to showcase confirmed return flight tickets.
• All accommodation details, which should include room booking receipts and other details
• In case a Mauritian citizen is sponsoring your stay in the country, you would need to show a letter from the sponsor indicating the same. The citizen’s address and the relationship must also be mentioned in this sponsorship letter.
• Proof of sufficient funds to cover the various expenses for the duration of the stay
• Bank statement

Cost of Mauritius visa for Indians

The Mauritius Visa for Indians is free of cost and the processing time anywhere between a few minutes to an hour.

How to apply for Mauritius visa for Indians?

The visa application process is not complicated. In fact, there is no pre-registration process to follow. You just need to take all necessary documents, present them at the airport immigration department and obtain the visa on arrival.

What TBI Business Advisors can do for you:

• We will have a Zoom/ Teams call or email exchange to understand your requirements.
• We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.
• TBI will advise on the appropriate permit or visa for coming to Mauritius.
• We will send a detailed proposal with clear costs, timeframes and explanations.
• We will assemble the documents and make the application on your behalf.
• If you need assistance with setting up companies whether as an investor or just creating a business here.
• We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.
• The directors can act as Commissioner for Oaths.
• We can assist with other business advice and can bring in law firms as and when required.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

While every effort is made to ensure that the information given is accurate, the information on this site does not contain legal, tax or any other professional advice. We accept no responsibility or liability due to any information or representation, whether accurate or not, relied upon in the contents. It is an information guide to provide the reader with a useful general, but basic understanding of the different considerations. You must seek local legal, tax or other professional advice before relying on the contents of this site.

Today we have a fascinating article from Caoilfhionn van der Walt from our African tax partner Regan van Rooy (RvR) about the impending cessation of the grandfathering provisions for GBC 1s and 2s. The article covers the changes, the options and how to move forward. There are thousands of Mauritian offshore companies that need to move quickly to maintain/ improve/ limit their tax position and RvR give some ideas and solutions to you. They also have included a link to their app which gives free guidance on the options.

2021 – A seismic shift in the Mauritius tax landscape (by Caoilfhionn Van der Walt)

No more deemed tax credit or GBC2 – will Mauritian companies pay 15% tax from now on?

Up until June 2018, Mauritius Global Business Company Category 1 companies (GBC1s) were subject to an effective tax rate of 3% and GBC2 entities were not taxed at all. However, from 1 July 2021 this is no longer the case – the GBC2 regime will be abolished completely and all Mauritian entities will be subject to a headline tax rate of 15%.

So what has changed and why?

In terms of background to these changes, Mauritius has been under pressure from the OECD and EU tax committees for some time due to what those bodies perceived as “harmful tax practices”.

As a result, the 2018 Mauritian Finance Act 2018 announced two key changes – firstly the deemed tax credit regime (whereby GBC1 entities were able to claim a presumed tax credit of 80% of the Mauritian tax on foreign income, resulting in a 3% effective tax rate) was abolished.  Secondly, the entire GBL2 regime was abolished (a specific legal entity which was considered non-taxable in Mauritius). Grandfathering provisions were introduced whereby GBL1 licences issued on or before 16 October 2017 would remain valid until 30 June 2021, and would be allowed to claim the deemed tax credit up until such date. However, from 1 July 2021, GBC1 companies (known as GBLs going forward) will be subject to the normal 15% Mauritian tax rate. 

The deemed credit and GBC2 regimes were the bedrock of Mauritius’ attractiveness as a holding company location, so this is a massive shift for Mauritius.  In addition, and also in response to OECD and EU pressure, Mauritius has recently introduced detailed substance requirements for Mauritian resident entities, as well as controlled foreign company rules.  So overall, doing business in Mauritius, can seem, at first blush, a lot harder. 

However, the good news is that, due to these measures, Mauritius is now off the various “grey-lists” in terms of tax measures (just to be put on another blacklist in terms of AML rules but that’s another story). 

Does this mean all Mauritian companies will pay 15% tax?

No, but great care needs to be taken to identify the best option to pursue. There are still plenty, absolutely above-board, ways to have a very attractive effective tax rate in Mauritius.  We discuss the three main routes below:

Partial exemption regime

An 80% partial exemption can be claimed against the Mauritius tax levied on certain specified foreign-source income, resulting again in an effective tax rate of 3%.  This applies in respect of:

• foreign-source dividends;
• interest income;
• profits of a permanent establishment;
• Income from collective investment schemes and reinsurance;
• Income from ship and aircraft leasing;
• Income from international fibre capacity.

Tax Holidays

Mauritius has a very broad range of generous tax holidays, 19 in total.  For larger groups, wanting to hold or support their African operations underneath a Mauritian holding company, the global headquarter administration license regime is highly attractive.  This is a total corporate tax holiday for eight years for companies that provide back-office or strategic support to at least three related parties, and subject to a number of conditions including that the company must have a physical office in Mauritius and employ at least 10 staff.  Other key tax holidays, which apply for five or eight years,  include:

• Global treasury or legal advisory activities;
• Overseas family office;
• Innovation-driven or high-tech activities related to IP development in Mauritius;
• E-commerce platform activities;
• Peer-to-peer lending;
• Tertiary education campus;
• Manufacture of nutraceutical products;
• Manufacture of pharmaceutical products or medical devices.

Double taxation relief

Finally, Mauritius has a very generous double taxation relief system – foreign tax credits are not subject to a limitation, and can be mixed, i.e. set off against other taxable foreign income (although excess credits cannot be carried forward to the next tax year).  Also, where foreign dividends are earned, the Mauritian recipient can claim credit not only in respect of the withholding tax suffered, but also on the corporate tax suffered on the profits out of which the dividends were paid!  And then offset the excess against other foreign income streams.  This is particularly relevant for Mauritian companies holding African subsidiaries, which are almost always subject to high tax and thus can often lead to 0% tax payable in Mauritius.

Conclusion

Lots of options therefore!   And the benefit of all these changes, is that you now can have a situation where your headline tax rate is 15% (above the minimum tax rate mooted in terms of BEPS Pillar II) but your effective tax rate could be zero, due to absolutely above-board tax benefits such as tax holidays, specific exemptions or foreign tax credits, which make for a pretty unassailable situation even for those who use tax morality or harmful tax practices as a stick to beat the tax-payer.

Our app

But how do you decide which option is best for your company?  Well, we at Regan van Rooy have designed an app to help, this is an easy-to-use online smart questionnaire to help you identify whether any opportunities exist to optimise your company’s tax position, and which is the best route to pursue, depending on your company’s business operations and income flows. The questionnaire should take five minutes to complete. There is also a separate tool to identify whether your company meets Mauritius’ new enhanced substance requirements.

Contact us to discuss at info@reganvanrooy.com

About the Author

Caoilfhionn van der Walt – MA, MSc, CA (ICAEW), H Dip (International Tax)

Caoilfhionn has 20 years of international tax experience. She started her career in the international tax team at Arthur Andersen, London, and thereafter at Deloitte London before moving to Johannesburg where she was the head of international tax at the Sasol group for nine years, as well as a part-time and guest lecturer in international tax at the University of Johannesburg. Caoilfhionn joined Regan van Rooy in 2016 and heads up the Mauritian office.

About TBI

TBI Business Advisors is a Mauritian consultancy firm with a global reach and network. TBI assists individuals and businesses with their investment, setup and operations in Mauritius and throughout Africa, as well as relocation, permits and residence. Please contact us for any further information about any of these services and we would be glad to email/ chat on a Zoom/ Teams call.

Disclaimer

Our aim with our articles is to make them digestible. We keep them short and relevant but do not update them. They are not designed to be legally relied upon. This article contains no legal, tax or financial advice, all of which should be sought from relevant professionals.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

It looks like COVID-19 did not disrupt the banking, financial and offshore sectors in Mauritius too much. Although the virus spread was contained in Mauritius, the economic ramifications of the global shutdown are not to be underestimated. Our aim with this article is to say what can be set-up remotely, what options there are in terms of Mauritius bank accounts and Mauritius offshore company formations, and the general procedures and processes thereof.

What can be set-up remotely in Mauritius?

Mauritian bank accounts, companies and Funds can be set up without ever having to come to Mauritius. This includes Mauritian business registration of Global Business Companies (GBCs), Authorised Companies (ACs) and Mauritian domestic companies. The same can be said for the more complex financial licences like a Payment Intermediary Services Licence (a PSP in other jurisdictions), an Investment Dealer Licence, an Investment Adviser Licence and a CIS Licence to name but a few.  One can invest in property without having to come here, (although make sure you have someone trustworthy on the ground) as well as setting up an investment vehicle for purchasing the property. One can even apply for a residence permit via the EDB online portal from abroad. With internet banking the limitations of a bank account in a foreign jurisdiction are somewhat minimised.

What types of bank accounts are available in Mauritius?

The banking sector in Mauritius is sophisticated, stable and provides multi-currency accounts, internet banking and international bank cards to its many global customers. Personal offshore Mauritian bank accounts for those living abroad can be set up in a few weeks as long as KYC and compliance tests are passed. Equally Mauritian offshore bank account openings are available both Mauritian companies and foreign companies.  Mauritius offshore bank accounts are actually very popular for companies incorporated elsewhere, notably in Hong Kong, Dubai and Cyprus, due to the strength of the banking sector here and the lack of exchange controls. A company that is tax resident in Mauritius such as a GBC, must have its primary bank account in Mauritius.

Which Banks are present in Mauritius?

Currently licenced by the Bank of Mauritius are the following banks: ABC, Absa (formerly Barclays), AfrAsia, Bank of Baroda, Bank of China, Bank One, Banyan Tree, BCP, Century Banking Corporation, Habib Bank, HSBC, Investec, MauBank, SBI, SBM, MCB and Warwyck. These banks differ in size, capability and offerings. There are global names, niche banks, formidable Mauritian and African competitors and an Islamic Bank.

What currency of account can I have?

One can choose any of main world currencies for a Mauritian offshore bank account. Many individuals and companies therefore have EUR, GBP, USD and MUR accounts. The internal exchange rate is competitive with most of the banks here so having multiple accounts is a significant benefit.

What needs to be provided to set up an offshore bank account in Mauritius?

Each bank has their own procedures to apply for a bank account, normally lasting for a few weeks. Expect the usual checks on individuals for their personal accounts, as there are for directors, shareholders and UBOs of companies, including certified copies of a passport and a recent utility bill. Reference letters, generally from a current bank are requested but substitute documents can normally suffice such as 6 months of current bank statements and a signed form allowing the Mauritian bank to contact the current bank.

The key focus is on the funds that will be arriving in the bank account, to show firstly where the money is coming from, and then that there is no chance that this money is in any way made from illegal activities, or that the bank account or company is going to be used to launder money. Mauritius takes its Money Laundering obligations very seriously as shown by its OECD and EU status. Expect the Business plan for any company account to be looked into in detail.

Unlike certain jurisdictions, there are no exchange-controls in Mauritius and the hard thing is to bring money into Mauritius. Once it is here, it is easy to move around and so it is a great banking jurisdiction for a trading company. For example, for any company buying goods in Asia and selling them in Africa or Europe, if a GBC is set up, then it is very easy to pay all the suppliers from Mauritian bank accounts. With 80% exemption on corporation tax, it means that there is only 3% tax on profits and no tax on dividends so this is a very popular option.

How to successfully set up an offshore Mauritius bank account?

We would break down the key elements of successfully opening bank accounts into the following sections:

1. The Activity of the company or individual – For example if the activity is something that is illegal in Mauritius, such as cannabis oil, online gambling or weapons, or if it is deemed very risky such as cryptocurrency exchanges with clients predominantly from countries which makes banks nervous, then it will rarely get off the ground. Mauritian banks are still very cautious when any company activity involves cryptocurrency, even if it is licenced by the FSC in Mauritius. One can ask for dispensation from the FSC for a GBC to have a primary bank elsewhere, and there are now some banks in Mauritius that have more of an appetite for the Fintech future. A bank account opening will always be difficult in any jurisdiction with these activities.
2. The Shareholders and the UBO – Expect thorough KYC checks on all parties involved, especially those owning the company or account, from World-Check to media checks. If there are potential issues such as historical media attention, then try and tackle it from the start rather than hope that no one sees it. It is much easier to set up a bank account in Mauritius if it is for a Mauritian company rather than a foreign company so bear in mind it is sometimes worth setting up a holding or trading company in order to utilise the banking sector here if you are struggling to do so with a foreign company.
3. The preparation in the application – The most successful applications are those where the client’s agent in Mauritius, normally holding an EIC (Eligible Introducer Certificate), has asked in advance all of the question that the bank will ask, and therefore, the initial application is comprehensive, and the evidence preempts any concerns. Ultimately if the first two elements above are not right then there will still be an issue but there are many clients who fit into a grey area and with the right assistance then they can have a bank account setup in Mauritius.
4. Picking the right bank – Some of the more popular banks can be risk-averse and some of the banks are more Fintech-friendly for example. When setting up a company in Mauritius either with a Regulatory Sandbox Licence or a PIS licence dealing with cryptocurrency for example, then you can seek guidance from the Regulatory body, the EDB or the FSC respectively, as to which bank will be more likely to open an account if it is successful with its licence application. Some of the banks have far better internet banking than others and some are far quicker for account opening.

Conclusion

Mauritius offers a stable and welcoming environment to do business. Even though the world is in COVID-19 turmoil, many clients are finding they have the opportunity to focus on things that they have been meaning to for a long time. It is clear that risk management and diversification is something that every individual and company need to consider. Whether it be a life insurance policy or a trust to protect one’s estate, an investment in property that gives a permanent residence backup for the buyer and their family or just their company or personal banking moved to a stable jurisdiction for ease or to mitigate tax, then Mauritius has something to consider for everyone.

About the Author

Philip Tsalikis is a practising UK barrister based in Mauritius and registered there as a foreign lawyer. He is the founder of TBI Mauritius, a consultancy firm based in Mauritius but with a global reach and network. TBI assists individuals and businesses with their investment, setup and operations in Mauritius, and throughout Africa.

Disclaimer

Our aim with our articles is to make them digestible. We keep them short and relevant but do not update them. They are not designed to be legally relied upon. This article contains no legal, tax or financial advice, all of which should be sought from relevant professionals.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.