There are a multitude of reasons for being based in Mauritius. From a business perspective, importantly there is a strong focus on good governance despite the reputation of Mauritius as an offshore haven. The Privy Council of England and Wales remains the highest court affording comfort to foreigners. There are numerous bilateral treaties, notably Double Taxation and Investment Promotion and Protection Agreements. These provide both financial benefits and risk mitigation when using a Mauritian vehicle to invest elsewhere, notably in Africa. It is a very tax-efficient offshore jurisdiction, with no capital gains tax, no tax on dividends, and an 80% exemption on the 15% Corporate Tax rate on certain sources for GBC companies.
Mauritius also holds commendable positions in global indices. Ranked 1st in Africa and 13th worldwide for ‘Ease of Doing Business’ by the World Bank, Mauritius showcases smooth business practices. Notably, Mauritius excels in starting businesses, tax processes, and electricity access, pivotal for business operations. Additionally, it leads in African governance, according to the Mo Ibrahim Index of African Governance 2022. Mauritius also maintains its lead in talent competitiveness, securing 49th globally and 1st in Africa in the Global Talent Competitiveness Index 2021. The World Happiness Report 2022 recognises Mauritius as the top African nation for fostering happiness and well-being.
From a more human perspective, it is a safe, beautiful, idyllic island. There are several ethnicities here peacefully living in harmony. The official language is English and the majority of the population are multilingual and well educated. One can live life to a high standard enjoying a wonderful work-life balance, utilising both modern amenities and the outdoor life on the coast.
Our clients want to use Mauritius predominantly for the following 6 things:
Relocation: More and more clients, particularly from South Africa, France and West Africa, are looking to move here to make the most of the safe and stable environment that Mauritius provides for both business and family. There is reassurance that entering and exiting is easy here, with no exchange controls, a uniform 15% tax on income generated here. There is modern infrastructure such as Smart Cities and global businesses such as PWC, HSBC and KPMG. Yet, you can live near the beach, enjoy the sea and the weather all year round, and enjoy a work-life balance.
Setting up businesses: Mauritius is a tax-efficient offshore jurisdiction, with no capital gains tax or tax on dividends. GBC companies benefit from an 80% exemption on the standard 15% Corporate Tax rate for specific income sources. Although there are several types of companies in Mauritius, they all provide huge benefits to the client both in terms of risk management and tax efficiency whether as a holding company, for payments and operations or for a simple trading company.
Real estate: Real estate investments in Mauritius have opened up for foreigners, providing options for residency or investment purposes. Some offer permanent residence for the investor and their family, while others ensure promising rental yields or serve as holiday homes, catering to individual preferences and needs.
Investing in Africa and Beyond: Utilising the Double Tax Treaties and Investment Promotion and Protection Agreements, businesses can go into development countries with confidence that withholding taxes are limited or avoided, and that their investment has extra protection. Our partners can provide varied investment opportunities from hotels, infrastructure and oil and gas to agriculture and Impact Investment. Mauritius has no tax on dividends or CGT, so it makes for a perfect investment base.
Fintech, Blockchain, and Cryptocurrency: Mauritius has been very active in terms of legislation to encourage the Fintech community to use Mauritius from fiscal benefits such as tax holidays and exemptions, to favourable licenses and cutting-edge collaborative hubs to provide the necessary infrastructure, and ultimately benefit the end-consumers. There are Regulatory Sandbox Licences enabling the creation of companies in sectors for which there is no existing legislation. There are then amongst many others, the Payment Service Provider (PIS in Mauritius) Licence and the Investor Dealer Licences that can deal with anything from Forex to the various offshoots of Fintech such as Cryptocurrency.
Lifestyle Concierge: Many foreigners have assets or interests in Mauritius and want a professional services company to represent them. This can be anything from sitting on boards of companies and managing businesses, to softer services like concierge. Emma Ryan Concierge is a partner firm that handles the softer requirements of high-net-worth individuals, celebrities and VIPS visiting Mauritius. This can include private access at the airport, private wings in hotels and helicopter rides to accommodation.
In essence, Mauritius presents various opportunities and a balanced lifestyle. Whether you are a seasoned entrepreneur, a budding investor, a retiree seeking a tranquil haven, or a family longing for a safe and enriching environment, Mauritius offers a unique proposition. We are normally able to find any solution or service for our clients, often through our network of partners and service providers, so do not hesitate to contact us if Mauritius is somewhere that you are considering for your business or your future home