There are a multitude of reasons for being based in Mauritius.
From a business perspective, importantly there is a strong focus on good governance. 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, that provide both financial benefits and risk mitigation when using a Mauritian vehicle to invest elsewhere, notably in Africa. It is a very tax-efficient 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.
It is a jurisdiction with substance. It has recently signed up to the BEPS Convention, currently is OECD white-listed and generally tops Africa for most international benchmarks:
- World Bank Doing Business 2018 – Number 1 in Africa
- Global competitiveness Index 2018 – Number 1 in Africa
- Mo Ibrahim Index of African Governance 2017 – Number 1 in Africa.
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
- Setting up a Mauritian offshore company. Although there are several types of company in Mauritius, they generally all provide huge benefits to the client both in terms of risk management and tax efficiency by setting up a business in Mauritius, whether as a holding company, for payments and operations or for a simple trading company.
- 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.
- Relocating to Mauritius and getting residence and permits. 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 still you can live near the beach, enjoy the sea and the weather all year round, and enjoy a work-life balance that is hard to get elsewhere.
- Purchasing Real Estate in Mauritius. With recent relaxing on the rules, it is now possible for foreigners to buy certain real estate in Mauritius. Some provide permanent residency for the investor and their family and others provide sound rental yields and a nice holiday home to enjoy depending on what someone wants.
- 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 favorable licenses and cutting-edge collaborative hubs to provide the necessary infrastructure to let the entrepreneurs thrive, give the investors reassurance, and ultimately benefit the end-consumers. There are Regulatory Sandbox Licences enabling companies to be created that there is no legislation for. 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.
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