The COVID-19 pandemic has changed the world in many ways. Some of these changes have caused many South Africans to rethink their futures, and many are now considering emigration.
Mauritius, with its low crime rate and fast-growing economy, is an attractive destination for South Africans to relocate both themselves and/or their investments. The economy is mixed and developing, based largely on tourism exports, agriculture, and financial services. Over the last three decades, the Mauritian Government has sought to diversify its economy by reducing its heavy reliance on agriculture. Today, the Mauritian economy is fuelled by services and industry.
Mauritius has become a key location for many international investors. As a resident of Mauritius, through property investment or opening a business; investors are able to benefit from the attractive tax system it offers. What are these benefits?
Political stability, economic growth, decent schooling and low crime rates make Mauritius appealing to high-net-worth South Africans. According to High Street Auctions managing director James Dall, South Africans can relocate three generations of their families to Mauritius – with permanent residence – for less than the cost of a medium-sized home in an affluent Cape Town suburb (approximately R6 million) (Source: businesstech.co.za).
There are several potential avenues for physically emigrating to Mauritius, some of these are:
- Property investment in Mauritius;
- Registering a business in Mauritius;
- Working in Mauritius
A recent and notable change is the combining of Permanent Residence statuses and Work Permits into a single permit. This, along with a doubling of the duration from ten to twenty years, makes physical emigration to the island rather attractive.
The island is a compelling option for investors looking to diversify. This is largely due to its attractive tax brackets for both individuals and companies, no dividends tax, no estate duties, or capital gains tax. The World Bank ranked Mauritius 13 among 190 economies in the ease of doing business in 2019. Mauritian taxation is more favourable to both individuals and corporate entities, which are taxed at a flat rate of only 15%. According to Ian Edwards, Partner: Group Commercials and Acquisitions ‘Tax’ emigration is not a binary decision. Make use of your foreign investment allowances – allow practicality to rule the decision making”. As a South African resident, you can use your R1 Million Single Discretionary Allowance (SDA) and if applicable, your R10 million foreign investment allowance. These allowances are per calendar year.
As a truly global business, Austen Morris Associates offers our clients around the world a bouquet of best-of-breed products and services. To augment this capability, it is imperative that we operate in the most competitive of global jurisdictions.
In September 2019 we embarked upon the journey of applying for an Unrestricted Investment Advisor License in Mauritius. Such a license would significantly enhance the scope of our financial services and further expand our capacity in terms of offering our clients the best global investment solutions. After a 12-month period beset by COVID-19 delays, we were finally awarded this license late in August 2020. Austen Morris Associates International Limited was born.
To further expand our footprint and to gain an immediate and material presence in Mauritius, our founding senior partner Greg Morris finalised the acquisition of a Mauritian-based financial advisory firm – Personal Capital Management (PCM) in August 2021. This acquisition coincided with the Austen Morris Associates Group of Companies’ 27th year anniversary and served as the perfect celebration of this milestone event.
If you are considering Mauritius as an emigration option, or would simply like to find out more, please feel free to get in touch. Click to complete Contact Us