THE RISE OF MAURITIUS
As some of you might know, we have opened an office in Mauritius. This has been done to service our growing global client base in the setting up of trusts, foundations, companies and also in the buying of property in order to obtain residency.
Mauritius is now the fastest growing economy in Africa and is rapidly becoming a very exciting investment opportunity for SA investors looking for diversifica-tion and new investment opportunities.
Mauritius offers a very attractive tax regime for both individuals and companies. In addition, Mauritius does not have capital gains tax, dividend taxes or even estate duty taxes.
A new report from AfrAsia Bank and New World Wealth reviews the rise of Mauritius as a global wealth hub.
Over the past 10 years (2007 to 2017) total wealth held in Mauritius has risen by 195% (in US$ terms), making it the fastest growing wealth market in Africa and one of the top 3 fastest growing worldwide.
Total wealth held in Mauritius now amounts to US$43 billion, whilst per capita wealth (average wealth per person) stands at US$33,000, making Mauritius the wealthiest country in Africa (on an average wealth per person basis).
DRIVERS OF WEALTH IN MAURITIUS
► STRONG ECONOMIC GROWTH: A thriving and growing financial services sector, particularly in offshore banking, fund management and private banking.
► LOW TAXES: This encourages business formation and appeals to retirees.
Company and personal income tax rates are only 15%, with no inheritance or capital gains tax. Singapore has a very similar tax structure to Mauritius.
► STRONG HNWI GROWTH: A large number of wealthy individuals (HNWIs) have moved there over the past decade, especially from Europe and Southern Africa. In addition, a large number of locally based HNWIs have reached HNWI status as the local finan-cial sector has grown – Mauritius is now home to around 4,600 HNWIs, compared to 3,800 HNWIs a year ago and 1,400 HNWIs ten years ago.
► SECURE OWNERSHIP RIGHTS: This is the most critical component of successful wealth creation glob-ally. Ownership rights are very strong in Mauritius, which encourages locals and foreigners to invest in property and businesses in the country. Neighbouring Zimbabwe offers a case in point as to what happens when ownership rights are stripped – once assets are taken away they tend to lose value as no one is willing to buy anything.
► LOW LEVEL OF GOVERNMENT REGULATION & INTERVENTION: In the local business sector (when compared to nearby countries such as South Africa).
► AUTOMATIC PERMANENT RESIDENCY: This applies if one buys a US$500,000+ home in the country – encourages wealthy people to move there.
►EASE OF DOING BUSINESS IN THE COUNTRY: Mauritius ranked 1st in Africa in the World Bank’s 2018 doing Business Report and 25th worldwide.
►LOW JOBLESS RATE AND LOW INFLATION RATE.
► WELL-DEVELOPED BANKING SYSTEM AND STOCK EXCHANGE: This encourages people to invest their money within the country and grow their wealth locally. It also ensures that any economic growth filters through to wealth creation.
► INDIVIDUALS LIVING IN MAURITIUS ARE FREE TO INVEST OVERSEAS (WITH NO EXCHANGE CONTROLS): This encourages wealthy people to use the country as a business and investment hub.
► STRONG FDI INFLOWS: Countries that are investing heavily in Mauritius include: France, China, South Africa and the UAE (according to Bank of Mauritius).
► CONVENIENT BASE FOR INVESTING AND DOING BUSINESS IN SOUTHERN AND EAST AFRICA.
► SAFETY & SECURITY: Mauritius was recently rated by New World Wealth as the safest country in Africa along with Namibia and Botswana.
► MAURITIUS HAS A WELL-DEVELOPED FREE MEDIA. This prevents government from getting away with wrong doing.
► GOOD SCHOOLS: For example, Northfields and the International Preparatory School (IPS) encourages wealthy people to stay in the country.
► RISING RESIDENTIAL & COMMERCIAL PROPERTY PRICES. Residential prime property prices in Grand Baie in Mauritius are now the second most expensive in Africa, after Cape Town (measured in US$ per square meter).
► LIFESTYLE & ACCESS TO FIRST CLASS FOOD AND PRODUCE: Prime shopping centers, food lovers market, beaches, weather, golf courses and scenery.
According to AfrAsia Bank CEO Sanjiv Bhasin: “Mauritius has all the right elements to be a world-class investment destination”.
INVESTING IN MAURITIUS – SEMINAR INVITATION
BRENTHURST IN CONJUNCTION WITH THE ELAN GROUP ARE PROUD TO INTRODUCE A UNIQUE NEW DEVELOPMENT CLOSE TO THE AIRPORT AND BEAUTIFUL BEACHES AT VERY AFFORDABLE
CAPE TOWN: 18 SEP 2018 Time: 17:30 – 19:00 Venue: Cape Town (Southern Sun Cape Town) REGISTER: https://bit.ly/2g6Vluv
JOHANNESBURG: 19 SEP 2018 Time: 17:30 – 19:00 Venue: Johannesburg (Sandton Convention Centre REGISTER: https://bit.ly/2g6Vluv
EXPLORE THE VALUE OF MAURITIUS AS A BUSINESS AND INVESTMENT DESTINATION
“There has never been a better time to diversify your property portfolio into the fast-growing and crime-free island nation of Mauritius”.