South African investors eye Mauritius

South Africans have always favoured the tropical island of Mauritius. As a strong feeder market being in the top 5 tourist contributors to the island, Mauritius is becoming an increasingly attractive investment destination.

Located only a 4-hour plane ride from Johannesburg, South Africans now make up the second-largest number of foreign investors in Mauritius behind only France. Mauritius was also South Africa’s most searched destination in 2020 as reported by Google’s Year in Search for 2020.

Known as a popular immigration destination with a stable and democratic political environment that encourages an attractive fiscal regime. The 15% tax threshold, 5% land transfer tax, no dividend tax, no capital gains tax, no property tax, and free repatriation of profits; appeal to those looking for off-shore investment options.

With the Mauritius government in 2020 reducing the minimum investment threshold for foreign investors to obtain residency from USD 500,000 to USD 375,000, there has been increased interest coming from South Africa. Many South Africans have already purchased units on the island through the G+2 scheme which allows foreigners to purchase real estate units starting from the price of MUR 6,000,000 (R2.4 million). This option is highly favourable from an affordability standpoint but does not come with residency.

The reduction in investment-for-residency to USD 375,000 has seen a surge of inquiries from more South Africans looking to make the Mauritian island home. As well as the government's decision to allow foreigners to now purchase land within designated smart city schemes. With financing available to foreigners from Mauritian Banks at interest rates starting from 3.35%, this will only result in more investment demand being created through South African investors.