SA investors flock to Mauritius
Fin24

SA investors flock to Mauritius

2013-05-07 14:59

Cape Town - Mauritius has long been a popular tourist destination among South Africans. But now many hard-nosed investors wanting to mix solid returns with a luxury lifestyle are also heading for the tropical paradise. 

According to statistics by the Mauritian Board of Investments, 30% of foreigners who have bought property in the Integrated Resort Schemes (IRS) on the island are from South Africa, 37% are from France 20% from the UK.

The IRS is an initiative of the government of Mauritius in collaboration with the Mauritian Board of Investments. It is designed to facilitate the acquisition of resort and residential property by non-citizens on the island.

In 2002 the Mauritian government took the decision to open the market to foreign buyers on a restricted basis, which permits the construction and sale of luxury villas to foreigners in particular locations and subject to certain conditions.

To date, five projects have been completed: Tamarina, Anahita, Villa Valriche, ClubMed Albion and Belle Riviere. Three developments are currently under construction and due to be delivered in 2013 (Azuri, La Balise, and Matala).

Foreign investors automatically qualify for permanent residence for themselves and their immediate family if they invest a minimum of US$500 000 (R4.5m) or more in the IRS.

Property development firm the Indian Ocean Real Estate Company says of the 132 units available under the IRS dispensation at its luxury resort scheme Azuri, which it is currently developing, 92 have so far been sold. Thirty percent of those have been bought by South Africans.

Among global top 20 for ease of doing business


Murray Adair, the CEO of the Indian Ocean Real Estate Company, says a combination of factors makes Mauritius an attractive investment proposition for foreigners right now.

It is among the top 20 countries in the world according to the World Bank Index for Ease of Doing Business. Based on the latest Statistics Mauritius forecast, the economy will grow by 3.4% this year.

Mauritius offers foreign investors a favourable and competitive investment environment. Some of these advantages are:

• A 15% tax rate;
• No inheritance or capital gains tax;
• 100% foreign ownership; and
• Free repatriation of profits, dividends and capital.

“This, coupled with a temperate climate, a stable democracy, a sophisticated financial services industry and the leisurely lifestyle make it an ideal proposition for people from all over the world to invest in,” says Adair.

According to Adair, the IRS have become important stimuli for the building, construction and property sector in Mauritius.



Comments
  • Johann Enslin - 2013-05-07 15:15

    SA Government take note.

      Gerald Parker - 2013-05-07 16:01

      Sorry Johann it is not in pictures so they cannot

      Carl Heinrich Witte - 2013-05-07 16:17

      We have a government???? There are people governing????

      Rajesh Sukha - 2013-05-07 17:34

      So sell land and earn nothing- good approach Johan.

      patrick.starkey1 - 2013-05-08 14:49

      @ Rajesh, so you have never heard of Rates & Taxes ?

      Rajesh Sukha - 2013-05-08 17:06

      Yes Patrick I have- but will it really make up the difference for lost revenue on a island that has limited land resources- how sustainable is that. or are they going to kill you on rates and taxes- which questions the whole notion of their tax haven status?

  • zelda.matthews - 2013-05-07 15:59

    Johann please i dont think they would understand what it means for SA

  • Ayanda M Masina - 2013-05-07 16:14

    For now those in the helm are celebrating their relationship with the Guptas, theres a lot of red tape in doing business in SA unless you own Sahara computers

      Linds Ron-House - 2013-05-07 16:47

      @Ayanda, I have a Mauritian friend who came to SA about 5 years ago to start a new business here. According to him, he makes more money here than in Mauritius. After his business was well establish, he brought all his family over. His kids go to the French school in Sandton. I happen to live in an estate where a number of owners/residents, who run their own business, are not South African - Russians, Chinese (in fact a number of Chinese engineers are rented mansions there by their employers), etc. Oh, and for your information, there are many poor people in Mauritius.

  • Democrazy - 2013-05-07 16:34

    Another place where SA can learn from...so Guy Scott was maybe correct - we are backward!

  • Jacques Shepperson - 2013-05-07 18:00

    Ok everyone... who has R4bar lying around?

  • Altus Kirsten - 2013-05-07 20:47

    If SA does not look after their investors, other countries will.

  • Michael Lourens Rademeyer - 2013-05-07 22:23

    Cool. :)

  • Slp Mulligan - 2013-05-07 23:30

    Another bubble approaches, like those of Iceland and Cyprus.

  • Ross Alexander - 2013-05-08 06:26

    To add more facts. In MU they have also introduced RES schemes. This is basically the same as an IRS. The major difference is the tax paid by a purchaser. An IRS charges $70 000 foreign tax, an RES charges $25 000 foreign tax. Check out www.westislandresort.com

  • Ralph Tschohl - 2013-05-08 10:01

    The grass is always greener on the other side.....the manure is richer, more potent and in greater abundance.....

      Tshepo Gwamanda - 2013-05-08 14:03

      hahahahaha!!! True story!! Why on earth would you want to give land away and then own nothing!? we have strict policies against such acts.

  • Chris Hattingh - 2013-06-11 15:22

    So what to do if you don't have 4.5 million rand and you do not want to live in corrupt South Africa any more?

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