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Invest in Mauritius

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Invest in Mauritius

Investing in Mauritius is an attractive proposition due to its strategic location, stable political environment, favorable tax regime, and growing economy. The country has positioned itself as a financial hub in the Indian Ocean, with opportunities in various sectors such as finance, tourism, real estate, and IT. Below is an overview of the key considerations for investing in Mauritius:

Wooden door of villa in Mauritius
  1. Reasons to Invest in Mauritius
  • Strategic Location: Located between Africa and Asia, Mauritius serves as a gateway for investors looking to access both African and Asian markets. It has favorable trade agreements with several countries and regions, including the European Union, India, and China.
  • Stable Political Environment: Mauritius has a long-standing tradition of political stability and democratic governance. The government is pro-business and actively encourages foreign investment through various incentives.
  • Favorable Tax Regime: Mauritius offers a competitive tax regime, with a flat corporate tax rate of 15%, no capital gains tax, and no withholding tax on dividends, interest, or royalties. Additionally, the country has signed numerous Double Taxation Avoidance Agreements (DTAAs), making it tax-efficient for international investors.
  • Ease of Doing Business: Mauritius ranks highly on the World Bank’s Ease of Doing Business Index, making it relatively straightforward to set up and run a business. It has streamlined procedures for company registration and permits, providing an investor-friendly environment.
  • Freeport & Special Economic Zones (SEZ): Investors can benefit from the Mauritius Freeport, a free trade zone that offers tax exemptions and duty-free trade for imports and exports. Special Economic Zones provide opportunities for industrial investment.
  1. Key Investment Sectors
  • Financial Services: Mauritius is recognized as a global financial center, particularly for offshore banking, fund management, and international business. The country offers a wide range of services, including wealth management, insurance, and financial planning.
  • Real Estate: Mauritius has an attractive real estate market, especially for luxury properties and tourism-related developments. Foreign investors can purchase property in specific schemes such as the Property Development Scheme (PDS), the Integrated Resort Scheme (IRS), and the Smart City Scheme, which allow non-citizens to own property in Mauritius.
  • Tourism: Mauritius is a well-known tourist destination, and investments in the tourism sector—such as hotels, resorts, and eco-tourism projects—offer high returns. The government supports tourism-related ventures through incentives and tax benefits.
  • Information Technology & BPO: The ICT (Information and Communication Technology) sector is rapidly growing, with Mauritius becoming a popular location for Business Process Outsourcing (BPO) and software development. The government has established various technology parks and offers tax incentives for companies in this sector.
  • Renewable Energy: With its commitment to sustainable development, Mauritius is promoting investments in renewable energy, especially solar, wind, and biomass projects. Investors in this sector benefit from government support and incentives aimed at increasing energy self-sufficiency.
  • Manufacturing & Export: The manufacturing sector, especially textile and apparel, plays a significant role in Mauritius’ economy. Investors in manufacturing, especially those targeting exports, can benefit from duty-free access to markets such as the European Union under preferential trade agreements.
Wooden door of villa in Mauritius
  1. Investment Schemes for Foreigners
  • Occupation Permit (OP): Foreign investors can apply for an Occupation Permit, which allows them to reside and work in Mauritius. To qualify as an investor, you need to:
    1. Make an initial investment of at least USD 50,000.
    2. Generate an annual turnover exceeding MUR 12 million (~USD 300,000) after the first year of operation.
  • Permanent Residency: Investors who invest a minimum of USD 375,000 in approved real estate projects under the Property Development Scheme, Smart City Scheme, or other government-approved projects, can obtain permanent residency in Mauritius.
  • Property Development Schemes (PDS, IRS, RES): Foreigners can invest in residential property under specific schemes like the PDS and IRS. These schemes target luxury real estate developments and come with perks such as residency permits.
  1. Legal Framework & Investment Protection
  • Investment Protection: Mauritius has established bilateral investment treaties with several countries, ensuring protection for foreign investments. It also offers protection against expropriation and guarantees the free repatriation of profits, capital, and dividends.
  • Legal System: The legal framework is based on a combination of French civil law and British common law, providing a transparent and reliable legal system for investors.
  • Mauritius International Arbitration Centre (MIAC): Mauritius offers an independent arbitration center, providing investors with a neutral venue for the resolution of commercial disputes.
Wooden door of villa in Mauritius
  1. Challenges
  • Small Domestic Market: While Mauritius has a growing economy, its domestic market is relatively small. Investors often view it as a base for accessing larger regional markets like Africa and Asia.
  • Competition in Certain Sectors: Sectors like tourism and real estate are competitive, with several established players. New entrants need to offer something unique to stand out.
  • Bureaucracy: While Mauritius is generally business-friendly, navigating bureaucratic processes for permits and licenses can take time, depending on the industry.
  1. Government Incentives
  • The Economic Development Board (EDB) of Mauritius offers a variety of incentives, such as tax holidays, investment allowances, and duty-free imports for specific sectors. They provide assistance to investors, including help with business registration, permits, and licensing.

Conclusion

Mauritius offers a wealth of opportunities for investors, particularly in sectors like real estate, financial services, tourism, and technology. Its favorable tax regime, political stability, and strategic location make it an ideal hub for regional and international business. However, investors should carefully research the market, understand the legal framework, and consider long-term growth potential when planning their investments.