A small country with only 1.2 million people, Mauritius, is today one of the leading African markets for foreign investors. The sharp increase in interest on the part of expats is largely due to the simplification of laws relating to the acquisition of real estate on the island. For example, a lower threshold was set for obtaining resident status – $ 500,000. The government reports a significant increase in the number of foreigners who buy local properties mainly along the coastline of Mauritius.
To some extent, Mauritius is already the leading African economy with the highest per capita GDP of $ 25,700. The World Economic Forum (WEF) also rates Mauritius as the most competitive market in Africa. The country ranks 25th in the world in the World Bank's ranking of ease of doing business and is one of the fastest growing economies in Africa.
Investing in Mauritius whether it is in real estate or business represents some considerable advantage. For businessmen, this island is sort of a fiscal paradise where smooth operation perfectly blends with tropical luxuriance. If you are looking for the right place to invest your private funds or your offshore company, it is time to expand your horizon and discover the solid offshore jurisdiction that is Mauritius.
Here are the two main types of business structures for investing in Mauritius:
Global Business Category (GBC1)
It can be public or private. To be properly constituted, a GBC1 needs two directors who must be residents in the country to be able to accede to double taxation agreements. At least one local shareholder is required and the share capital to establish it is 1,000,000 USD. The data of administrator and shareholders do not appear in the public registry. Bearer shares are not allowed and the only type of shares that can be issued are registered. This type of company is subject to corporation tax.
Global Business Category (GBC2)
It can only be private. To be properly constituted, a GBC2 needs a director who can be a natural or legal person who does not necessarily have to be a resident. At least one shareholder is required and there is not a minimum of social capital to constitute it. The data of administrator and shareholders do not appear in the public registry. Bearer shares are not allowed and the only type of shares that can be issued are registered. This type of company is exempt from taxes.
Good to know
Both for people with high net worth and for similar companies, the tax rates in Mauritius are incredibly favourable. For example, there are no taxes on capital gains or dividends. There are fixed tax rates on corporate benefits and income of individuals, both set at 15%. There is an effective rate of 3% on offshore companies, thanks to a total tax credit of 80% on these. There are also no restrictions on the repatriation of profits, dividends or capital.
For future buyers of real estate in Mauritius, it’s good to get to know the island’s geography well. This will allow you to clearly understand what part of it is most suitable for the future home. Here, not only weather conditions play a role, but also infrastructure, in some parts of the island more suitable for a relaxed holiday, in others – for active life and business, as well as the proximity of real estate to the sea. Plaisance City is the perfect blend of the two: http://www.plaisancecity.mu/en