2020: a ‘year of change’ with unprecedented events, even for the beautiful and paradisiac Mauritius island. While experiencing the brutal economic effects of the Covid-19 pandemic, it is without notice that Mauritius has been blacklisted as an investment destination by the European Commission on May 07, 2020.
Despite the list becoming effective as of October 01, 2020, having Mauritius on the blacklist is causing damage to its reputation, as a holiday and investment destination.
As part of the Budget 2020, the Mauritian Government reacted promptly and has confirmed its political commitment to implement the necessary actions at the earliest, with the aim of exiting the EU Investment Blacklist and reassuring foreigners that Mauritius remains a credible and trusted jurisdiction, favourable to expatriation and investment.
Mauritius remains an ideal destination for offshore property investments
The Budget 2020 was heavily directed towards making Mauritius an even more attractive investment destination: it is now possible for non-citizen investors to benefit from a Permanent Resident Permit, by buying properties under the real-estate scheme, from a minimum of USD 375,000 (initially USD 500,000).
Announcements have also been made to increase residents’ rights to invest on the island. Thereby, it is now possible for non-citizens with a Residence Permit under a real estate scheme to invest or work in Mauritius (where an Occupation Permit or Work Permit were initially required to do so). Furthermore, the Mauritian Government now grants to non-citizens with a Residence Permit, Occupation Permit or Permanent Residence Permit the right to acquire land not exceeding 2,100 m2 for residential purposes within smart cities, under certain conditions. Foreign buyers will then have five years to build a residence on the land purchased. With a beneficial tax climate along with the Mauritian lifestyle advantages, Mauritius remains an ideal destination for investors looking to invest in offshore properties.
Planning your expatriation in Mauritius?
The Mauritian Government wants to encourage not only investment but also expatriation to Mauritius. Accordingly, improvements are being made in the administration process and permit obtention to facilitate relocation procedures and offer more flexibility.
Work and/or invest in Mauritius
To encourage foreign talents to work and/or invest and to thereby support the Mauritian economic growth, the Government has announced the following statements:
Work Permit and Residence Permit will be combined into one single permit: the Occupation Permit.
The Economic Development Board will be the only agency in Mauritius responsible for the processing of Occupation Permits.
Foreigners investing a minimum of USD 50,000 (currently USD 100,000) will now be eligible to obtain an Occupation Permit. Same applies for foreigners earning a minimum salary of MUR 30,000, under certain conditions.
Occupation Permit holders will be able to invest in other ventures without any shareholding restrictions.
Occupation Permit holders will now be allowed to bring in their parents as their dependents so they can live in Mauritius, while spouses will no longer need a permit to work or invest in Mauritius.
No minimum turnover and investment requirements (initially USD 40,000) for the Innovative Investor with an Occupation Permit.
Retire in Mauritius
Lengthening to a period of 10 years the validity of the Occupation Permit and Residence Permit for retired non-citizens, and renewable thereafter.
Foreign retirees on Residence Permits will be able to invest in other ventures without any shareholding restrictions.
Currently and already living the dream in Mauritius (expat)
Non-citizen holding an Occupation or Residence Permit will be eligible to apply for the Permanent Residence Permit if having held the permit for 3 consecutive years; the validity of this permit will be extended from 10 to 20 years.
Takeaways
The mentioned measures announced by the Mauritian Government aim to attract and retain foreigners - individual, professional, investors, in Mauritius.
Foreigners investing a minimum of USD 50,000 (currently USD 100,000) will be now eligible to obtain an Occupation Permit.
It is now possible for a foreign investor to obtain a Permanent Residency Permit through the acquisition of real estates worth USD 375,000.
Non-citizens who have a Residence Permit under the various real estate schemes will no longer need an Occupation or Work Permit to invest and work in Mauritius.
Foreigners who already have an Occupation, Resident or Permanent Residence Permit are now able to buy lands of up to 2100m² for residential purposes within smart-city, under certain conditions.
Work Permit and Residence Permit will be combined into one single permit.
Other procedures are also being implemented to avoid Mauritius being on the Investment Blacklist of high-risk third countries issued by the European Commission and should be communicated further.
If you wish more information about property investments and opportunities in Mauritius, contact our experts.
This article has been prepared for general guidance on matters of interest only. Measures and information are subjected to conditions or changes. You should not act upon the information contained in this publication without obtaining specific professional advice.