Tax friendly Mauritius becoming popular with expats

Would-be migrants looking for an alternative to the Caribbean are discovering the tax-friendly island of Mauritius, already a popular tourism hub.

The Indian Ocean island has been a haven for well-heeled French expats for some years, but the word is now out. Residents nowadays are a polyglot mix of Central Europeans, Brits and Scandinavians enjoying the weather, the lifestyle and the financial advantages.

South Africans unhappy with their country’s development and Americans fleeing the over-commercialised Caribbean are joining longer-term residents. Although tourism is a big earner for the island, its government is now planning a duty-free future with tax incentives and progressive polices for business owners.

Over 9,000 offshore companies are already set up, and Mauritius’s GDP is already standing at between 5 and 6 per cent per annum. Head of the island’s board of investment Ragu Jadoo says that economic diversity has been the aim for some years, with residential tourism taking the place of the declining textile and sugar industries.

Finance and commerce, he adds, are important additions for the future of the country and have already resulted in sizable growth in direct foreign investment since 2006. Designated luxury real estate developments aimed at foreign investors now allow direct purchases approved by the board of investment.

The developments are planned around marinas and golf courses and offer large plots designed to prevent overcrowding. Automatic residency is granted to expat owners and their families, and prices start at US$500,000.