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As a cross-border jurisdiction, Mauritius has proved its worth over the past 10 years with an attractive and well-established residency-by-investment programme underpinned by a hard currency property investment, a compelling tax regime and ever improving infrastructure for those residing on the island.
With the growing trend of increasing wealth taxes around the world and geo-political uncertainty on the increase, including countries such as the UK, France, the USA and South Africa, low tax jurisdiction countries are reaping the benefit of attracting high-net-worth individuals (HNWI’s). This is not at all about tax evasion, but rather choosing where you want to be tax resident, should you be in the position to make the move and enhance your wealth and combine a great quality of life in your older years.
Richard Haller, Managing Director for Sable International’s Offshore Real Estate and Investment Migration division, has over 10 years of experience in the Mauritian market and has lived and invested on the island.
Haller comments that “Mauritius offers an affordable hard-currency real estate market which has shown over 50% capital growth over the past five years. A property purchase over $375,000 within developments approved for foreigners, offers the buyer, their spouse and their children under 24 years of age permanent residency status. There is no annual visitation requirement, and the residency status remains for as long as the property is held.”
The pricing in Mauritius is comparable per square meter to that of a Cape Town Atlantic Seaboard property, in the range of $4000 – $6000 per square meter. Except as part of the purchase, you are diversifying into USD or EUR, you can live and work in Mauritius, become tax resident which offers a 15% tax rate on individuals and companies and be subject to no inheritance tax and no capital gains tax. Not a bad option to grow and protect your wealth.
If you are based in the United Kingdom, the prices compare to the city of Manchester where prices for new build properties range from £5000 – £6000 per square meter.
Sable International’s property investments options in Mauritius range from $200,000 for an entry level investment, $600 000– $900,000 for well-located two- and three-bedroom apartments, with some really interesting beachfront opportunities, all the way up to $1.5 – $5 million for luxury villas. The rental market in Grand Baie is particularly active with rental yields ranging from 4% – 6%. So, in essence, if you can achieve a rental yield of 4% plus some capital growth at 6%, you are averaging a 10% return per annum in hard currency.
Sable International’s Offshore Real estate and Investment Migration division specialises in residency- and citizenship-by-investment programmes, some of which are underpinned by real estate investments, such as Mauritius and Greece. It is critical that the real estate investment stacks up over and above the residency programme and that is where Sable International’s specialised team guides clients in these foreign jurisdictions. You simply don’t know what you don’t know.
Haller adds, “What differentiates us is our holistic investment approach, it’s not just about selling property, it’s about understanding a client’s needs and ensuring that all aspects of such a complex cross-border investment are considered. Furthermore, we assist our clients through the entire journey. This includes advising on robust real estate investments, applying for Mauritius permanent residency, advising on offshore structures for wealth protection and the potential implications of a tax residency move, as well as externalising funds abroad. All these specialised teams are housed within the Sable stable, and we can therefore consider the entire context in order to assist the client. They are all inter-dependent and therefore need to be considered.”
Sable International now has offices in nine international locations including head offices in London and Cape Town, offices in Portugal and Australia, and now with its latest office established in Grand Baie, Mauritius.
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