Mauritius probably the most Investible country in Africa

Introduction

Mauritius (pop. 1.2 million) is a small island nation in the Indian Ocean, east of Madagascar and mainland Africa. It has one of the strongest economies and one of the most stable democracies in Africa. It has one of the highest standards of living in Africa, with a GDP per capita of US$5,080.

Foreigners can now buy property through one of the government's schemes: the Permanent Residence Scheme (PRS), Integrated Resort Scheme (IRS), and Scheme to Attract Professionals for Emerging Sectors (SAPES).

Under the PRS, the foreign investor can purchase up to 1.25 arpents (5,276 sq. m.) of residential property, at least 100 meters away from the sea. A minimum investment of US$500,000 is required.

Under the IRS, foreigners can purchase luxury villas of up to 1.25 arpents each. As a property-owner, a residency permit is also granted, which is extended to the investor's family.

SAPES is an incentive to encourage professionals to work in Mauritius, and allows foreign professionals to acquire residential property.

---

Rental Yield are moderate at 6.17% in Mauritius

Property prices are around US$700 to US$850 per sq. m. A 100-square meter (sq. m.) property in Port Louis can be bought for around US$85,000. A 500 sq. m. property would cost around US$350,000.

A 500-sq. m property in Port Louis can produce income from rent of around 6.17% per annum. The general rule here is that the smaller the property, the lower the yields. With a 200-sq. m property, the yield can go down to about 4.5%

---

Rents are fixed for three years

Mauritian rental law is generally pro-tenant.

Rent: The initial rent is regulated by the Fair Rent Tribunal and cannot be changed within the first three years of tenancy. Rent increases must be justified by the landlord.

Tenant Security: A landlord must go through the court system when evicting a tenant, as only District Courts have the power to evict. In case of eviction due to landlord's use of the property, the court can order that the tenant be compensated for any prejudice suffered.

---

Tax in Mauritius

Rental Income: 15%

Capital Gains: There are no capital gains taxes.

Inheritance: There are no inheritance, gift, wealth, or estate taxes.

Property Tax: The National Residential Property Tax is levied at MUR10 (US$0.32) per sq. m. of surface area of residential land and MUR30 (US$0.96) per sq. m. for flats and apartments.

Residents: Since acquiring permanent residency is required for holding property in Mauritius, income received in and derived from the country will be liable to taxes.

---

Emerging Sectors boosting the economy

Over the past two decades, Mauritius has emerged as one of Africa's strongest economies, backed by a stable political system. Over the past two decades, real output growth averaged around 6% annually. This led to a doubling of real GDP per capita and tremendous improvements in social indicators.

Mauritian culture is a product of settlement by inhabitants from other civilizations, French, European, Indian, Chinese, English, and African. There is no indigenous culture. This makes Mauritius a rich melting pot of religions, foods, and influences.

English is the official language, but French is widely spoken and Creole, a French dialect, is preferred by locals.

Inflation has been subdued from more than 10% in 1989-1992 to below 6% from 2000-2003.

However, in recent times, Mauritius' sugar and textile industries have struggled, because of the erosion of preferential trade agreements, and harsh international competition.

The Government is embarking on an ambitious diversification strategy, encouraging the Information and Communications (ICT) sector, and promoting the island as a seafood hub.