According to the wealth analysts, South African citizens are second, behind only France, when it comes to buying property in the former french colony.
NWW said that a total of 1,766 properties have been sold to foreigners over the past decade – with 370 properties snapped up by South Africans.
- French – 44%
- South African – 21%
- Others – 12.6%
- British – 8.9%
- Mauritians – 6.9%
- Swiss – 2.7%
- Belgian 2.6%
A draw-card for Mauritius is the low level of government regulation, while individuals who live on the island are free to invest overseas, with no exchange controls.
The country has a well-developed banking system and stock exchange, and a thriving financial services sector in the capital of Port Louis.
The country ranks first in Africa when it comes to ease of doing business.
Mauritius is the wealthiest country in Africa, on a wealth per capita basis. The average resident is worth $21,700, well ahead of second-placed South Africa, with $10,300 per capita.
NWW noted that Mauritius has seen a surge in US dollar millionaires since 2000 – up 340% to 3,200 in 2015.
Additional draw-cards to the country include a high quality of life, increasing international schools and a low crime rate among its population of just under 1.5 million people.
Buying property however, doesn’t come cheap on the island country. NWW puts the average price per square metre at $4,500, ranking it above Cape Town for example, which averages $4,214.
Pam Golding Properties also highlights the country’s low taxation rates of only 15%, as a major selling point.
“No housing or property tax, no inheritance tax on properties purchased and no capital gains tax speaks directly to property investors and home buyers, particularly those looking to relocate for retirement or simply a highly appealing lifestyle in a sought after international location,” said Richard Haller of Pam Golding Properties.
“Coupled with this, for a minimum investment of US$500,000 – assuming you retain your property acquisition – foreigners are entitled to a residency permit and may then apply for a Mauritian passport after five years.
“The low tax rates encourage business formation and naturally appeals to retirees, while the island’s corporate tax rate of 15% has made it attractive to foreign investors. There is also no withholding tax on dividends,” Haller said.