Residency in Mauritius – what are the permits available?
Strategically located at the crossroads of Asia, Africa and Europe, Mauritius is an internationally recognised investment destination. The opening up of the economy in the 1990s has favourably influenced growth, with increased transfer of technology, knowledge, capabilities and capital. To continue its development, Mauritius actively encourages foreign talents to establish their residency in Mauritius. Here are the different types of permits that will allow you to establish your residency in Mauritius.
Residency in Mauritius through the acquisition of an immovable property
By investing at least USD 375,000 in a high-end residential property (under the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Property Development Scheme (PDS) or Smart City Schemes), you will obtain the Residence Permit. Your spouse and children under 24 years old will also receive a residence permit. It is important to note that the permit remains valid until you remain the owner of your property. It is the easiest way to establish your residency in Mauritius.
The owners can choose to become tax resident in Mauritius and rent the property. In addition, they do not face any restriction on the repatriation of funds or revenue raised from the sale or renting of the property. Non-citizens who have a Residence Permit under IRS, RES, PDS or Smart City Schemes are exempt from an Occupation or Work Permit to invest and work in Mauritius.
Residency in Mauritius as a retired non-citizen
Non-Mauritian citizens, above the age of 50, may also choose to retire and establish their residency in Mauritius under a Residence Permit (RP). To obtain this permit, the retired non-citizen must undertake an initial transfer of at least USD 2,500 to his/her local bank account in Mauritius. Thereafter, the Retired Non-Citizen should transfer:
- at least USD 1,500 monthly; or
- a sum by instalments amounting to at least USD 30,000 annually.
The Residence Permit as retired non-citizens is valid for a period of 10 years, and allows its holder to invest in other ventures without any shareholding restriction. A retired non-citizen who has held a Residence Permit for three (3) consecutive years is eligible to apply for the 20-Year Permanent Residence Permit (PRP).
The Occupation Permit
Whether you are a professional, a self-employed, an investor, a High-Net-Worth Individual, you can establish your residency in Mauritius by applying for the Occupation Permit (OP).
- Initial transfer of USD 50,000 and business activity to generate an annual income of at least MUR 2 million for the first year and cumulative turnover of at least MUR 10 million for the subsequent two years; or
- An existing investor with a Net Asset Value of at least USD 100,000 and a cumulative turnover of MUR 12 million during the preceding 3 years, with a turnover of at least MUR 2 million in any one year; or
- An individual who has inherited a business in case of death or incapacity of the previous investor provided that the Net Asset Value of the business is at least USD 100,000 and a cumulative turnover of MUR 12 million, with a turnover of at least MUR 2 million in any one year; or
- If an investor invests at least USD 375,000 in a qualifying business activity (as specified below), he or she is entitled to the Permanent Residence Permit (PRP) of a validity period of 20 years.
Qualifying business activities : Agro-based industry, Audio-visual, Cinema and Communication, Banking, Construction, Education, Environment-friendly and green energy products, Financial Services, Fisheries and Marine Resources, Freeport, Information Technology, Infrastructure, Insurance, Leisure, Manufacturing, Marina development, Tourism and Warehousing, Initial Public Offerings.
- Initial transfer of USD 35,000 to his/her local bank in Mauritius.
- The business activity should generate an annual income exceeding MUR 600,000 in the first 2 years and MUR 1,200,000 as from the third year.
- If the annual income exceeded MUR 3 million for three consecutive years, he/she is entitled to the Permanent Residence Permit (PRP).
- No minimum turnover and investment requirement.
- R&D expenses should constitute of at least 20% of total operational expenditure during the research phase.
- The monthly basic salary for a professional should be of, at least, MUR 60,000.
- Professionals engaged in the information and communication technologies (ICT), business process outsourcing (BPO), pharmaceutical manufacturing and food processing sectors should earn a monthly basic salary of at least MUR 30,000.
- Holders of an OP as Professional will be able to invest in other ventures without any shareholding restriction.
- OP holders will be allowed to bring their spouse, children and parents as their dependents.
- OP holders, who have held the permit for 3 consecutive years, will be eligible to apply for the 20-Year Permanent Residence Permit (PRP).
An individual is considered resident in Mauritius if he or she is present in the country for:
- at least 180 days during an income tax year (ending on 30th June); or
- for 270 days in aggregate during a given tax year and the previous two tax years.
Citizens and non-citizens residing in Mauritius should submit their return of income and pay their taxes by 30 September following the income year for which the return is made. A resident of Mauritius is liable for personal income tax (rate of 15%) on their worldwide income. However, income arising outside Mauritius is taxed only if it is received in Mauritius.
Non-residents only pay tax on income derived in Mauritius. Every individual whose chargeable income and dividends, received from Mauritius resident companies and cooperative societies, exceed MUR 3.5 million (approximately USD 100,000) is liable to pay a 5% solidarity levy on the excess amount, in addition to the income tax of 15%,
Why establishing your residency in Mauritius, the ideal jurisdiction to do business and live
With its tropical climate, favourable and secure living environment to grow your children or to enjoy your retirement, Mauritius is the ideal country to live, work and invest. Historically a trade platform between Asia, Africa and Europe, Mauritius is today an International Financial Centre of repute and substance. Mauritius ranks first in Africa on many international indices, especially for the ease of doing business (13th internationally on the World Bank’s ‘Ease of Doing Business’ ranking), good governance (the Mo Ibrahim Index of African Governance – IIAG), political and social stability, economic freedom and ICT development, amongst many others.
Strategic located between Africa and Asia, the country is an attractive destination for international investors and provides the adequate ecosystem for investments on both continents. Mauritius also has other attractive features enticing foreign companies to set up their company and establish their residency in Mauritius. These include its robust and hybrid legal system (common law and civil law), its international arbitration centre, and its Double Taxation Avoidance Agreements (DTAAs) and Investment Promotion & Protection Agreements (IPPAs) with nearly 50 countries.
The country offers investment opportunities in many sectors, including financial services, technology, Fintech and E-commerce. Many High-Net-Worth Individuals relocate to Mauritius to work and reside by making use of the many advantages the jurisdiction offers from wealth management, conducting business and high standard of living. Indeed, the cost of living in Mauritius is less expensive than in other countries that have a comparable quality of life, one of the factors that encourage foreign nationals to relocate and establish their residency in Mauritius. Mauritius has a comprehensive education system with English-speaking and French-speaking private institutions, accessible medical services through private hospitals, as well as supermarkets and delicatessens where foreigners can find a wide range of brands and products.
The Mauritian tax system is simple and attractive tax. Both corporate tax and personal income tax, as well as Value Added Tax (VAT), are capped at 15%. Furthermore, there are no capital gains tax, no tax on dividends paid by a Mauritian company no withholding tax on dividends paid, and no inheritance tax. Foreign companies and entrepreneurs are also encouraged to set up their company in Mauritius. In fact, there is no restriction on ownership of companies and Mauritius allows for 100% foreign shareholding.
How Sunibel can help you
Relocating to Mauritius can bring numerous advantages. Our experts accompany you and facilitate the relocation process for you to establish your residency in Mauritius.
Our services include:
- Application process for permits (investor, professional and retirement)
- Real estate assistance for relocation (renting and buying)
- Travel arrangements assistance
- Personal administrative assistance
- Concierge services
For more detailed information about the different types of permits, and how to establish your residency in Mauritius, feel free to contact us using the form below:
Economic Development Board Mauritius. 2020. Work And Live In Mauritius. [online] Available at: <https://www.edbmauritius.org/work-and-live-in-mauritius/overview/> [Accessed 18 November 2020].
Economic Development Board Mauritius. 2020. Living In Mauritius. [online] Available at: <https://www.edbmauritius.org/work-and-live-in-mauritius/living-in-mauritius/> [Accessed 18 November 2020].
Disclaimer and important notices
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