Why the World’s Ultra-Wealthy Are Investing in Mauritius

Mauritius, an island nation famed for its stunning beaches, mild tropical climate, and idyllic lifestyle, is emerging as a significant player in the global wealth market. Since achieving independence in 1968, Mauritius has strategically positioned itself in the Indian Ocean, nestled between Asia, Europe, and Africa.

This advantageous location has allowed the country to cultivate a diverse and resilient economy, primarily by establishing itself as a premier financial center.

In 2024, investment advisory firm Henley & Partners declared Mauritius one of the most sought-after destinations for millionaires worldwide, with over 5,000 affluent individuals residing on the island.

Their report on global wealth migration highlights Mauritius as a sovereign state characterized by high safety and security levels, making it a sanctuary from the tumultuous political and economic climate facing many regions globally.

Henley & Partners anticipates that Mauritius will continue to attract the ultra-wealthy, projecting that the number of millionaires on the island could nearly double in the next decade.

Key to this growing interest is Mauritius’s exceptional governance, sophisticated financial ecosystem, and high living standards.

These attributes have drawn the attention of the wealth management community, which increasingly views the island as a strategic location for preserving and growing assets amid rising geopolitical tensions, economic instability, and restrictive tax policies in traditional markets.

A Business-Friendly Environment

Tom Hopgood, an economist at GlobalData, notes that Mauritius ranks as one of Africa’s most business-friendly destinations.

The island benefits from a robust legal framework that seamlessly merges the French Civil Code and British Common Law, supported by an independent judiciary and a deep-rooted democratic system.

Notably, in cases of commercial disputes, investors can appeal to the UK’s Judicial Committee of the Privy Council, providing a familiar and trusted resolution channel.

Mauritius’s regulatory environment has earned recognition from esteemed global institutions, including the World Bank, Moody’s, the OECD, the EU, and the Financial Action Task Force (FATF).

In the latest World Bank Ease of Doing Business report, Mauritius secured an impressive 13th place globally.

The island’s favorable tax regime plays a vital role in this positive reputation, with no capital gains tax, no dividend or interest withholding tax, and significant exemptions for non-residents.

Furthermore, the absence of estate duty or inheritance tax, along with numerous double tax treaties, positions Mauritius as an attractive option for wealth management.

The financial services sector is a substantial contributor to Mauritius’s economy, accounting for approximately 14% of its Gross Domestic Product (GDP).

The Mauritius International Financial Centre (IFC) and the Economic Development Board (EDB) have identified private banking and family offices as essential growth drivers.

To bolster this sector, the EDB, alongside regulatory bodies such as the Financial Services Commission (FSC) and the Ministry of Financial Services and Good Governance, will lead a strong private sector delegation to the 2024 Africa Financial Services Investment Conference (AFSIC).

This event aims to showcase the diverse investment opportunities available within the Mauritius IFC to global investors interested in exploring lucrative ventures in Africa and beyond.

These opportunities include trusts, special purpose funds, Variable Capital Company (VCC) structures, family office services, treasury services, and innovative digital finance options through the VAITOS Act framework.

Additionally, Mauritius offers attractive residency programs for high-net-worth individuals (HNWIs) looking to live, work, or retire on the island.

During their upcoming business trip to the UK, EDB representatives will engage in discussions and roundtable sessions with international investors and finance professionals, including law firms, fund managers, private portfolio managers, tax advisors, and accountants.

The EDB Mauritius team will be present at the AFSIC, scheduled for October 7-9 at the Park Plaza in London.

This analysis of the ultra-wealthy investment trend in Mauritius was originally published by Investment Monitor, a brand owned by GlobalData.

Source: Yahoo! Finance