Sovereign – Updated Mauritius Residency Programme and Qualifying Requirements June 2024

Introduction to Mauritius

Often referred to as the ‘Jewel of the Indian Ocean’, the Republic of Mauritius is a small group of islands about 800 km east of Madagascar. Surrounded by coral reefs and with a maritime subtropical climate, Mauritius has become a popular tourist destination and a highly sought-after location for foreign investors seeking a platform between Africa, Asia and the rest of the world.

Mauritius has a mixed developing economy based on manufacturing, agriculture, tourism and financial services, with information and communication technologies (ICT) also growing in importance. Gross domestic product is now among the highest in Africa and Mauritius was ranked first in Africa and 13th worldwide in the 2020 World Bank Ease of Doing Business Report.

Mauritius has a hybrid legal system that combines both civil and common law practices, reflecting its colonial history under France and Britain. The Supreme Court is the highest judicial authority in Mauritius, while it has retained the Judicial Committee of the Privy Council of the UK as its final court of appeal. The effective rule of law is a key factor in attracting foreign investment and international business.

Mauritius has also attracted a wide range of settlers, who have brought their own cultural influences and have made Mauritius a vibrant and inclusive country. Approximately 30,000 foreign nationals from Germany, South Africa, France, the UK, Switzerland, and other European nations reside in Mauritius. English and French are considered the official languages but Creole, a French-based patois, is the lingua franca. Mauritians are commonly multilingual.

Most of the population is concentrated on the main island of Mauritius, which hosts Port Louis, the capital and largest city. Mauritius has a good transport infrastructure. The road system is well developed and there are direct flights to Mauritius from 26 cities in 19 countries.

Offering political and social stability, a low-cost standard of living, a business-friendly environment and tax efficiency for both individuals and businesses, Mauritius is an ideal location for those looking to establish a new or alternative country of residency in which to live, work or retire.

Mauritius Residency Programmes

Mauritius offers residency programmes that cater for most personal requirements and budgets. Establishing residency in Mauritius enables foreign individuals and their qualifying dependants to enjoy a range of benefits, including:

• The right to live, work and/or retire in Mauritius.
• The option to include qualifying dependants, including spouse, common law partner, fully dependent parents and unmarried children.
• A secure and safe environment in which to live.
• No language requirements.
• Access to quality educational institutions teaching in English and French.
• World-class medical facilities.
• A legal system combining common and civil law.
• Access to highly educated, skilled and multilingual workforce.
• No inheritance, estate or gift taxes
• Capital gains are generally not taxable.

Residency Permits

The most straightforward routes for high-net-worth individuals (HNWIs) or retired persons to obtain a Residency Permit in Mauritius are:

1. Retired Non-Citizen Residence Permit: 10-year Residency Permit

This option is open to applicants who are at least 50 years of age who can demonstrate that they are able to transfer USD1,500 per month, or a total of USD 18,000 per annum, to a local bank account in Mauritius.

Holders are eligible to renew this permit upon expiry, subject to providing evidence that they have met the minimum income transfer requirements during each of the previous 10 years.
Retirees are also eligible to apply for a 20-year Permanent Residence Permit after three consecutive years of residence.

Retired Non-Citizens are also able to invest in property development projects, or homes that cater to adults aged over 50 who are looking to live independently in a peer environment. These provide facilities for recreation and socialising, including a clubhouse, health club or gym, with facility management services that are focused on the needs of the elderly.

There is no minimum acquisition price, and the retired non-citizen (together with their spouse or partner) can choose to apply for a residence permit that endures for as long as the property is owned or occupied by the applicant.

2. Property Purchase Residence Permit

Under this option, applicants are required to invest at least USD375,000 in one of the following real estate investment categories:

• Integrated Resort Scheme (IRS): qualifying projects larger than 10 hectares.
• Real Estate Scheme (RES): qualifying projects on freehold land not exceeding 10 hectares.
• Property Development Scheme (PDS): social and ecological impact-focused projects.
• Smart City Scheme (SCS): multipurpose eco-communities.
• Invest Hotel Scheme (IHS): new or existing hotel units in which investors can live for 45 days in any 12-month period.
• Ground + 2 Apartment Scheme (G+2): condominium developments that are at least two floors above ground.

Qualifying applicants are granted a residence permit that will endure for as long as the residential property is held. Residence permits will also be granted to the applicant’s spouse or partner, together with children under the age of 24.

Holders are also permitted to work and invest in Mauritius without requiring an Occupation or Work Permit.

Please contact Sovereign for further information regarding properties to match your personal investment requirements.

3. Investment in a qualifying business activity: 20-year Permanent Residence Permit (PRP)

Applicants who invest at least USD375,000 in a qualifying business activity are eligible to be granted a 20-year PRP to ensure they have time to settle and make the business productive in the long term. Dependants, comprising a spouse or partner of the opposite sex, children and parents are also eligible for the PRP.

Qualifying business activities include: agro-based industry, audio-visual, cinema and communications, 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, warehousing and initial public offerings (IPOs).

Occupation Permits

Mauritius offers three categories of Occupation Permit to individuals who do not have USD375,000 to invest. Occupation Permits apply for three to 10 years and, significantly, are also capable of being converted into a 20-year Permanent Residency Permit (PRP) after just three years if holders satisfy the relevant criteria.

Dependants of the investor can apply for a residence permit for a duration not exceeding that of the investor but will require a separate Occupation or Work Permit to work in Mauritius.

1. Investor: A shareholder and director in a company incorporated in Mauritius under the Companies Act 2001, an Investor is eligible to apply for an investor Occupation Permit under the following options:

• Standard (10-year residency permit) – For individuals who invest USD50,000 into a new Mauritius-based business.
• Net Asset Value (10-year residency permit) – For individuals who own or inherit an existing Mauritius business, with a net asset value of at least USD50,000 and a cumulative turnover of at least MUR12 million (c. USD260,000) during the three years preceding an application.
• High Tech Machine and Equipment – An initial investment of USD50,000, or its equivalent, comprising a minimum amount of USD25,000 transferred to the bank account of the applicant company and the equivalent of the remaining value in high tech machines and equipment.
• Innovative Start-Ups – Investment of an unspecified amount into an innovative project that has a R&D component of at least 20% and is approved by the Mauritius Economic Development Board.

Holders of an Occupation Permit as Investor are eligible to renew the permit after 10 years, provided the company has achieved a minimum annual gross income of at least MUR4 million as of the third year of registration.

Holders are also eligible to apply for a 20-year PRP after three years, provided the company has achieved either a minimum annual gross income of MUR15 million for the three years preceding the application, or an aggregate turnover of MUR45 million for any consecutive period of three years during the current permit.

2. Professional: Foreign professionals employed in Mauritius under a contract of employment and earning a minimum basic monthly salary of MUR60,000 (c. USD1,300), which is further reduced to MUR30,000 for professionals in the ICT, business process outsourcing (BPO), pharmaceutical manufacturing and food processing sectors.

Holders are also eligible to apply for a 20-year PRP after three years, providing they have received a basic monthly salary of at least MUR150,000 for the preceding three consecutive years.

3. Self-Employed: A non-citizen of Mauritius who is engaged in a professional business activity on their own account and who makes an initial transfer of USD35,000, or its equivalent, to a bank account in Mauritius and provides two letters of intent from potential local or international clients.

Holders of an Occupation Permit as Self-Employed are eligible to renew the permit after 10 years, subject to a minimum annual business income of MUR800,000 from the third year of registration.

Holders are also eligible to apply for a 20-year PRP after three years, providing they have achieved an annual business income of at least MUR3 million for the preceding three consecutive years.

Taxation of Individuals

An individual is deemed to be a tax resident of Mauritius if:

• They are domiciled in Mauritius, unless their permanent place of residence is outside Mauritius.
• They have spent a combined total of 270 days or more in Mauritius during the previous three years.
• They have spent more than 183 days in Mauritius during any tax year.

All income generated in Mauritius is subject to Mauritius income tax and individuals who are deemed to be tax resident in Mauritius are subject to Mauritian income tax on their worldwide income. However, income derived from outside Mauritius is only taxable if it is remitted to Mauritius.

On 1 July 2023, a progressive income tax system was introduced with rates as follow:

Mauritius does not levy tax on capital gains, wealth, inheritance, estate or gifts.

Corporate Taxation

A company resident in Mauritius is subject to tax on its worldwide income. A non-resident company is liable to tax on any Mauritius-source income, subject to any applicable tax treaty provisions.

Corporations are liable to income tax on their net income, currently at a flat rate of 15%. Companies engaged in the export of goods are liable to be taxed at the rate of 3% on the chargeable income attributable to exports based on a prescribed formula.

Mauritius Residency Planning and Implementation

Our team at Sovereign Trust Mauritius can provide clients with comprehensive advice and support throughout the residency application process. Depending on your chosen permit programme, this may include:

• Application preparation and processing.
• Immigration meeting coordination and support.
• Assistance with identifying suitable investment or rental property.
• Company registration advice, implementation and management.
• Establishing local bank accounts.
• Tax efficient planning and structuring.

Comprehensive Residency and Citizenship Planning Services

Sovereign works closely with applicants during each stage of the planning and implementation process. When combined and managed correctly, the following Sovereign Group services will enable individuals and families to develop and implement a comprehensive, flexible and tax efficient strategy:

• International residency and citizenship programmes.
• Tax residency.
• Trusts and foundations.
• Estate and succession planning.
• International retirement plans.
• Wealth management.
• Corporate structures and banking.
• International life and medical insurances.

Contact us to find out more

For further information, to discuss your requirements and/or to determine whether you qualify for the one of the residency or citizenship programmes in Mauritius or elsewhere, please contact Sovereign’s Residency and Citizenship Planning team below.