As more and more foreign investors look for new business endeavors overseas, Mauritius stands as an ideal platform at the crossroads of Africa and Asia. Indeed, the island has attracted the attention of investors for decades now for various reasons. If you’re also willing to tap into the numerous opportunities the island has to offer, here’s an overview of the incentives set up by the Mauritian government to attract foreign investment.
Why choose Mauritius?
Mauritius boasts a business-friendly environment with a range of promising and emerging fields for foreign investment, including financial services, ICT, tourism, real estate, biomedicals, the Blue economy, and many others. One of the island’s key features is its favorable tax regime, not to mention its efficient regulatory framework. Besides that, the island is home to a multicultural, multilingual, and highly skilled active population that can help you achieve your business objectives. Below, we present some of the most sought-after conditions for foreign investors looking to grow their business and thrive overseas:
Streamlined procedures
To attract and retain foreign investors who significantly contribute to the national economy, the Mauritian government has streamlined procedures relating to investing and creating a business in the country. This includes a more straightforward and protective regulatory framework, as well as efficient organizations foreign investors can turn to for guidance. It is also recommended that foreign investors in Mauritius consult with business management experts, such as Blue Azurite, for better insight into what it entails to run a business on the island.
100% foreign ownership
Another key incentive is the fact that foreign business people are entitled to 100% ownership of their businesses in Mauritius. This can be highly beneficial to industries having certain regulatory restrictions. Unlike in other countries, foreign investors in Mauritius have complete control over their ventures, which empowers them to make strategic decisions that align with their business objectives.
Zero inheritance taxes
Mauritius doesn’t levy inheritance tax on businesses, even those created by foreign investors. This is, in fact, one of the reasons why Mauritius has become a favorite destination for businesses and families over the past decades. Thanks to this provision, you can freely establish a legacy without the burden of hefty inheritance taxes.
Low corporate and personal income tax rate
Mauritius offers a competitive tax system compared to many other jurisdictions. While income tax rates are rather attractive, corporate tax is levied at a 15% rate. Moreover, companies engaged in the export of goods or manufacturing activities on one of the island’s freeport zones are subject to a 3% tax rate.
Refundable value-added tax
Another good news for foreign investors is that the 15% value-added tax (VAT) rate is refundable. This means that you can recover a significant portion of your VAT expenses.
Tax-free dividends
Mauritius companies distributing dividends are tax-exempt, which is another financial plus for foreign investors. This guarantees a more efficient distribution of profits, allowing investors to reap the fruits of their investments without additional tax burdens.
Zero capital gains tax
The fact that Mauritius does not levy capital gains tax enhances the overall return on foreign investment and supports a more favorable business climate. This is one of the reasons why the island is increasingly attractive to investors engaged in activities that typically attract capital gains.
Exemption from customs duty and VAT on equipment
Moreover, foreign investors indulging in various industries are eligible for exemptions from customs duty and VAT on the purchase of certain equipment – a measure that reduces the cost of acquiring necessary machinery and technology while promoting technological advancement and efficiency.
Free repatriation of profits, dividends, and capital
Foreign investors in Mauritius also enjoy the freedom to repatriate profits, dividends, and capital. This provision ensures businesses can efficiently move their earnings across borders without restrictive measures. Besides, this measure provides greater financial flexibility for multinational companies operating in a dynamic global market.
Tax exemptions and reductions for Global Business Companies (GBC)
Mauritius provides for two categories of Global Business Companies (GBC). While category GBCs enjoy a reduced tax rate of 3%, category 2 GBCs are totally income tax exempt. This measure further positions the country as an ideal destination for offshore businesses looking to optimize their tax liabilities.
Non double taxation provisions
Mauritius is a signatory of Double Taxation Avoidance Treaties (DTAs) with several countries. This means that businesses are saved from double taxation on their income, thus guaranteeing greater certainty to foreign investors concerning their cross-border financial transactions.
Offshore asset protection
Mauritius provides foreign investors with a safe and secure environment through offshore asset protection legal provisions.
How to get started
Considering all the incentives provided by Mauritius, more and more foreign investors are turning to the country to start and grow their businesses and financial activities. However, it is recommended that you surround yourself with professionals who can guide you through the process and help you make informed decisions. Contact us now to get started on your new business venture on this paradise island.
