Mauritius Budget 2024-2025 and its impact on foreign investors and professionals
In an ambitious move to propel economic growth and solidify its status as a prime destination for foreign investors, Mauritius has introduced a series of innovative measures in the Budget 2024-2025. This forward-looking budget focuses on enhancing the ease of doing business, expanding the financial services sector, promoting sustainable practices, and boosting key industries like tourism and ICT. Blue Azurite gives you an overview of these strategic reforms designed to transition Mauritius into a MUR 1 trillion economy by 2030. Streamlining business operations Central to the budget is a series of initiatives aimed at simplifying business operations in Mauritius. Recognizing the pivotal role of efficiency in economic growth, the government has set forth plans to significantly reduce the processing time for business permits and licenses. This includes a commitment to halve the turnaround time for all business-related applications, ensuring that licenses and permits are processed within 10 working days, provided all requirements are met. Additionally, the budget introduces reforms to the Occupational Permit (OP) system to make it more attractive for foreign professionals. The salary threshold for OPs has been lowered from Rs 30,000 to Rs 22,500, and a new 3-month temporary OP is now available for professionals with over 10 years of experience, facilitating easier access to the Mauritian job market. Moreover, the expansion of foreign labor quotas and the extension of the duration of stay for certain sectors aim to attract a wider pool of international talent, addressing local skills shortages and driving further economic activity. Reinforcing the financial services sector The financial services sector receives a robust enhancement with the introduction of a 10-year expert OP specifically designed to attract foreign talent in areas such as wealth management, family offices, and virtual assets. This is complemented by strategic regulatory reforms intended to strengthen the financial landscape. Notable among these is the strengthening of the operational independence of the Central Bank and the development of a framework for the secondary trading of government bonds on the Stock Exchange of Mauritius (SEM). Furthermore, the Financial Services Commission (FSC) is set to increase processing and annual fees, and amendments will be made to relevant acts to incorporate fees for post-licensing processes. The amendments to the National Payment Systems (NPS) Act to better align payment instruments with virtual assets signal Mauritius’s intent to stay at the forefront of financial technology innovations. Advancing ICT and Entrepreneurship Recognizing the critical role of technology and innovation in contemporary economies, the budget introduces significant incentives for the ICT sector. These include a 25% refund under the ‘Small Business Digital Champion Scheme’ for investments of at least MUR 500,000 in new technologies and equipment. Additionally, a 90% refund on training in artificial intelligence aims to bolster the country’s technological skill base. Support for small and medium enterprises (SMEs) and entrepreneurs is also strengthened, with measures such as salary compensation up to MUR 2,000, a 10% rental rebate from the Development Bank of Mauritius, and the writing off of loans over 20 years by June 2025. These initiatives provide a nurturing environment for local businesses, fostering innovation and driving economic diversity. Boosting the tourism sector Tourism, a vital component of Mauritius’s economy, benefits from several strategic initiatives aimed at enhancing its global competitiveness. The introduction of the Tourism Development Bill and a streamlined licensing framework are set to simplify operations and spur growth in this sector. A significant increase of 20% in the budget for promotion and destination marketing by the Mauritius Tourism Promotion Authority underscores a commitment to attracting more visitors to the island. Furthermore, infrastructure developments, such as the new runway at Plaine Corail, are expected to enhance connectivity and support tourism in Rodrigues. The implementation of e-Gate and e-Passport controls at borders will improve the travel experience, while ambitious goals to position Mauritius as a Green-Certified Destination by 2030 highlight the country’s commitment to sustainable tourism practices. Addressing climate change The introduction of a Corporate Climate Responsibility Levy of 2% on profits for companies with turnovers exceeding MUR 50 million exemplifies Mauritius’s proactive stance on environmental sustainability. This levy will fund projects aimed at combating coastal erosion and promoting a circular economy, integrating environmental responsibility into the corporate sector. Summing up The Mauritius Budget 2024-2025 is a comprehensive blueprint designed to enhance the country’s attractiveness as an investment destination. By streamlining business processes, strengthening the financial sector, supporting technological advancement, and embracing sustainable practices, Mauritius is not just inviting foreign investment but is also paving the way for sustainable economic growth and development. This holistic approach ensures that Mauritius remains competitive on the global stage, ready to welcome investors and professionals from around the world to explore new opportunities in this dynamic market. For more information on how you can benefit from these changes as a foreign investor in Mauritius, contact Blue Azurite now.
Tax reforms in Mauritius: A comprehensive guide for foreign investors
The Mauritius Budget for the fiscal year 2024-2025 heralds significant tax reforms aimed at nurturing a robust environment for foreign investors. These changes are strategically implemented to boost economic resilience, drive sustainable development, and align with global regulatory standards. Blue Azurite gives you a detailed overview of the key tax amendments and their implications for foreign investors considering Mauritius as a business destination. Corporate tax reforms Introduction of the Corporate Climate Responsibility (CCR) Levy A pioneering addition to the tax structure is the Corporate Climate Responsibility (CCR) Levy, which mandates a 2% levy on the profits of companies. This levy targets enhancing environmental sustainability but exempts companies with annual turnovers below 50 million Mauritian rupees. The revenue generated from this levy will fund initiatives to protect and restore Mauritius’ natural ecosystems and tackle climate change challenges. Revisions to the Partial Exemption Regime (PER) The Partial Exemption Regime (PER) has been modified to include: Adjustments for specific sectors Significant adjustments have been made for the medical, biotechnology, and pharmaceutical sectors. Income derived from intellectual property assets by companies in these industries will now be taxed at 15%, a substantial increase from the earlier rate of 3%. This adjustment is intended to conform to international taxation standards. Enhanced tax incentives for innovation and social contributions Expansive tax exemptions The government is committed to providing continuous support for digital and infrastructural innovation through the following measures: Additional deductions and credits Boosts for manufacturing and creative industries Incentives for Manufacturers An investment tax credit of 15% over three years will now include expenditures on AI and patents, recognizing these as critical components of modern manufacturing. Furthermore, recycling processes have been classified under manufacturing activities, making them eligible for existing manufacturing incentives. Expansion of the Premium Investor Certificate (PIC) The PIC has been extended to encourage private investments in the creative industry, covering new sectors such as concert venues and theaters. This move aims to stimulate the cultural sector, creating a more vibrant local economy. Reforms to the Freeport Act and VAT policies Freeport Act changes The amendments to the Freeport Act allow a company to hold both a Global Business Licence and a Freeport certificate, although such entities will not qualify for the tax holidays previously available to Freeport operators. VAT adjustments Enhancements to VAT (Value Added Tax) regulations include: Support for Green Initiatives The Mauritian government extends a 10% refund (capped at MUR 200,000) on the importation value of electric cars and goods vehicles until June 2025, promoting the adoption of environmentally friendly transportation options. Conclusion Overall, the Mauritius Budget 2024-2025 introduces transformative tax reforms that cater extensively to foreign investors. By aligning its tax policies with global standards and promoting sectors like technology, environmental sustainability, and the arts, the country is reinforcing its position as an attractive and progressive investment hub. These strategic changes promise to enhance the country’s economic landscape, making it an even more appealing destination for international business operations. If you’re looking to start a new business venture in Mauritius, learn how these reforms will impact your project by contacting Blue Azurite. Our team of experts is here to guide you through the procedures to make your business project a success.
Essential steps for starting a business in Mauritius
Starting a business in Mauritius might look pretty straightforward, but in reality, it requires careful planning and adherence to legal procedures, especially if you are a foreign investor. As a tropical island nation in the Indian Ocean, Mauritius is world-renowned for its business-friendly environment, making it an attractive destination for foreign business people, especially entrepreneurs. To help you out, Blue Azurite outlines the key steps to establish your business in Mauritius. Elaborate your business Idea and do a market research Before diving into the formalities relating to starting a business in Mauritius, it is essential to have a clear business idea and conduct thorough market research. This is a crucial step for better understanding the demand for your product or service, identifying your target market, and assessing the competition will lay the foundation for a successful venture. Remember that Mauritius is a diverse market with a mix of local and international influences. So it’s important to consider factors such as cultural preferences, economic trends, and emerging consumer behaviors, among others. Given that the island has a competitive business landscape, it is also recommended that you conduct a comprehensive analysis of existing businesses in your industry in Mauritius to identify their strengths, weaknesses, and market share. This will help you differentiate your business and develop strategies to stand out in the market. Define a business plan Having a comprehensive business plan will help you outline the goals, strategies, and operations of your new business. In fact, it will serve as a roadmap, guiding you through the various stages of starting and managing your venture. Overall, the business plan should comprise a concise overview of the business, highlighting its mission, vision, and key objectives, as well as detailed information about the nature of the business, its products or services, target market, and unique selling propositions. This section helps readers understand the core aspects of the business. Following a thorough market analysis of the industry and market you are targeting, your business plan will also give an overview of the organization and management of the structure, the products or services you will provide, etc. Select the appropriate legal structure Selecting the appropriate legal structure for your business is pivotal. Options range from sole proprietorships and partnerships to limited liability companies (LLCs) and corporations. Each structure has distinct advantages and implications for taxation, liability, and management. For example, sole proprietorships and partnerships offer simplicity but expose owners to personal liability. LLCs provide limited liability and flexible management but may have constraints on raising capital. Corporations offer robust liability protection and capital-raising capabilities but involve complex structures and potential double taxation. Your decision-making considerations include your risk tolerance, growth plans, and management preferences. If limiting personal liability is paramount, LLCs or corporations may be preferable. However, make sure to assess the tax implications, with LLCs and S Corporations offering pass-through taxation. Reflect on your management structure preferences and how much capital your business may require. Company name reservation After deciding on a business name, it’s crucial to verify its availability and secure it by registering with the Corporate and Business Registration Department. This step ensures legal protection for your business name and contributes to building a strong brand identity. A unique and distinctive business name not only enhances your brand’s visibility but also sets your business apart in the competitive market. Company registration Thereafter, you are required to register your business with the Corporate and Business Registration Department by producing the necessary documentation, including your comprehensive business plan and relevant application forms. This step ensures the formalization of your business entity, making it a recognized and legitimate entity in the eyes of the law. It will also enable you to access various benefits associated with legal recognition along with fulfilling other regulatory obligations, such as obtaining necessary licenses and permits. Tax registration When legally starting a business in Mauritius, you also have to acquire a Tax Identification Number (TIN) from the Mauritius Revenue Authority (MRA). This unique identifier is essential for engaging in tax-related transactions and maintaining compliance with Mauritius’ tax laws. Registering with the MRA ensures that your business is recognized by the tax authorities, allowing for the accurate reporting and fulfillment of tax obligations. Opening a business bank account Opening a business bank account is essential for better managing your finances and conducting transactions within a safe framework. Choose a reputable local bank in Mauritius and gather all the required documentation to initiate the account opening process. Keep in mind that opening a business bank account separates your personal and business finances, which is a good start for foreign entrepreneurs engaging in a new venture. Employer registration If you plan to grow your business locally and hire employees, you will have to register as an employer with the Mauritius Revenue Authority (MRA) and the National Pension Fund (NPF). Registering as an employer with the MRA establishes your business’s legal standing in terms of taxation and employee-related obligations. This registration allows you to fulfill your responsibilities regarding income tax, national insurance contributions, and other employment-related taxes. Registering with the National Pension Fund (NPF) aligns your business with mandatory pension contributions for your employees. Obtain relevant business licenses and permits Depending on the industry you are targeting and the type of activity you are indulging in, you might need to obtain specific licenses and permits to ensure business compliance. It is, therefore, crucial to thoroughly investigate the regulatory landscape relevant to your industry and secure the necessary clearances. This process may involve engaging with industry-specific regulatory bodies to ensure full compliance. Other crucial steps To successfully run a company in Mauritius, you also have to comply with the following requirements, depending on the type and scope of business: The bottom line As you might have understood, starting a business in Mauritius involves a series of well-defined steps, from conceptualizing your business idea to navigating legal and regulatory requirements. It is, therefore, important to seek professional advice, stay informed about regulatory changes, and remain proactive
Cultural and social aspects to consider when investing in Mauritius
Famous for its economic, political and social stability, as well as its business-friendly regulatory framework and transparency, Mauritius has been attracting many foreign investors over the past years. However, considering the island’s rainbow population, there are many cultural and social aspects you should be aware of when starting a business in Mauritius. Blue Azurite is here to enlighten you. For a business to thrive in Mauritius, it is, of course, essential for investors to be compliant with all the relevant laws and regulations, including immigration requirements, taxation, business licensing, etc. But if you want to make an impact on the local population, it is equally important to be aware and respectful of local sensibilities. Respect for cultural diversity Mauritius is known to be a melting pot of cultures, with influences from all over the world, including Africa, Asia, and Europe, among others. The population embodies a tapestry of languages, traditions and practices, making it a uniquely harmonious society. As a foreign investor, you are expected to respect the island’s multiculturalism for various reasons. For instance, this will help you gain credibility among the local community, thus helping you build long-term and lasting relationships. Understanding the local business dynamics will likely facilitate communication with your business’ local partners, as well as employees and customers. Embracing the island’s cultural diversity will, therefore, demonstrate your commitment to promoting ethical business practices. Another way to do that is by building a team that reflects diversity and inclusion within your business. Language barriers While English is the official business and administrative language, other languages, such as French and Creole, the national language, are widely spoken by the population. Most business transactions are conducted in English, but the other two languages are more widespread in everyday interactions, so making an effort to learn the local languages as a foreign investor will go a long way. Although you can be assisted by a translator when conducting business in Mauritius, knowing the language ensures clear and effective communication among teams and local partners. It also helps to build stronger relationships and establish rapport and trust with your customers. Networking and socialization Like in many countries, personal relationships play a significant role in the Mauritian business culture. When starting a business in Mauritius as a foreign investor, you should be open to networking and socializing beyond business hours. For instance, be ready to attend local networking events, as well as dinners, gatherings and festivals where you could be invited. This shows your commitment to integrating the local society as a foreign investor and, at the same time, helps you understand cultural nuances and practices you might come across when doing business in Mauritius. This way, you will recognize and address your partners’ and customers’ needs and aspirations. Local business etiquette Knowing the local business etiquette is another way to pave your way through the Mauritian business ecosystem. And it all starts with proper greetings – Mauritians appreciate formal greetings, such as Good morning or Good afternoon, followed by a firm handshake. Remember to address individuals, whether your business partners or customers, by their titles and surnames, for example, Mr., Mrs., or Dr. – reflecting professionalism in your interactions. Pay particular attention to the professional dress code, especially for business meetings, where both men and women wear formal business attire. Casual attire is more acceptable in informal settings, but you can also opt for business casual attire, depending on the context. Another crucial aspect of the Mauritian business culture is punctuality – you are expected to arrive a few minutes early for business meetings. However, business negotiations might be slower compared to what you are used to, so be patient. Religious sensitivity Since Mauritius is home to a multicultural society, foreign investors should have religious sensitivity. Hinduism, Christianity, Islam, and Buddhism are the main religions in Mauritius, with various holidays, festivals and religious customs all year round, each with their own set of traditions and beliefs. Some examples are Maha Shivaratri or Diwali for Hindus, Easter or Christmas for Christians, Eid al-Fitr for Muslims, etc., so avoid scheduling meetings during these periods. Keep an eye on the local calendar to avoid inconveniences for your partners, employees and customers. As a foreign investor, you might sometimes be invited to attend such events, so pay attention to any dress codes or guidelines that might be conveyed to you. You should also consider extending greetings to your collaborators and customers during these periods, which shows respect and acknowledgment of their traditions. The importance of work-life balance Mauritians are a highly family-oriented society, which might be different from what you are used to. It’s therefore important for a foreign investor to give sufficient consideration to work-life balance. For example, Mauritian workers are entitled to a certain number of paid annual and sick leave besides official public holidays throughout the year. While some business sectors still operate on public holidays, many workers also prefer to take time off to spend with their loved ones. Mauritians also prioritize social and family commitments, and this may sometimes reflect in the scheduling or rescheduling of business meetings or other events. Foreign investors are, therefore, expected to be flexible in their approach. Moreover, it’s not the norm to engage in business discussions and email beyond typical office hours unless specifically mentioned. Conclusion Understanding these different aspects of the Mauritian society is essential when conducting market research. This will help you better understand consumer preferences and business trends and adapt your strategy to succeed in this diverse and dynamic marketplace. Blue Azurite is here to guide you throughout the entire process of engaging in a new business venture in Mauritius. Our team of experts will provide you with all the necessary information, from setting up your business project to understanding the subtleties of doing business in Mauritius. Get in touch with us now.
Why foreign investors should tap into Mauritius’ innovation and technology sector
Mauritius’ innovation and technology sector has evolved considerably over the past decade, gaining in attractivity with foreign investors. This island nation is indeed known for its huge potential beyond its heavenly beaches and vibrant cultural scene. The government has introduced a series of incentives for investors seeking new ventures in a dynamic business landscape. Let’s delve into the benefits of investing in Mauritius’s innovation and technology sector. Mauritius can boast a dynamic and developing startup system with opportunities in various fields. In fact, pushing for economic diversification, the country is keen on attracting foreign investors who can contribute to the growth of the technology sector. This includes opportunities and incentives for foreign entrepreneurs who are in the early stages of their innovative business ventures. Investment opportunities in the Mauritian innovation and technology sector Below are some of the most promising fields for innovation and technological investment in Mauritius. Fintech and Digital banking This is one of the most flourishing areas in Mauritius’ innovation and technology sector due to the growing need for efficient financial services, such as digital payment solutions, mobile banking apps, blockchain-based services, and peer-to-peer lending platforms, among others. E-commerce and Online marketplaces Thanks to the booming e-commerce sector, there is a growing demand for professionals who can provide efficient solutions for marketplaces, connecting local and global businesses and customers while contributing to economic growth and job creation. Cybersecurity and Data privacy Cybersecurity and data privacy have become a top priority in Mauritius as anywhere else in the world. Foreign investors with know-how in this sector can explore opportunities available in terms of providing solutions for data protection and threat detection while ensuring privacy compliance. Smart Cities To ensure sustainable development, Mauritius has embarked on an ambitious project consisting of the creation of Smart Cities. The current Smart Cities are Ebene Cybercity, which is an integrated ICT and business services centre hosting branches of companies from around the world, and Côte d’Or Smart City, which is in development. These Smart Cities aim to offer foreign investors a modern and efficient infrastructure in a conducive business environment, along with high-speed connectivity. Other similar projects to be considered by foreign investors are the Beau Plan Smart City, Moka Smart City, Mon Choisy Smart City, etc., where further development is expected. E-Government and Digital services Digitization has become a top priority for the Mauritian government over the past years, which means that opportunities exist for foreign investors in areas like e-government services, digital identity solutions, as well as urban planning, energy efficiency, waste reduction and traffic management, among others. Foreign investors can thus actively contribute to making Mauritius a sustainable nation. Other prospective sectors Foreign investors can also tap into opportunities in various other sectors, including health tech and telemedicine, which have been facing a growing demand since the COVID-19 pandemic, agricultural technology, renewable energy, etc. Besides, the past few years have witnessed an increasing demand for online learning and remote education solutions, too. Incentives available for foreign investors in the technology and innovation sector To attract foreign investors in the innovation and technology sectors, Mauritius has implemented a series of incentives in the past few years. For instance, they can benefit from low corporate tax rates by starting their business venture in Mauritius. Depending on their activity, eligible tech companies can also benefit from tax holidays. Moreover, some technology-related equipment and components might be exempt from customs duties and taxes. Let’s not forget that Mauritius has signed Double Taxation Avoidance Agreements (DTAs) with numerous countries, which means that foreign investors can avoid double taxation on their income and dividends. By investing in Mauritius, foreign entrepreneurs can also benefit from access to a broader regional market and free trade agreements, such as the African Continental Free Trade Area (AfCFTA), which means more development and growth opportunities. Another benefit of investing in Mauritius’ technology and innovation sector is access to government grants and venture capital funding, depending on the nature of the investment project. Since Mauritius is laying emphasis on Research and Development (R&D), incentives such as tax credits are also available. Overall, Mauritius has a conducive business environment with streamlined business registration and licensing procedures, making it easier for foreign investors to start their new ventures. Still, it’s important to get expert advice and help for a smooth start. Blue Azurite is here to help you with the most up-to-date information regarding business opportunities and requirements to be met when investing in Mauritius and the know-how of its team of experts. Get in touch with us now!
Investing in Mauritius: Opportunities in Special Economic Zones
A picturesque island nation nestled in the Indian Ocean, a gateway to Africa and Asia, Mauritius is a particularly attractive destination for foreign investors seeking new ventures. Special Economic Zones (SEZs) are one such area they should capitalize on, not only to foster growth but also to benefit from a range of incentives and benefits. Let us explore the reasons why Mauritius’ SEZs are a good option for investors. If you are an entrepreneur seeking new market frontiers, an established business looking to expand, or an investor seeking attractive returns, Mauritius’ SEZs are a good place to get started. With a strong focus on growth and innovation and a strategic foothold in regional and international markets, Mauritius has successfully attracted diverse industries from around the globe in the past decades. But first things first! What does it entail? What is a Special Economic Zone? By definition, a Special Economic Zone (SEZ) is a designated geographical area that offers special economic regulations, incentives, and infrastructure to attract domestic and foreign investments. Mauritius’ SEZs have been established with the aim of promoting industrialization, economic diversification, job creation, and boosting overall economic growth. It’s worth noting that they operate under a distinct regulatory framework separate from Mauritius’ general economic laws and regulations. This is why businesses operating within SEZs are granted certain exemptions and benefits. Some of the incentives and benefits provided by SEZs to foreign investors include tax breaks, customs duty exemptions, streamlined administrative procedures and simplified regulations. Companies that intend to hire locally also benefit from relaxed labor laws. Mauritius’ SEZs can boast a developed and modern infrastructure, including industrial parks, utilities, and other supporting facilities, designed to meet the specific needs of businesses operating within the zone and enhance their operational efficiency. SEZs usually focus on specific industries or sectors, such as manufacturing, technology, logistics, research and development, tourism, and financial services, in order to promote specialization and create clusters of related businesses. Moreover, through preferential trade agreements with other regions, they can facilitate market access for foreign investors. This means that you will be able to reach broader markets more efficiently. What are Mauritius’ Special Economic Zones? Mauritius’ Special Economic Zones have been designed to attract not only domestic but also foreign investments. They include the following: The Mauritius Freeport, a world-class logistics and distribution hub providing various services, such as warehousing, value-added activities, global trade facilitation, and many others. The Jin Fei Economic Trade and Cooperation Zone, endowed with modern infrastructure and focusing on industries such as light manufacturing, high-tech industries, and logistics. The Medine Economic Zone, which supports and promotes industries such as light manufacturing, agro-processing, and technology-driven sectors. The Mont Choisy Smart City, a mixed-use development that lays emphasis on innovation, sustainability, and quality of life through a range of economic activities, including knowledge-intensive industries, financial services, and high-value tourism. The Côte d’Or Smart City, a rather recentdevelopment focusing on knowledge-intensive and creative industries, technology, and innovation. What are the benefits of investing in Mauritius’ Special Economic Zones? By choosing Mauritius’ Special Economic Zones (SEZs), foreign investors are entitled to a range of benefits, particularly in terms of taxes. Indeed, companies set up in a Special Economic Zone are eligible for a flat 3% corporate tax rate for their first 8 years of operation. Thereafter, they are subjected to a 15% tax rate. What’s more, companies operating in these zones are exempt from duty taxes when importing raw materials, equipment and machinery. The exportation of finished goods and services is also exempt from export taxes and customs duties. Another significant advantage of investing in Mauritius’ SEZ is the streamlined red tape, which makes it easier for the setting up of businesses and the start of operations. In addition, the Mauritian intellectual property laws ensure that foreign businesses enjoy a secure environment for their trademarks, innovation and copyrights. Besides, foreign companies operating within the SEZ framework can access various services, including support for business development, incubation centers, as well as training and development programs. Foreign investors can also benefit from Mauritius’ preferential trade agreements, especially within the African market, which allows for expanding their opportunities and customer base. As a reminder, the island’s strategic location provides easier access to dynamic markets not only in the African region but also in Asia and the Middle East. Of course, conditions to be metand procedures, as well as benefits, will likely vary depending on the investment project and the chosen SEZ. To get the most up-to-date information, get in touch with Blue Azurite now. Our team of experts will assist you on every step, from choosing your SEZ to building up your investment project.
Mauritius’ role in transforming Africa through private capital
Over the past decade, Mauritius has proved its significant role in transforming Africa through the mobilization of private capital. Thanks to its investor-friendly environment, financial expertise, and strategic positioning, the island plays a pivotal role in attracting foreign investments and channeling funds into transformative projects across the African continent. Here’s how Mauritius can contribute to facilitating private capital transformation in Africa. Infrastructure Development through investment As a major financial hub in the region, Mauritius has the potential to attract private capital from investors around the world. With its strong financial institutions, regulatory framework, and expertise in project finance, Mauritius can play a crucial role in facilitating investment in infrastructure projects across Africa, such as the construction of roads, railways, ports, airports, energy facilities, and telecommunications networks, among others. Such investments are likely to improve connectivity within and between African countries and the rest of the world while enhancing trade, stimulating economic growth and unlocking the potential for sustainable development in Africa. Investment facilitation and promotion Mauritius’ conducive environment for foreign direct investment (FDI) can leverage investments in Africa. The country boasts a stable political climate, a well-established legal framework, as well as investor-friendly policies that make it an attractive destination for investors from around the world. Mauritius actively showcases investment opportunities in Africa, encouraging capital flows and supporting transformative projects through various channels. Investment vehicles and structures The country’s legal framework allows for the establishment of investment funds, such as private equity funds, venture capital funds, and infrastructure funds. These investment vehicles provide a structured and regulated platform for pooling capital and investing in transformative projects across Africa. Investors are likely to benefit from the flexibility, transparency, and tax efficiency offered by these investment structures. Public-Private Partnerships (PPPs) Mauritius has the ability to play a pivotal role in facilitating public-private partnerships between African governments and private investors. By collaborating with these governments, Mauritius can help create an enabling environment for private capital to flow into a wide range of sectors, including healthcare, education, energy, telecommunications, logistics, transportation and tourism. PPPs can leverage the efficiency of the private sector while addressing the social and developmental needs of African countries. A center for venture capital and entrepreneurship Mauritius has the potential to be a center for venture capital, attracting local and international investors looking to fund innovative startups across Africa by providing access to capital, mentorship, and a supportive business ecosystem. This can be another step towards the development of new industries, products, and services, generating employment opportunities and driving economic diversification across the African continent. Expertise in Financial services Mauritius can boast its robust and well-regulated financial sector with commendable expertise in financial services, through which it can provide investment banking services to African countries. This includes support to investors in navigating regulatory complexities, risk management, structuring investment, etc. The country can indeed support the growth and expansion of African businesses by assisting in mergers and acquisitions, facilitating capital raising through initial public offerings (IPOs) and private placements, and offering financial advisory services. This would strengthen their competitiveness and attract further private capital into Africa. Fintech Innovation Over the past years, Mauritius has embraced fintech innovation, positioning itself as a pioneer in Africa in leveraging technology for financial services. The Mauritian regulatory sandbox framework allows for experimentation and development of innovative fintech solutions that facilitate access to private capital. Fintech platforms in Mauritius enable crowdfunding, peer-to-peer lending, digital payment solutions and other innovative financing mechanisms. These provide alternative financing channels for African businesses and projects. Double Taxation Avoidance Agreements (DTAAs) Let’s not forget that Mauritius has signed several Double Taxation Avoidance Agreements (DTAAs) with African countries. These agreements are intended to eliminate or minimize double taxation and promote investment flows to the continent. Thanks to a range of tax benefits and incentives, foreign investors are encouraged to use Mauritius as a jurisdiction for structuring their investments in Africa. Transfer of knowledge and skills Mauritius can promote knowledge and skills transfer within Africa thanks to its various higher education institutions and expertise in training. The country also promotes capacity-building initiatives to enhance private capital investment in Africa. It’s worth noting that Mauritius regularly hosts international conferences, forums, and workshops, bringing together investors, policymakers, and industry experts from around the world. These platforms facilitate dialogue, exchange of best practices, and the sharing of experiences, fostering collaboration and strengthening understanding of investment opportunities in Africa. In fact, Mauritius actively supports training programs and educational initiatives aimed at building local expertise and human capital development in Africa. In short, Mauritius can play a significant role in transforming Africa through private capital. If you are a foreign investor seeking a new venture in Africa, feel free to get in touch with us. Our team of experts will be delighted to assist you in exploring the world of opportunities and making your African investment project a success.
Why Mauritius is the ideal destination for permanent residency by investment
As more and more European countries, such as Portugal, Spain and Ireland, abolish their residency and citizenship by investment programs, island States stand a lot to benefit. Mauritius is one of those islands where permanent residency by investment represents a wide range of benefits for eligible candidates. Let’s explore the available investment options for obtaining permanent residency in Mauritius. It’s worth noting that permanent residency is available to investors, independent entrepreneurs, professionals, as well as retirees who wish to live in Mauritius in the long term. This residence permit is valid for 20 years and is even accessible to the applicant’s family members. Besides, the permanent residence permit can be renewed for 20 additional years. Who is eligible for permanent residency through investment in Mauritius? Foreign Investors seeking permanent residency in Mauritius have to meet a set of requirements. First, they should have an annual turnover of Rs 15 million or a total of Rs 45 million over three consecutive years preceding the application for permanent residence. Foreigners who have invested at least 375,000 USD in one of the following sectors are also eligible for the 20-year residence permit: agribusiness, audiovisual, film and communication, banking, construction, education, energy products focused on sustainability, financial services, fishing and marine resources, freeport, information technology, infrastructure, insurance, leisure, manufacturing, marina development, tourism, warehousing, and initial public offerings. Since the government significantly encourages foreign direct investment (FDI) and provides incentives and support for investors, investing in a local business or establishing a new venture in Mauritius can also lead to permanent residency. Foreign investors have to commit to a set of criteria established by relevant authorities, such as job creation and contributing to the country’s economic development. Permanent residency through real estate investment Real estate investment is one of the most common routes to obtaining permanent residency in Mauritius. Foreign investors can qualify for a residence permit by acquiring property in approved real estate developments. Those who have invested at least 375,000 USD in a property in Mauritius under the RES (Real Estate Scheme), IRS (Integrated Resort Scheme), or PDS (Property Development Scheme) programs are eligible to apply for and enjoy residency as long as they remain the owners of the property in question. Permanent residency through entrepreneurship Foreign entrepreneurs who wish to settle in Mauritius for the long term can also qualify for permanent residency in Mauritius. However, they need to have an annual income of at least Rs 3 million for three consecutive years prior to the application for permanent residence. They must also be registered with the Corporate and Business Registration Department under the Business Registration Act 2002. The process for obtaining permanent residency through investment in Mauritius Besides the above mention conditions, foreign investors looking to obtain permanent residency in Mauritius have to comply with other general requirements. For example, they have to demonstrate a genuine intention of residing in Mauritius in the long run, meet certain health and character requirements and provide proof of financial capacity to support themselves and their eligible dependents. Additional conditions set by the government or relevant authorities may also apply. What are the benefits of obtaining permanent residency through investment in Mauritius? Investing in Mauritius for permanent residency not only provides a secure and prosperous future but also offers access to the island’s desirable lifestyle, sound business environment, and favorable tax system. Below are some of the most sought-after benefits: Business and investment opportunities: Investing in Mauritius for permanent residency opens up a wealth of business and investment opportunities. You can actively participate in the country’s thriving economy, explore new ventures, and take advantage of favorable tax policies and incentives provided to investors. Quality of life: Mauritius is world-renowned for its exceptional quality of life thanks to its stunning landscapes, idyllic beaches, cultural diversity, and pleasant climate almost all year long. Its people’s hospitality offer a relaxed and welcoming environment. World-class healthcare: Whether you’re moving to Mauritius alone or with your family (spouse and children), you can rely on its very good health system with many modern facilities and qualified health professionals. Quality education: For those moving with children, Mauritius offers quality education through a well-developed education system at all levels. From childcare services to international schools, universities and other world-renowned higher education institutions, everything is done to help your dependent children thrive. Freedom of travel: Another benefit of acquiring permanent residency by investment in Mauritius is that it allows you to travel freely in and out of the country as many times as you want. Eligibility for citizenship: Foreign investors holding permanent residency can qualify for Mauritius citizenship under certain conditions. For instance, they must have fulfilled specific residency requirements and demonstrate a genuine commitment to the advancement of the country. In short, permanent residency by investment is an excellent opportunity for foreigners looking to establish a long-term presence in a beautiful and thriving nation. While the conditions for obtaining permanent residency through investment in Mauritius seem pretty straightforward, and the benefits are obvious, it’s recommended that you seek help from qualified professionals specializing in investment and immigration in Mauritius, as conditions and regulations may be subject to changes. Blue Azurite is here to help you get started with your investment plan until you settle serenely in Mauritius. For more information, get in touch with our dedicated team.
Why no inheritance tax is a good reason for investing in Mauritius
Whether you’re looking to start or develop a business or invest in property abroad, Mauritius is the ideal destination. In fact, the absence of inheritance tax makes it a great place for building up your assets. Let’s explore the implications of no inheritance tax and how foreign entrepreneurs and investors can benefit from it. What is Inheritance Tax? Inheritance tax, also referred to as estate tax or death duty, is a governmental tax imposed on the transfer of assets or wealth from a deceased individual to their beneficiaries. This tax is usually determined by the value of the inherited assets and can significantly vary between countries. In many instances, inheritance tax can impose a significant financial burden on foreigners, whether they are entrepreneurs or investors, reducing the overall amount of wealth that can be effectively passed on to future generations. The absence of Inheritance Tax in Mauritius Over the years, Mauritius has become an attractive destination for wealth preservation due to its unique advantage of not having an inheritance tax. Unlike numerous other countries, Mauritius does not impose any tax on the transfer of assets through inheritance. This advantageous feature enables individuals to smoothly transfer their wealth to their heirs or beneficiaries without incurring any tax liabilities. Consequently, Mauritius facilitates the seamless transition and preservation of wealth across generations. This is why, besides its favorable tax regime, Mauritius has gained prominence as an attractive destination for wealth preservation and succession planning. What are the benefits of no Inheritance Tax in Mauritius? A safe framework for High-Net-Worth-Individuals (HNWIs) The absence of inheritance tax makes Mauritius an attractive destination for foreign high-net-worth individuals (HNWIs) looking to safeguard and optimize their wealth management strategies. For instance, HNWIs can establish family offices or holding companies in Mauritius to consolidate and manage their assets while enjoying a range of tax benefits. Global wealth management With its global reputation as a wealth management and financial services hub, Mauritius has successfully positioned itself as an enticing destination for foreign investors and entrepreneurs. The absence of inheritance tax adds to its appeal, drawing individuals and families from across the globe who desire a secure and tax-efficient environment for their assets. Mauritius boasts a strong financial ecosystem that encompasses esteemed banks, asset management firms, and professional services providers. This comprehensive infrastructure caters to the diverse requirements of clients seeking exceptional wealth management services. Wealth preservation Mauritius presents itself as a favorable jurisdiction for foreign entrepreneurs and investors seeking to preserve and safeguard their wealth for the benefit of future generations. By implementing comprehensive estate planning strategies, including the establishment of trusts or foundations, they can ensure that their heirs receive the utmost advantage without the encumbrance of inheritance tax. Strategic succession planning Foreign investors can strategically plan the transfer of their assets to beneficiaries in Mauritius, benefiting from the absence of inheritance tax. For family businesses, this can involve the utilization of trusts, foundations, or other legal structures that offer flexibility and tax advantages. By establishing such structures, investors can minimize tax liabilities and ensure a seamless wealth transition to the next generation. Enhanced wealth mobility and global presence The lack of inheritance tax in Mauritius simplifies the movement of wealth on an international scale. Families with assets spread across different countries can utilize Mauritius as a hub for wealth management, taking advantage of its tax benefits and extensive network of double taxation avoidance agreements (DTAAs). This strategic approach enables them to optimize their global financial affairs while also minimizing tax obligations. Strategic domicile and residence planning Foreign investors may explore the option of establishing their domicile or residence in Mauritius to capitalize on its favorable tax benefits. Mauritius presents enticing residence and citizenship programs, including the Occupation Permit (OP), which can offer tax advantages for foreign entrepreneurs and investors who are keen on making the country their permanent home. Although Mauritius has emerged as a sought-after destination for global wealth management, providing individuals and families with the opportunity to secure their financial future and create a lasting impact for generations to come, it’s important to note that tax laws and regulations can be complex, and individual circumstances vary. Fortunately, Blue Azurite is here to assist you. To navigate these tax implications and successfully invest or develop your business in Mauritius, get in touch with our team.
Why are African fishing vessels losing out for not using the Mauritius EEZ
Over the past decade, Mauritius has made the blue economy one of its major pillars. This sector indeed holds a wide range of benefits for various industries, especially the fishing industry. Mauritius, being part of the African region, holds a lot of opportunities for neighbouring countries through its Exclusive Economic Zone (EEZ). Find out how African fishing vessels can benefit from it. An overview of the Mauritian EEZ Stretching over 2.3 million km², the Mauritius Exclusive Economic Zone (EEZ) is one of the largest in the world (although around 400 000 km² is jointly managed with Seychelles). The EEZ provides Mauritius with exclusive rights over fish stocks, environmental protection, the exploitation of mineral resources, and much more. Thanks to this EEZ, Mauritius enjoys an extensive maritime zone that holds a massive potential for investment and development. This is great news for foreign investors from around the world, and more specifically, those from Africa. Moreover, the development of the Ocean Economy makes it easier for sectors like fishing, seafood processing and seaport activities to grow further. Along with coastal tourism, these sectors account for no less than 10% of the country’s Gross Domestic Product (GDP). Why Mauritius? According to the Economic Development Board of Mauritius (EDB), some 30,000 vessels cross the Mauritian EEZ every year, making it a leading maritime hub for the region. In fact, the island is a signatory of international Maritime Conventions and a member of the International Maritime Organisation (IMO). Meanwhile, the Mauritius Open Registry guarantees secured and reliable registration for shipping vessels at attractive costs — which makes it profitable for African shipping vessels looking to get the most out of the resources of the Mauritian EEZ. What are the benefits of the Mauritian EEZ for African fishing vessels? As mentioned above, the opportunities are diverse and include fishing, aquaculture and seafood processing. Regarding fishing, it’s worth noting that Mauritius holds the world’s second-most significant source of tuna in diverse fishing territories, which is why it has been a key player in the exportation of canned tuna for many years. Among its leading partners are the European Union and the USA. The Mauritian government guarantees a range of benefits for fishing vessels in a safe, legal framework. For instance, African fishing vessels can obtain fishing licenses through the Ministry of Blue Economy, Marine Resources, Fisheries and Shipping. Fishing vessels are eligible for provisional permits of a duration of 3 months maximum) and permanent permits whereby vessels are permanently registered in the Mauritius Registry. What’s more, vessels registered in African countries and chartered by a Mauritian company can also be registered for the period of the charter. Another benefit of using the Mauritian EEZ is that African fishing vessels are allowed to register remotely. Besides, they have no obligation to use the Mauritius port as long as they are flying the Mauritius flag. On the other hand, regardless of their nationality, crew members of fishing vessels do not need a work permit. It’s also worth noting that an African fishing vessel can be registered by a Global Business Company (GBC) for a period of less than 12 months. For more information on how to proceed for registration, feel free to contact our team. What about tax benefits for African shipping vessels in the Mauritius EEZ? The good news is that foreign fishing vessels registered in Mauritius do not have to pay taxes on freight revenue. They are also exempt from tax on dividends received from a shipping company and from capital gains tax upon the transfer or sale of shares of a vessel. When deep sea international trade becomes the primary source of income for the fishing vessel, income tax does not apply. Crew members do not have to pay income tax either. Finally, customs and excise duties do not apply to the vessel’s different parts, such as stores, consumables, spare parts, bunkers, etc. Blue Azurite can provide all the necessary support and help you register your foreign vessel in Mauritius so that you enjoy the many benefits of the Mauritius EEZ. For more information, please contact our dedicated team and get a quote.
