Why Mauritius is the ideal destination for investors in 2024
Mauritius stands out for its remarkable economic recovery post-pandemic challenges, underscoring economic diversification and inflation control priorities. The island nation remains attractive for foreign investments, backed by an investment-friendly environment and a steadfast commitment to international trade. Streamlined business procedures Fueled by robust growth, particularly in tourism, Mauritius not only fortifies its economic position but also aligns with sustainable development goals, fostering transparency through streamlined business procedures. Indeed, eliminating unnecessary bureaucratic hurdles has reduced the time and paperwork required for the registration process. This promotes a quicker turnaround for foreign investors seeking to establish their presence on the island. The process of obtaining necessary licenses and permits has also been streamlined to ensure a more straightforward and transparent experience, whether it’s securing industry-specific permits or complying with regulatory requirements. A competitive business climate Mauritian authorities actively strive to create a competitive and attractive investment climate, emphasizing high-quality investments. Achieving these goals involves diversifying investment opportunities and simplifying processes facilitated by the Economic Development Board (EDB). Plus, the government has implemented business-friendly laws, providing a transparent and reliable legal system that supports fair business practices and protects the rights of investors. Mauritius has also developed a robust financial services sector, including banking, insurance, and offshore financial services. The country’s well-regulated financial industry contributes to a stable economic environment, offering a range of financial solutions for businesses. Business facilitation measures To facilitate sustainable recovery, Mauritius has recently enacted various measures, such as removing the minimum turnover requirement and extending the validity period for the Occupation Permit. Noteworthy adjustments include reducing the minimum investment from US$100,000 to US$50,000 for non-citizens establishing or investing in existing companies. The minimum real estate investment for obtaining a permanent residence permit has also decreased to $375,000. Additionally, non-residents holding an Occupation Permit can now include their parents as dependents, and spouses of Occupation Permit holders no longer need a specific permit to work in Mauritius. Tax exemptions Foreign investors in Mauritius are entitled to tax exemptions and investment credits: Overall, foreign investors enjoy a robust environment, further supported by trade agreements with China, India, as well as Africa, along with double taxation avoidance treaties with several countries. Promising global rankings Mauritius holds positive rankings in several categories, such as being the freest and most business-friendly country in Africa, high in the Human Development Index and economically free. In fact, the island ranked 1st in sub-Saharan Africa and 30th globally in the Heritage Foundation Report 2023). It’s also worth noting that the country was ranked 13th out of 190 countries in 2020 for its ease of doing business. The bottom line In 2024, Mauritius will solidify its position as a favorite investment destination. With a commitment to diversification, streamlined procedures, tax benefits, and specific incentives for investors, Mauritius provides a strategic environment for foreign investors to nurture and expand their enterprises. But to benefit from all the advantages mentioned above and ensure the viability of your investment project, seeking professional advice is vital. Blue Azurite is here to guide you from deciding on your investment type to settling in Mauritius and making your business thrive. Get in touch with our team of experts to start your investment journey.
The Madoff Ponzi scheme: how can investors be protected?
If you thought that 2009 was the last time Bernie Madoff made the headlines, you were wrong. The mastermind of the world’s largest Ponzi scheme reminded us of the fragility of the financial world when his death was announced last month. The former investment banker was serving a 150-year sentence in jail for siphoning more than 40,000 people across 125 countries of their money. Being a giant in the sector and someone of repute did not stop him from turning into a fraudster, which teaches us some important lesson. A Ponzi scheme running for four decades This whole operation was a very high-scale one. It involved top celebrities like Steven Spielberg, Kevin Bacon, Sandy Koufax, Fred Wilpon and Elie Wiesel. How did it work and succeed? Bernie Madoff, the founder of Madoff Investment Securities LLC, had already built the reputation of being a wizard of the Wall Street. He boasted of credibility, financial influence, power and an offer of exclusivity. So investors did not really suspect anything about him or his scheme. How does a Ponzi scheme work? The operation mode is quite simple. Old investors’ money is siphoned off and new investors’ money is used to offer them their gains/dividends. This is exactly what Madoff did. He had not conducted a single trade for his clients for years. Millions and billions were invested by investors in a portfolio that did not even exist. During the whole process, he defrauded them of an estimated $17 billion. The Great recession sours things However, things started going wrong in 2008 when the US Capital market crashed. During the Great recession, thousands of investors were afraid of the potential collapse of the American economy and they decided to withdraw their money from the scheme. However, having siphoned off the money, Madoff did not have the funds needed to meet these demands. After that, Madoff decided to confess everything to his children, Andrew and Mark Madoff. Both of them work at the same company. However, it is believed that they are not involved in the Ponzi scheme. They alerted the authorities about the fraud and an arrest followed. Bernie Madoff confessed to the crimes and he was given a sentence of 150 years in jail. Then the news of his death hit the headline recently… A trail of despair and loss While Madoff was serving a sentence of 150 years, is this justice enough for what he did? He left behind a trail of despair and loss for his family, friends and even Palm Beach. Thousands of people’s savings and retirement plans were destroyed and a lot of his clients had to come out of retirement, return to work and even move in with friends and families, when they should have been spending the rest of their lives leisurely. In December 2010, on the second’s anniversary of his father’s arrest, Mark Madoff killed himself. Mr. Shapiro, who is one of Madoff’s first investors and friend for a long time is presumed to have lost millions because of this scheme. Nonetheless, he and his family agreed to pay $550 million to resolve claims and an additional $75 million was settled to the Department of Justice for civil forfeiture claim. Besides individuals, Palm Beach as a whole was affected by this scandal. Already, 2008 was a year of financial turmoil and Palm Beach felt the impact because it became ground zero for the scandal. Many of its islanders, such as Mr. Shapiro and Jeffry Picower, were victims of this. The actions of Bernie Madoff and the collapse of Lehman Brothers, which also took place in 2008, left a trail of financial ruin in Palm Beach. The island was propelled into the recession that was dominating the US. How can investors be protected? If this scandal has taught us one thing, it is that you cannot blindly trust an investor or a firm when it comes to money. Even the reputable Bernie Madoff was tempted. This raises the question: how can investors protect themselves? There are several measures that can be taken to ensure that your money is in safe hands. Background checks First of all, it is very important to conduct background checks. The person that you are dealing with must be licensed or registered with a firm. This means that they have the minimum credentials required to work in the industry. Another good idea is to conduct a little search on the advisor or broker’s name to see if any news about past indiscretions or lawsuits appear. If there are any issue or complaints, you will learn about these in regulatory databases. These will feature disclosures, complaints or arbitrations and it is not recommended to work with these individuals. Nonetheless, as the case of Bernie Madoff has proven, even the most reputable individual can turn rogue. That is why it is advised to conduct business in a jurisdiction where investors are protected. For instance, in Mauritius, there are laws and regulations that protect investors who are victim of fraud. As such, selecting the right financial firm to work with is crucial. Communication Whenever you are dealing with someone, you must review statement accounts regularly and, of course, ask your financial advisor f you notice something funny going on. If you do not have a satisfactory response within an appropriate time frame, then you must be on your guards. Another red flag is in the investment banker’s response itself. If while seeking answers, you cannot understand what is being said and the explanations that are being given to you are confusing you more than clarifying, then this is a bad sign. Someone very persuasive can talk you into investing into something that is not legit. That is why you should not act on a rush, think well and conduct all the necessary checks. If you have questions or you need a piece of advice, do not hesitate to get in touch with our customer support team which consists of trained and responsive agents.
Offshore banking: all you need to know to open an account!
The offshore banking sector is constantly evolving. While it used to be a luxury for the extremely wealthy a few years back, that is no longer the case. In fact, academic research has proven that the demand for offshore baking is on the rise by many and this will continue to be the case for quite some time. Why do people open these accounts? Investors opt for offshore banking because of many reasons. The main one is asset diversification. However, there are several features such as privacy and risks that must be considered. Everything you need to know about offshore banking will be explored below. Basic requirements to open an offshore bank account There are some basic requirements to fulfil before opening an account. First of all, it has become increasingly important to present your own proof of address so that financial institutions are able to confirm your domicile. This is important because they need to comply with tax obligations or to deal with issues such as OECD compliance and much more. This requirement is met by producing a utility bill that is not older than 90 days and this document must be submitted along with the usual information, such as your name, date of birth, citizenship, passport and job details, that you must provide. To make things easier, in countries like Mauritius, your physical presence is not even required to open an offshore bank account. Our agency is going to help you complete all the procedures. If you want to learn more about this, you can get in touch with one of our agents. Benefits of opening an offshore bank account There are several advantages to opening an offshore bank account. Besides from benefits that are country-specific, Luigi Wewege has advanced a few general ones, that are also very important to consider, in his recent 2020 interview. He said that they generally include “peace of mind… against political upheaval, increased personal freedom, living in the digital banking revolution, currency diversification, higher interest rates on deposits, easy access to medical care abroad…” and others. As such, you must ask yourself whether you will be able to achieve those benefits by opening an offshore bank account and make a decision after this evaluation. Where to open an offshore bank account? Deciding in which country to open an offshore bank account is very important. There are several criteria that you must consider before picking up the appropriate location. For example, you must consider The tax rate: is it a beneficial one? Banking privacy: will you be able to enjoy the privacy that is required to protect your financial assets and to keep your transactions secure? Interest rates, Treaties between the country you want to establish your offshore banking account and your country of residence and Personal circumstances. Additionally, you must also choose a country that is suitably located and prepared against global tensions. These involve volatility because of issues such as flashpoints in The Middle East and Asia, Brexit or even the US/ China Trade War.
Mauritius Africa Fintech Hub: is it for investors?
The fintech sector offers investors various opportunities, especially in Africa. However, entering such markets can be a complex task for a venture capitalist. While this industry will ensure your growth, it is not always easy to drive innovation through investment when you have to deal with local legislations and licensing issues. These can hamper tech development and consequently business and industry expansion. Nonetheless, the current era that we live in means that there is a call for businesses and governments alike to be open to tech disruption because this will improve the whole outlook for the continent. Moreover, we should not forget that tech ecosystems help ease the journey from innovation to market viable product. Advantages for investors wishing to join the MATH While investors would benefit from venturing into the fintech market, they might need some assistance or guidance. That is why joining the Mauritius Africa FinTech Hub would be a good idea. The following are some advantages of being part of the organisation: Having access to a network of pan-African, Mauritian governments, corporates, FSPs, investors, fintech businesses, tech experts, entrepreneurs, fintech businesses and SMEs that is already very well established. Being introduced to vetted tech innovators, SMEs and entrepreneurs. Businesses that are part of the hub can get access to licencing support and may even have their applications fast-tracked. This means that investing within the hub will allow your venture to have an increased likelihood of getting its licensing approved. Sharing and benefiting from the resources and knowledge of other businesses and legal and tech experts that form part of the Hub. Attending roundtable events with regulatory bodies and help shape future fintech regulation. Mauritius has a number of investment agreements in place with African states. This means that these can act as a buffer on behalf of those looking to enter emerging markets or invest in African fintech businesses. Enjoying facilitated free workshops with government representatives, regulators and other decision-makers, providing an opportunity to shape future regulations. Enjoying free or subsidised office space in Mauritius’s city centre. Why work with a fintech hub based in Mauritius? Mauritius is the ideal location for a fintech hub because of several reasons besides its proximity to Africa, of course. For instance, it has a strong reputation for safety thanks to its several Investment Promotion and Protection Agreements (IPPAs) established with a number of African states. As such, it can act as a protective barrier between local African governments and businesses looking to enter new markets, and is a known International Financial Centre which is widely known for its safety. The Mauritian business world is popular for its corporate governance culture as well as it’s stability. As such, it is the ideal sandbox environment. Several fintech businesses offering their products in Africa have set up operations in Mauritius. Thus, a template already exists for investors. This means that there is a pool of knowledge, networks and experience for them to draw from.
Mauritius: the property hot spot in the African continent
For many, Mauritius may just be a small country of only 1.2 million people. However, the island is becoming increasing popular among foreign investors. It is recognised by experts in the offshore sector as one of the leading African markets for business-owners. The country has recently seen a sudden rise in interest from expatriates. This is due to an amendment in the laws related to the purchase of property on the island. The change sets a low threshold for obtaining residency on the island. The minimum amount is now at $500,000. Following this, the government has reported a significant increase in the number of foreign investors purchasing local properties, in particular along the country’s coastline. Why set up your business and reside in Mauritius? By several measures, Mauritius is already the leading African economy. According to a report by New World Wealth, it has the highest GDP per capita of $25,700. Moreover, The World Economic Forum ranks the island as the most competitive market in Africa. Besides being one of the continent’s fastest-growing economies, the country is also at the 25th position internationally on the World Bank’s table for ease of doing business. An expert from a local property agency advanced that Mauritius is an “idyllic Indian Ocean Island destination, close to the continent and is arguably the top offshore property attraction”. When opting for the island, foreign investors will be able to benefit from a perfect living environment, from the advantages offered by its financial regime and from a dynamic bi-lingual workforce. The government has recently changed the property legislation and is working on an aggressive economic and investment strategy to establish itself as the new luxury destination in the African continent. Thanks to the new laws, it is easier for non-Mauritian citizens to obtain residency permits. They are eligible for these when purchasing a property under the government’s Property Development Scheme (PDS) with a minimum investment value of $500,000. The country has no Capital Gains Tax, dividends or inheritance tax and a universal tax rate of 15%. According to the chief executive officer of residency and citizenship at an investment facilitator firm, foreign investors can get into the market for as little as $176,000 (this is approximately 6m Mauritian rupees), excluding taxes and legal fees, for a beach property that would be popular for rentals. For a commercial office, the amount quite less. It is at around R2.3m. Nonetheless, if they want to obtain permanent residency, higher levels of investment would be required. Permanent residency permits For details about Permanent residency permits, you can have a look at our previous articles. With so many benefits for foreign investors, both on professional and personal levels, it is not a surprise that investors are becoming increasingly interested in Mauritius and that it has become the new property hot spot in the African continent Feel free to get in touch with us for any piece of advice regarding how to set up a company in Mauritius or how to apply and obtain any of the above-mentioned permits.
