Mauritius: residence through property and a genuinely simple tax system

Mauritius is one of the few jurisdictions where buying a home genuinely carries residence, and where the tax system can be described accurately in a short paragraph.

The property routes

Foreigners buy within designated schemes rather than on the open market. The principal ones are the integrated resort and real estate schemes, the property development scheme, ground plus two apartment developments, and the smart city scheme. Purchase above a defined value in a qualifying scheme carries residence for the buyer, spouse and dependants for as long as the property is held.

• Below the threshold, ownership is permitted in some schemes without residence attached.
• The permit ends with the sale — the standard condition everywhere.
• Land outside the schemes is generally not available to foreign individuals.

The other routes

• The occupation permit for investors, professionals and self-employed, combining work and residence.
• The retired non-citizen permit on evidenced transfers of funds into the country.
• Permanent residence after qualifying years on these permits, or directly on a larger investment.

The tax position

• A flat personal income tax at a low headline rate, with a higher band on larger incomes.
• No capital gains tax, no inheritance tax.
• Foreign income is taxed on a remittance-influenced basis for some categories; the detail matters and is worth advice.
• An extensive treaty network, historically built around India and Africa, which is what made the jurisdiction a financial centre.

What to weigh

It is a small island in the Indian Ocean, several hours from anywhere, with a property market entirely dependent on foreign demand within scheme boundaries. The buyer pool at exit is other foreigners under whatever the rules are then. Healthcare and schooling are adequate rather than deep, which matters for a family and for someone ageing.

Against that: political stability by regional standards, English and French both usable, a bilingual legal system, and a genuinely simple route in for a family that wants the Indian Ocean rather than the Mediterranean.