Retire in Mauritius
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There are many reasons why you should opt to retire in Mauritius. To begin with, Mauritius is an island in the Indian Ocean known for its picturesque landscapes and tranquil atmosphere. Its French colonial elegance and long history as a popular vacation spot make it stand out from other options. This dramatic scenery makes life on the island pleasant and reasonably priced.
If you want to live in paradise without spending money on cruise ship, you might consider retiring in Mauritius. If you like the sound of this, I have some excellent news.
In its budget proposal for 2021/2022, the government of Mauritius started encouraging 50,000 retirees to the island nation.
The Mauritian Tourist Promotion Authority collaborates with the government in campaigning to attract these foreign investors (MTPA). There are numerous benefits that comes with investment in Mauritius as foreigner. It has promised to provide employees committed to making resources like application forms and information readily available.
Mauritius’s low tax rates, excellent quality of life, and robust economic prospects make it an appealing alternative.
Here are other advantages:
- No real estate wealth tax
- No real estate or personal property taxes
- A property’s sales profit is not subject to federal income tax.
- There is no inheritance tax.
- Tax rate of 15% on all investment and personal income
Acquiring residency in Mauritius as a non-citizen retiree
Noncitizen retirees can apply for residency through the purchase of property. They can opt for one of several property schemes or filing for a residence permit as a retiree.
Residence Permit for Retired Noncitizens
As a noncitizen in retirement, the retiree is eligible to seek a 10-year extension of their noncitizen residence visa.
To obtain a Retired Noncitizen Residence Permit in Mauritius, an applicant must meet all of the following conditions:
- The firm does not employ them.
- They are not managers of a company
- They do not get any financial compensation from the company regarding salary, director’s fees, or other benefits.
No minimum or maximum length of time must be spent annually in Mauritius. Nonetheless, a person is considered a tax resident if they remain in the country for more than 183 days annually. The Mauritius tax year runs from 1 July to 30 June each year. Note that acquiring permanent residence in Mauritius s quite straightforward.
What Must I Do to Satisfy the Prerequisites?
Candidate must meet the following criteria and provide the necessary supporting materials to be considered:
- An applicant’s primary contact must be at least 50 years old.
- Six-month-old Certificate of Morality or Criminal Record Check
- A local bank account in Mauritius requires an initial deposit of $1500 (or currency equivalent).
- Following that, $1,500 per month, or $18,000 per year, should be wired into the local bank account.
- The applicant must provide evidence of deposit placed in the bank with an annual documentation to Economic Development Board.
Residency Through Investing in Real Estate
The Smart City Scheme Residence Permit in Mauritius
Sustainable, environmentally friendly, technologically modern, and imaginative, Smart Cities have a unique aim. It’s designed to unite commercial, residential, and recreational areas under a shared ethos of “work, live, play.” Various single-family and multi-family homes (such as villas, houses, townhouses, flats, and duplexes) are available.
A noncitizen retiree can apply for an SCS residence permit after paying more than USD 375,000 for a single residence. An equivalent of this amount in any freely accessible foreign currency is also acceptable.
The principal applicant does not need an Occupation or Operate permitted to invest and work in Mauritius. Their permission is valid for as long as they are the owners of the residential real estate.
A noncitizen can buy a serviced plot of land in a Smart City up to 2,100 square meters. However, they cannot apply for a residence permit there until the residential land development on that piece is complete.
Investing in the Hotel Scheme
By renting out available rooms and hotel chains, developers can raise capital for improvements to existing properties. They can also opt to construct brand-new hotels as well.
Suppose a noncitizen retiree wants to become a permanent resident of the country. In that case, they must spend USD 375,000 on a hotel room, suite, or property.
By leasing the unit back to the hotel developer, the IHS investor receives rental money in return. The franchise owner or anybody acting on his behalf can use and reside in the unit licensed to the hotel constructor. The stay is at no cost for up to 45 days per calendar year.
Ground Plus Two Apartments
These are condominiums with two or more stories above ground (G+) outside of approved residential schemes. Noncitizens wishing to retire in Mauritius are free to acquire such properties. This also applies to the ground level, albeit there should be a minimum of two distinct levels.
An apartment’s purchase price can’t be more than 6 million MUR or its equivalent in a more obscure foreign currency. Since the buyer will legally own the flat, they can apply for a permanent residence permit valid for ten years.
Noncitizen’s spouse and children are eligible to accompany their parent on a nonimmigrant visa. These include stepchildren and legally adopted children but they must be 24 years old or above. The relatives can thereafter petition for a residence visa as dependents for some time. However, this period cannot to exceed that of the primary permit holder.
Pros and Cons of Retiring in Mauritius
The Pros to retire in Mauritius Island
Security and safety
Let’s start by considering some of the upsides. UNODC reports that seniors in Mauritius are safer than those in South Africa. Comparatively, the level of safety in Mauritius to that of the United Kingdom is about 20 to 1.
Fair taxation compared to other nations
Retirees in South Africa or Mauritius with an annual income of around R600,000, face roughly the same rate of taxation. However, as incomes rise, tax residents of the island enjoy substantial savings due to the flat 15% percentage.
Tax residency changes from South Africa to Mauritius take about a year. Residents pay tax on local dividends, but foreign capital gains and income are only taxable when received in Mauritius. For instance, until annual profits from an overseas investment are brought back to Mauritius, they are not taxable. This is a massive boon for people whose wealth and income sources are kept in foreign countries.
Retiring in Mauritius gives Easy Connectivity
Connecting with like-minded people is a further significant benefit. Families are increasingly sending offspring to locations like the UK, Europe, and Australia. All of these major destinations, as well as many others in Africa, are within a day’s travel of Mauritius. There are numerous flights to South Africa daily. South Africans who retire in Mauritius won’t have trouble seeing their families and old colleagues.
Excellent Medical Centers
Every resident of Mauritius has access to a world-class public healthcare system that is both expanding and free of charge. There is also the option of private healthcare at comparable prices in South Africa. Both centers meet the healthcare needs of the bulk of seniors.
According to the World Health Organization, the quality of healthcare in the country is ranked #84 out of 191 worldwide. The country’s reactivity index of 5.57 places it at 56 on the list. Health-wise, Portugal is ranked 30th, Mauritius is 54th, and South Africa is ranked 133rd. This is according to the 2019 Prosperity Index compiled by the Legatum Institute.
A variety of outdoor activities and historical landmarks
Few destinations in the world can compete with Mauritius when it comes to a healthy outdoor lifestyle. Summer temperatures range between 25°C and 33°C and winter temperatures between 17°C and 25°C. Activities on land and in the sea abound on this stunning tropical island. Also, there are a lot of gyms and sports clubs for people of different skill levels.
More than that, Mauritius is an exceptional example of how different cultures can come together and coexist peacefully. Beyond the typical tourist traps, there are many hidden treasures of history, culture, art, and cuisine. Also, Mauritius is a multiple-language speaking country, and a high percentage of adults can read and write, English. It means that those who retire in Mauritius will not face issues of language barrier.
Issues to consider before retiring to Mauritius (cons)
It’s small in size
As far as countries go, Mauritius’ total landmass is only about 2,040 square kilometers. On the other hand, Kruger National Park in South Africa spans 19,485 square kilometers. To its credit, the island of Mauritius’s topography helps to generate a feeling of expansiveness. This perception makes the country seem more significant than its actual size.
Different terrain and climates are represented, including mountainous, forested, agricultural zones, and coastal areas. However, South Africa has much more to offer than only its varied landscapes and scenic views. A retiree in Mauritius, however, may find enough natural and cultural activities to keep them busy on the island.
Unfavorable seasonal temperatures
During the height of summer—December, January, and February—temperatures and humidity levels can soar. While many people envision this time of year as the perfect beach getaway, year-round beach residents may find it challenging. However, availability of modern lifestyle amenities like air conditioning in your car or house, should cover the weather issue.
Even after considering the island’s drawbacks, Mauritius is still an ideal place to spend your golden years.
Retire in Mauritius Summary
There are many reasons to retire in Mauritius. Think of a prosperous economy, peaceful country, excellent health care and comfortable living conditions. All these and much makes Mauritius a perfect spot to retire. You’ll have peace of mind, which is essential during your golden years.
How to retire in Mauritius?
You have these two options:
- Through Property Development Scheme (PDS)
- Or Retired Non-Citizen +50 years
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