Why Mauritius as residence of choice for HNWI?

Over the past years, Mauritius has established itself as a very much sought after investment destination not only for Russians, but also for Investors from the West, allowing them to qualify for long-term residence via the acquisition real estate no less than USD 375,000.

Whilst Mauritius as a destination most likely triggers somewhat Holiday associations, it is important to understand the unique proposition Mauritius has to offer for investors and residents, some if which might not be known that much.

In 2021, the Mauritius-China Free Trade Agreement (MCFTA) came into effect and is both attractive and relevant due to several critical factors:

1. Legal Framework of the MCFTA: Effective from January 2021, the MCFTA establishes a legally binding agreement that enhances trade and investment between the two countries. This agreement is significant as it is China's first FTA with an African nation, indicating a strong legal and diplomatic commitment to economic cooperation. The MCFTA provides a structured legal framework for duty-free access and service sector liberalization, which is crucial for investors seeking a predictable and stable business environment.
2. Strategic Positioning in International Law: Mauritius’ strategic geographic location offers unique advantages in international trade and investment. From a legal standpoint, this positioning allows Mauritius to act as a conduit for trade and investment between Asia and Africa, leveraging its network of bilateral and multilateral agreements. The country's adherence to international law norms, including those pertaining to trade and investment, further bolsters its appeal as a long-term investment destination.
3. Political and Economic Stability: The legal environment in Mauritius is characterized by political stability and a robust regulatory framework. This stability is critical for long-term investment decisions, providing a legally predictable environment. The country's legal system, based on both civil law and common law, offers a comprehensive framework for protecting investments and resolving disputes, a key consideration for investors.
4. Investor-Friendly Legal Policies: Mauritius has implemented a range of legal measures to attract foreign investment. These include favourable tax policies, such as a low corporate tax rate and absence of capital gains tax, and legal protections against expropriation. The absence of foreign exchange controls facilitates the movement of capital, enhancing the country’s attractiveness as an investment hub.
5. Quality of Life and Legal Infrastructure: The high standard of living in Mauritius is backed by a legal infrastructure that supports a high quality of health care, education, and property rights. The legal system ensures that residents, including expatriates, enjoy rights and protections that contribute to a stable and attractive living environment.
6. Mauritius as a Legal Gateway to Africa: Mauritius serves as a legal gateway to African markets, benefiting from various trade agreements and a reputation for legal compliance and transparency. This role is particularly significant in light of the African Continental Free Trade Area (AfCFTA), where Mauritius can leverage its legal frameworks to facilitate access to broader African markets.
7. Economic Diversification and Legal Implications: The Mauritian economy's diversification from agriculture and textiles to services sectors like finance and ICT suggests a legal environment conducive to varied investment opportunities. This diversification is reflected in the country's legal adaptations to meet the changing economic landscape, offering a dynamic legal environment for investors.

From what we see and hear from our clients, investing in Mauritius for long-term residence, especially considering the Mauritius-China FTA, appears to be strategically astute. The combination of discreet luxury lifestyle options, solid legal framework, strategic positioning, political and economic stability, investor-friendly policies, and a role as a gateway to Africa, makes Mauritius a formidable destination for long-term investment and residency.