RETIREMENT IN MAURITIUS AN OVERVIEW

Mauritius has a lot to offer those who are looking for an ideal location to spend their retirement years. With a tropical climate, mountains, beautiful beaches, and clear blue waters, there is something for everyone.

In the 2021/2022 budget speech, the Mauritian government announced that they wish to attract 50,000 retirees to relocate to Mauritius during the next financial year.

The government has allocated resources to attract these foreign investors through a targeted marketing campaign in collaboration with the Mauritian Tourist Promotion Authority (MTPA) and made a commitment to provide dedicated staff to make the information availability and application process seamless.

Mauritius is an appealing option with a good quality of life on offer, strong economic potential, and low tax rates with advantages such as:

  • No real estate wealth tax
  • No property tax or housing tax
  • No capital gains tax in the event of resale of a property
  • No Inheritance tax
  • 15% tax on personal income including rental income

The retirees have the option to apply for a resident permit as a retired non-citizen or they may gain residence through the purchase of property via the various property schemes.

Resident Permit for Retired Non-Citizens

The retiree may apply for a residence permit as a retired non-citizen for a period of 10 years which is renewable.

As a holder of a Residence Permit as a Retired Non-Citizen, the applicant may live in Mauritius and may also invest in any business provided that:

  • They are not employed by the business
  • They do not manage the business
  • They do not derive any salary, directors fees or employment benefits from the business.

There is no minimum or maximum amount of time that is required to be spent in Mauritius annually however it is important to note that the person will be considered a tax resident if they stay for more than 183 days per year (the Mauritius tax year runs from 1 July to 30 June each year).

How do I Qualify?

To qualify, the applicant needs to meet the following criteria and provide the following:

  • Main applicant must be 50 years or older
  • Certificate of morality / Police clearance not older than 6 months
  • Initial transfer of USD 1500 (or equivalent) is to be made into a local bank account in Mauritius.
  • Thereafter, a monthly transfer of USD 1500 or an aggregate of USD 18,000 per year should be made into the local bank account.
  • At the conclusion of each year, the applicant is required to submit to the Economic Development Board, evidence of the transfer of funds into his/her local bank account.

Residence Permit Under the Property Development Scheme

The Property Development Scheme (PDS) is designed to facilitate the acquisition of residential property by non-citizens in Mauritius. The program incorporates the previous IRS and RES property schemes and allows for the development of luxury residential properties with high class leisure facilities and day-to-day management services.

There is a minimum of 6 units in each development.

A non-citizen may apply for a residence permit under the PDS scheme when he/she purchases residential property whose value exceeds USD 375,000 or its equivalent in any freely convertible foreign currency.

The residence permit granted to the non-citizen will be valid for as long as the applicant holds the residential property, and the main applicant shall be exempt from an Occupation or Work permit to invest and work in Mauritius.

Residence Permit Under the Smart City Scheme

The Smart Cities are designed to revolve around the work, life and play concept and comprises business, residential and entertainment components all integrated in sustainable cities that are environmentally friendly, use smart technology and have pioneering innovation at their core.

The residential properties include villas, houses, townhouses, apartments, and duplexes.

A non-citizen is eligible to apply for a residence permit upon the purchase of a residential unit under the SCS scheme, whose value exceeds USD 375,000 or its equivalent in any freely convertible foreign currency.

The residence permit granted to the non-citizen will be valid for as long as the applicant holds the residential property, and the main applicant shall be exempt from an Occupation or Work permit to invest and work in Mauritius.

A non-citizen may also acquire a plot of serviced land not exceeding 2,100m² in a Smart City, however they shall not be eligible to apply for a residence permit unless the construction of a residential property has been completed on that plot.

Invest Hotel Scheme

Existing hotel companies as well as new hotel developments may sell hotel rooms to finance their refurbishment, reconstruction, alteration or upgrades of existing hotels or the construction of new hotels.

A non-citizen is eligible to apply for a residence permit with the acquisition of a stand-alone villa, suite or room which forms part of a hotel under the Invest Hotel Scheme (IHS), for a price of not less than USD 375,000 or the equivalent in other freely convertible currencies.

Under the IHS, the investor who purchased a unit enters into a lease agreement whereby the unit is leased back to the hotel developer in return for rental income. The unit which was leased to the hotel developer may be used and occupied by the unit owner or any person on his behalf free-of-charge for a total of not more than 45 days in any period of 12 months.

Ground +2 Apartments

Non-citizens are allowed to purchase apartments in developments which are outside of the approved residential schemes where the apartments are located in condominium developments of at least two levels above ground (G+2). Please note that this includes the ground floor but there must be at least 2 more floors.

The purchase price of an apartment should not be less than MUR 6 million or its equivalent in any other hard convertible foreign currency.

The purchaser can apply for a residence permit valid for 10 years renewable depending on the ownership status of the apartment.

What About Your Family?

Under all the above-mentioned resident permit streams, the non-citizen would be entitled to bring their dependent spouse and children (including stepchildren and lawfully adopted children) up to age 24, who may then apply for a residence permit as a dependent for a period not exceeding that of the main permit holder.

If you would like to explore your options to retire in Mauritius, contact us on relocations@ocs.world