The emerging financial hub of Mauritius is back in business after being removed from the European Union’s list of high-risk countries (the so-called ‘EU blacklist’) in January this year.
This is particularly good news for South African investors, who are flocking to the island in their droves to take advantage of a range of incentives that make it cheaper and easier for investors and expatriates to live and work in Mauritius, said Sovereign Trust (SA) Limited consultant, Rone Silke.
Mauritius was placed on the Financial Action Task Force’s (FATF) so-called ‘grey list’ of countries under increased monitoring in 2020 because of deficiencies in its Anti-money Laundering and Counter-terrorism Financing (AML/CFT) framework. The EU followed suit in October 2020. The country has since bolstered its AML/CFT regime sufficiently to be removed from both the FATF and EU lists.
“This decision is a great relief to all those operating in affected industries in Mauritius. The country’s government has reiterated its strong political commitment to sustain the AML/CFT reforms and the fight against money laundering, terrorism financing and proliferation financing,” said Silke.
The move is expected to swell the ranks of the country’s South African expatriate community even further. Last year, Mauritius reduced the minimum investment required to acquire an occupation permit as an investor, and live in Mauritius as a non-citizen, to $50 000 (about R750 000), from $100 000 (about R1.5 million). The validity of an occupation permit has also been extended from three to 10 years, and the spouses of occupation permit holders will no longer require a separate permit to invest or work in Mauritius. The holders of occupation permits will also be allowed to bring their parents and dependents under 24 to live in Mauritius.
“The changes to the requirements for the various permits and acquisition of land are clear incentives to make Mauritius more attractive to prospective investors, talented individuals and expatriates wishing to base themselves in Mauritius,” said Silke. “Now that the listings have been lifted, we expect to see more South Africans streaming to the island, both to live and work.”
For those interested in exploring Mauritius for investment opportunities, as a new business base or even a new home for the family, Sovereign Trust is able to unpack the various options available around residency, business structuring, life insurance, banking and investment structuring in Mauritius.
“It’s important to understand the differences between the different types of companies before you start setting up your business in Mauritius. You should take expert advice from companies who already have a footprint in Mauritius, and can guide you through the incorporation process, opening of Mauritius bank accounts, accounting and residency permits for employees to be relocated to Mauritius,” said Silke.
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