Why do South Africans invest in real estate in Mauritius?

You have probably noticed in our last blog that, after the French, South Africans are the most important buyers in the Mauritian real estate market. This growing trend can be attributed to several factors that make Mauritius particularly attractive to South African investors. In this article, we look at the reasons why Mauritian real estate is so attractive to our neighbours.

A paradise destination close to home

Just a four-hour flight from Johannesburg, Mauritius offers a minimal time difference, making it an easily accessible haven of peace. South Africans who choose Mauritius as their second home can travel back and forth between the two countries, especially as there are direct flights.

Political and economic stability

In addition to its geographical proximity, Mauritius boasts a stable political environment and a robust economy. According to the Global Peace Index 2023, Mauritius is one of the most peaceful countries in Africa, ranking 26th out of 163 countries worldwide, a testament to its secure climate and good governance.

The country also features regularly in the World Bank’s Doing Business Report, where it is ranked 13th in the world for ease of doing business in 2020, making it the first African country on the list.

These indicators underline not only Mauritius’s political stability, but also its economic solidity, crucial factors for investors looking for a reliable market.

An attractive tax regime

Investing in property in Mauritius is a strategic decision, especially in a country that offers a favourable tax regime. The main tax advantages include

• • Double taxation agreements with over 45 countries, including South Africa.
  • No tax on dividends, capital gains or inheritance.
  • Residence permit granted for any investment over $375,000, with the option of establishing Mauritius as a tax residence.
  • Administrative assistance to facilitate the procedures for investors through management companies.

Return on investment

Properties in Mauritius are appreciating in value by an average of 8-10% per annum, with rental yields fluctuating between 4-6% per annum. These attractive figures make Mauritian real estate even more attractive to investors.

Financing your property investment

Mauritian banks offer loans at competitive interest rates, financing up to 70% of the total property price. In addition, South African residents can take advantage of the Single Discretionary Allowance, the Foreign Capital Allowance and the Additional Foreign Capital Allowance to finance their investments in Mauritius.

Mauritius is positioning itself as a destination of choice for South African investors because of its proximity, stability, tax advantages and opportunities for return on investment. These factors make Mauritian property an attractive option for those looking to diversify their portfolio or acquire a second home.