Thanks to the positive measures taken by the Mauritian Government last year, property investment has remained a solid source of income for the economy during the COVID-19 crisis. As a global real estate company, RE/MAX 24 has worked hard to keep foreign investors actively choosing Mauritius, and we are excited about the latest initiatives from government that will keep this wheel turning.
Yesterday evening, Minister of Finance, Economic Planning & Development, the Honourable Dr Renganaden Padayachy, presented the budget for the coming year.
The premise behind the budget being:
Recovery from the crisis
Revival of industries
& improving of social resilience.
As a small open economy, faced with a demographic challenge, it is imperative that we further open up our country.
Some of the salient points that formed part of the speech are outlined below:
PROPERTY INVESTMENT
A residency permit will now be granted to investors purchasing in a Ground Plus 2 (G+2) development at USD 375 000 or more
The minimum selling price of a standalone villa under the Invest Hotel Scheme has been reduced from USD 500,000 to USD 375,000
Invest Hotel Scheme will be amended to allow the sale of up to 80% of units, with the possibility for the owner of a room to stay for a maximum of 6 months annually.
TRAVEL
Mauritius will be open for vaccinated tourists from 1 July 2021 (2 week hotel stay mandatory), and
from 1 October 2021 to unvaccinated tourists (2 week quarantine mandatory)
PERMITS
Occupation Permits for Professionals will now be valid for 10 years (extended from 3 years)
Professional Occupation Permit holders will have the flexibility to switch jobs without having to submit a new application provided that minimum criteria are met
The maximum age limit of 24 years for dependents will be waived
Non-citizens (including dependents) who qualify for, and are issued with a residence permit will be exempted from having to apply for a separate work permit
Non-citizens holding Self Employed Occupation Permits may incorporate a one man company and employ administrative staff
A 10-Year Family Occupation Permit will come into effect, for those contributing USD 250,000 to the COVID-19 Projects Development Fund
A Privilege Club Scheme will be implemented which will provide a range of incentives to Occupation Permit holders and retirees, ranging from privilege access to hotels, golf courses, restaurants, private medical institutions, amongst others
Premium Investor Certificate – Minimum investment MUR 500 000 (excluding pharmaceuticals)
STUDY
The criteria for Young Professional Occupation Permit is under review to reduce the list of qualifying services removed, with eligible students automatically qualifying for an extended 10 years Young Professional occupation permit post studies
20 hours per week work permit and a 10 years renewable Young Professional Occupation Permit, upon graduation for international students enrolled in a recognised educational institution in Mauritius
Digital industry academies will be set up
TAX
Welcome news for all – the expected Income Tax increases did not form part of this year’s budget!
Proposed Corporate Tax reduction in the Pharma and Medical Manufacturing sector from 15% – 3 %
The budget speech has raised the hopes of the nation, and the outside world. Mauritius has always been an attractive island for tourists, and in more recent years, an exciting living and working option for many. Closure of the island delayed many plans for potential investors and employees. Opening the island and attracting investors with the new and revised regulations will certainly help to get the economy of this paradise back on track! .
Disclaimer: The purpose of this News Article is to provide you with an overview of the proposed changes announced by the Finance Minister in the budget speech of 11 June 2021. These provisions are still subject to changes and final enactment. The News Article is not a legal or binding opinion. Please contact RE/MAX 24 should you have questions or need further information / assistance. We accept no responsibility for your interpretations or actions taken on the basis of this publication.