South African retirees are flocking to this tax ‘safe haven’
Mauritius is becoming one of the biggest retirement destinations in the world, with the island offering good tax incentives for South Africans.
International agents and Mauritian developers said that sales on leading developments on the island have seen unprecedented growth in recent times, with Brits, Europeans and South Africans viewing the island as a “safe haven.”
Between 2014 and mid-2022, the Bank of Mauritius reported that foreign direct investment in high-end property reached 63.3 billion rupees (R25 billion) – roughly 40% of the nation’s total international investment inflow.
“Mauritius is a great option because it is generally warm and pleasant throughout the year. It has a tropical climate with mild temperatures, making it comfortable for retirees. As a bonus, it is also renowned for its natural beauty, with pristine beaches, crystal-clear waters, lush forests and breathtaking landscapes,” Philippe De Beer, CEO of Mauritian real estate agency Park Lane Properties, said.
The nation is also incredibly safe and politically stable, which should provide retirees a sense of security.
“Despite being an island in the middle of the Indian Ocean, Mauritius also offers a high standard of living, with modern infrastructure, quality healthcare facilities and a wide range of dining, shopping and other leisure amenities, as well as golf courses, water sports, cultural events and festivals. Retirees can enjoy a very fulfilling and active lifestyle here,” De Beer added.
“At the same time, however, Mauritius is only a four-hour flight from SA, which means that retirees can more easily maintain their existing social connections and visit for those all-important family occasions and reunions with old friends.”
Benefits
The island also offers several attractive tax benefits for retirees
For instance, the country has a non-double taxation agreement with several countries, which allows retirees to decrease their tax burden.
It also does not impose capital gains tax, inheritance tax or a wealth tax.
“What is more, it is relatively easy to retire in Mauritius, and you don’t actually need to buy a property to do so. You just need to be over 50 years old and be able to prove that you have a pension or investment income from outside Mauritius of US$1500 (R27,500) a month or $18,000 (R335,000) a year that is paid into your Mauritian bank account.” De Beer said.
“You can then apply for a Retirement Residence Permit (RRP) that is valid for 10 years and renewable, and that also covers your spouse and any minor children living with you.”
However, retirees will not be allowed to work or run their own businesses on the island if they have a retirement visa.
“The RRP is strictly for retirement living, but there are several other residence options open to those who do want to work here or relocate a business to Mauritius, and as one of the top local property companies, we are always happy to assist anyone with plans to relocate.”
Read: Big storm brewing over workers earning dollars and pounds in South Africa
Loading ...