The 2 new ‘safe havens’ that have emerged for rich South Africans

Wealthy South Africans are increasingly looking beyond their borders for safe havens as economic uncertainty, high crime rates, and political instability drive many to seek more stable environments.

Two destinations, Malta and Mauritius, have emerged as top choices, offering compelling benefits for those seeking business expansion, retirement, or a better quality of life.

Malta, a small Mediterranean island, has gained popularity among high-net-worth individuals and businesses seeking to diversify investments or relocate operations.

Despite its modest size and a population of just over half a million, Malta has carved out a significant position on the global economic stage.

Its strategic location at the crossroads of Europe and Africa, coupled with a robust economy, makes it an attractive option for South Africans eager to tap into the European market.

The island’s business-friendly environment, established trade agreements, and advantageous regulatory framework are key factors drawing entrepreneurs.

According to Credence, a corporate advisory firm, there has been a notable rise in interest among South Africans exploring residency, citizenship, and business opportunities in Malta.

Many entrepreneurs are adopting a dual approach, maintaining operations in South Africa while establishing a presence in Malta to leverage the European Union’s market potential.

This strategy enables businesses to mitigate risks associated with South Africa’s unpredictable economic conditions while pursuing growth opportunities in Europe.

Malta’s appeal extends beyond business. Its high standard of living, excellent healthcare, and educational opportunities attract families seeking a fresh start.

The island’s Mediterranean climate, political stability, and safety offer a stark contrast to South Africa’s challenges.

Investment programs granting residency have made the transition relatively seamless, allowing many to escape the uncertainties at home.

The presence of a growing South African community in Malta underscores its rising status as a preferred destination.

Mauritius, long cherished by South Africans as a holiday destination, is also seeing a shift in its role.

Known for its stunning beaches, warm hospitality, and cultural richness, the island has become a leading choice for retirees seeking a peaceful and affordable lifestyle.

The Economic Development Board of Mauritius (EDB) reports a significant increase in retirees moving to the island, with South Africa ranking among the top three feeder countries.

This shift is driven by the island’s low cost of living, safety, and healthcare-focused retirement options.

The Mauritian government has introduced residency and investment schemes to attract foreign nationals.

The 10-year Retired Residence Permit allows retirees and their dependents to live on the island with an option for renewal, while other programs enable long-term stays for tourists, professionals, and investors.

These initiatives align with Mauritius’s reputation as a secure and politically stable destination, appealing particularly to South Africans concerned about crime and instability at home.

For retirees, the island’s favourable tax regime is a major draw.

Mauritius imposes no capital gains, inheritance, or wealth taxes, providing an environment conducive to preserving savings.

Its proximity to South Africa, with direct flights and English as a widely spoken language, further enhances its appeal.

The increased demand for Mauritian properties reflects this growing interest. International developers and agents report unprecedented growth in high-end real estate sales, driven by South African, British, and European buyers.

Since 2014, foreign direct investment in high-end Mauritian property has reached 63.3 billion rupees (approximately R25 billion), highlighting the island’s appeal as a “safe haven.”

With South Africa grappling with economic and social challenges, the allure of Malta and Mauritius continues to grow.

These destinations offer stability, opportunity, and an enhanced quality of life, making them ideal choices for wealthy South Africans looking to secure their futures in safer and more prosperous environments.

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