Are you looking to find a safe, profitable investment? If yes, then the best place to start is right here. Mauritius is one of the most popular destinations for foreign investors. This is because it combines high returns with low risks.
A small island nation is a good option for those interested in buying or leasing property.
Here is everything you need to know about what makes Mauritius such an attractive destination.
Table of contents
Geography and Location
Mauritius is a subtropical island country in the Indian Ocean, off the southeastern coast of Africa. It’s about 1000km east of Madagascar.
The island has several outlying territories, including Rodrigues Island and other smaller islands surrounding it. The main island is surrounded by coral reefs and has sandy beaches, with fertile plains rising sharply to rocky mountains.
The country spans 2,040 square kilometres (790 sq mi). It has an exclusive economic zone covering 2.3 million square kilometres.
Mauritius Population, People, and Language
According to the latest World Bank data, Mauritius has a population of 1.23 million people (2021). 41% of this population lives in urban areas.
The country ranks as the most densely populated in Africa, with a density of 621 people per sq Km. This is calculated on a total land area of 2,030 Km2 (784 sq. miles).
The median age is 37.5 years. The three main languages spoken in Mauritius include Mauritian Creole, French and English.
The Population growth was 0.03% in 2021.
The nation’s population density is among the highest.
Median Age Group
Mauritius’ population is among the older ones in Africa.
The growth is among the lowest in the developing world.
Urbanisation is one of the lowest on the continent.
Mauritius Real Estate and Investing
Mauritius is a real estate investment attraction with a year-round subtropical climate and lush nature. Foreign nationals have been drawn to the island because of its beautiful scenery and pristine beaches, resulting in regular tourist traffic. This allows property owners to rent their homes all year round.
The Mauritius real estate industry has been undergoing successful development and growth. The goal of the Government is to make Mauritius a vibrant business and financial hub. The real estate and construction sector is critical to the nation’s economy, contributing 10.5% of the national GDP. It is also the most significant contributor to foreign direct investment (FDI).
However, as has been the case globally, the 2020 health pandemic affected the industry’s growth. But due to the incentives and structures set up beforehand, the sector is up and running again.
Through the Smart City scheme, the Government of Mauritius offers global investors an opportunity to develop intelligent, innovative and sustainable future cities. These property development schemes offer permanent residency on property purchases over USD 375,000.
Other schemes are listed in the table below.
Mauritius Residential Property Ownership Schemes:
|2001||Land area of|
to exceed 10ha
|2005||Land area of|
|2007||Land area of |
|5% of the|
land of at least
21.105ha (50 arp)
|5% of the|
|Ground Plus 2|
|2015||Minimum 6 units|
Plus 2 additional stories
|5% of the|
Residential yield averages from 4%-7%
Other Investor information :
Mauritius has consistently performed and ranked highly on several global indices as an attractive country to do business in. It is a success story of economic freedom and good governance.
Ease of Doing Business in Africa
Ease of Doing Business International
Foreigners are allowed to own real estate
- Withholding Tax (WHT) – Dividends: 0%; Interests: 15%; Royalties: 10% (residents)/15% (non-residents)
- Capital Gains Tax – 0%
- Corporate Tax, Personal Income Tax, and VAT – 15%
- Double Taxation Avoidance – Agreements with 46 countries
- 0% tax on Donations to descendants and spouse
- 15% tax on rental income by resident individuals
After several years of steady growth, Mauritius’ economy is among the strongest in Africa, averaging 5% over the last four decades. As the case has been everywhere on the earth, the island was hit by the effects of the global pandemic crisis, contracting revenues and plummeting the GDP by an estimated 15.8% in 2020.
However, the Mauritius Government has been building a stable economic and political environment, a solid judicial system, modern infrastructure, a stable financial system, and a highly skilled and dynamic workforce for years. These prudent economic foundations and measures have helped the island bounce back from the effects of the economy and progress toward its Vision 2030 goal.
The Island nation is also on the path to being a leading investment and financial hub on the African continent. It has positioned itself as a gateway for business and investment in Africa.
The national GDP was $11.157 Billion in 2021, with GDP Per capita at $8812. Owing to the Covid 19 pandemic, the annual growth rate was -15% in 2020, from 3% in 2019.
Source: Ubuturo Research
The services sector contributes almost 68% to the country’s GDP.
The agriculture sector is dominated by sugarcane growing.
The industry sector contributes about 16% to the national GDP.
The primary economic sector is the service industry. It includes tourism, infrastructure, telecommunications, construction, transport, and financial services.
Financial services contribute 11.8% of GDP. Mauritius has built an unparalleled and transparent international financial center. This has attracted many reputable international financial institutions, who have set up homes on the island.
The Mauritius capital market is the second-largest in Africa. It is also home to some of the leading global funds.
The manufacturing industry, which remains a vital engine of economic growth, contributed 13.3% of GDP in 2021. The Government set up a successful combination of trade, investment, and industrialization strategies. These include preferential market access agreements on the continent, with Europe and USA. These have created export markets for the nations’ products.
Many investment opportunities abound in manufacturing and other sectors. The Government has put in place many attractive incentives for would-be investors.
Other sectors are;
Agriculture. About 40% of the island’s surface is being used for cultivation. Roughly 90% is sugar cane. The rest is used to grow tea, tobacco, and food crops.
Industry. Textiles and sugar production dominate the Mauritian manufacturing sector. The sector also diversified into;
Jewellery production, optical goods manufacture, furniture making, light engineering, and electronic components manufacture.
Mauritius is sought after for cosmetic surgery, dental care and hair implants.
It has grown into a preferred destination for business outsourcing.
The luxury industry in Mauritius specialises in jewellery and textiles.
- Medical tourism: It offers advanced care and services by recognized medical professionals. Medical packages are available that combine; Hospital care, air tickets, and accommodation at different hotels.
- Outsourcing: The outsourcing industry drives the growth of the Mauritian economy. It has a GDP contribution of 5.8% (2019) and employs around 27,000 people. The Island is a strategic destination for any ICT/BPO company to establish operations. It is an ideal location as one of the easiest countries for business and among Africa’s most developed nations.
- Luxury Industries: Today, Mauritius boasts excellent expertise in several specific value-added products like; Luxury textiles, jewellery, and scale models of boats.
Arable land makes up roughly 39% of the nation’s total area.
Sugarcane is the most important crop grown within Mauritius.
Due to its position within the Indian Ocean, Mauritius has access to a wide variety of fish.
- Arable land is one of Mauritius’ critical resources. Sugarcane is grown on 90% of this land. Due to its position in the Indian Ocean, the island has access to various fish.
- Sugarcane. Most of the sugarcane grown in Mauritius is grown in extensive plantations. 21 plantations account for over half of Mauritius’s total area under sugarcane.
- Fish. Some of the most common fish caught within Mauritius’ waters include blue marlin, dogtooth tuna, black marlin, and yellowfin tuna.
- It is rich in minerals like basalt and lime. The beautiful scenery and location of Mauritius also make it a huge attraction.
Tourism has always been a popular sector in the country and is one of the most critical industries. The beauty of Mauritius is beyond words making it one of the most visited countries in Africa.
Rich with lush forests, wild waterfalls, unique wildlife, rocky mountains, and white-sand beaches. Mauritius is a dream holiday destination for tourists from all over the world.
Many resorts and hotels offer the latest technology and services for tourists. They provide a variety of services;
The sauna, massages, private Jacuzzi, and well-designed gardens provide a fairy-like atmosphere.
The small Island nation has an economy that is growing rapidly. There are plenty of opportunities in Mauritius, like the desirable tax rates. One way to take advantage of this growth is by investing in Mauritius.
If you’re looking for your next investment opportunity and want to buy property in Mauritius, visit African Real Estate Solutions for more details.