Tax expatriation: Mauritius aims at attracting more high net worth individuals

The world’s wealthy – those whose wealth are estimated around USD 1 million and more – are exploring to diversify their investments, protect their wealth, streamline succession planning and enhance their children’s education. This is the main reason why many of them are moving to countries with open border policies, superior economic growth and political stability. This is the trend reported by the AfrAsia Bank Global Wealth Migration Review 2018, in collaboration with the consultancy New World Wealth. In fact, it is reported that the global wealth migration is accelerating across the world with 95,000 millionaires migrating in 2017 compared to 82,000 in 2016 and 64,000 in 2015.

Unsurprisingly, it is Australia which has attracted the higher number of high net worth individuals (HNWI) in 2017. Boasting an excellent safety track record and lower inheritance taxes, Australia scores well to receive HNWI. The geographical proximity to China, Japan, South Korea, Hong Kong, Singapore, Vietnam and other emerging economies in Asia has proven to accelerate wealth flows to Australia. The USA remains a steady performer and is ranked as the second most popular destination for migrating HNWIs in 2017. In South East Asia, Singapore was the most popular destination for affluent individuals, attracting 1,000 HNWIs in 2017

Intending to catch some of the HNWI migration inflow, Mauritius is putting forward its strategic location, midway between Africa and Asia. IN fact, the country working hard to position itself as a service hub for the affluent in Africa. It has a good business environment it is ranked as the best sub-Saharan economy for its political and economic stability. Furthermore, Mauritius has all the right elements to be a world-class destination. It meets the highly-sought after lifestyle and business aspirations of HNWIs. Mauritius is particularly attractive to HNWIs thanks to an advantageous fiscal regime. Income from a Mauritian source cannot be taxed in countries with which Mauritius has signed a non-double tax treaty. Furthermore, a tax band of 15% only is applied on income up to Rs 3.5 millions and there is no tax on dividends, nor no capital gains on profits of the property when it is sold at a later stage.