Cape Town – About 240 South African dollar millionaires have moved to Mauritius between 2007 and 2015, the Africa 2016 Wealth Report revealed this week.
Mauritius was the top performing African country for millionaires during this period, with growth of 160%, it explained.
The strong growth in millionaires in Mauritius was driven by strong economic growth and secure ownership rights and as such has become a major retirement destination.
“Low taxes … encourage business formation and appeal to retirees,” the report said. “Company and personal income tax rates are only 15%, with no inheritance or capital gains tax.”
Mauritius gives people automatic citizenship if they buy a home worth more than R7.46m in the country.
Another attraction is its thriving and growing financial services sector, particularly in offshore banking, fund management and private banking, the report said.
Additionally, there is “a low level of government regulation in the business sector, when compared to nearby countries such as South Africa, which has exchange controls, high taxes, big trade unions and BEE hiring requirements".
Then of course there is the lifestyle - beaches, weather and scenery – coupled with a low crime rate.
“In line with the rise of wealth on the island, there are several new luxury developments going up, many of which are golf estates.
“Going forward over the next 10 years (2015 – 2025), Mauritius is expected to continue to be the fastest growing country in Africa for millionaires. Ivory Coast and Kenya are also expected to perform well.”