Analysts concluded that offshore services have underpinned an influx of wealthy individuals to Mauritius’ shores over the past 10 years.
A large number of high net worth individuals (HNWIs) have moved to the island over the past decade, especially from Europe and southern Africa.
In addition, a number of locally-based individuals have reached HNWI status as the local financial sector has grown.
Mauritius is now home to around 4,600 HNWIs, compared to 3,800 a year ago and 1,400 a decade ago.
High net worth is defined as those with investable assets of at least $1m (£750,000, €850,000).
No IHT or CGT
Attracted by a light touch regulatory regime and low taxes, individuals achieve residency if they spend at least $500,000 on a home, which has led to booming wealth creation, a spokesman for NWW said.
Company and personal income tax rates are 15% and there is no inheritance tax or capital gains tax – similar to Dubai and Singapore
For African émigrés, secure ownership is particularly important. According to NWW, ownership rights are very strong in Mauritius, which encourages locals and foreigners to invest in property and businesses in the country.
“Neighbouring Zimbabwe offers a case in point as to what happens when ownership rights are stripped – once assets are taken away they tend to lose value as no one is willing to buy anything.”
The island also has low crime and low violent crime – comparable to Botswana. Good schools are another factor favouring the Indian Ocean island, the AfrAsia Bank sponsored study added.