Mauritius attracts silver spending with a permanent residency incentive

The silver economy is one of the world's most significant trends. It's huge... and growing... and the Mauritius government wants part of it. The island government makes permanent residency possible for older members of Gen X (born 1965 to 1980) and Boomers (born 1955 to 1964).

The EU defines the Silver Economy as "the sum of all economic activity that serves the needs of people aged 50 and over, including the products and services they purchase directly and the further economic activity this spending generates." It covers private and public sectors of the economy, including health and nutrition, leisure and well-being, finance and transport, housing, education, and employment. "Seniors are the wealthiest age cohort in the world, together with older professionals (45-64 years)," writes Wolfgang Fengler, Lead Country Economist, Southern Africa - World Bank.

By 2030, there will be more than one billion seniors in the world. And the top "silver economies" will be the US, China, Japan, Germany, France, Russia, India, UK, Italy, and Brazil, in that order, according to World Data Lab. In China, silver spending will triple from $750 billion to $2,1 trillion, overtaking Japan where senior spending has already plateaued at $900 billion. "India will make a dramatic entrance into the group with an expected surge in silver spending from approximately $100 billion to almost $1 trillion (on par with Russia, the UK, Brazil, and Italy," writes Fengler.

Property with the silver economy in mind

Les Residences de Mont Choisy is an exclusive boutique development, designed with the silver economy in mind. It's the kind of environment that older professionals and active seniors dream about when they're looking for somewhere to settle that promotes a healthier, happier lifestyle.

This project is located in the Mont Choisy Smart City, which features a Boulevard and Parkway that create a walkable precinct linking the villages of Grand Baie and Mont Choisy. The smart city ticks the boxes for the work, play, and live concept that has made this kind of development so popular worldwide. Les Residences de Mont Choisy homeowners and tenants have easy access to the retail and leisure facilities there, while also having the benefit of a hair salon, spa, interior and exterior pools, restaurants, and a bar on their doorstep.

The development comprises two- and three-bedroom spacious apartments, which are move-in ready. Homeowners can take advantage of a rental management service. Another major perk is gaining exclusive access to 2Beach Club, an entertainment hub reserved only for 2Futures homeowners. The club looks on to the best swimming beach in Pereybere, just five minutes from Grand Baie.

Older professionals can apply for residency

Mauritius provides investors with a golden opportunity to tap into a well-established property market. To date, more than 3,500 residences have been sold. A further 1,100 units are available for sale in more than 110 approved property development schemes. These may incorporate a golf course, marina, or health centre.

The Mauritius property market remains robust. Pricing is strong, delivering relatively high yields and good rental prospects. Investors have the full title when they buy the property, which is freehold.

Foreigners who buy island property in an approved development scheme for more than USD375,000 automatically qualify for permanent residency. That status remains for as long as they own the property.

Retired noncitizens living on the island under the Premium Travel Visa, which was introduced in 2020, may apply for a Residence Permit. Alternatively, they can apply for permanent residency after at least three years of island life experienced under a different permit.

The good life for foreign nationals

As of July 15, 2021, the island is open to visitors. And the Economic Development Board (EDB) Mauritius "welcomes retired people looking for a stable country to enjoy an active retirement in the sun. Known for its pleasant tropical climate, Mauritius is a privileged destination and popular with foreign nationals. Its reputation has been built on its well-preserved coastline, multi-culturalism, hospitality, lifestyle benefits, and exceptional living environment".

The island is strategically located in the Indian Ocean, midway between Asia, Africa, and Australia. Its population of approximately 1,3 million people contributes to a mosaic of cultures. Citizens speak mainly English, French, Hindi, and Creole. The island enjoys good transparent governance as well as political and economic freedom. It has a modern banking system with international standards, regulated by the Bank of Mauritius.

Perks of Mauritius life - climate, safety, health, and wellbeing

Income tax, corporate tax, and VAT are applied at a harmonized rate of 15%. There is no capital gains tax, wealth tax, or dividends tax. What's more, there is no housing tax or inheritance tax for direct descendants when a property is transferred. The only time a real estate tax applies is when a property is purchased. In that case, a land transfer tax is levied at 5% of the purchase price.

Sachin Mohabeer, director of Real Estate & Hospitality at the EDB, says Mauritius is the ideal destination for property investment by retirees not just because "it is a tropical island and, like many tropical islands, it is lush green with colorful vegetation throughout the year. It has the perfect climate and allows visitors to have perfect holidays all year round. Mauritius is safe... and it has a very good healthcare system."

To find out more about buying property in Mauritius, contact Rinie on rb@propertytime.mu or +230 5817 7553.