Mauritius Budget 2020/2021

Opening to the world: attracting investors and professionals to the island

The start of this year has presented countries around the globe with a challenge that has unforeseeable future consequences. The Government of Mauritius has successfully addressed and contained the COVID-19 pandemic on the island, nonetheless they are faced with the task of resuming and restoring economic activities in Mauritius. The Government outlaid the tools and resources towards a steady economic recovery in the 2020/21 Budget Speech that was presented to the Nation on the 4^th of June 2020. The Government plans to rebuild the country’s economy to become prosperous and above all to become resilient.

The Government has adopted a proactive and supportive approach to further open up the Economy, secure investors and retain professionals and retirees while as well engaging in the development of the “national” human capital.

With the extension of the occupation permit from 3 to 10 years, removal of constraints and streamlining of procedures for acquiring occupation permit the government sends the right signal to the business community. Non-citizen investors, professionals and retirees need certainty for themselves and   their families before opting for a place where they may be spending a significant part of their lives.  Similarly, employers need visibility before engaging foreign professionals. Thus, the amendments to the occupation permit will further improve the image of Mauritius as an international hub for talents

The following Interesting and positive measures have been announced that enable foreign investors to live, invest and work in Mauritius (please download the EDB Budget Newsletter for further details):

Occupation Permit (OP)

• The validity of an OP will be increased to 10 years, renewable
• The minimum investment requirement for an OP as Investor will be reduced to USD 50,000
• The minimum turnover and investment requirement for Innovator Occupation Permit will be removed
• The salary criteria of MUR 30,000 will be extended to other specified sectors
• Holders of an OP as Professional will be able to invest in other ventures without any shareholding restriction
• EDB will be solely responsible for processing of OP applications
• The OP and resident permit will be combined into one single permit

Dependents of Occupation Permit Holders

• OP holders will be allowed to bring their parents as their dependents
• No restriction for spouses of OP holders to work in Mauritius
• Permanent Residence Permit (PRP)
• Permanent Residence Permit will be extended from 10 years to 20 years. The existing turnover and salary criteria are being removed
• Existing OP holders, who have held the permit for three consecutive years will be eligible to apply for the 20-Year PRP
• The minimum investment amount for an investor to directly obtain a Permanent Residence Permit will be reduced from USD 500,000 to USD 375,000

Resident Permit

• The validity of Residence Permit as Retired non-citizens will be increased to 10 years
• Holders of Residence Permits who have held the permit for three consecutive years will be eligible to apply for the 20-Year PRP
• Holders of a Residence Permit as Retired non-citizens will be able to invest in other ventures without any shareholding restriction
• Non-citizens who have a residence permit under IRS, RES, PDS or Smart City Schemes will be exempted from an Occupation or Work Permit to invest and work in Mauritius
• The minimum investment amount for a holder of an immovable property to obtain a residence permit will be reduced from USD 500,000 to USD 375,000

Acquisition of Property/ Resident Permit

• Non-citizens holding a Residence Permit, an Occupation Permit or a Permanent Residence Permit will be able to acquire one plot of serviced land not exceeding 2,100m² for residential purposes in Smart Cities. This measure will be valid for a period of 2 years ending 30th June 2022

New Products Announced for the Financial Services Industry

Diversifying our Financial Services Sector

To further enhance competitiveness of the Financial Services Sector, the following new products will be introduced in line with the recommendations of the 10-Year Blueprint.

• The Central Bank digital currency.
• An Insurance Wrapper.
• Variable Capital Companies.
• An inaugural Sukuk issuance by the Bank of Mauritius.
• Green and Blue Bond frameworks by the Bank of Mauritius.

Source: www.edbmauritius.org

Please feel free to contact us @ info@lemuel-group.com for any further details or thoughts.