This time we discuss the pros and cons of retiring in Mauritius for South Africans. In this article, we pay attention to factors such as safety and security, taxation, connectivity, healthcare and lifestyle.

Let’s look at some of the potential advantages first. Based on United Nations Office on Drugs and Crime (UNODC) figures, Mauritius is a substantially safer place for retirees than South Africa.  In fact around 20 times safer and with Mauritius being closely comparable to the UK and also safer than US.

In terms of tax savings, there is not much difference between the effective tax rate for a retiree in Mauritius and South Africa at an income level of around R600k per annum. However, the flat 15% rate applied on the island delivers meaningful savings for tax residents as soon as income levels start getting higher.

It takes about a year to move your tax residency from South Africa to Mauritius. Residents are taxed on both income generated through local investments and foreign income remitted to Mauritius (i.e. only when received in Mauritius). For instance, the annual profit of an offshore structure or investment would not be taxable save for earnings repatriated back into Mauritius. This comprises a substantial advantage for those with offshore-based wealth and income-generating assets.

Read more on Live in Mauritius blog.