Strategically located at the crossroads of investments in the Indian Ocean region, the Republic of Mauritius has enjoyed unprecedented socio-economic development with a substantial growth. This is the fruit of careful economic governance backed up by sound business and financial infrastructure with a reputation for reliability, efficiency, and probity.

The Government introduced a wide range of incentives to attract investments. As a result, construction and services sectors, such as banking and ICT are taking a greater part of the Mauritian economy. By enacting a series of modern and user-friendly legislation, it further consolidates the legal and fiscal framework of Mauritius. This has also contributed to the rise of Mauritius as a prominent offshore financial services centre and is adding a new dimension to the economic prosperity of the country.

In formulating new legislation, the Government adopted best practice principles thereby making Mauritius a very attractive destination for holding and structuring global investments. Mauritius has adhered to the new international requirements, with a view to tracking money laundering and combating terrorism financing and has enacted appropriate legislation in this respect. In 2003, Mauritius joined the Egmont Group, a membership which enhances the prestige and quality image of the jurisdiction.

The attractiveness of Mauritius is further consolidated by the fact that it enjoys a solid reputation as a well-regulated centre and provides for guaranteed confidentiality for those engaged in legitimate business through express provisions and customary laws governing relationships between banks and customers and between professionals and clients.

Further details of the attractiveness and incentives are listed below:

1.      Mauritius’ Attractiveness

(1)	Sovereign and independent.
(2)	Committed to investor’s protection by using a progressive regulatory framework, which is modelled on the industry’s “Best Practice principles. It is classified as an efficiently regulated financial services centre by compliant to internationally accepted norms of supervision, including those of the Basle Committee on Banking Supervision.
(3)	A committed jurisdiction cooperating with organisations such as OECD, FATF and the UN and its agencies.
(4)	No exchange controls. Free repatriation of profits with no withholding tax on dividends, royalties and interests.
(5)	Bilingual in English and French for most of the population.
(6)	With a population of 1.2 million inhabitants, Mauritius benefits from a large pool of  graduates, qualified lawyers and accountants. Most Mauritian barristers have been called to the Bar both in the UK and Mauritius; Accountants are members of UK professional bodies such as the Institute of Chartered and Certified Accountants.
(7)	Guaranteed by parliamentary democracy based on the Westminster model, it is politically stable.
(8)	Hybrid legal system based on English and French laws. The Highest Court of Appeal is the Privy Council in the U.K.
(9)	Well established banking institutions and an international stock exchange.
(10)	Strategic time zone (GMT+4). Business can be conducted with the Far East in the morning, Europe around mid-day and USA in late afternoon.
(11)	Member of the International Court of Justice, the International Centre for Settlements of Investment Disputes, and the Multilateral.
(12)	Investment Guarantee Agency.
(13)	Living and administrative costs are comparatively low.
(14)	Over 40 international flights daily to major European, African and Asian cities.
(15)	State-of-the-art telecommunication facilities and connected to the SAFE fibre optic network.
(16)	Mauritius has concluded a number of Investment Promotion and Protection Agreements (IPPAs).

2.       Fiscal Incentives

(1)	Authorized Companies are tax exempted.
(2)	GBC1 are subject to low tax rates.
(3)	No withholding tax on remittance of branch profits.
(4)	No withholding tax on interest, royalties and dividends.
(5)	No capital gains tax.
(6)	No limit on the carry forward of tax losses.
(7)	Royalties, interest, and service fees payable to foreign affiliates are allowed as expenses provided, they are reasonable and correspond to actual expenses incurred.
(8)	Investment tax credit of 10% for capital expenditure.
(9)	Interest paid on deposits in Category 2 banks are tax exempt.
(10)	No estate duty, wealth, or gift taxes.
(11)	No stamp duties, registration duties and levy.
(12)	Zero rated Value Added Tax for global business transactions.
(13)	A concessionary personal income tax rate at 12.5% for expatriate staff employed by a GBC1.