The Republic of Mauritius recently announced plans which might sound familiar to Americans: A ‘Golden Visa’ scheme allowing high net worth individuals to relocate to the island in the Indian Ocean.

To be approved for such a scheme, the government has announced that it would require a minimum investment of $1 million in the nation within 12 months of their arrival. The country has no inheritance or capital gains tax and a flat 15% income tax rate (with effective rates often lower due to various allowances). For someone coming from a high-tax jurisdiction like the UK, France, or parts of the US, the savings can quickly dwarf the investment requirement.

It follows in the manner of President Trump, who said a path to citizenship would be offered to individuals who could pay $5m for a ‘gold card,’ functioning similarly to the current green card for “high-level people.” Trump labeled the offering a “bargain” while Commerce Secretary Howard Lutnick said the gold visas would replace current visa programs for foreign investors.

More concrete details are yet to be announced, with Lutnick confirming that only one person has been approved for the new visa format thus far.

Navinchandra Ramgoolam, the Prime Minister of the Republic of Mauritius, had some more details to share with his peers during a parliamentary sitting yesterday.

The nation’s economic development board has “received multiple inquiries from foreigners who have expressed interest to relocate” with their families to Mauritius, explained Ramgoolam. “To respond to this demand, we are introducing a golden visa to better meet the requirements of high-net-worth individuals wishing to relocate to Mauritius.”

Some 100 people a year will be granted access to the scheme, he added, which will require both investment and passing a series of due diligence checks.

A visa will allow multiple entries, he added, for the successful applicants, their spouses, and any dependent children. At the time of application, Golden Visa holders would be required to sign a written undertaking pledging to invest $1 million USD within 12 months in the country. The country’s Economic Development Board (EDB) will be “closely following” the progress of these investments, Ramgoolan added.

“The objectives of the Golden Visa scheme are to encourage high net worth individuals to relocate physically to Mauritius with their families,” the policymaker explained. “The aim is to maximize the economic benefits to Mauritius through long-term stay of Golden Visa holders and subsequently encourage them to relocate their funds and channel investments to different sectors of our economy.”

The EDB has set up a dedicated concierge service to support wealthy individuals in relocating their businesses to Mauritius, he added.

Question of space

For Mauritius, the question of immigration has more pressing restrictions than for the U.S. Namely, its size.

Mauritius covers an area of less than 800 square miles, compared to approximately four million square miles in the United States. Its population of approximately 1.26 million is less than that of Dallas, Texas.

Therefore, members of parliament in the Republic of Mauritius have a question about where the influx of people will live. The Prime Minister explained that Golden Visa holders will only be allowed to acquire residential property under development schemes, including hotels. Initially, visa holders would live in hotels or rent residential properties, he added.

“There is therefore spare capacity in the high-end property rental market to accommodate these individuals without affecting housing affordability for [Mautitian] citizens, he added.

Members of parliament also raised concerns that unscrupulous individuals might attempt to leverage the scheme to their advantage. Ramgoolan countered:  “A robust risk-based due diligence framework is already in place. The framework is aligned with our anti-money laundering and combating the financing of terrorism framework.”