Doing Business in Mauritius
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how much you need to earn to drive a bmw x5 ?
everyday i see so much people rolling by in their bMW or merc and im wondering how much money you need to make to buy a Rs 3M vehicle?? just take a look around and see how many bmw 3 series are on our roads, but for this question im more focusing on higher luxury segment like x5,x6 , E series , 5 series etc..
and also, i am by no means implying that these people steal money or whatever, and also i am not jealous of them .Since im still a student im wondering how they afford to run such cars and also how much money top level people are being paid .
Is there a reason why illicit activities such as drug trafficking and money Laundering not being mentioned here, I am not generalising, but there must be a small percentage where this may be the case
Also you need to earn a lot more money in Mauritius to live comfortably, I would say at least Rs 100,000!
Some people who have top positions are earning in excess of Rs100,000 but for you to get that wage, especially in the government sector, is going to take you a lifetime.
Now the real answer to your question lies in 3 things:
Income tax in Mauritius is lower
You pay 15% flat rate on your income here and you have an allowance of around Rs200,000 before you actually pay tax. In the UK, the allowance is relatively less and you start at a rate of 22% tax and if you're a high earner, you'll end up paying 40% tax.
Many people in Mauritius take cash in hand. For example, if you go to a lawyer, he'll want something like Rs40,000 as fees for his services. Most of the time, they don't give you a receipt and if they do, it's not something that they are going to declare to the taxman. They actually put only a fraction of the money they receive in the bank so as not to look suspicious. Therefore they are able to pay less tax and save more money.
Things are over expensive here
The cost of goods and services here do not reflect the actual value they really are. People set the prices themselves; they actually put whatever they feel like their services are worth without and most of the time there's no justification of the charges. For example, do you think a shampoo should cost Rs250? Or renting a bungalow for a night at Rs2500 sounds right? A weekly food shopping can easily cost Rs3000. I think it's a daylight rip-off.
Anyway, people don't complain about these things and the rising inflation does not seem to affect them. People are still spending no matter how much things cost and this means that they have the money to pay for it.
All in all, it's people who do business who are more wealthy and business does not necessary mean having an office as I known kebab merchants to be driving Mercedes!