Mauritius has topped a global league table of desirable destinations for the super-rich, thanks to tax cuts paid for by Keir Starmer‘s Chagos Islands ‘surrender’.
The tiny Indian Ocean nation is tied with Monaco at the head of Nomad Capitalist’s Freedom Index 2025 after announcing plans to abolish income tax using money handed over by British taxpayers.
The Prime Minister last month signed an agreement to cede sovereignty of the strategically-important Indian Ocean archipelago.
The deal will see the UK lease back a military base on Diego Garcia, the largest of the islands, with Britain paying Mauritius an average of £101million a year for 99 years.
In its inaugural Freedom Index Nomad, which brands itself a ’boutique tax and citizenship consultancy’ for high and ultra-high net-worth individuals, said Mauritius had ‘sensible taxation, a robust legal system and near-zero violent crime, giving investors a stable bridge between Africa and Asia‘.
A spokeswoman added
Switzerland, Portugal and Ireland rounded out the top five, with the UK 21st and the United States joint 29th under Donald Trump.
It came as Foreign Secretary today introduces a bill to hand over the British Indian Ocean Territory to Mauritius.
Tory shadow foreign secretary Priti Patel said: ‘It’s a £30 billion tax on British taxpayers.
The Prime Minister last month signed an agreement to cede sovereignty of the strategically-important Indian Ocean archipelago.
The deal will see the UK lease back a military base on Diego Garcia, the largest of the islands, with Britain paying Mauritius an average of £101million a year for 99 years.
Tory shadow foreign secretary Priti Patel said: ‘It’s a £30 billion tax on British taxpayers.
‘Working people across Britain will pay the government of Mauritius to give them British territory, and deliver tax cuts to the people of Mauritius.’
Mauritius will use almost £500million of the UK payments to help clear its national debt.
This will allow the east African country to abolish income tax entirely for 81 per cent of employed Mauritians and raise minimum salaries.
It has also been pointed out how, under the Chagos Islands deal, UK taxpayers are now funding more than 4 per cent of the Mauritian government’s total budget.
Nomad Capitalist research associate, Javier Correa, said its index ‘educates and empowers high-net-worth individuals and families on their journey to live more freely’.
‘While the West still preaches liberty, countries like the UK and US have become poster children for bloated bureaucracy, rising taxation, and the mismanagement of public finances,’ he said.
‘From entrepreneurs to investors, globally minded citizens need to understand that the Western world has changed and they may need to look elsewhere, so the Nomad Capitalist Freedom Index is a blueprint for them to go where they are treated best.’
It aims to highlight places ‘where personal liberty, financial sovereignty and lifestyle flexibility still exist and thrive – where global citizens can actually live life on their own terms’.
Mauritius will use almost £500million of the UK payments to help clear its national debt. This will allow PM Navin Ramgoolam (pictured) to abolish income tax entirely for 81 per cent of employed Mauritians and raise minimum salaries.
To accompany the treaty, MPs will need to sign off on a Bill to wind up the current governance of the British Indian Ocean Territory (BIOT).
The treaty will only come into force once the legislation is ‘in place’, according to the Government.
It follows a 2019 advisory opinion by the International Court of Justice, which said the UK should cede control.
As well as establishing a £40 million fund for Chagossians expelled from the islands, the UK has agreed to pay Mauritius at least £120 million annually during the 99-year agreement.
The Government, however, estimates the bill will be lower at around £101 million a year, while critics argue it will be much higher.
