Political and economic stability, a secure legal framework, attractive taxation, and a solid banking system are a few of the reasons why Mauritius enjoys an excellent international image! It is also ranked as the happiest country in the African continent according to the World Happiness Report 2021 published by the United Nations. In this blog post, we give you a detailed guide on foreign real estate investment in Mauritius.
Top 10 reasons to live in Mauritius
- Political and social stability
- Mauritian permanent residency with a minimum investment of USD375,000
- A hybrid legal system (a mix inspired by French and English laws)
- A regional platform for banking and financial services
- Regulated real estate investment – financial guarantees of completion
- Good rental returns and capital growth
- Top-quality medical care
- Safe, secure lifestyle
- International schools and universities
- Tropical climate all year round
For the past 20 years, Mauritius has gained rising popularity with the internationally mobile community. Its liberal property market along with several schemes approved and managed by the Economic Development Board in view to acquire residential property on the island has eased the journey for international investors.
Tax Advantages
Mauritius has an array of fiscal advantages that attract investors from all around the globe. These are:
- a flat 15% income tax on rental income,
- no property or housing tax,
- no taxation on dividends and capital gains,
- no inheritance tax,
- low bond interests, and
- double taxation agreements signed with more than 40 countries (such as France, South Africa, and Luxembourg among others).
Investment Schemes
We have different schemes available for acquiring residential properties on the island and even becoming a permanent resident.
Under the Property Development Scheme, Integrated Resort Scheme, Real Estate Scheme, and Ground + 2 Scheme, an investor who purchases property of a minimum of USD 375,000 becomes eligible for permanent residency in Mauritius!
The applicant’s spouse, dependent child, parent, or a person working exclusively for the family unit may also become a resident for a period of 10 years.
Pursuant to the budget speech, no approval is now required from the Prime Ministers’ Office (PMO) for disposal of property under the EDB Schemes but only for EDB to notify the Prime Minister’s Office of such disposal.
What do these schemes mean?
The Property Development Scheme (PDS)
This scheme enables noncitizens, Mauritians, and the Mauritian diaspora to acquire property within a prestigious residential development. A buyer who invests more than USD375,000 (or the equivalent in another currency) in a PDS program is eligible for permanent resident status. In addition, the noncitizen and his dependents (spouse, dependent children, and parents) are granted a permanent residence permit. Moreover, the buyer and the spouse no longer need an occupation permit to work in Mauritius. The PDS harmonizes the government registration tax at a single rate of 5%.
Integrated Resort Scheme (IRS) / Real Estate Scheme (RES)
Noncitizens can also acquire high-end residential property under the IRS and RES. Thus, the noncitizen and their dependents (spouse, dependent children, and parents) obtain a permanent residence permit when they buy property for a minimum amount of USD375,000. As a result, the buyer and the spouse no longer need an occupation permit to invest and work in Mauritius. Registration duty on the sale of a property under the IRS or RES will be levied at the rate of 5% or USD70,000 whichever is the lower, and at 5% for a resale.
G+2
The G+2 allows foreigners to invest in a condominium apartment in a building with at least two floors. The selling price must not be less than MUR6 million (or the equivalent in another currency). This legislation allows non-citizens to invest in more than one luxury apartment with the possibility of renting it out. For any purchase above USD375,000 (or the equivalent in another currency) a noncitizen may apply to the EDB for permanent residency and is exempted from the requirement of a work or occupation permit. This applies to the dependents of the buyer as well.
Who can acquire a residential property in Mauritius?
- A natural person, whether a citizen of Mauritius, a non-citizen, or a member of the Mauritian diaspora
- A company that is incorporated or registered under the Companies Act
- A société, where its deed of formation is deposited with the Registrar of Companies
- A limited partnership under the Limited Partnerships Act
- A trust, where the trusteeship services are provided by a qualified trustee
- A foundation under the Foundations Act
8 steps to invest in real estate
- Find the home you love.
- Sign the Contrat de Réservation Préliminaire (CRP) and pay a deposit to secure your property.
- 2Futures applies for EDB Approval on your behalf for your unit by submitting your application together with the relevant Know Your Client (KYC) to the EDB. You will need to pay the additional fees: – 5% Government registration tax – 1% Notary fees – MUR50,000 Administration cost.
- Wait for the EDB’s approval (around two months).
- Once EDB’s approval is received and the balance owing on your property is paid, the title deed will be signed and registered.
- Once title deed is registered, if your property qualifies for Permanent Residency (minimum investment of USD375,000), then 2Futures applies for permanent residency on your behalf by submitting your application and relevant residency documents to the Prime Minister’s Office (PMO)
- Wait for the PMO Approval of residence permit.
- Collect your permanent residence permit from the EDB and enjoy your new home.
See all our properties for sale in Mauritius. For any queries about investment, relocation, or the real estate sector in Mauritius, do not hesitate to contact us!
