Real Estate Investment in Mauritius
Mauritius is all about the sun, the beach, the sea, and many advantages in terms of its society, economy, fiscal laws, politics and climate. The purchase or rental of a real estate asset on the island can therefore be very profitable. Here is what you should know about investment in the real estate in Mauritius as well as information about the key real estate projects put forth by the Mauritian government, which are regulated by the Economic Development Board (EDB).
Who can invest in the real estate in Mauritius?
A Mauritian by citizenship, a foreigner, a registered foreign company or a company constituted in Mauritius according to the Companies Act 2001, a partnership (the deed of incorporation of which has been submitted to the Registrar of Companies) and a trust can apply for the purchase of real estate property under the IRS, RES or PDS (see below).
The Property Development Scheme (PDS)
The doors to Mauritius have opened to foreigners in 2002. However, the PDS, which was established in 2015, has combined the two previous real estate investment programs; the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES). The purchase of a property under either the IRS, RES or the PDS would grant a foreigner a Residence Permit, provided the amount paid for the property equates or is more than 500,000 USD.
The PDS prescribes the construction of at least six luxurious residences on a land of at least 1 acre. The residential complex should include amenities, an area which allows the owners of the properties to interact with each other, grant access to leisure and provide security, gardening, cleaning and waste disposal services. It is important to note that a residence falling under the PDS can be used as personal residence, or can be advertised for rent by a real estate agency.
For the year 2020, the finance bill which will be proposed concerning the new threshold applicable to the issuance of a residence permit in the event of the acquisition of RES, IRS, or PDS property :
" a property under the Integrated Resort Scheme, Real Estate Scheme, Invest Hotel Scheme, Property Development Scheme or Smart City Scheme, the purchase price of which is not less than 375,000 US dollars or its equivalent in any other hard convertible foreign currency where the exchange rate to be used to calculate the US dollar equivalent shall be the selling rate in force at the time of signature of the title deed".
The Smart City Project
This project is based on the “work, live, play” motto. It is the creation of a modern residential area. In fact, its design is such that offices, residences, clinics, sports clubs, green spaces and recreation are all nearby and accessible. Moreover, the concept is driven by eco-friendliness and the respect of the environment in general; renewable energy and the absence of any type of pollution. Types of properties under this scheme include houses, townhouses, villas, duplexes and apartments.
Ground +2 apartments
This scheme involves, as the name indicates, the sale of apartments of a minimum of two floors in addition to the ground floor, within a condominium, at more than Rs 6 million.
Note: buying an apartment at more than 500,000 USD would grant a foreigner the possibility of obtaining a Long-Stay Visa of 10 years, which can be renewed.
Useful info
- The IRS, RES or PDS include the sale of fully constructed property, property under construction or construction plans
- Construction plans and property under construction can be sold under two provisions:
i) “Vente à terme” (Sale for Future Delivery) which means that the price for the property will be paid once the it has been fully built and once this fact is confirmed, the buyer becomes the owner of the property
ii) “Vente à l’Etat Futur d’Achèvement” (Sale in a Future State of Completion) which entails commitment from the seller to complete the construction of the property. Both the land and the property will belong to the buyer. The payment is done through portions of: 25% once the deed is signed, 10% once the base works are done, 35% when the roofing is done, 25% when the construction is fully done and 5% when the property is ready to welcome you
- The money used for the purchase of property in Mauritius should come from abroad and be credited to Mauritius via a bank approved by the Bank of Mauritius
- In case money is borrowed in the Mauritian currency from a bank in Mauritius, the 500,000 USD of the lent amount has to be paid back in USD or any other foreign currency and the loan has to be paid back in foreign currency
- The buyer is not considered the owner of the property until and unless the registration tax is paid to the registrar general. The CEO of the EDB should be sent a letter and the Notary Certificate with clear mention of the property value upon the registration of the property
- Property under the IRS, RES or PDS can be rented out by means of a RES or an IRS company or the company may choose another one to manage the property rental. The EDB should be notified of the chosen company
- The request for the purchase of property can be made to the EDB on this website.
More information can be found here. You can rely on the DECORDIER Immobilier team to make it all simple for you.
The advantages of investing in the real estate sector in Mauritius
Upon the purchase of a real estate asset under the PDS and the Smart City Project at the cost of more than 500,000 USD, the buyer is entitled to a Residence Permit of an unlimited duration, valid as long as the residence is his.
The Vente à l’Etat Futur (VEFA) provision guarantees the completion of the real estate asset construction. The payment for a residence is made by installments, depending on the stage of works completed. Following the payment of the last installment as well as the registration fees of 5 % of the purchase price, the residence legally belongs to the buyer.
In addition to this, the properties under above-listed schemes are built in the most beautiful regions of the island, boasting of the best reputation and in the vicinity of most of the essential services. The residences also provide many amenities.
DECORDIER immobilier presents to you residences to buy or rent as well as lands where you can build according to your likings. We also bring you the market’s exclusive deals. Invest your money in a secure, profitable and well-planned way, thanks to a real estate agency that has no less than 15 years of experience in the field.
See you soon at our Grand Bay office.