• If you thought that the “postcard island” side of Mauritius, with its breath-taking landscapes and beaches were appealing enough, you will be happy to know that owning a property here offers numerous advantages to foreigners. Fiscal laws related to property and taxation have been devised in a way to encourage foreign investment. Here are some examples.
  • Tax payment in Mauritius

    - A rate of 15% only is levied on the revenue, on the rent obtained by the owner of a residential property and on the profits made by a company

    - The Value Added Tax is also 15%

    - Profits obtained from foreign companies can be repatriated without any restriction

    - The Mauritian can keep his profits upon the sale of his property, since capital gains are not taxable

    - No tax applies on dividends and inheritance rights

    - There is no housing tax, local tax or property tax to pay in Mauritius

    The Double Taxation Law

    Mauritian fiscal laws offer a considerable advantage to foreigners, and especially to French, through the double taxation law (signed with no less than forty countries). Their real estate assets found in Mauritius are exempted from wealth tax (Impôt Sur La Fortune Immobilière).

    The fiscal advantages of the Property Development Scheme (PDS)

    There previously were two separate programmes for real estate investment in Mauritius, open to Mauritians and foreigners, namely the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES). In 2015, the Mauritian government has combined both and replaced them with the Property Development Scheme. Its aim was to strike a balance regarding the disparities created by the two previous schemes.

    In addition to allowing an individual to enjoy the benefits of the fiscal laws, the purchase of a property in Mauritius is financially beneficial in itself.

    In fact, a minimum amount of 70,000 USD was to be paid earlier as registration duty upon the purchase of a real estate asset under the Integrated Resort Scheme. 25,000 USD were required for one under the Real Estate Scheme.

    As for the transfer fees, they amounted to 50,000 USD for a property under the Integrated Resort Scheme and 25,000 USD for one under the Real Estate Scheme.

    The Property Development Scheme has reduced these amounts to a flat rate of 5%, deducted from the purchase price.

    How to benefit from the advantageous Mauritian fiscal laws?

    In order to become a fiscal resident and therefore benefit from these laws, a foreigner has to spend a minimum of 183 days (approximately 6 months) annually on the island.

    A Residence and/or Occupation Permit should be applied for. The acquisition of a property at the cost of more than 500,000 USD (about 452,000 euros currently) under the real estate projects regulated by the Economic Development Board of Mauritius, such as the Property Development Scheme (PDS), the Smart City Project or the Ground +2 Apartments, automatically grants a Permanent Residence Permit, which will be valid for a period as long as that of the property ownership.

    Check out our advert pages in order to choose your real estate asset in Mauritius and get your residence permit so as to enjoy the fiscal laws of the island. Our dedicated team is there to provide you with any information you might need.