Buying a property in Mauritius

mauritius-estates-logo-transparentNon-nationals are allowed to acquire residential property in Mauritius under special schemes known as the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES) respectively. Properties under the IRS are offered for sale at a minimum legal price of US $ 500,000 and the acquirer of an IRS property is automatically granted a residence permit.

Comparatively, a residential property bought within a RES development does not have to comply with a minimum price. However, acquiring a property under the RES does not confer permanent residency. Acquirers of a residence under the RES may wish to apply for residency under any of the 4 existing conditions: as an investor, as a professional, as a self-employed, or as a retired non-citizen.  

New Schemes just launched:

The two above mentioned scheme apply to all current marketed projects. Any NEW projects as from now on will fall under the Property Development Scheme (PDS) or the Smart City Scheme (SCS).

* Explanation of each scheme is found down below.

 

Eligibility for Permanent Residence Permit

The following categories of persons are eligible for Permanent Residence Permit:

  1. An investor having held an Occupation Permit for three years immediately preceding the date of application for Permanent Residence Permit and whose company’s turnover exceeded Rs 15 million every year during each of these three years in respect of each shareholder of the company.
  2. A self-employed having held an Occupation Permit for three years immediately preceding the date of application for Permanent Residence Permit and whose income exceeded Rs 3 million every year during each of these three years
  3. A professional having held an Occupation or a Work Permit for three years immediately preceding the date of application for Permanent Residence Permit, and who has drawn a basic monthly salary of at least Rs 150,000 during the entire three year period.
  4. A retired non-citizen having held a Residence Permit for three years and who has transferred to Mauritius 40,000 USD or its equivalent in convertible currency annually during each of these three years.

 

PERSONAL CATEGORIES

  • Investor
    An investor is defined as a shareholder and director in a company incorporated in Mauritius under the Companies Act. An investor should make an initial transfer of $100 000 or its equivalent in any convertible foreign currency. An investor has to generate an annual turnover exceeding MUR 4 million. A company may have more than one investor. An investor having been granted an Occupation Permit is eligible to purchase only one apartment in a building of at least 2 floors above ground floor for his/her personal residence. Non-citizen having invested a minimum of $ 500 000 in a qualified business activity as from 1 January 2013, will obtain a Permanent Residence Permit. This will give them the right to acquire one apartment in a building of at least 2 floors above ground floor for his/her personal residence.
  • Self-employed
    A self-employed is defined as a non-citizen engaged in a professional activity registered with the Registrar of Businesses. A self-employed should make an initial transfer of $ 35 000 or its equivalent in any convertible foreign currency.A self-employed is required to generate an annual turnover exceeding MUR 600 000. A self-employed usually operates as a one-person business, working exclusively for his/her own account.
  • Professional
    A Professional is defined under the Immigration Act as an expatriate employed by a company incorporated in Mauritius. A Professional should earn a monthly basic salary exceeding MUR 45 000. However, the monthly basic salary for Professionals in the ICT sector should exceed MUR 30 000. A Professional earning more than $ 3 000 per month and having been granted an Occupation Permit is eligible to purchase only one apartment in a building of at least 2 floors above ground floor for his/her personal residence.
  • Retired
    A Retired Non-Citizen is defined as a person who is not a citizen of Mauritius and aged 50 years or above.A Retired Non-Citizen should make an initial transfer of at least $ 40 000 or its equivalent when first settling in Mauritius. A Retired Non-Citizen must undertake to transfer to his/her local bank account in Mauritius, at least $ 40 000 annually or its equivalent. A holder of a residence permit for Retired Non-Citizen and his dependents are not allowed to work in Mauritius.

 

SCHEMES

 A) Integrated Resort Scheme (IRS) – applying to all current projects but will be replaced by PDS Scheme for all new launched projects

Under the Integrated Resort Scheme (IRS), luxury villas and other residential properties can be sold freehold at a minimum price of 500,000 USD to foreigners who, de facto, receive a residence permit. The few IRS villas put on the market so far have proved very popular, with overnight reservations and sales.

Investors from UK, France, Singapore, South Africa, UAE and other countries are injecting money into new luxurious villa and housing projects needing 25 percent cash to get involved. The investment period is short and projects get sold to new villa owners, mainly non-citizens, just before construction gets started (i.e off-plan). Investment under the IRS brings investors higher yields and is expected to grow for the next 10 years.

The IRS targets the high-end segment of the international property market, i.e., high net-worth individuals with high purchasing power. The property they are allowed to purchase are luxury residences such as villas, apartments, and penthouses located in specific areas, approved by the Board of Investment.

The investor may sell the property with no minimum selling price restriction; rent the property, elect tax residency in Mauritius and is free to repatriate funds or revenue raised from the sale or renting of the IRS property. International property developers claim our IRS is a good and competitive investment Eligibility for acquisition of residential property under the IRS scheme The following persons may acquire a residential property from an IRS Company:

(a) a non-citizen of Mauritius

(b) a citizen of Mauritius

(c) a company registered as a foreign company under the Companies Act 2001

(d) a company incorporated under the Companies Act 2001

(e) a society, where its deed of formation is deposited with the Registrar of Companies

(f) a trust, where the trusteeship services are provided by a qualified trustee licenced by the Financial Services Commission 

 

  1. B) Real Estate Scheme (RES) – applying to all current projects but will be replaced by PDS Scheme for all new launched projects

Under the Real Estate Scheme (RES), residential units are sold to non-citizens at no minimum price. However, acquisition of property worth at least 500, 000 USD entitles the purchaser a residence permit. This scheme is targeted mainly for those investors, retirees and professionals, who want to invest, work and live in Mauritius or to those people who want to have a second home or holiday retreat in Mauritius.

The Real Estate Scheme offers a wealth of opportunity for businesses to invest and prosper in the development of residential property. The residential properties may be sold to non-citizens at no minimum price.

It is therefore expected that not only will we see high interest among international buyers seeking a second or leisure home with an appealing lifestyle, but that the demand will also grow from professionals and international players relocating their business in Mauritius so as to benefit from the low tax regime prevailing in Mauritius. The planned real estate development coupled with the intrinsic attributes of Mauritius in terms of political stability, booming luxury tourism market, sound infrastructure, make Mauritius a highly-sought real estate investment destination whether for ownership or for buy-to-let schemes.

As a foreigner, should you acquire an RES unit under USD 500 000, you will not be entitled to the Residence Permit and thus you will only be able to stay 6 months per year in Mauritius. Eligibility for acquisition of residential property under the RES scheme (a) a non-citizen of Mauritius

(b) a citizen of Mauritius

(c) a company registered as a foreign company under the Companies Act 2001

(d) a company incorporated under the Companies Act 2001

(e) a society, where its deed of formation is deposited with the Registrar of Companies

(f) a trust, where the trusteeship services are provided by a qualified trustee licenced by the Financial Services Commission

 

  1. C) Property Development Scheme (PDS) – Newly Launched! Applying to all new projects launched

The Property Development Scheme (PDS), which has replaced the IRS and RES, allows the development of a mix of residences for sale to non-citizens, citizens and members of the Mauritian Diaspora.

The PDS provides the following:

  1. the development of luxurious residential units on freehold land of an extent of at least 0.4220 hectare (1 arpent) but not exceeding 21.105 hectares (50 arpents).
  2. the development of at least six (6) residential properties of high standing;
  3. high quality public spaces that helps promote social interaction and a sense of community;
  4. high-class leisure, commercial amenities and facilities intended to enhance the residential units;
  5. day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services; and
  6. social contribution in terms of social amenities, community development and other facilities for the benefit of the community.

A non-citizen is eligible for a residence permit upon the purchase of a villa under the PDS scheme when he has invested more than USD 500,000 or its equivalent in any freely convertible foreign currency.

The PDS is also a demarcation from the IRS and RES in as much as it does not differentiate between small and big landowners and harmonizes the registration duty to a single rate of 5% instead of USD 70,000 on registration of a deed under IRS and USD 25,000 under RES. 

 

  1. D) Smart City Scheme (SDS) – Newly Launched! Depending on the Promoter, a project falling under the Smart City Scheme (SDS) can include a Property Development Scheme (PDS)

Under the Smart City Scheme (SCS), a project, other than a technopole project, should:

 

  1. be developed on land of an extent of at least 21.105 hectares (50 arpents) and include
  2. adhere to the live, work and play concept and shall provide for a majority of the residential population to live and work in the same location
  3. incorporate within the development a mix of compatible land use including commercial, leisure and residential and consisting of a combination of office, light industrial, hotel, retail, public entertainment and housing so that the inclusive development achieves physical and functional integration and creates a pedestrian oriented urban environment
  4. have at least 25 percent of the residential properties sold to citizens of Mauritius or members of the Mauritian Diaspora registered with the Board of Investment under the Mauritian Diaspora Scheme

 

  1. E) Invest Hotel Scheme (IHS)

The Invest-Hotel is a scheme designed to allow property developers to sell hotel rooms, villas, suites or any other part of a hotel to individual buyers during and post construction phases.

While this scheme paves the way to facilitate the overall financing of new hotel projects, it offers individual buyers all the facilities of an exquisitely-furnished new luxury resort hotel with amenities like F&B, full-service spas, health and fitness centres, resort-style pools, sophisticated business centres and maid service and the promise of rental income.

The above enhancing features are now available to a wider cross-section of the Mauritian population who previously could not avail of such opportunities.

 

  1. F) Acquisition of residential property (apartment) by holders of Permanent Residence Permit

A Non-Citizen who has been granted a permanent residence permit under the Immigration Act is eligible to submit an application to purchase an apartment for his personal residence.

An investor who has made an initial investment exceeding $ 100 000 or its equivalent in any freely convertible foreign currency, is registered with the Board of Investment and holds an Occupation Permit is eligible to purchase an apartment for his personal residence.

A professional who earns a monthly salary exceeding $ 3 000 or its equivalent in any freely convertible foreign currency, is registered with the Board of Investment and holds an Occupation Permit is eligible to purchase an apartment for his personal residence

A retired non-citizen who has transferred a minimum of US 120,000 dollars at the time of application of his/her Residence Permit

The apartment has to be a residential dwelling that forms part of a block of residential dwellings located in a building of not less than ground plus two (2) floors.

 

WHY INVEST IN MAURITIUS?

The advantages of investing in Mauritius are:

  • Social and political stability
  • A strong and diversified economy
  • An educated and bilingual workforce
  • A pool of skilled and qualified professionals
  • Preferential access to international market
  • A modern and reliable infrastructure
  • A comprehensive and forward looking legal framework
  • A growing international business and financial hub
  • A safe and enjoyable place to work and live

Whether you are considering business expansion or new investment opportunities, Mauritius should be top of mind as your investment destination of choice. Mauritius has been attractive for foreign internationally expanding businesses as it offers:

  • Growth of 15% in number of tourist arrivals in 2007
  • Growth rate of 15% in the construction sector in 2007 – the fastest growing sector
  • Stable political and macroeconomic environment
  • Excellent geographical location and infrastructure
  • High-quality human resources
  • Competitive business environment
  • Great quality of life
  • Low income and corporate tax rates of only 15%
  • Simple business regulations
  • Highest international standards for business, tourism and lifestyle
  • Freedom from bureaucracy, freedom of living and freedom of speech
  • No foreign exchange controls, trade barriers or quotas
  • No restrictions on capital repatriation
  • No inheritance tax
  • No capital gains tax
  • A tourism and high-class lifestyle paradise…

**Source: Mauritius Board of Invstment**

 

SELL or RENT YOUR PROPERTY IN MAURITIUS

 

 ”First Impressions count when selling a property” - Andrew Winter

”First Impressions count when selling a property” – Andrew Winter

The most important decision that you as a land lord, seller or land owner will make in the marketing of your property is to choose the right and most customer friendly estate agent. It is essential to choose a competent, trustworthy real estate company that listens to your individual needs. Whether it will be buying, selling or portfolio management, Mauritius Estates qualified portfolio manager will look after your interest and to ensure that you receive optimum price for your property.


By appointing Mauritius Estates, you will find the rest of the process with us to be a rewarding and stress free experience. 

 

PROCEDURES TO SELL OR RENT YOUR PROPERTY

To list your property with Mauritius Estates, use this form or please contact us and a portfolio manager will be in touch with you.  The consultant will then evaluate your property and upon agreement with both the consultant and the owner, the property will be placed on the market with Mauritius Estates.