Are you considering buying property in Mauritius? The tropical island nation in the Indian Ocean offers a unique blend of natural beauty, cultural diversity, and economic stability.
As you embark on this exciting journey, it’s essential to equip yourself with the necessary knowledge and resources to navigate the complex process of property acquisition.
In this comprehensive guide, we’ll provide you with all the information you need to know about buying property in Mauritius. From eligibility and approval processes to the different types of property acquisition schemes available, we’ll cover everything you need to make an informed decision.
So sit back, relax, and let us take you on a journey through the world of property investment in Mauritius.
Key Takeaways
- Non-citizens and foreign nationals can buy property in Mauritius, but approval from the Prime Minister’s Office or Economic Development Board is required.
- Various schemes for property acquisition are available, such as IRS, RES, Smart City Scheme, and Invest-Hotel Scheme.
- The PDS scheme is a new program that replaces the IRS and RES and offers luxury residential properties sold exclusively on a VEFA basis.
- Non-citizens who invest more than USD 375,000 in a PDS project are granted a residence permit as long as they hold the residential property.
Eligibility and Approval Process
The eligibility and approval process for purchasing real estate in Mauritius is a crucial step, as non-citizens and foreign nationals are required to obtain approval from the Prime Minister’s Office or Economic Development Board, respectively, before acquiring property.
The approval process involves submitting required documentation, such as a copy of the buyer’s passport and proof of funds, to the relevant authority. The timeline for approval varies depending on the scheme used and the complexity of the application, but typically takes 2-3 weeks.
Various schemes approved by the Economic Development Board are available to facilitate property acquisition in Mauritius. These include the IRS program, RES program, Smart City Scheme (SCS), and the Invest-Hotel Scheme (IHS), among others.
Each scheme has its own eligibility criteria and documentation requirements, and applicants are advised to consult with a registered real estate agent or legal professional to determine the most suitable scheme for their needs.
Types of Property Acquisition Schemes
Various approved property acquisition schemes are available in Mauritius, offering investment opportunities for both locals and foreigners.
The most notable scheme is the IRS program, which targets large sugar companies and offers luxurious properties with leisure and wellness amenities. As of 2021, there are 20 IRS projects approved, with an estimated investment value of USD 3.2 billion.
The program allows buyers to participate in the design of their property, pay for their purchase in installments, and apply for a Resident Permit for themselves and their immediate family for any purchase of $375,000 or more.
Other schemes include the RES, which targets foreigners with a limited budget who wish to live in Mauritius for a maximum of six months while having a home base.
The Smart City Scheme (SCS) promotes Mauritius as an international business center and encourages sustainable development.
The Invest-Hotel Scheme (IHS) allows foreign investors and individuals to own exclusive hotel units located in Mauritius.
These schemes offer a range of investment opportunities for those interested in land ownership or purchasing property in Mauritius.
Steps for Purchasing Property
One of the initial requirements for purchasing property in Mauritius as a non-citizen or foreign national is to obtain approval from the Prime Minister’s Office or Economic Development Board. The approval process typically involves submitting an application form and supporting documents, such as a copy of the buyer’s passport and proof of funds. Once approval has been granted, the buyer can proceed with the purchase process, which typically involves several steps.
Firstly, the buyer will need to sign a reservation contract and pay a security deposit, which is usually 10% of the purchase price. This secures the property and ensures that it is taken off the market. Next, the buyer will need to sign a notarial deed, which is drafted by a notary public and sets out the terms of the sale. Once the notarial deed has been signed, the buyer will need to pay the remaining balance of the purchase price and sign a final sales contract. The final step involves the delivery of the property and the completion guarantees. Throughout the process, it is important for the buyer to consider legal considerations and financing options.
| Financing Options | Legal Considerations | |||
|---|---|---|---|---|
| Bank loan in Mauritian rupees | Guarantee of perfect completion | |||
| Payment in Mauritian Rupees, USD, Euros, Pounds Sterling, or any other convertible currency | Functioning of equipment, ten-year warranty or warranty against hidden defects, and damage insurance | |||
| Repatriation of funds or income | Compliance with regulations and requirements | |||
| Investment from funds located outside Mauritius and transferred through a reputable bank | Protection from fraud and scams | |||
| Duty exemptions on equipment under the PDS scheme | Tax implications and obligations | Availability of skilled labor and workforce | Business competition and market saturation |
Requirements and Benefits for Non-Citizens
Non-citizens who wish to invest in Mauritius can take advantage of the PDS scheme, which offers a golden opportunity for them to plant their roots in the country and grow like a flourishing tree.
Under this scheme, luxury residential properties are sold exclusively on a VEFA basis, with open spaces and high-level leisure and recreation facilities.
Non-citizens who invest more than USD 375,000 in a PDS project are granted a residence permit as long as they hold the residential property.
The PDS program has replaced the IRS and RES real estate programs, and the advantages of the PDS scheme include a particularly favorable tax policy, harmonized registration fees at a single rate of 5%, and duty exemptions on equipment.
Financing options for non-citizens include making payments in Mauritian Rupees, USD, Euros, Pounds Sterling, or any other convertible currency.
However, non-citizens must finance their investment from funds located outside Mauritius and transferred through a reputable bank listed in the Bank of Mauritius approved Banking Almanac.
Non-citizens can also take out a bank loan in Mauritian rupees, provided that the first USD 500,000 (EUR 370,000) is paid in a convertible foreign currency and the loan repayment is made in a convertible foreign currency.
Eligible buyers for a PDS property include individuals, companies, limited partnerships, trusts, foundations, and expatriates holding an Occupation Permit or Resident Permit.
PDS Scheme Overview
The PDS scheme in Mauritius is a real estate program that replaces the IRS and RES programs. It offers luxury residential properties built on land of up to 20 hectares and sold exclusively on a VEFA basis. The scheme provides eligible buyers with open spaces, high-level leisure and recreation facilities, and daily management services. Non-citizens who invest more than USD 375,000 in a PDS project are granted a residence permit as long as they hold the residential property.
The advantages of the PDS scheme include a particularly favorable tax policy, harmonized registration fees at a single rate of 5%, and duty exemptions on equipment. Investment opportunities under the PDS scheme are ideal for individuals, companies, limited partnerships, trusts, foundations, and expatriates.
Owners of PDS properties can enjoy residential amenities such as sports facilities, swimming pools, gardens, and other amenities. The application process to purchase a PDS property is made online through the Property Acquisition and Management System. Eligible individual buyers are required to provide a certified/notarized copy of the first 5 pages of their passport, a certified/notarized copy of their birth certificate, and a letter from their bank certifying that the KYC exercise has been completed.
Company buyers must provide the company’s certificate of registration, registration card, register of shareholders, and a resolution of the Board of Directors.
Frequently Asked Questions
Are there any restrictions on the type of property that can be purchased?
Foreign ownership of property in Mauritius is subject to legal requirements, but there are no restrictions on the type of property that can be purchased.
Non-citizens, foreign nationals, Mauritian nationals, companies, civil companies, limited partnerships, trusts, and foundations can buy property in Mauritius, subject to approval from the Prime Minister’s Office or Economic Development Board.
Various schemes for property investment with ROI potential have been approved by the Economic Development Board, such as the IRS, RES, Smart City Scheme (SCS), and Invest-Hotel Scheme (IHS), each with its own eligibility criteria and benefits.
The recently introduced Property Development Scheme (PDS) replaces the IRS and RES programs and allows the purchase of luxury residential properties sold exclusively on a VEFA basis, without any restrictions on the type of property that can be purchased.
What is the average cost of a property in Mauritius?
The average cost of a property in Mauritius varies depending on several factors affecting the property prices in Mauritius. Location is a significant factor, and the best areas to invest in Mauritius real estate are Grand Baie, Tamarin, and Flic en Flac.
Property prices in these areas range from USD 200,000 to USD 1 million, depending on the type of property and its location. Other factors that affect property prices include the size and type of property, the level of luxury, and the amenities offered.
For instance, properties that offer high-level leisure and recreation facilities and daily management services tend to be more expensive. Additionally, the PDS scheme offers particularly favorable tax policies and duty exemptions on equipment, making properties under this scheme more costly.
Overall, the average cost of a property in Mauritius is relatively high compared to other countries, but it offers excellent investment opportunities for those looking for a luxurious lifestyle and a secure investment.
Can non-citizens rent out their property while they are not living in it?
Non-citizens who purchase property in Mauritius are allowed to rent out their property while they are not living in it.
However, there are some renting restrictions set by the government that must be followed. For example, non-citizens are only allowed to rent out their property on a short-term basis, which means that the rental period should not extend beyond six months.
Additionally, non-citizens must obtain a rental permit from the Economic Development Board before renting out their property.
Renting out the property can be a good investment opportunity for non-citizens as it can generate extra income. However, it is important to ensure that all legal requirements are met to avoid any legal issues.
What are the tax implications for owning property in Mauritius as a non-citizen?
Tax planning is an important consideration for non-citizens owning property in Mauritius. There are certain legal compliance requirements that must be met, including registering for tax purposes and submitting annual tax returns.
Non-citizens are subject to the same tax rates as Mauritian citizens, which include income tax, capital gains tax, and property tax. However, there are certain tax benefits available for non-citizens, such as exemptions on rental income and duty exemptions on equipment.
It is important for non-citizens to seek professional advice on tax planning and compliance to ensure they are fully aware of their obligations and can take advantage of any available tax benefits.
Is it possible to obtain a mortgage for a property in Mauritius as a non-citizen?
Mortgage eligibility for non-citizens interested in purchasing property in Mauritius is possible, however, there are specific requirements that must be met. Non-Mauritian citizens are permitted to take out a bank loan in Mauritian rupees, but the first USD 500,000 (EUR 370,000) must be paid in a convertible foreign currency, and the loan repayment must also be made in a convertible foreign currency.
In addition, non-citizens must finance their investment from funds located outside Mauritius and transferred through a reputable bank listed in the Bank of Mauritius approved Banking Almanac. It is important to note that these requirements may vary depending on the specific mortgage provider and the type of property being purchased.
Conclusion
In conclusion, buying property in Mauritius can be a great investment opportunity for those who are eligible and willing to go through the approval process. With various property acquisition schemes available, it’s important to carefully consider which one best suits your needs and goals.
Non-citizens can benefit from the PDS scheme, which offers various advantages such as residency permits and tax benefits.
However, it’s important to note that even with all the benefits, owning property in Mauritius does not guarantee happiness or fulfillment. In fact, the pursuit of material wealth and possessions can often lead to feelings of emptiness and dissatisfaction.
Therefore, while buying property in Mauritius may be a wise financial decision, it’s important to also focus on cultivating a sense of inner peace and contentment in life.