Thinking of selling property in Mauritius to overseas buyers? In order to attract foreign investment in real estate, the government of Mauritius has suggested a number of different plans. Foreigners are encouraged to relocate to Mauritius for commercial and financial reasons thanks to the island’s generous business and tax climate.
Purchasing real estate, whether as an investment, primary residence, or vacation house, is a popular and accessible option. Property acquisition by non-Mauritian people or corporations is made easier by the various plans and initiatives.
Plan for a Complete Resort (IRS)
The Integrated Resort Scheme was established in 2002 by the government of Mauritius to provide a legal framework for developers to provide high-end real estate to foreign buyers (IRS). The Integrated Resort Scheme (IRS) is a form of freehold real estate that is often located in big resorts (golf estate, marina, etc.) along the coasts of the North, West, South, and East. Law requires that the minimum price of flats, duplexes, and single-family villas be at least US$500,000.
Residents can take use of the high-end amenities provided.
Golf courses, marinas, piers, sports centres, spas, and other “à la carte” amenities are all possible.
- As long as you own an IRS, you and your spouse or dependents will be eligible for a residence permit.
- Once you have got your residence permit, you are not eligible to purchase a property in Mauritius; nevertheless, you are eligible to purchase a property in the following categories: IRS, RES, PDS, Smart City, Ground + 2 flats, and Senior Residences.
If you buy a house, you may rent it out.
Con Artistry in the Real Estate Market (RES)
The Real Estate Scheme (RES) was first launched in 2006, paving the way for the construction of smaller resorts open to tourists who are not residents of the country.
There is no set minimum asking price for homes listed under the Real Estate Scheme (RES), which are often smaller residential complexes (limited to lots measuring between 4,220 and 100,000 square metres in size). –
You can get a Permanent Residence Permit tied to your RES property if you buy one and the property is valued at least US$ 375,000.
- This plan encompasses a wide range of housing options (single-family homes, duplexes, apartments, etc.) in many different areas (coastal regions and inland).
Investors, professionals, and retirees who have selected Mauritius as a place to live, work, invest, or vacation are the primary audience for RES homes.
PDS (Property Development Scheme) (Property Development Scheme)
The new PDS law mandated a review of the IRS and RES laws in 2015.
For the benefit of the local people, the government of Mauritius has crafted the PDS to make it easier for foreigners to own property in an integrated real estate scheme on the island. High-rise residential construction and sales are subject to PDS rules, which are intended to protect the interests of foreign buyers.
The following are some of the benefits that anyone may enjoy thanks to the Property Development Scheme:
Building at least 6 high-end homes on a freehold plot of land at least 0.4220 hectare (1 arpent) in size and no larger than 21.105 hectares (50 arpents).
- Well-designed public areas that encourage meeting new people and strengthening existing ties.
- Luxurious public spaces, shops, and restaurants designed to complement the apartments.
- On-going management services, such as security, maintenance, gardening, solid waste disposal, and housekeeping.
The residential options might range from:
- High-end villas complete with a host of facilities and services to
- High-end communities that provide a full range of services and facilities
- Luxurious penthouse suites complete with a host of extras
The same goes for any other buildings that may be utilised as a dwelling and have access to necessary services and conveniences.
- In the case of villas, the total land area allotted to individual units (not including shared spaces) must not exceed 2,100 square metres.
If you purchase a PDS property valued at least US$ 375,000, you will be eligible for a Permanent Residence Permit tied to your home.
Plans for “Smart” Municipalities
As an ambitious economic development initiative, the Smart City Scheme seeks to further establish Mauritius as a global commercial and financial centre by fostering the growth of smart cities around the island that provide favourable environments for working, living, and attracting investment. The growth of “smart cities” in Mauritius is creating a variety of fresh chances to put money to work. The goals of the smart city project are to promote cutting-edge research and development in the sciences and engineering, to make cutting-edge infrastructure available to the commercial sector, and to make urban living more exciting and dynamic.
For the purpose of attracting investment in the creation of smart cities across the island, the Government of Mauritius has established the Smart City Scheme. Sustainable, convenient, and pleasurable urban alternatives are what the smart-city idea is all about for both locals and visitors. These futuristic metropolises will be designed with the work-live-play ethos in mind, centred on cutting-edge technology and creative problem solving.
Investors will be able to put money into the following thanks to this plan:
- A variety of commercial, leisure, and residential uses that, taken together, achieve physical and functional integration and create a pedestrian-oriented urban environment;
- A clustering of diverse economic activities like offices, light industry, schools, hospitals, and tourist attractions;
- A high-tech and innovative cluster;
- Infrastructure to service green-field sites with roads and energizing landscaping;
- Clean technology aimed at curbing the city’s environmental
For the development of smart cities across the island, the Smart City Scheme provides an enabling framework and a package of attractive fiscal and non-fiscal incentives to investors.
- The Smart City Scheme offers financial incentives to encourage the creation of smart cities and the establishment of businesses inside them.
- Income Tax for a period of 8 years beginning on the day the SCS Certificate was issued, if the income was earned via the acquisition, development, sale, rental, or administration of real property, and not through the provision of goods or services.
- Value Added Tax paid on capital goods (building, structure, plant, machinery or equipment).
Dutiable products imported or purchased for use in infrastructure activities and building construction under the Scheme, excluding furniture.
Land Conversion Tax in regards to the land area earmarked for the development of non-residential components (office and business parks, ICT and innovation clusters, touristic, leisure, and entertainment facilities including hotels, golf courses, renewable energy, and green initiatives); M&G Tax on the transfer of land to an SPV provided that the transferor holds shares in the SPV equivalent to at least the value of the land transferred;
Additional tax breaks for purchasers
Full VAT recovery on capital goods (building structure), plant, machinery, and equipment; Accelerated annual allowance granted at a rate of 50% of the costs in respect of capital expenditure incurred by any company operating within the Smart City Scheme on energy-efficient equipment
Acquiring Property
Beyond a total of 21.105 hectares, a “smart city” will be built (50 arpents).
The Smart City Scheme allows foreign firms to purchase plots of land on which to build cities and their essential infrastructure.
To buy a piece of property in a Smart City, one needs either an Occupation Permit or a Residence Permit (conditions apply).
Property ownership Any individual or legal organization, including foreign corporations and trusts, is entitled to purchase a home in a smart city; any non-citizen who purchases a home in a smart city for more than USD 375,000 under the plan will be granted a residence permit for himself and his family.
One perk of the Smart City Scheme is the opportunity for retirees to purchase life rights, which would allow them to rent out or sell their home at any time.
Citizenship in Mauritius • A non-citizen who has maintained a residence visa for at least two years and who has invested more than five million U.S. dollars in Mauritius is eligible to apply for citizenship in Mauritius.
Condominiums (in a Ground-Plus-Two building)
With the consent of the Economic Development Board, the Non-Citizens (Property Restriction) Act was changed on December 20, 2016, allowing non-citizens to: • buy units in condominium buildings that are at least two stories above ground (G+2) (EDB).
Any non-citizen, with or without an occupation permit, residence permit, or permanent residence permit, may acquire apartments or penthouses in a Ground + 2 residence located anywhere in the building, provided that the amount payable for the acquisition of an apartment is at least MUR 6 million or its equivalent in any other freely convertible foreign currency.
- Prior law regarding the purchase of flats outside the IRS, RES, and PDS schemes limited non-citizens holding an occupational permit to purchasing a single apartment on the ground floor or below (G+2) of a building for his personal use and not for rental.
The new revision makes it possible for non-citizens to purchase several units and to rent them out for profit whether or not they have an Occupational Permit. Any buyer who spends more than USD 375,000 on a one- or two-bedroom apartment in a Ground + 2 dwelling that meets certain criteria in 2021 will be eligible to apply for a Permanent Residence Permit.
The Hotel Investment Plan (IHS)
By selling villas, suites, rooms, or other components of a hotel to individual customers, including non-citizens, the Invest-Hotel Scheme (IHS) enables: – • hotel developers to fund the construction of a hotel project.
Investment in the acquisition of a stand-alone villa should not be less than US$375,000 (excluding taxes) or its equivalent in any freely convertible currency; for units other than a stand-alone villa, no minimum investment is required.
Guesthouse
Investors interested in purchasing an existing or new tourist residence, as well as leasing such properties or purchasing shares in a firm that possesses such immovable property, must first contact the EDB (Economic Development Board).
The minimum investment required from buyers of shares in a corporation without real estate is Rs 10 million.
These are the requirements for participation:
A non-citizen cannot apply to buy or lease a tourist apartment or guesthouse unless one of the following conditions is met: a. the non-citizen is a business registered under the Companies Act 2001
- the foreigner in question is in possession of a letter of no objection from the Ministry of Tourism about the proposed project.
When acquiring or leasing an existing guesthouse or tourist residence, c. the minimum investment, excluding land cost, shall be at least Rs 10 million, and d. the minimum investment, excluding land cost, of creating a new guesthouse or tourist residence shall be at least Rs 30 million.
The Ministry of Foreign Affairs provides the following guidance for the planning and construction of a tourist home or guesthouse:
The guesthouse or tourist residence’s amenities and services must conform to the standards set by the Tourism Authority for Guesthouse and Tourist Residence and cater to the luxury market.
The inn/residence for visitors should have a certain kind of enchantment, luxury, and character. High-quality architectural design that reflects the area’s tropical allure is required of any proposed projects. The Ministry of Tourism must authorise any artistic renderings or 3-D sketches that depict the proposed development’s design character.
Management compensation needs to be linked to the capital provided. If the investor does not have managerial experience, a local Manager must be appointed; if the investor will also serve in this capacity, he must demonstrate a history of successful management and evidence of at least five years of experience in a similar managerial position in an overseas establishment.
Except for the owner/Manager, everyone else in the company should call the area home.
The safety and security measures implemented by the tourist residence must be in line with those mandated by the Tourism Authority, and the guesthouse/tourist residence must be equipped with safety and security equipment installed by a certified security firm.
Transformations in the Commercial World
Foreigners interested in establishing or expanding a business in Mauritius should be aware of the following: – • A non-citizen investor must apply to purchase immovable property or a portion of a building for commercial purposes, or to lease immovable property or a portion of a building for a term longer than 20 years.
A non-acquisition citizen’s or ownership of real estate for business purposes includes, but is not limited to, the following activities: – • the creation of high activity commercial use building, such as a retail centre, office building, or warehouse, for own use, sale, rental, or leasing. Contact us today to buy or sell property in Mauritius fast
