INVEST IN MAURITIAN REAL ESTATE: HOW AND WHY?

Why invest in Mauritius?

Mauritius offers many benefits & advantages as indicated below:

Proven political stability, an impressive track record of recognized economic rankings and indices, and a steady economic growth for several decades.
A safe business environment for investment, a recognized rule of law.
The most liberalized country on the African continent and the most business friendly.
Multicultural as well as multi-ethnic, Mauritius offers a unique and peaceful lifestyle in this mix of cultures.

Real estate in Mauritius: an investor's paradise

Whether you’re buying an apartment, villa, commercial space or an office in Mauritius, you’ll be able to enjoy our country’s advantageous fiscal framework:

Due to the double taxation agreement signed between several countries and Mauritius, you’ll benefit from an exemption for real estate located in Mauritius.
The rate of income tax is capped at 15 % in Mauritius.
The rate of land transfer tax is only 5 %.
No inheritance tax on Mauritian property.
No capital gains tax.

Other advantages

Found in the Indian Ocean, Mauritius benefits from a mild, tropical climate year-round. It’s a country prized for its idyllic landscape and laid-back island living style.

Mauritius is one of the go-to destinations for foreigners.

Property investment in Mauritius is greatly facilitated by the country’s strong and stable legal system, with a Mauritian Civil Code based on the French Civil Code concerning real estate.

Mauritian fiscal policy is perceived as a tool for long-term development of the country, allowing foreign investors to invest in Mauritius with a view to long-term stability with numerous advantages.

Investing in Mauritius also means participating in the growth of a country whose economy is booming. Due to its privileged geographical placement, a true crossroads between Asia and Africa, Mauritius is a gateway to European and American markets thanks to its beneficial international treaties. Entrepreneurship and investment have made Mauritius one of the most dynamic developing countries of sub-Saharan Africa and of the Indian Ocean.

As part of a three-month tourist visa (renewable once), a foreign non-resident can stay up to six months maximum in Mauritius.

Living in Mauritius: How does one obtain a residence permit?

As part of a 3-month tourist visa renewable once, a non-resident may stay up to 6 months in Mauritius.

To obtain the right to reside for more than six months, a residence permit must be obtained and can be applied for in the following three cases:

By retiring in Mauritius
For this, the individual must prove to the authorities that he/she has a minimum income outside of Mauritius of 40 000 USD per year. The amount will have to be repatriated to a bank account in Mauritius. The residence permit is valid for a period of three years, and at the end of this period, the foreign retiree can obtain a Permanent Resident Permit.
By obtaining an Occupation Permit
One can ask for an Occupation Permit in the following three instances:

As an Investor: The proposed business activity must be expected to generate a turnover of around 4 000 000 MUR per year for an initial investment of 100 000 USD per investor or the equivalent of this amount in freely convertible foreign currency.

Where there is more than one investor, the turnover test applies to each applicant (i.e 8 000 000 MUR for two applicants, 12 000 000 MUR for three applicants, and so forth).

As an employed professional: The individual’s basic salary must not be less than 45 000 MUR per month. For individuals operating in the ICT sector, the salary must not be less than 30 000 MUR per month.

As a self-employed professional: Their revenue must surpass 600 000 MUR per year for an initial investment of 35 000 USD, or the equivalent in freely convertible foreign currency.
Through the Acquisition of Real Estate in Mauritius
Through the Acquisition of Real Estate in Mauritius of a value greater than 500 000 USD with respect to the Smart City or Property Development schemes. Following the fulfilment of these conditions, the investor purchasing an apartment or a villa in Mauritius will be able to keep his residency permit as long as he/she remains the owner of the property. If the property is bought by several people, by name or through a company, only one investor will be able to receive the residency permit attached to the property. The investor’s partner as well as his/her children aged below 18 will also benefit from the permit.

Full Ownership of Property in Mauritius

Property Development Scheme (PDS)

A foreign investor is fully able to invest in a villa or an apartment in Mauritius and be the sole owner of his property. In fact, in order to make this possible, the Mauritian government implemented an investment scheme, named PDS (Property Development Scheme).

The PDS’ principle is to enable foreigners to buy real estate in the country in full ownership, with a minimum investment of 500 000 USD allows the buyer to apply for permanent residency.

Real estate projects developed under the PDS scheme are subject to strict monitoring in order to ensure the security of the investor. These projects must also be developed by recognised promoters with a good track record and experience in the field. Large financial guarantees and decennial guarantees are mandatory.

The environment and surrounding ecosystems are important concerns that are taken in consideration during the development of these residential schemes. Solar panels, green spaces, optimum ventilation and light structures, water collection…these elements are all necessary for the promoter to obtain the required permits and authorisations before building starts.

Smart City Scheme (SCS)

In order to create better working and living conditions, via foreign investment and the economic development of the country, the Mauritian government has specially created the Smart City Scheme (SCS). This programme aims to provide an enabling environment with many tax and non-tax incentives for investors and residents.

The development of smart cities across the island is the new real estate scheme that emerged at the same time as the PDS (Property Development Scheme).

The smart cities will be both commercial (offices, industrial parks, work centre etc.) and residential (villas, apartments, duplexes, townhouses, shopping malls, numerous educational and health facilities), and will offer a whole range of leisure activities for visitors and residents (leisure centres, hotels and restaurants, tourist attractions, cultural hub).

High-tech materials and the environment are priorities for the SCS. Controlling energy consumption, therefore, is a primary concern. Recycling will also be an important component of these new cities.

Local and foreign investors who wish to invest in the development of a smart city will be exempted from paying income tax and value added tax on buildings. More information can be found on the BOI Website.