Guide for buyers of real estate in Mauritius
Foreigners seem to be strongly interested in Mauritius and this is understandable. An amazing environment, great lifestyle possibilities, a good location, an advantageous tax system, this island has it all. If it is wonderful to spend a holiday, many even consider acquiring real estate to enjoy its many advantages all year round. If you are one of them, here is all you need to know about buying a property in Mauritius
Acquisition of Freehold Property
To allow foreigners to acquire real estate, the Mauritian government has put in place a regulated framework: the latest, after the Integrated Residence Scheme (IRS) and Real Estate Scheme (RES), is the Property Development Scheme or PDS . In effect since 2015, this scheme offers foreigners the opportunity to fully own a property in a private residence. Such an acquisition immediately benefits each buyer with the Mauritian tax benefits. From a certain amount spent on a property, the buyer also has a permanent residence permit on the island. This is indeed the case if you invest more than 500,000 USD in the purchase of a property.
The purchase of real estate in Mauritius can be done individually or under an entity (Company, SCI, Trust, etc.). However, only one of the members or shareholder will be eligible for permanent residence rights for himself and his family, including dependents until the age of 24 years.
Buy VEFA safely
The acquisition of real estate in Mauritius is governed by the legal framework of the Sale of Property Before Completion, also known as Purchase off Plan or VEFA. You will first sign a preliminary reservation contract (CRP) with the promoter, accompanied by a payment of 5 to 10% which will be kept in escrow at the notary or in a bank account opened for this purpose. You will then become the owner of your property at the signature of the authentic contract before a notary, which will be duly registered by the notary, within two weeks. You will then have to pay an additional payment of 20 to 25% and then pay the balance of the price of your property as work progresses. Be assured, the Mauritian legal system has planned, under VEFA scheme, to secure the buyers with a financial guarantee of completion. It is a certified commitment from the promoter himself that a bank or an insurance company ensures to provide the necessary means to complete the real estate project.
Obtaining a residence permit
The purchase of real estate in Mauritius does not require a residence permit. Because of this, you can acquire a property even if you do not live on the island all year round. Even without a residence permit, a foreigner has the right to stay on the island for 6 months a year. However, if you plan to live in Mauritius on a permanent basis, you will need a permanent residence permit. To obtain it, you have two ways if it is not your intention to come to work there.
One way is to invest in a property of more than US $ 500,000 within one of the authorized real estate programs (IRS, RES, PDS). This will bring the purchaser, his spouse and his dependent children under 24 years of age, a permanent residence permit. They will therefore be able to reside on the island if they live there for more than 183 days a year. For property acquired by a corporation or entity, only one of the shareholders will benefit from the residence permit for himself and his family.
The other option is as a foreign retiree, who lives on the island, you can also have the opportunity to obtain a permanent residence permit. For this, you will have to pay an annual pension of 35,000 euros into a Mauritian bank account and provide proof to the authorities. This license extends to a retiree’s spouse and dependent children under 24 years of age.