Investing in Rental Real Estate in Mauritius
Mauritius provides a favorable environment for any kind of investment, including real estate investment. While some buy property for resale, others are more interested in rental real estate. Mauritius is of great interest to this type of investor because it offers considerable benefits. IN this article, we invite you to discover good reasons to invest in rental real estate in Mauritius.
Rental real estate, a more profitable investment
Investment in rental real estate is the operation by which a buyer purchases real estate for the purpose of renting it afterwards. It can be a new or old property. In some countries, rental investment allows tax exemption. This applies in Mauritius too.
Rental real estate in Mauritius has many advantages, namely a tax reduction. Renting a real estate property allows you to maintain a high purchasing power. With an investment in rental real estate, it is easier for you to obtain a bank loan to acquire other real estate. Compared to a real estate investment for resale, rental investment is more profitable in the short or long term. In addition, it is always a heritage that you can pass on to your descendants.
Invest in Mauritius, the benefits
The main purpose of rental investment is to make a profit but, depending on the strategy you adopt, it can be profitable. The essential criterion to consider in your investment strategy is in which country you will buy the property. The ideal would be to opt for a country that is favorable to investment, such as Mauritius.
A tourist destination
Mauritius has the advantage of being a very popular tourist destination. It is one of the most popular islands of the Indian Ocean because of the magnificent setting, the inexpensive cost of life and the tropical climate. Foreigners are therefore the first to love this island. That’s why the real estate market is flourishing there. It will not be difficult to find a quality property to start your investment. As this is a strategic location, and there are large number of visitors coming, it will be reasonably easy to find tenants to rent your property in Mauritius.
An advantageous tax system
Mauritius is distinguished from many countries of the Indian Ocean by its advantageous taxation. Attracting foreign investment is part of the island’s public policy. Thus, Mauritius makes sure to offer tax benefits such as the absence of wealth tax. Through programs specifically designed for them, foreigners can enjoy these tax benefits. The Mauritian government has developed schemes, such as the PDS projects which are intended to facilitate the access of foreigners to real estate properties.
A double taxation agreement
Thanks to an agreement between Mauritius and several countries, including South Africa and France, a property acquired on the island is subject only to the taxes and levies in effect on Mauritian soil. That is to say that when you invest in real estate in Mauritius, and you live in France for example, the French State will not levy tax on this property. This agreement is a remarkable advantage because the taxes on income on the island are less important. They amount to 15%, one of the lowest levies in the world. Rental profitability will only be greater.
A stable political atmosphere
Since its independence in 1968, Mauritius has never experienced political instability. This is the most remarkable aspect of the island, justifying, among other things, its economic development. Political stability is indeed one of the criteria sought by foreign investors. In addition to this, Mauritius has very few insecurity problems. As a result, the attraction of investors is only greater.