Mauritius: A haven for expats looking to buy property?

In the Mauritius Budget 2024-2025, the Minister of Finance, Dr. Renganaden Padayachy, unveiled promising measures for real estate investment, particularly for expatriates. With the island positioning itself as an attractive destination due to its idyllic lifestyle and dynamic economic environment, could 2024 be the perfect year to realize your property acquisition dreams in Mauritius? Magellan, your advisor in expatriation matters, gives you an overview of the key measures.

Incentives for property ownership

The 2024-2025 budget emphasizes making property ownership easier for Mauritians and foreigners looking to settle on the island long-term. Two popular schemes for buyers have been extended and enhanced:

• Home Ownership Scheme: This program offers a 5% refund of the purchase price of a property under the VEFA (Vente en état d’achèvement futur or Sale in the Future State of Completion) scheme, up to a maximum of Rs 500,000. Initially set to end in June 2024, it has now been extended to June 30, 2025, providing additional opportunities for potential buyers.
• Home Loan Payment Scheme: This scheme provides a 5% refund on the borrowed amount for a secured home loan, capped at Rs 500,000. Like the Home Ownership Scheme, it has been extended to June 30, 2025, easing the conditions for borrowers to buy property.

These measures aim to support demand in the real estate sector, stimulate economic growth, and make property ownership more accessible to both Mauritians and foreigners.

A more favorable regulatory environment

The 2024-2025 budget introduces several measures to simplify and harmonize administrative procedures related to real estate development in Mauritius, making it easier for investors and developers:

• Harmonization of construction and land use permit fees: This measure aims to simplify the permit application process and provide greater fee transparency for developers and investors.
• Extension of the validity of construction and land use permits: The period to start construction after obtaining the permit has been extended from 2 to 3 years, offering more flexibility to real estate project holders.

These measures aim to streamline the real estate investment process, reduce delays, and encourage the development of real estate projects in Mauritius.

Focus on sustainable development

The Mauritian government places sustainable development at the core of its real estate strategy, encouraging environmentally friendly practices:

• Creation of green spaces in Smart City and PDS projects: Real estate projects over 5 acres are required to allocate 4% of their land to green spaces, promoting biodiversity and a pleasant living environment for the occupants.
• Mandatory Strategic Environmental Assessment (SEA) for projects over 10 acres: This measure aims to better consider environmental impacts from the project design phase, encouraging sustainable construction practices.

The Mauritian government’s commitment to sustainable development is reflected in the measures aimed at preserving the island’s natural environment and promoting more responsible real estate development.

Attractive investment opportunities for foreigners

The 2024-2025 budget preserves Mauritius’s attractiveness for foreign investors by facilitating property ownership. Indeed, foreign entities can now hold non-renewable lease properties for industrial or commercial activities for up to 30 years, relaxing investment conditions for foreigners.

This measure aims to attract more foreign investment in the Mauritian real estate sector, stimulate job creation, and contribute to the country’s economic diversification.

The benefits of moving to Mauritius for expats

Beyond favorable government measures, Mauritius has intrinsic qualities that make it a top destination for foreigners looking to invest in real estate:

• An exceptional living environment: The island boasts a tropical climate, paradise beaches, mountainous landscapes, and lush nature, offering an idyllic setting for relaxation and a healthy environment.
• Political and social stability: Mauritius enjoys a stable democracy and a welcoming multicultural society, fostering harmonious integration for expatriates.
• Dynamic and growing economy: Mauritius has a booming economy driven by sectors like tourism, financial services, and information and communication technologies, providing attractive job opportunities.
• A favorable tax system: The Mauritian tax regime appeals to foreign investors with a flat income tax rate of 15%.
• Accessibility: Mauritius is well connected to the rest of the world by international flights, making travel to and from the island convenient.

Real estate investment in Mauritius: Property types and potential

Mauritius offers a variety of real estate options to meet the diverse needs and budgets of foreigners:

• Apartments, which are ideal for couples, singles, or investors looking for a profitable rental property.
• Villas, which provide more living space and a private setting, perfect for families or those seeking maximum comfort.

The potential for capital appreciation in Mauritian real estate is attractive, especially in regions with developing tourism or modern infrastructure. Contact Magellan to make your dream come true under the best conditions!