Buying property in Mauritius
Mauritius has been a popular destination for foreign real estate investors for many years, boasting a pleasant climate almost all year round, a peaceful living environment, and lush nature. The country offers a range of real estate investment programs approved and managed by the Economic Development Board (EDB). So if you’re a non-resident looking to purchase property in Mauritius, here are some key points to consider.
Buying property in Mauritius as an expatriate
Can foreigners buy property in Mauritius? Of course, they can!
The term foreigner refers to:
- Natural persons: Mauritian citizens, non-citizens, or members of the Mauritian diaspora;
- Companies incorporated or registered under the Companies Act;
- Companies having a memorandum of association filed with the Registrar of Companies;
- Limited partnerships under the Limited Partnerships Act;
- Trusts, where trust services are provided by a qualified trustee;
- Foundations under the Foundations Act.
Individuals seeking to buy property in Mauritius must obtain approval from the Prime Minister’s Office, while investors need approval from the Economic Development Board (EDB).
Tax benefits for real estate investors in Mauritius
The Mauritian government has introduced several tax benefits for foreigners buying property on the island:
- No capital gains tax in case of resale;
- No inheritance tax on direct lineage, assets, or donations;
- A flat 15% tax rate on rental income for individuals, provided that they reside at least 183 days per year in Mauritius and are recognized as tax residents;
- Corporate tax rate of 15% or less;
- No exchange controls;
- Several tax treaties;
- No withholding tax on dividends, interest, or royalties;
- No property tax, local tax, etc.
The different real estate schemes for expatriates in Mauritius
Mauritius has many real estate programs in place for foreigners looking to become property owners:
- The Property Development Scheme (PDS);
- The Integrated Resort Scheme (IRS);
- The Real Estate Scheme (RES);
- The Smart City Scheme (SCS);
- G+2 apartments.
The Property Development Scheme
The Property Development Scheme results from the merger of the IRS and RES real estate schemes. Through this program, the buyer and his/her family members are eligible for a residence permit in Mauritius. They are also allowed to work and invest in Mauritius without needing any other specific permits. A minimum investment of more than USD 375,000 is required.
The Integrated Resort Scheme
Thanks to this scheme, the buyer and his/her immediate family members (spouse and children) are eligible for a residence permit. They are also allowed to rent out the property and work and invest in Mauritius without needing any other permits. A minimum investment of USD 375,000 is required.
The Real Estate Scheme
This scheme’s benefits are similar to those obtained through the IRS. However, the Real Estate Scheme provides foreign buyers with a wider range of properties to choose from, including apartments, duplexes, and villas.
Smart City Scheme
The Smart City Scheme allows foreigners to buy residential property within the smart city framework. Through this program, foreigners with residence, work or permanent residence permits can build their own homes by purchasing a serviced plot of land in a residential development.
These are apartments located in condominiums with at least two floors from the ground floor. A minimum investment of USD 375,000 (around Rs 6 million) is required – which makes buyers eligible for a residence permit.
Opt for professional assistance to make your real estate purchase in Mauritius easier. Magellan will help you save time. Our team of experts will guide you through all the steps of this investment and make your settling in smoother. Contact us now to learn more about our services.