Invest in real estate in Mauritius

 

Why invest in real estate in Mauritius?

Invest in real estate in Mauritius is a wise choice. After all, Mauritius has a lot to offer. From the art of living to the dynamic economy, you will love the beauty of Mauritius.

As a result of the incentives introduced by the Mauritian government and of the island’s tax benefits, Mauritius is becoming a popular investment destination for many foreign nationals. Even today, a number of new property projects are being launched, providing foreign nationals with interesting investment opportunities.

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Located between Africa and Asia and a well-known tourist destination, Mauritius offers a tropical climate with year-round sunshine, fine sandy beaches, turquoise waters and lush greenery are just some of the factors that make Mauritius a dream destination. As a result, Mauritius represents an attractive investment destination for foreign investors, who are taking steps to owning property and move to Mauritius.

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Real estate investment in Mauritius: investment schemes

Approved schemes, managed by the Economic Development Board, allow expatriates and foreigners to buy property in Mauritius. For several years now, Mauritius has opened up to investors by creating and implementing Residency by Investment Programmes to attract foreign direct investment.

In 2016, the Property Development Scheme was set up by the Mauritian government. These residential properties include condominiums, villas and luxury flats. The Property Development Scheme (PDS) replaces the previous schemes, the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES). These residences, which are also available as VEFA (Vente en l’Etat de Futur d’Achèvement), are located in the four corners of the island: Grand Baie, Pointe aux Canonniers and Pereybère in the north; Bel Ombre and Pointe d’Esny in the south; Beau Champ and Flacq in the east; and Flic en Flac, Rivière Noire and Tamarin in the west.

The PDS is a real estate project consisting of at least 6 residential villas and includes common entertainment areas such spas, sports facilities, or a children’s playgrounds, amongst others. However, it also consists of common services such as cleaning, concierge service, and security. The PDS scheme therefore facilitates the development and purchase of luxury real estates by non-citizens.

 

Residency in Mauritius: how to obtain the Mauritian permanent residence permit?

Also in 2016, the Mauritian government opened its doors more widely to foreigners, notably with the R+2 projects. These offer the possibility of acquiring a freehold flat in a building consisting of a ground floor plus two upper floors. The value of the property must be at least MUR 6,000,000.

Although the price of a property under the PDS programme varies, a property worth a minimum of US$375,000 entitles the foreign investor to obtain a permanent residence permit. This permit is issued to the buyer, his/her spouse, children and retired parents, as long as the buyer remains the owner of the property. Owners also have the option of renting out and disposing of their property.

By deciding to invest in Mauritius and reside there for at least 183 days a year, a foreigner can obtain Mauritian tax resident status.

 

Benefits of buying property: a simple and interesting tax regime

One of the reasons to choose Mauritius is the attractive and unique tax regime for all residents (Mauritians and foreigners). Tax rate is capped at 15%, either on income from a professional activity, or on income generated by renting a property. Value Added Tax (VAT) is also at 15%.

Mauritius has signed tax treaties with several countries (including Belgium, France, Germany, Luxembourg, South Africa, the United Arab Emirates, and the United Kingdom), whereby property acquisition is taxed only in Mauritius, and not in the property owners’ home country.

Furthermore, the system of tax in Mauritius does not include the capital gains tax (if the property is resold), property tax or housing tax, inheritance tax, among others.

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Invest in real estate in Mauritius: rental property

Mauritius is a very popular tourist destination, welcoming over a million tourists every year. As luxury real estate properties are located in seaside resorts such as Grand Baie or Pointe d’Esny (as mentioned above), this investment presents an opportunity to make your property available to tourists in order to generate strong additional income in the short term (return on investment).

The other considerable advantage is that, thanks to the Double Taxation Avoidance Agreements between Mauritius and a number of countries, rental income received by the foreign property owner from renting out his or her property on the island is taxable only on the island. Hence the advantage, for property investors, of turning to the Mauritian property market.

 

Mauritius real estate, a valuable asset

Having a home is a primary need, and the increase in purchasing power has seen the growing interest in quality accommodation. Real estate investment has long been considered a valuable asset that remains profitable through time.

It was confirmed, especially during the recent COVID-19 pandemic, which brought the world economy to a standstill. Indeed, real estate investment is not subject to economic fluctuations, unlike the stock market. Real estate is therefore significantly less likely to depreciate over time and is an opportunity to diversify your investment portfolio.

As stated above, real estate offers attractive rental income, and capital gains at resale – especially if the property is located in a popular and fast-developing region. Investing in real estate in Mauritius is also a method of securing your assets, and eventually of passing them on to your successors.

 

De Vieilhe Luxury Real Estate: your real estate investment advisor in Mauritius

Are you interested in investing in a Mauritius property? De Vieilhe Luxury Real Estate, a real estate agency specialising in investment property and advisory services for property transactions in Mauritius is here to accompany you. We offer you a selection of luxury properties in the most beautiful locations of the island.

Whether you are looking for an exceptional property, a luxury villa, a penthouse, an apartment or a commercial property, we will help you find the home that best meets your expectations so that you can grow your wealth. With a view to resale or rental investment, the acquisition of a property on the island will always be profitable.

With over 40 years’ experience, we have the expertise to support you in your property investment project. We also offer relocation services to help you settle in Mauritius, as well as rental management services and private concierge services for your management and maintenance needs.

 

FAQs

1. How to buy real estate in Mauritius, and how does the process work?

Acquiring a property is fairly straightforward. Once you have found the property you are interested in, you sign a reservation contract. Then you pay a deposit to secure the property. The rest of the process is handled by a notary, who takes care of the legal checks and finalisation of the sale.

 

2. Are rental management services available?

Yes, De Vieilhe Luxury Real Estate offers rental management services to people looking to invest in the Mauritian real estate market. These services can include finding tenants, collecting rent and managing maintenance and repairs, among others. We are therefore able to answer to all you property needs.

 

3. What guarantees are there for foreign investors?

The real estate sector in Mauritius has strict laws in place to protect investors’ interests. In addition, Mauritius has signed bilateral investment protection agreements with a number of countries, giving added assurance to those wishing to invest in property.

 

4. What type of property should I choose?

Luxury villas in Mauritius are an excellent investment because they are set in spectacular surroundings, often close to beautiful beaches, and offer a high level of comfort. What’s more, they guarantee an attractive rental yield and a steady increase in the value of the property.

 

5. What are the associated costs?

The costs associated with buying a property may include the purchase price of the property, notary fees, administrative and agency fees, and registration fees. It is advisable to also budget for the furnishing and maintenance of the property.

 

6. What is a residence permit in Mauritius and how do I obtain one?

A residence permit in Mauritius allows foreigners to live in Mauritius for an extended period. The purchase of a property worth more than US$375,000 under the Property Development Scheme (PDS) automatically entitles the purchaser to a residence permit. This scheme has been a mean to attract foreign investment into the country.

 

 

Disclaimer

This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisors in this regard. Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness. De Vieilhe Luxury Real Estate Ltd accepts no liability for any direct or indirect damage resulting from the use and reliance on the information published in this article.

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