Buying a property in Mauritius - Mauritius Guide - Expat.com (2023)

Who can buy a property in Mauritius?

The following are approved to purchase a VEFA, IRS, RES, PDS, SCS, G 2, IHSproperty in Mauritius:

• Foreign nationals;
• Any person of Mauritian nationality;
• Companies incorporated or registered under the Companies Act 2001;
• Civil companies governed by the Mauritius Civil Code whose Articles of Association are filed with the Registrar of Companies in Mauritius;
• Limited partnerships covered by the Limited Partnership Act;
• Trusts where at least one of the trustees is a qualified trustee by virtue of a license issued by the Financial Services Commission of Mauritius;
• Funds covered by the Foundations Act.

Property acquisition for foreigners in Mauritius

In the case of an individual requires the acquisition of propertyapproval by the Prime Minister's Office (PMO).

In the case of an investor requires the acquisition of propertyapproval by the Economic Development Board (EDB).

For this purpose, various schemes for the acquisition of residential properties are approved and administered byEconomic Development Councilhas been developed.

Important:

All new IRS and Real Estate Scheme (RES) residential projects open to foreign investors in Mauritius are now grouped under the Property Development Scheme (PDS).As a result, any property marketed under the PDS / IRS and RES names is subject to the following purchase formalities, even though the IRS and RES names are still in use.

EDB has produced a complete guide to buying real estate in IRS / RES and PDS in Mauritius.

Also read Accommodation in Mauritius

VEFA (Salg in Future State of Completion)

TheVEFA in Mauritius (sale in future completion), also known as off-plan purchase, is governed by Article 1601 et seq. of the Mauritius Civil Code (based on the Napoleon Code) and must be the subject of a notarial act.

All IRS, RES and PDS can be acquired under VEFA.This type of program consists of buying a property that has not yet been built, is under construction, or for which the developer guarantees the buyer for a delivery upon completion. To get an idea of ​​the result, the buyer is given by the developer the plans, the diagrams regarding the upcoming real estate project.

It is also up to the client to take all the steps required by law to obtain the building permit, take out the relevant insurance, monitor the work, etc.

Who might be interested?

VEFA is intended for both Mauritians and foreigners.However, the latter has several advantages thanks to the real estate investment in Mauritius. In fact, the Sale in Future State of Completion allows them to:

• Participate in the design of their property (furniture);
• Pay for their purchases in installments;
• Apply for residency for themselves and their immediate family for any purchase of $375,000 or more.

Formalities to be completed to buy property in Mauritius

Thepurchase of a property in Mauritiusincludes the following steps:

• Signing the reservation contract;
• Security deposit;
• Notarpatent;
• The final contract of sale, drawn up by a notary;
• Delivery of a property;
• The implementation guarantees.

Signature of reservation contract and deposit.

The buyer and the developer sign a contract confirming the reservation of the future property. In the absence of a reservation contract, the developer can proceed directly to the final sales contract.

What the reservation contract must contain

The document must clearly mention the following:

• the type of property;
• Its description;
• The sale price and, if applicable, the conditions for its review;
• The date of conclusion of the final contract;
• The deadline for the completion of the work;
• The legal conditions for renunciation of the purchase by the buyer with refund of the deposit;
• The suspensive condition for financing if the buyer wishes to resort to a property loan.

The security deposit

After signing the reservation contract, the buyer deposits a deposit, which amounts to 2 to 25% of the property's value, in a blocked account opened in the buyer's name at a notary or in a bank. Be careful; this deposit must be paid only after both parties have signed the reservation contract!

In the event of failure to realize the real estate project, the promoter must be obliged to repay this deposit to the buyer. If the buyer decides not to buy, he/she must meet certain conditions to get his/her deposit back.

When the buyer signs the preliminary reservation contract to reserve his property under VEFA, he is required to pay a deposit to a special account opened through the notary. Until the conclusion of the sales contract, this amount remains inviolable, unless the VEFA does not materialize.

The notary

The deed of sale in the future state of completion is created by a notary. The Mauritian Civil Code prescribes the content of the document as follows

• Precise and detailed description of the property in VEFA;
• Date of completion of construction
• Delivery date expressed in months, with late penalties in case of overrun
• Financial guarantees for completion of the works and/or reimbursement and construction insurance
• Mention of administrative permits (building permit...)
• Price of real estate
• Schedule of payments.
• The final sales contract, drawn up by a notary.

One month before the signing, the notary issues the contract equivalent to a deed. It states the buyer's rights and obligations towards the seller - the precise and final description of the property.

Delivery of the property

This is when the developer hands over the keys to the buyer. This phase marks the activation of the mandatory two-year and ten-year guarantees:

• Guarantee of perfect completion (article 1642-1 and 1648 al. 2)
• Guarantee of correct functioning of the separable equipment elements (Article 1646-1 and Article 1792 of the Civil Code on two-year guarantees)
• Decades' guarantee (Article 1646-1 and Article 1792 of the Civil Code)

Although the buyer can accept the result without reservation, he can demand the guarantee of perfect completion during the year after receipt. This is if, for example, he notices defects.

If the buyer has reservations when taking over the work, he is entitled to request the developer to remedy these and resume the work within an agreed period.

Implementation guarantee

In order to protect the buyer of a property that is destined to be inhabited, the developer is obliged to make it available

• A completion guarantee or financial completion guarantee (known as "GFA"): a bank guarantee through which a financial institution undertakes to advance the sums required for the completion of the work in the event of default by the developer. The financial completion guarantee makes it possible to complete the building without canceling the sale.

or

• A refund guarantee: which enables a financial organization to refund the amounts already paid by the buyer in the event of non-completion. The activation of this guarantee cancels the sale.

The guarantees for a VEFA construction

By choosing VEFA, the buyer is protected by a number of guarantees:

• Equipment function, optional warranty, valid for 2 years. It covers all equipment that can be separated from the construction (shutters, taps, etc.).
• The ten-year warranty or "warranty against hidden defects". Thanks to this guarantee, the buyer has 10 years from the date of delivery of the property to report and repair any defects affecting the solidity of the building (foundations, roof, etc.)
• Non-life insurance, taken out by the builder to immediately cover the insurance company for work in connection with the ten-year guarantee. It is valid for the entire warranty period.

Deferred payments for a VEFA property:

• 25% of the sales price upon signing the sales contract;
• 10% on completion of foundation work;
• 35% on completion of the roof;
• 25% on completion of the work;
• 5% on delivery.

The Integrated Resort Scheme (IRS)

The IRS program, introduced in 2001 by the Mauritian government and regulated by the EDB, mainly benefits large sugar companies. It offers properties located in settings generously equipped for leisure, entertainment and wellness, such as golf courses, marinas, beach clubs, pavilions and wellness centers around the residences.

Through this program, non-residents can purchase villas, townhouses, penthouses, duplexes, serviced plots (maximum size of 1.25 A or 5,276 m²). They and their dependents can obtain a residence permit with a minimum investment of USD 375,000.

Owners are allowed to rent the property,become tax resident in Mauritiusand freely repatriate funds or income from the sale or rental of the property. Finally, non-citizens who have a residence permit under the IRS are exempt from a business or work permit forinvest and work in Mauritius.

Read also Become a permanent resident of Mauritius

Who might be interested?

Mauritius has designedIntegrated Resort Scheme (IRS)to attract particularly high-income foreigners by offering them the opportunity to invest in luxury villas.

Formalities to be completed to invest in IRS in Mauritius

Non-citizens, citizens, companies, corporations or trusts wishing to acquire a property under the IRS scheme must comply with the following steps:

• Sign a reservation contract with the seller (property developer or owner);
• The developer submits the IRS acquisition form to EDB in Mauritius;
• After receiving the letter of approval from EDB, both buyer and seller must draw up the sales contract and the deed must be signed before a local notary.

The estate agency scheme (RES)

TheReal Estate Scheme (RES)was established in 2007. The basis of the scheme is to encourage owners of small plots to build more affordable and less restrictive projects.

All RES projects must consist of a minimum of 6 high-end residential units, be developed on 1 to 24 acres of detached land (less than 10 hectares), and provide the option to purchase smaller properties.

If an IRS property sells for a minimum of $375,000, the RES is not subject to a minimum sale amount. On the other hand, the buyer is not automatically entitled to the residence permit unless he invests at least $375,000. He can rent the property, become tax resident in Mauritius and freely repatriate the funds or income from the sale or rental of the property.

Non-citizens holding a residence permit under the RES will be exempted from an employment or work permit to invest and work in Mauritius.

Who might be interested?

The Real Estate Scheme (RES) is aimed at foreigners on a limited budget who wish to live in Mauritius for a maximum of 6 months while maintaining a home base.

Formalities to be completed to invest in RES in Mauritius

Non-citizens, citizens, companies or trusts wishing to acquire a property under the RES scheme must comply with the following steps:

• Sign a reservation contract with the seller (property developer or owner);
• The developer submits the RES acquisition form to EDB in Mauritius;
• After receiving the letter of approval from EDB, both buyer and seller must draw up the sales contract and the deed must be signed before a local notary.

Smart City Scheme (SCS)

TheSmart City Scheme (SCS)was designed by the government topromote Mauritius as an international business center and promote sustainable development. As a result, each smart city:

• Is built on an area of ​​over 21,105 hectares;
• Offers residential properties, commercial facilities and recreational facilities;
• Is optimized for energy efficiency;
• Is available to pensioners who can acquire life rights;
• Equipped with affordable housing for middle incomes;
• Open to Mauritian nationals and persons registered in the Mauritius Diaspora Scheme (at least 25% of residential properties);
• Allows Smart City companies and developers to sell land for residential and non-residential purposes;
• Has a company dedicated to smart management of common areas.
• Benefits of investing in a Smart City program in Mauritius as an individual:
• Allows foreigners to apply for residency for any investment equal to or greater than USD 500,000 in real estate;
• Allows foreigners to purchase office space in Mauritius;
• Offers a wide range of tax and non-tax benefits to buyers.

Exceptions to investing in the development and/or components of a Smart City in Mauritius for companies:

• Income tax for a period of 8 years;
• VAT on investment goods;
• Customs duties on the import or purchase of dutiable goods;
• Property transfer tax and land registration tax for land transfers;
• Land conversion tax on the land set aside for development of non-residential components;
• Subdivision tax.

Who might be interested?

• A foreigner who wants to buy a townhouse, villa, apartment, penthouse or duplex in Mauritius.
• A foreigner who wants to have the residence permit through real estate investment (minimum amount of 375,000 USD) and who wants to be able to rent and resell without fees.
• Companies seeking a favorable and sustainable tax environment.

The Ground 2 (G 2)

Located in a condominium and in a building with at least 2 floors, the G 2 apartment refers to a property that is at least 2 floors above the 1st floor.

As announced in the 2021/22 budget and in accordance with section 5 of the Aliens Act, subsection 1, letter ga, a residence permit is now granted to a non-citizen upon acquisition of residential property in a building of at least 2 floors above. first floor for an amount of at least USD 375,000 or its equivalent in any other freely convertible foreign or Mauritian currency.

The residence permit is valid as long as the non-citizen remains the owner of the residential property according to the G 2 scheme.

Who might be interested?

The G 2 apartment can be sold off-plan, during or after its construction, but also, and more importantly, outside the housing schemes mentioned above. In fact, foreigners are now allowed to buy apartments in developments outside the approved housing programs.

EDB also reminds that permanent residence permit holders and a professional earning more than USD 3,000 per month are allowed to purchase a G 2 apartment as their personal residence.

Formalities to be observed to buy a G 2 apartment in Mauritius

To be eligible for the G 2 program, the buyer must meet the following requirements:

• The apartment must be used in accordance with the conditions stated on the purchase permit;
• The owner may not assign or transfer the apartment without permission from EDB;
• The owner must not engage in real estate speculation for 6 months;
• This type of property is subject to property taxes and charges calculated on its current market value;
• Any resale (without a minimum price) or transfer must be requested in writing to EDB 30 days before the sale or transfer.

Invest-Hotel Scheme (IHS)

The IHS program, created in 2010, allows hotels to sell their rooms, suites or villas that are part of the hotel to buyers before, during or after the construction of the hotel.

According to the EDB, the Invest Hotel Scheme (IHS) allows foreign investors and individuals to own exclusive hotel units located in Mauritius.

A non-citizen may acquire a room (or hotel unit) at new and existing hotels approved under the IHS. The said room is marketed with a co-ownership regulation subject to the Mauritius Civil Code. In the event of an off-plan sale, the sale is made under the VEFA system, governed by the Mauritius Civil Code.

The owner has privileged access to all the amenities of these highly appointed luxury hotels, including ancillary services such as dining, full-service spas, fitness centers and swimming pools integrated into these resorts.

The unit owner or someone on their behalf can enjoy the unit for up to 45 days in a 12-month period and can also earn money through the sale-leaseback model.

If the unit or room is acquired for a minimum of $375,000, the owner will be eligible for a residence permit.

Who might be interested?

• A non-citizen of Mauritius;
• A Mauritian citizen;
• A company registered as a foreign company under the Companies Act 2001;
• A company incorporated under the Companies Act 2001;
• A company whose memorandum of association has been lodged with the Registrar of Companies;
• A trust where the trust services are provided by a qualified trustee licensed by the Financial Services Commission.

Good to know:

A GBL company under the Financial Services Act 2007 that holds a company license is not authorized to acquire property under the IHS program.

The formalities to be followed to buy property in Mauritius under IHS

When acquiring a detached villa, the investment amount must not be less than USD 375,000 (excluding taxes) or the equivalent in any freely convertible currency. For other units, no minimum investment is required.

Where a unit or any other part of the hotel is purchased by a non-Mauritian national, or if it is a company with a non-Mauritian shareholder, or if it is a trust whose beneficiary is a non-Mauritian national, or if the Business Partner is a non-Mauritian, payment must be made in either Mauritian Rupees, USD, Euro, Pound Sterling or any other convertible currency.

In the case of payment made in a currency other than USD, EDB will use the selling rate on the date of application to calculate the USD equivalent and ensure that the price exceeds USD 375,000 in the case of individual villas.

In the case of the acquisition of a unit or any other part of a hotel by a non-Mauritian citizen, the investment must be financed by the purchaser from funds located outside Mauritius and transferred through a reputable bank listed in the Bank of Mauritius approved banking almanac.

A non-Mauritian citizen can take a bank loan in Mauritian rupeesprovided that the first USD 500,000 (EUR 370,000) is paid in a convertible foreign currency and the repayment of the loan is made in a convertible foreign currency.

For purchases made by a foreign citizen, the following documents must be presented:

• Authenticated copies of the first 5 pages of his/her passport;
• Authenticated birth certificate;
• Certificate of Goodness dated within 3 months;
• A letter from the bank confirming the buyer's KYC (Know Your Client) exercise.

Property Development Scheme (PDS)

When purchasing a property under the PDS scheme, you will be entitled to a residence permit if you have invested USD 375,000 or more or the equivalent in another freely convertible currency.

The IRS and RES property programs are being replaced byPDS eller Property Development Schemeto allow new luxury properties for sale to foreign nationals.

All units can be acquired by foreigners who wish to invest in Mauritius in an environmentally friendly environment where the ecological aspect is paramount.

This program was launched in 2015 and is oriented around flexibility, local social and economic contribution and respect for the environment. A project meets the PDS standards when it has a minimum of 6 residential properties of high status. The surface area of ​​a plot for the construction of a villa is 5,275 m²

The Property Development Scheme (PDS) is designed to:

• Development of luxury housing on a plot size of at least 1 hectare;
• Development of at least 6 luxury residential properties (villa, house, apartment, penthouse, duplex, building plot, etc.);
• Provide high quality public spaces to promote social interaction and a sense of community;
• Provide high quality recreational and commercial facilities to enhance the environment around these housing units;
• Provide management services to residents including maintenance, custodial service, gardening, waste disposal;
• Social contribution in the form of facilities and through community development and other facilities.

The projects developed under this program are built on land of all sizes, up to 20 hectares. They are luxury residential properties sold exclusively on a VEFA basis but with no minimum purchase price, meeting high international standards. Owners enjoy open spaces, high level leisure and recreation facilities and daily management services.

By investing more than USD 375,000 in a PDS project, the non-citizen, his/her spouse and children under the age of 24 receive a residence permit for as long as the buyer holds the residential property. Finally, a non-resident holding a residence permit under the SDP is exempt from an employment or work permit to invest and work in Mauritius.

Benefits of the PDS scheme in Mauritius

When purchasing a villa under the PDS scheme, you will be entitled to a residence permit if you have invested more than USD 375,000 or the equivalent in another freely convertible currency. This residence permit is valid as long as you retain ownership of the property. It allows you to take advantage of the particularly favorable tax policy if you stay more than 183 days a year in Mauritius, while being valid for your immediate family members (spouse and children up to 24 years).

Registration fees under PDS are harmonized at a single rate of 5%. The conversion fee is not applicable on 9-hole golf courses. You have the option of renting your property through a reputable estate agency, who will find tenants and manage your property in your absence in whole or in part.

Regardless of whether you are a private person or a company, with the PDS you benefit from the flat and advantageous tax rate of 15% for companies and individuals, as well as a registration fee of only 5% on real estate transactions. There is no capital gains tax on the sale of the property and no withholding tax on interest and dividends.

You will benefit from duty exemptions on equipment and free repatriation of profits, dividends and capital. For French buyers, this investment is not included in the calculation of the wealth tax (ISF) and there is no generalized social contribution (CSG), property tax or housing tax. Due to the double taxation agreement with France, the income, if the income comes from letting real estate, will only be taxed in Mauritius at 15%.

Who might be interested?

Are eligible to purchase a residential PDS:

• An individual, Mauritian citizen, non-citizen or member of the Mauritian diaspora;
• A company incorporated or registered under the Companies Act;
• A company whose memorandum of association has been filed with the Department of Business and Enterprise Registration;
• A limited partnership within the meaning of the Limited Partnership Act;
• A trust where guardianship services are provided by a qualified trustee;
• A fund under the Funds Act;
• A foreigner with an occupation or residence permit in Mauritius in search of a luxury villa with services and facilities or a luxury apartment with services and facilities or a penthouse with services and facilities or other similar properties used or capable of being used as a serviced residence.

Formalities to be completed to buy PDS property in Mauritius

There are 3 cases: purchase of a PDS property by an individual; purchase of a PDS property by a corporation; purchase of a commercial PDS property by a corporation.

Purchase of a PDS property by an individual

The application to purchase a PDS property must be submitted to EDB by a company specializing in the PDS program.This company will perform the Know Your Client (KYC) exercise and open an Escrow account in your name. The application must be made online through the property acquisition and administration system. A non-refundable fee of Rs 20,000 payable by check is levied on each application.

As an individual buyer, the following documents are required:

• A certified/notarized copy of the first 5 pages of your passport;
• A certified/notarized copy of your birth certificate;
• A letter from your bank confirming that the KYC exercise has been completed.

If you wish to apply for a permanent residence permit, you must also present the following documents:

• A completed application form for a residence permit;
• An extract of your criminal record dated less than 6 months before the application;
• A certified/notarized copy of your birth certificate;
• A medical certificate dated less than 6 months before the application confirming that you are free from any disease;
• An extract of your marriage certificate and your children's birth certificates, if you are accompanied by family members, as well as their passports;
• A medical certificate for each of your dependents;
• An extract from your spouse's criminal record;
• 2 passport-sized photos of the applicant and their spouse.

Purchase of a PDS property by a company

If a company wishes to buy a property under the PDS programme, an application must be made to EDB for authorization. The following documents must be submitted:

• The company's certificate of registration showing that it is registered as a foreign company under the Companies Act of 2001, or a certificate of incorporation;
• Company registration card;
• the share register;
• A decision made by the board of directors, issued by the secretary or director for the appointment of a foreign national (shareholder, managing director or general manager) to occupy the residential property and remain in the country as a resident;

All the above documents in the case of foreign nationals applying for a residence permit accompanied by their dependents.

Purchase of a commercial PDS property by a company

Foreign nationals not registered with EDB can acquire commercial space in a building to develop their business, including a mall, office building or warehouse, or even under PDS or Smart City Scheme. For this, permission must be sought from EDB.

Documents to be submitted:

• A completed application form signed by the company director;
• The company's certificate of incorporation and share register;
• A business plan containing details of shareholders, project, time frame and financing of the project;
• A site plan issued by a sworn land surveyor indicating the exact location and size of the property;
• A valuation report of the property issued by a land surveyor or valuer;
• A deed of sale drawn up before a notary in Mauritius between the seller and the buyer;
• Evidence of funds from a bank (for the acquisition of the property and implementation of the project);
• A planning permit issued by the local authority if building work is planned;
• A power of attorney in case of a third party application;
• A letter of intent issued by the Tourist Board in the case of tourism activities such as hotel or restaurant development, yacht operation, tour operators, etc.

Payment plan for a property purchase under a PDS project

The reservation contract must be drawn up by a notary, and when the application to EDB is approved, the deed can be signed and registered.

When the acquisition of a PDS property is on plan or in the construction phase, the contract is covered by the provisions of sale in future completion (VEFA) or a forward sale, as the case may be, according to the provisions of articles 1601-1 to 1601-45 of Mauritius Civil Code.

The payment plan for a property in PDS is similar to that in VEFA:

• 25% of the sales price upon signing the sales contract;
• 10% on completion of the foundation work;
• 35% on completion of the roof;
• 25% on completion of the work;
• 5% on delivery.

Residence permit for real estate investors in Mauritius

It should be noted that in order to obtain a residence permit through the acquisition of a property, a minimum of USD 375,000 is required. The buyer and his family members (spouse and children under the age of 24) become entitled to the Mauritian residence permit, which is valid for the entire period of ownership of the property.

Good to know:

Owners of immovable property in IRS/RES/PDS can rent out their property, become tax residents of Mauritius and are not subject to any restrictions on repatriation of funds or income from the sale or rental of the property.

Non-citizens holding a residence permit under the IRS/RES/PDS are exemptBusiness permitor work permit to invest and work in Mauritius.

Make your Mauritian house a home

Whenmoving to Mauritius, you probably left behind some of the things that made your house a home. To make this new life as sweet and comfortable as possible, the island has no shortage of stores specifically dedicated to interior design, DIY, decoration, etc., such as Macumba Ltd, Espace Maison et Jardin, Teak World, Mr Bricolage, La Foir' Fouille, Roche Bobois and Moodesign. If you want to stay eco-friendly while decorating and furnishing your home, The Good Shop is a collaborative initiative, particularly oriented towards the circular economy. Three stores have so far been opened, respectively in Calebasses, Curepipe and Moka.

In Mauritius, it is also common to have your furniture made by local cabinet makers. Ask around or visit the Mauritius forum for information and tips!

Note that most furniture stores offer free delivery and collect the furniture for you. To take advantage of this, just ask when you visit the store.

As for the prices of products in the store, most of which are imported, the prices may be slightly higher than in e.g. Europe.

Also read Moving to Mauritius

Units of measurement in Mauritius

Mauritians rarely talk in square meters. Thus, you are likely to hear about square foot, perch and toise:

• 10.7641 square feet = 1 square meter
• 1 aborre = 42,21 m² (42,21 sq. ft.)
• 1 toise = 3,80 m² (3,8 sq. ft.)
• 1 arpent = 100 rods
• 1 pole = 11.11 fauna
• 1 arpent = 1,111 fathoms

Useful links:

L'Express Property

Directory of real estate agents in Mauritius