Planning on buying a property in Mauritius? Wait no more!
More than a breath-taking tropical island, Mauritius tops the list of several rankings on the African continent.
A strategically positioned high-income country in the Indian Ocean, Mauritius is defined as the gateway between Africa and Asia and offers high standard services in sectors such as banking, financial services and judiciary.
There are many options for you to choose from to own a property in paradise.
Property Investment Schemes for Non-Citizens
There are many options for acquiring a property in Mauritius, whether you want to live on the island or simply make a safe and sound investment.
Let’s have a closer look at the available schemes:
Integrated Resort Scheme (IRS)
The Integrated Resort Scheme (IRS) is a luxury residential program launched in 2001 and was the first scheme approved in Mauritius aiming to attract foreign direct investments.
Foreigners are offered the opportunity to buy a freehold property in Mauritius within an integrated residential development with a minimum investment of USD375 000 (excluding taxes).
This scheme, introduced in 2007, encourages investment in more affordable projects, with the advantage of having fewer restrictions.
Unlike the IRS, there is no minimum sale amount.
However, compared to the IRS, a residence permit is not automatically offered when buying a RES, and to obtain the same, the buyer must invest in a property of a minimum of USD375 000
Property Development Scheme (PDS)
The PDS scheme, introduced in 2016, is designed to simplify property acquisition for foreign investors. In a sense, it amalgamated the best of the IRS and the RES.
In fact, the PDS allows the purchase of luxurious residential properties such as luxury villas, apartments, and penthouses for the Mauritian diaspora as well as foreigners.
It is to be noted that a non-citizen is eligible for a residence permit for himself and his family upon the purchase of a property under the PDS scheme, if the investment exceeds USD375 000 or its equivalent.
Who is eligible under the IRS, RES or PDS Scheme?
An investor may purchase off-plan property under all schemes during the construction phase (VEFA scheme – Future State of Completion) or when the construction is completed.
According to the Economic Development Board (EDB), an investor may be a person or a company, including a global business company, a limited partnership, a trust or a foundation.
The investor may rent this property through the IRS / RES / PDS company responsible for the scheme or with Mauritius Sotheby’s International Realty or even sell the property at no minimum price to a person eligible to purchase his property under the regulations of the EDB.
It is to be noted that the residence permit is linked to the property ownership and remains valid for as long as the deed is held by the buyer.
This scheme was launched for foreign buyers to acquire units that form part of hotels. This scheme provides for the development of a hotel on either freehold or leasehold land of more than 1 hectare where units, villas, or suites of the hotel can be sold.
Ground +2 Projects
Foreigners are allowed to purchase apartments in developments of at least two levels above ground (G+2) with the Economic Development Board’s prior approval, provided the purchase price of an apartment is not less than MUR 6 million.
Smart City Scheme
The Mauritian government launched the Smart City Scheme in 2015, a mixed-use property development program that incorporates office, residential, commercial, educational and medical spaces as well as a leisure component.
The pillars of the Smart City Scheme are innovation, sustainability, efficiency and quality of life.
Who can buy in a Smart City?
Any person or any entity including foreign companies and trusts can acquire residential units in a smart city.
It is to be noted that the owner of a residential property is allowed to resell or transfer the property or any shares, rights, or interest acquired under the scheme.
Fractional Ownership is Now Possible
In Mauritius, to make the buying process easier and more affordable for foreign investors, it is now possible for non-citizens to acquire property in partnership, under the fractional/shared ownership policy.
Under this regime, each partner will be eligible to apply for the status of residency, provided that each partner invests more than USD 375 000 in the property.
Buying Process and payment schedules
Once you’ve found your dream house, here are the processes for acquisition:
Signature of Contract of Preliminary Reservations (CRP). The documents to accompany the CRP include a certified passport with photo, a utility bill in the purchaser’s name and a Know Your Client (KYC) letter from the client’s bank
Signature of 3 bank escrow agreements
Signature of a site plan including the unit number
Signature of a finishing schedule and furniture schedule, if applicable
Signature of the selected unit plans
How to proceed with the payments?
To finalise your acquisition, here is an example of the payment steps required:
An initial deposit- Approximately 10%
Deed of sale/ Start of construction- Approximately 20%
Completion of foundations- Approximately 5%
Start of masonry work- Approximately 17%
Roof completion- Approximately 18%
Fitting and decoration- Approximately 25%
Key handover- Approximately 5%
Request information regarding property investment
Our real estate consultants from Mauritius Sotheby’s International Realty will contact you following your request.