Own a Property Within a Hotel Development

Own a Property Within a Hotel Development

Unlocking Returns and Getaways

More than just a captivating coastal or golf destination, many foreigners opt to reside in Mauritius as an investment strategy to diversify their portfolio, thanks to our favourable tax regime.

When it comes to investing in property in Mauritius, foreigners have several options available to them. One such option is the Invest Hotel Scheme (IHS), which enables foreigners to own a property within a hotel development under certain conditions. Let’s delve into the specifics.

Why Consider the IHS in Mauritius?

While not the most widely known property investment scheme, the IHS offers individual buyers access to all the facilities of a lavishly-furnished luxury resort hotel, including dining options, fully serviced spas and fitness centres, and resort-style pools, with the added benefit of generating a fixed monthly income.

Primarily designed for those seeking a holiday home, the IHS allows property owners to rent out their unit easily while they are away. It is to be noted that those who own a property within a hotel development via the IHS are permitted to use their unit for up to 45 days within any 12-month period, with some exceptions in specific cases.

The Advantages of the IHS Properties

Foreigners who own a property within a hotel development enjoy privileged access to all hotel facilities while also receiving fixed returns on their unit rentals, anticipating capital appreciation over time. According to Sacha Bouic, a real estate expert at Mauritius Sotheby’s International Realty, “Choosing an IHS is a hassle-free investment as the property enters the rental pool managed by the hotel team. Typically, owners receive a fixed rental income, usually around 5%, depending on factors like property type and location. Additionally, capital appreciation can vary between 5% and 10% on average, and it’s worth noting that IHS properties are often beachfront, presenting a unique opportunity for foreigners.”

While individual beachfront properties are typically available only on leasehold land, making them accessible to Mauritians exclusively, foreigners can acquire a beachfront villa under the IHS under specific conditions. Jennifer Hirst, another real estate expert at Mauritius Sotheby’s International Realty, explains, “Owners have access to hotel facilities, and when they’re away, the property is managed by the hotel, ensuring rental and maintenance are taken care of, along with good returns for the owner.”

Who and How to be Eligible for an IHS Investment?

When foreigners own a property within a hotel development, payment shall be effected in US dollars or its equivalent in any other freely convertible foreign currency or Mauritius currency. Also, the amount payable for the acquisition of a stand-alone villa shall not be less than USD 500,000. 

Those who can acquire an IHS property include a non-citizen, a citizen of Mauritius, a company incorporated, or registered, as a foreign company under the Companies Act, a société where its deed of formation is deposited with the Registrar of Companies, a partnership under the Limited Partnerships Act, or a trust under the Trusts Act, where the trusteeship services are provided by a qualified trustee.

IHS Properties and Residency

With investments exceeding USD 375,000, IHS property owners and their families are eligible for residency.

Live in Mauritius

If you’re looking for a property to rent or buy in Mauritius, contact us – info@sir.mu

Published on April 1, 2024 by Laetitia Melidor