Reasons to invest in real estate in Mauritius
Located between Africa and Asia, Mauritius is a well-known tourist destination. A tropical and sunny climate all year round, fine sandy beaches, turquoise waters and beautiful natural landscape are some of the factors that make the island a dream destination, not only for unforgettable holidays, but also for living. Indeed, for several years, many have invested and are interested to invest in real estate in Mauritius.
Mauritius possesses a number of attractive features. From the art of living to the economic dynamism, you will appreciate living in the heart of this island of the Indian Ocean. A renowned tourist destination, Mauritius has also built a strong reputation as an International Financial Centre, which consistently ranks among the top-rated African countries every year, particularly in terms of ease of doing business, political stability, economic freedom and good governance. It is therefore a popular destination for foreigners to visit, live, work and invest.
In recent years, many investors have turned to the real estate sector as a result of the incentives introduced by the Mauritian government. The easing of the procedures and simplification of the conditions of purchase to become an owner of a property in Mauritius have encouraged foreign investment throughout the country. Even today, several new real estate projects emerge, and more and more foreign nationals are embarking on the process of coming to live or invest in real estate in Mauritius.
An appropriate scheme to promote real estate investment in Mauritius
Foreigners have the opportunity to invest in real estate in Mauritius. Indeed, under approved schemes managed by the Economic Development Board, foreigners and expatriates have the right to purchase a residence as a fully owned property. For several years now, Mauritius has opened up to investors by creating and implementing schemes to attract foreign investment. In 2016, the Mauritian government introduced the Property Development Scheme (PDS). These residential properties include condominiums, villas and luxury apartments. The PDS replaces the previous schemes, which were the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES).
The PDS is a real estate project comprising 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 consist of common services such as cleaning, concierge service, and security. The PDS scheme therefore facilitates the development and purchase of high-end residential real estates by non-citizens.
Also in 2016, the government opens the doors more widely to the purchase of real estate in Mauritius, with more options, especially with the R+2 projects. The latter offer the possibility of purchasing an apartment, as full ownership, in a building composed of a ground floor plus two floors. The price, at the time of acquisition, of an apartment must be at least MUR 6,000,000. For an investment of USD 500,000, these properties grant the owners a residence permit for a renewable 10-year period. In addition, owners are also entitled, if they wish, to rent and sell their property.
Although the price of a property under the PDS programme varies, the purchase of a real estate property of at least US$500,000 allows the foreign investor to obtain a permanent residence permit in Mauritius. This permit is issued to the buyer, his/her spouse and children under 24 years of age, as long as the buyer remains the owner of the property. In addition, owners also have the possibility, if they wish, to rent their property.
A simple and interesting tax regime
By choosing to invest in real estate in Mauritius, you are also choosing an attractive and unique tax regime for all residents (Mauritians and foreigners). Taxation is capped at a rate of 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 South Africa. In fact, when acquiring a property in Mauritius, for example, the buyer cannot be taxed in Mauritius and South Africa. Furthermore, the Mauritian tax regime does not include the capital gains tax (if the property is resold), property or housing tax, inheritance tax, among others.
Investment in rental property in Mauritius
Mauritius is a popular tourist destination that welcomes more than one million tourists every year. In this sense, rental investment is an opportunity to make one’s property available to tourists in order to generate substantial and short-term rental income.
The other considerable advantage is that income from the rental of a property in Mauritius by a South African national is taxable on the island.
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 is confirmed, especially with 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.
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.
PLEION Private Services: your real estate investment advisor in Mauritius
PLEION Private Services is a company specialising in real estate investment and advisory services for real estate transactions in Mauritius. We offer you a selection of luxury properties in the most beautiful locations of the island.
Whether it is a prime property, villa, penthouse, or apartment, we help you find the property that best suits your expectations and help you grow your wealth. With the objective of resale or rental, the purchase of a real estate property in Mauritius will always remain profitable.
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 advisers 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.
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