How to Buy a House in Mauritius?

Want to Move to Mauritius but Continue Working? Why Not Start Your Own Business? This article aims to guide budding entrepreneurs through the essential steps to launch their business under the Mauritian sun. From understanding the island’s dynamic economic landscape, navigating the simplified administrative procedures, to taking advantage of government incentives for newcomers, discover what you need to know to turn your dream into reality.
Table des matières  masquer 

1 Overview of the Mauritian Real Estate Market

2 Purchase Conditions for Non-Citizens

3 The Step-by-Step Purchase Process

3.1 Property Search

3.2 Legal Formalities

3.3 Financing and Fund Transfer

3.4 Closing the Sale

4 Taxation and Financial Benefits

5 Key Points to Remember When Buying a House in Mauritius

Overview of the Mauritian Real Estate Market

Mauritius, with its idyllic setting, attracts not only tourists but also real estate investors from around the world. The Mauritian real estate market stands out for its remarkable diversity of options, ranging from luxurious villas to modern apartments, not to mention plots of land ready for custom constructions. There is something for everyone, whether you seek a residence with an ocean view or a pied-à-terre in an urban environment. The prime geographical areas for investment are mainly divided between the North, known for its paradisiacal beaches and festive atmosphere, and the West, appreciated for its spectacular sunsets and surf spots. The South, wild and preserved, attracts those in search of tranquility, while the East, with its luxurious residential complexes, offers an exclusive living environment. Putting yourself in the picture, it’s essential to consider your personal preferences and lifestyle before making a choice. Mauritius has no shortage of attractions, whether you’re passionate about water activities, hiking, or simply relaxing by the water. (Consider visiting different regions to feel the atmosphere of each before making your decision.)

Purchase Conditions for Non-Citizens

Buying property in Mauritius, for non-citizens, is governed by specific regulations designed to facilitate investment while protecting the local market. Among these regulations, three programs stand out:

• Property Development Scheme (PDS): This scheme allows foreigners to acquire luxury villas, with the possibility of obtaining permanent residence under certain conditions.
• Integrated Resort Scheme (IRS) and Real Estate Scheme (RES): These two programs also offer opportunities to invest in high-end real estate, enabling non-citizens to invest and potentially obtain a residence permit.

To be eligible for these programs, non-citizens must meet a minimum investment threshold, often set around $375,000. This investment opens the door to residing on this paradise island, offering not only an exceptional living environment but also attractive tax benefits.

(It is crucial to thoroughly research these programs and understand the implications of each choice before committing. Consulting a local expert can greatly facilitate this process.)

The Step-by-Step Purchase Process

Property Search

The quest for the ideal property in Mauritius begins with a meticulous search and targeted visits. Take the time to explore different regions, as each part of the island has its own charm. The importance of feeling the atmosphere and visualizing daily life in your future home cannot be underestimated. (Consider consulting local real estate agents for personalized advice.)

Legal Formalities

Once you have made your choice, legal formalities take over. The Board of Investment (BOI) plays a crucial role for foreign buyers, ensuring that all conditions are met. The intervention of a notary is essential to navigate the Mauritian legal framework and perform due diligence, thereby guaranteeing the security of your investment.

Financing and Fund Transfer

Financing options for foreigners often include local or international loans, requiring good currency management. Fund transfers to Mauritius must be carried out in compliance with local regulations, a step where precision is key.

Closing the Sale

To finalize the sale, a series of documents must be prepared and signed, including notary fees and government taxes. These additional costs, although a significant part of the total investment, are the last step before you can enjoy your new property.

Each step of this process requires attention and caution. Buying a property in Mauritius is not just an investment in real estate but also an embrace of a unique, rich, and diverse lifestyle.

Taxation and Financial Benefits

Mauritius stands out for its particularly attractive taxation system for foreign investors, offering a clear and advantageous fiscal framework. A flat tax rate of 15% applies to everyone, both residents and non-residents, covering income from Mauritian sources, including real estate income. This uniform tax rate, in line with OECD international standards, greatly simplifies investment management.

The absence of several typically burdensome taxes in other jurisdictions makes the island even more appealing. Thus, investors benefit from exemption from capital gains tax, absence of property and housing taxes, and no inheritance tax on real estate, under certain conditions (notably for direct descendants with a residence permit or Mauritian nationality).

The Mauritian tax system is also designed to avoid double taxation for foreigners, thanks to international agreements with several countries, including France. This means that real estate income earned in Mauritius is taxable only in Mauritius, thereby reducing the tax burden for international investors.

Key Points to Remember When Buying a House in Mauritius

• Location Choice: Select a region that matches your lifestyle, whether it's the tranquility of the South, the vibrancy of the North, the beaches of the East, or the sunsets of the West.
• Understanding Real Estate Programs: Familiarize yourself with the PDS, IRS, and RES schemes, which allow non-citizens to purchase property in Mauritius.
• Investment Threshold: Ensure you meet the minimum investment requirement for foreigners, often set at $375,000, to be eligible for the purchase and potentially a residence permit.
• Due Diligence: Conduct a thorough check of the property to ensure its legality and that it is free from charges or disputes.
• Notary Consultation: Hire a notary to navigate the legal formalities and ensure the transaction complies with Mauritian laws.
• Financing and Fund Transfer: Explore financing options and transfer funds according to Mauritian regulations.
• Registration with the Board of Investment: For certain types of purchases, registration with the BOI is necessary to finalize the acquisition.
• Additional Fees: Plan for notary fees, government taxes, and other costs associated with the property purchase.
• Obtaining a Residence Permit: If applicable, follow the steps to obtain a residence permit through your real estate investment.
• Community Integration: Discover the expatriate community and local resources to easily integrate into your new environment.