Useful questions to invest in Mauritius with peace of mind. Investing in Mauritius means taking advantage of tax opportunities and interesting returns in a secure and idyllic environment.
High-end real estate in Mauritius is an excellent choice to quickly make your investment profitable and develop your assets. Like any investment of this nature, real estate investment in Mauritius is not without risk. It is therefore necessary to understand the ins and outs of it. You will find below the most frequently asked questions.
The main assets of Mauritius :
First of all, Mauritius is a popular tourist destination that attracts many visitors every year. This means that there is a high demand for rental properties, which can result in high rental returns for property owners.
In addition, Mauritius is a popular place to live for expatriates and retirees, offering a high quality of life as well as attractive tax benefits. This means that there is also a strong demand for personal use properties.
In addition to this, Mauritius has experienced stable economic growth in recent years, which has led to an increase in property prices. This means that investors can expect long-term capital gains on their real estate investments.
Finally, Mauritius has a stable and mature real estate market, with a variety of property types available, ranging from apartments to villas to building plots. This means that investors can select properties that best suit their needs and budget.
To invest in real estate in Mauritius, a foreign citizen will have to turn to the specific schemes set up by the government (PDS, RES or IRS project). These schemes allow investors to purchase their own exceptional property in real estate developments.
PROPERTY DEVELOPMENT SCHEME (PDS) is a scheme that combines the previous IRS and RES schemes. There are no more restrictions on the area.
It is much more precise, allowing for a better combination of high-end real estate development and environmental integration of greener projects, infrastructure, wellness activities and common services, all within a secure complex.
It provides of course to benefit from the residence permit for the purchaser, the spouse and their children when investing in a property in Mauritius at more than 375 000 USD.
If the buyer is not a Mauritian citizen, a formal authorization is required from the Economic Development Board [EDB] and this request can be made by the developer, a notary or a service provider. The acquisition process and the deeds are prepared by a notary. Upon signing the deed, a 5% registration fee is applicable for the buyer.
Notary fees and certain registration fees are payable at the signing of the title deed (equivalent to approximately 1% of the cost of the property). No other taxes are applicable to the acquisition of a property.
Yes, the property can be rented for part or the whole year.
The rental market in Mauritius has undergone a radical transformation in recent years.
The phenomenon of sale-rental is gaining momentum in the case of luxury residences, with owners having a second home renting them out for part of the year.
An investment in real estate in Mauritius is therefore an advantageous option. It allows to generate additional income.
15% tax on net rental income after allowable deductions
You can finance the acquisition with your own funds.
If you have the capacity to repay a loan according to your income and to provide a guarantee for the financing, Mauritian banks can finance the acquisition.
Double taxation agreement
A tax rate of 15% on income and rental income exists in Mauritius. The net real estate income of Mauritian source, received by a French resident is taxable in Mauritius and not in France.
Capital gain following a resale
No capital gains tax on the resale of a property. The capital gain realized following the sale of a property held in Mauritius by a French tax resident is not taxable in France, nor subject to CSG/CRDS. Therefore, in case of repatriation to France or local reinvestment, there will be no taxation in France.
Succession
There is no inheritance tax in Mauritius.
IFI (France)
There is no real estate wealth tax (IFI) in Mauritius.
Property and other taxes
In Mauritius, there is no property tax, no housing tax and no CSG.
Pensioners
The single tax rate is 15%. French retirees maintain their social security, otherwise they must take out private expatriate insurance before their departure.