The country satisfies the foreign real estate investor greatly through its stable developing economy, beneficial policies on investments as well as high rental yields hence Mauritius is one of the most alluring investment scenes. The government has developed a number of legal structures to be able to make foreign investors acquire property with complete property rights under controlled programmes. But with the investor investor in a foreign state there will be legal implications and one should learn the right to own property, the qualification standards and the investment packages before buying an apartment in Mauritius.
We give a simplified breakdown of the Mauritius property law to foreign investors, major regulations, and how Cobert Holdings can assist you in making everything go smoothly.
1. Are the Foreigners Allowed to Buy Property in Mauritius?
Foreigners are allowed to purchase properties in Mauritius provided they make the purchase under certain government approved schemes yes. Such schemes act to make property investment safe, open and mutually profitable to the investor and the local economy. The foreigners may purchase freehold property and even become resident in case of getting an investment offer in the real estate as part of approved investment schemes.
2. Foreigners Authorized Property Investment Schemes
Mauritius has come up with a number of property investment options through which a foreigner can legally own a property.
Property Development Scheme (PDS)
- Luxury residential development designed.
- There is full ownership to property available to foreign investors.
- The buyers are given permanent residency on an investment of minimum of 375000 dollars.
- Concentrates on environmental friendly and sustainable changes.
Integrated Resort Scheme (IRS)
- Created in order to have large-scale luxury hotels with villas and apartments.
- Customers are provided with the high quality service such as leisure, golf courses, personal beaches and spas.
- The citizenship is offered as a reward of at least 375000 dollars invested.
Real Estate Scheme (RES)
- Like the IRS, only on a small-scale development level.
- There is no minimum necessary investment; however, residence will only be offered in case the investment exceeds 375,000.
Smart City Scheme
- Specializes in creation of contemporary urban settlements in terms of residential, business, and commercial centers.
- The apartments, offices, or retail can also be purchased by foreign investors.
- Promotes green and technological life in cities.
Ground Plus Two (G+2 ) Apartments
- Foreigners are allowed to purchase apartments in structures built up on at least 2nd floor (G+2).
- Minimum MUR 6 million investment (about 135,000 dollars).
- Perfect as a rental income and capital returns.
Such plans give legal protection to investors and there is transparency in the way property is owned.
3. Legalities to Foreign Buyers
Prior to the property purchased in Mauritius, foreign investors have to abide by certain legal conditions.
Restriction on land ownership
The Mauritian law prevents foreigners to purchase land unless it is an approved scheme. Majority of the properties owned by foreigners are in the specific developments, and this provides a spurred investment environment.
EDB approval
The Economic Development Board (EDB) of Mauritius has to approve all the purchases of property by the foreigners. This makes the investment be consistent with national real estate policies.
Foreign Currency Payment
Foreign investors will pay their payments in foreign currency where there is transparency as well as serving the laws of the foreign exchange.
Freehold and Leasehold property
- The majority of the investments made on schemes are freehold or in other words without exception.
- Certain houses in certain coastal regions can be on leasehold and have to be renewed after a stipulated duration.
Work Permits Residency
- Owners that invest in properties costing more than 375000 dollars using PDS, IRS or res programs are eligible to permanent residency.
- Spouse and dependents of the investor can also be issued with residency permits.
- Owners of property are able to reside in Mauritius although they need a work permit in case they want to work or conduct any activity.
4. Foreign Property buying Taxes & Fees
Mauritius also provides good tax consideration, yet there is certain number of legal fees and charges involved in property purchase.
Property Registration and Notary fees
- Registration fee; 5 per cent of the property.
- Notary charges: Average of 1 percent to 2 percent of the amount paid.
- EDB application fee: 10,000 dollars (residency qualifying investments).
Tax Incentive Advantages to Foreign Investors
- No capital gains taxation: There is no tax on profits in case of the sale of property.
- No inheritance tax – Unlike the majority of western countries no inheritance tax exists and there is no extraneous taxation when transferring assets to descendants.
- A flat income tax of 15 percent – On rental income as well as business activities.
The low-tax regime in Mauritius as well as its stable political and social environment qualifies it as a suitable place to make long-term investments.
5. How Cobert Holdings is involved in Mauritius Real Estate
Foreign investors might find it difficult to deal with the legal and financial side of the Mauritius real estate. Cobert Holdings streamlines the process; by providing:
- Legal advice- provision of legal advice on the laws and regulations on property.
- Exclusive access to exclusive listings -Access to high-end PDS, IRS and Smart City listings.
- Residency support – support Investor getting residency permits by investing in property.
- Smooth transaction assistance – Processing of all the papers, licenses, and passes.
Having a wealth of experience in the Mauritius real estate market, Cobert Holdings will offer international investors integrated services in the acquisition of diverse properties within the island thus making such activities easier and safer.
Conclusion
The real estate market in Mauritius is the most transparent and the most welcoming as far as investors are concerned and foreigners can conveniently own property legally as there is a government approved way of holding high value property. Investors can make successful and safe real estate investments by knowing about the legal aspect of the investment, needs of the investment and the tax incentives of the investment.
Be it to find a second home, perhaps a property to rent, a holiday home, a permanent home or an investment property, you can find a top in Mauritius. Through the experience of Cobert Holdings, you can simply invest in the best properties and own financial gains in this tropical heaven in the long run. Interested in Investing in Mauritius real estate? Call Cobert Holdings now and get professional advice and unique property offerings!