Mauritius is a popular destination for tourists and is home to many expatriates. The country is also a great place to invest in real estate with positive capital appreciation and low taxes. The process is relatively straightforward and takes approximately three months to complete a purchase. For those wishing to buy property in Mauritius, there are a few legal requirements.
Step 1: Eligible property
As a foreigner, whether resident or non-resident, only properties in designated ‘foreigner schemes’ approved by the Government of Mauritius are available such as; IRS, RES, IHS, PDS, Smart City Schemes, and apartments in Ground+2 schemes. Where the purchase price of the property is USD 375,000 or greater, the buyer and his or her family are eligible for a residence permit.
Step 2: Offer to purchase
Once the desired property is found, preferably through a professional estate agency, an ‘offer to purchase’ is made from the buyer to the seller. If the property is off-plan and direct from a developer with a future state of completion, this agreement is called a ‘Preliminary Reservation Contract’ (CRP).
Step 3: Notary Sale Agreement
Once the purchase offer is accepted between both parties an official ‘Sale Agreement’ is signed at the Notary office. This normally requires both parties to be present, or by providing power of attorney to a third party to sign on your behalf. The Sale Agreement represents the official offer to the property and is thereby notarised. At this point, a 10% deposit is required and held in the Notary escrow account. (Upon completion of all steps, an official ‘Title Deed’ will be issued to the buyer).
Step 4: Letter of approval
As a foreigner, a ‘Letter of Approval’ from the Economic Development Board (EDB) is required. This procedure involves an official application requiring copies of passport, birth certificate, marriage certificate, proof of current residence, bank reference letter and bank statement indicating sufficient funds for the purchase. This process can be nominated to the Estate Agency or Developer to conduct on your behalf. In the unlikely case of the application being denied, the 10% deposit made into the Notary escrow is available to be refunded, or a reapplication is also available.
Step 5: Financing
As a foreigner, it is possible to obtain a loan from a local bank, whether resident or non-resident. Generally, banks will require a down payment of 30 to 40%. For off-plan properties, payments will be in instalments until future completion with the bank disbursing when and where needed. For resale/completed property, the bank will disburse the full amount once all approvals and credit checks have been met.
Costs of purchase:
> EDB application fee - MUR 25,000
> Notary fee - 0.75% to 2% of purchase price
> Agency fee - 2% of purchase price
> Transfer fee - 5% of purchase price
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