Mauritius as a real estate investment destination

Since opening the borders to allow foreign freehold ownership in 2003 over 3,654 residences have been sold generating approximately USD 2.6 billion in sales. 

Mauritius has many aspects of a favorable investment climate such as; (1) a highly favorable tax environment for both foreign and local investors that encourages homeownership without dilution of capital appreciation or high transactional fees, (2) Mauritian residency can be granted to foreigners through the acquisition of immovable property of over USD 375,000 in designated schemes which is extended for the owner, his spouse, children, and parents for the duration of homeownership, and (3) multiple initiatives by the government to local citizens to make acquiring property more accessible and affordable. 

Tax benefits 

• No capital gains tax, no inheritance tax, no dividends tax.
• No property taxes, only 5% land transfer tax of sale value.
• Income tax, corporate tax, and VAT harmonized at 15%
• No exchange control (repatriation of capital gains, dividends, etc without restrictions)
• 100% foreign ownership allowed in a designated property scheme

Residence benefits for foreigners 

• IRS/RES//PDS schemes - designated projects for foreigners, of which if the purchase price is USD 375,000 or greater, comes with Residence for the owner and his family for the duration the property is owned.
• Smart City Scheme - foreign residents are able to purchase multiple property types within designated Smart Cities such as residential, commercial, retail, and now serviced plots of land. There are no restrictions on minimum price, although if a land parcel is purchased construction must be completed within a 4 year timeframe.
• G+2 Apartments - starting from a minimum price of MUR 6 million (USD 140,000), foreigners are able to purchase units in apartment blocks that are 3 levels or higher (Ground + 2 levels). An amendment in the 2021/22 Mauritius budget now makes it available for foreigners to also gain residency with purchases of USD 375,000 or more in G+2.

Mauritian benefits for local citizens:

• Mauritian government allocating 12,000 social housing units to be constructed.
• Rs 2 billion earmarked to support the purchase of residential land, property and construction of housing units.
• Exemption on registration duties on first Rs 5 million for residential property
• Up to MUR 500,000 refund on purchase for first-time homebuyers
• Up to MUR 500,000 refund for those requiring a home loan
• Up to 100% home loans (selective availability)

Demographics of homeownership in foreign approved schemes

• 73% of buyers collective from France/SouthAfrica/UK
• 7.5% of buyers are Mauritian citizens 
• 48% of sales are for villas, 48% for apartments and 4% for serviced land.
• 73% (majority of purchase prices) are between MUR 10 - MUR 50 million

How does this compare to other markets?

*sliding scale

** transfer fee of between 4%-8%

*** annual rental tax of 5% for residential or 10% for commercial properties