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Tax advantages in Mauritius?

Real estate investment in Mauritius: yes, there are tax advantages!

Mauritius is regarded by the Organisation for Economic Co-operation and Development (OECD) as a fiscally virtuous country and has a particularly advantageous tax system from which foreigners can benefit through real estate investment by, for example, buying a high-end villa in Pereybère or any other region, according to their affinities. The government of Mauritius has put in place specific programmes to that end, which make it possible to invest within a legal and, above all, a secure framework.

How can you benefit from these advantages while gaining ownership on this paradise island that is Mauritius? Answers below:

An advantageous tax system

Why choose Mauritius to invest in real estate?

If you’re considering Mauritius to make your real estate investment, here are what the local tax system will offer in return:

Double taxation agreement, to be checked with your country of origin;
15% income tax rate;
No taxes on dividends, capital gains, inheritance taxes for direct descendants;
Profits and dividends from companies located outside of Mauritius, repatriable without restriction and with a tax rate of 15 %;
Total tax exemption for import-export activities;
15% processing tax rate;
Exemption from customs duties on all merchandise imported through the free port.

How to benefit from these tax advantages in Mauritius? Via real estate!

Two essential conditions must be met, whether you are a non-resident, retired, active, a company
or even a trust managed abroad, to enjoy these advantages:

To have the Mauritian residence permit and for that purpose, make a real estate
investment in Mauritius as part of a project labelled IRS, RES and PDS
Obtain Mauritius tax residence by deciding to stay more than 183 days per year on the island in your Mauritius residence.

If you are a company or a trust, in order to be able to buy real estate in Mauritius, you must:

Set up your headquarters in Mauritius,
Have at least two resident directors on the island,
Invest at least $ 100,000 in Mauritius,
Employ at least one citizen of Mauritius,
Register your main bank account or books of account in Mauritius

Foreign investment in real estate in Mauritius is governed by the non-Citizen Property Restriction Act. This law thus allows foreign nationals to acquire a personal property under the Property Development Scheme (PDS). Regarding the price of such a property investment, this must correspond to a minimum of US $ 500,000, or about 442,100 euros. The programs are numerous and scattered in the most beautiful areas of the island, so it is important to properly formulate your wishes, needs and expectations with your real estate agency.

An application for Investment Authority will then have to be filed with the Economic Development Board Mauritius (formerly the Board of Investment – BOI). The waiting time between filing, processing of the complete file and the regulator’s response generally varies from a few days to several weeks.