Discover the pivotal measures of the Mauritius Budget 2024-2025 themed “Tomorrow is Ours,” was presented to the National Assembly on Friday, June 7, 2024, by Finance Minister Dr. Renganaden Padayachy. Focused on fostering economic growth and sustainable development, the budget introduces reforms aimed at boosting private sector investment, harmonizing permit fees, extending permit validity, promoting green forest creation in development projects, and enhancing support for smart cities. Additionally, it facilitates foreign investment and ensures fair property transaction evaluations. Stay informed about these crucial initiatives shaping the future of Mauritius. Below are the key measures related to the real estate sector in Mauritius.
Promoting Harmonious and Sustainable Development
A new subdivision project must maintain a minimum setback of 30 meters from the boundaries of existing establishments. This requirement ensures adequate separation, enhances land use planning, and promotes harmonious and sustainable development.
5% Rebate for VEFA Properties
Under the Home Ownership Scheme, properties purchased off-plan (VEFA) will continue to benefit from a 5% rebate (up to Rs 500,000) on the amount paid by the buyer under the VEFA agreement until June 30, 2025. If a reservation contract is signed, the buyer remains eligible for the rebate, provided the deed of sale is signed and registered by June 30, 2025. Take advantage of this opportunity to secure your property with significant financial benefits.
Extension of the Home Loan Payment Scheme
he Home Loan Payment Scheme is extended until June 30, 2025, offering a 5% rebate on the amount borrowed for a secured home loan, up to a maximum of Rs 500,000. Take advantage of this extension to enjoy significant financial relief on your home loan and make acquiring your home more affordable.
Exceptional Support with the EDB
The Economic Development Board (EDB) is committed to expediting and facilitating private sector investment projects, targeting a total amount of MUR 300 billion. Investing in Mauritius with the EDB ensures rapid growth and unparalleled support for businesses.
Harmonization of Building and Land Use Permit Fees
Fees for building and land use permits will be standardized across all local authorities. This harmonization aims to simplify the application process, encourage real estate development, and ensure greater transparency for developers and investors.
Extension of Permit Validity
The validity period for building and land use permits to start construction will be extended from 2 years to 3 years, allowing developers and investors more time to plan and initiate their property projects in Mauritius.
Creation of Green Forests in Smart City and PDS Projects
Any subdivision project on land over 5 acres (without a letter of intent) and projects under the Smart City Scheme and Property Development Scheme (PDS) must dedicate at least 4% of the total land area to the creation of a green forest. This forest should primarily consist of endemic trees, designed to complement the development with a harmonious landscape.
Promoting Sustainable and Environmentally Friendly Development
Projects on land over 10 acres, whether a subdivision, PDS, or smart city project, will now require a Strategic Environmental Assessment (SEA). This ensures that potential environmental impacts are carefully evaluated and mitigated to promote sustainable and environmentally friendly development.
Increase in Smart City Contributions
The contribution payable by a smart city company per residential property or serviced land parcel will be increased from Rs 25,000 to Rs 100,000. This aims to enhance infrastructure and services in smart cities, supporting sustainable development and residents’ quality of life.
Calculation of Registration Fees on Real Estate Transactions
Registration fees will be charged on the difference between the value of transferred property shares and the value of shares held in the company when real estate is purchased through equity participation. This measure ensures fair and transparent evaluation of real estate transactions involving equity stakes.
Definition of Effective Change in Ownership
An effective change in a company’s ownership will be deemed to have occurred when there is a change of more than 10% in its shareholding. This measure aims to ensure greater transparency and better regulation of significant changes in corporate ownership structures.
Facilitation of Foreign Investment
A foreign entity will be allowed to hold real estate under a non-renewable lease for industrial or commercial purposes for up to 30 years. This new measure facilitates foreign investment in the industrial and commercial sectors while ensuring optimal long-term use of properties.
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