Property Acquisition in Mauritius | The Buying Process for Mauritians
In most cases, the purchase of a real estate property is a lifetime investment which is usually done in different steps. In order to avoid any trap and to ease up the purchase […]
In terms of property acquisition in Mauritius by non-citizens, expatriates are now allowed to invest in PDS projects, in Smart cities or in a G+2 apartment (residential unit being part of blocks of residential dwellings located in a building of at least 2 floors above ground floor).
It is good to note that the Property Development Scheme (PDS) has replaced IRS, RES and IHS. The acquisition of a PDS unit entitles its buyer to request for a Mauritian Occupation Permit, a Residence Permit or a Permanent Residence Permit – if the selling price of the PDS unit exceeds USD 375 000. Non-citizens who have a residence permit under PDS will be exempted from an Occupation or Work permit to invest and work in Mauritius.
Procedures and documents
Who may purchase a PDS unit in Mauritius?
- A non-citizen of Mauritius
- A citizen of Mauritius
- A company registered as a foreign company under the Companies Act 2001
- A company incorporated under the Companies Act 2001
- A société, where its deed of formation is deposited with the Registrar of Companies
- A trust, where the trusteeship services are provided by a qualified trustee (management company or such other person resident in Mauritius) licensed by the Financial Services Commission.
Acquisition of PDS unit in Mauritius by a non-citizen: procedures
The request to purchase a PDS unit in Mauritius should be submitted to the Economic Development Board by an agency specialized in marketing PDS projects. Fees associated with such requests amount to Rs 20 000 (payable by cheque) per request.
Documents to be provided:
- A completed resident permit application form
- A bank letter certifying that the KYC (Know Your Client) exercise was completed
- A notarized copy of the first 5 pages of his passport, his birth certificate
- A notarized copy of the birth certificate of the buyer
- An extract from his criminal record of dated less than 6 months old
Permanent Residence Permit request
Documents required:
- A medical certificate dated less than 6 months old and certifying that the applicant does not suffer from any contagious disease, as is the case for his spouse and children,
- An extract of the applicant’s marriage certificate
- The applicant’s children’s birth certificate, a copy of their passports, a medical certificate for each of them
- An extract from the applicant’s spouse criminal record
- 2 identity photos for each dependent
Acquisition of a PDS unit in Mauritius : mode of payment
When the purchase of a PDS unit is done via off-plan sale, the sales deed is therefore governed by the provisions of the VEFA, under the Mauritian Civil code.
Payment mode under VEFA:
- Upon signing of the deed: 25%
- Upon completion of the foundation works: 10%
- Upon completion of roofed-in phase: 35%
- Upon completion: 25%
- Upon availability of premises: 5%
Foreign property investment in commercial real estate
Non-citizens registered at the EDB are entitled to buy an apartment or a commercial space in a building to further develop their activities (commercial malls, office building, warehouses, PDS projects and Smart City Scheme).
Documents to be provided:
- An application form duly filled in and signed by the director of the company making the application;
- Certificate of incorporation and register of shareholders;
- Business plan with full details on background of shareholders / promoters, the project and implementation schedule, the project financing;
- A site plan from a sworn land surveyor showing the extent and precise location of the property;
- Valuation report of the immovable property from a valuation surveyor;
- A pre-sale agreement (compromis de vente) between the vendor and buyer drawn up by a notary Public in Mauritius or a letter of reservation in case of lease of property;
- Proof of funds emanating from a bank for the acquisition of the property & implementation of the project;
- Where there shall be construction works, Outline Planning permission from the local authority;
- Where an application is submitted by a third party (consultant), a Power of Attorney or a mandate letter given by the applicant to the third party;
- In case of touristic activities such as hotel development, operation of pleasure crafts, restaurant, tour operators, a Letter of Intent from the Tourism Authority.
Foreign Property Investment : Smart Cities
A company investing in the development of Smart Cities or in components of Smart Cities benefit from the following tax advantages:
- Tax exemption on revenue for a time period of 8 years
- Tax exemption on equipment
- Exemption on Customs Duty on equipment import or property acquisition
- Exemption on land transfer tax
- Exemption on land conversion tax relative to surface area allocated to development of non-residential components
- Exemption of land subdivision tax
Important : Upon investing in a real estate property with an Smart City for an amount exceeding USD 375 000, a non-citizen :
- Becomes eligible to Mauritian Residence Permit (for him and his dependents – spouse and children of maximum 24 years old)
- Is exempted from restriction on rental or resale
Sources :
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