DOMAINE DE PLAISANCE
With its lush nature and mild climate, Mauritius is a destination that is attracting more and more expatriates, young retirees and investors looking for a secondary home. In recent years, non-resident foreigners have had the opportunity to invest in a newly built property on the island and even enjoy numerous advantages such as eligibility for a residence permit to non-citizens.
Mauritius, a paradise for foreign investors
The second home market, which has long been oriented towards luxury real estate, is now accessible to the greatest number of people including non-citizens, citizens, and members of the Mauritian Diaspora. Foreign investors will be eligible for a residence permit upon the purchase of a villa under the PDS scheme with an investment of more than USD 375, 000.
Real estate for newly built properties is rapidly expanding on the island. Most of the new developments have prime locations near the beach and offer luxury services such wellness centers and spa. Buyers have a wider choice when it comes to the lifestyle they are aspiring to. They can now choose eco-friendly accommodation which will not harm the environment in the long run.
Investing in real estate in Mauritius can be the deal of a lifetime. The island’s constant flow of tourists and good climate conditions throughout the year allow owners to rent their property all year round. Most real estate or tourist complexes offer rental management services that guarantee owners an income for the months when they do not occupy their property.
This enthusiasm for real estate in Mauritius is also explained by a lenient tax system for expatriates who have obtained residence. Indeed, there are no taxes on real estate assets (IFI), no inheritance tax, the general tax rate is 15%, there is no double taxation (for some foreigners such as the French), no capital gains tax in the event of resale, no property or housing tax…
Investing under the PDS Scheme
To regulate the real estate market in Mauritius and more precisely the secondary residence market, the Economic Development Board (EDB) has established guidelines to regulate all foreign real estate transactions. Purchases made by foreigners are regulated by the PDS (Property Development Scheme).
The Property Development Scheme (PDS) provides a framework for home ownership for non-residents. It concerns new real estate and purchases on plan in luxury secure residences with leisure areas and management services. There is no minimum price imposed for the purchase of real estate. However, a foreign buyer is eligible to obtain residence status if he or she invests more than $375,000 (approximately €309,000).
The Property Development Scheme provides for the following:
1. development of luxurious residential units on freehold land of an extent of at least 0.4220 hectare (1 arpent)
2. high quality public spaces that help promote social interaction and a sense of community.
3. high-class leisure, commercial amenities and facilities intended to enhance the residential units.
4. day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services.
5. social contribution in terms of social amenities, community development and other facilities for the benefit of the community.
Requirements of Eligibility for acquisition of residential property
The following persons may acquire a residential property from a PDS Company:
1. a natural person, whether a citizen of Mauritius, a non-citizen or a member of the Mauritian Diaspora;
2. a company incorporated or registered under the Companies Act;
3. a société, where its deed of formation is deposited with the Registrar of Companies; (d) a limited partnership under the Limited Partnerships Act;
4. a trust, where the trusteeship services are provided by a qualified trustee; or
5. Foundation under the Foundations Act.
Note: A qualified global business as defined under the Financial Services Act 2007 holding a Global Business License may acquire property under the PDS scheme
Requirements for Residential property
A project under the PDS must have at least 6 residential units. The residential properties may be a mix of:
• Luxury villa with attending services and amenities
• Luxury apartment with attending services and amenities
• Penthouse with attending services and amenities
• Other similar properties used, or available for use, as residence with attending services or amenities