Mauritius offers to any foreigner a safe, welcoming and pleasant environment with residential, medical, school and airport infrastructures of international standards.
Real estate investment in Mauritius
In order to promote development and thus attract foreign investors, Mauritius has concluded fiscal conventions with more than thirty countries, including France and Belgium.
As a result, any property acquired on Mauritian territory is not included in the calculation of the tax on wealth and the income obtained from the rental or resale of real estate in Mauritius is taxable only in Mauritius and not in the country of origin of the investor.
This small tropical island in the heart of the Indian Ocean has nearly 5% of economic growth and has enjoyed unparalleled socio-political stability since its independence in 1968, making it one among the most peaceful countries in the world.
Its flexible tax system offers a number of advantages, including:
- a single tax rate of 15% on personal and corporate income,
- no capital gains taxes, dividends and
- no restrictions on repatriation of profits, dividends, and capital.
The double tax treaty exemption signed by Mauritius with more than 35 countries is more than beneficial for investors wishing to invest in real estate with a lower cost for a higher return.
The property investment scheme is accessible to expatriates who wish to buy real estate in Mauritius or seniors who would like to afford a golden retirement on this tropical island.
Investment schemes accessible to foreigners in Mauritius
Real estate purchases by a non-Mauritian citizen can be done for an already constructed property or in VEFA (purchase on plan) under the following foreign investment devices:
- Integrated Resort Scheme (IRS)
• Real Estate Scheme (RES)
• Property Development Scheme (PDS)
• Smart City Scheme
• Apartment in a building with two or more floors, investing a minimum of 6 million MUR. (This scheme does not give the right of residence and remains subject to the validation of the property by the B.O.I)
In addition to the lower cost of construction in Mauritius (a quarter of the European cost), investing in real estate in Mauritius also offers other major advantages for the foreign investor.
Tax benefits of PDS, R.E.S and I.R.S property investment in Mauritius
In summary, investing in Mauritius allows foreign investors to benefit from a very advantageous tax framework, namely
No property tax
No residential tax
No CSG (widespread social contribution) or CRDS (Contribution for the repayment of the social debt)
No taxes on dividends
No taxes on capital gains
No taxes on wealth
No taxes on inheritance
Automatic residence permit for an investment greater than $ 500,000 (US dollars), including children up to 24 years of age.
Profits and dividends repatriable without any restriction.
The third-party costs of the Mauritian real estate investment for a foreign citizen are
- Government fees B.O.I – 5% or US $ 25,000 (depending on investment plan and property category)
• Notary fees – 1.15%
It is also now possible for a foreigner to retire to Mauritius by becoming the owner of a property designed for foreign buyers. In addition to the variety of world embassies in Mauritius, the proximity of Reunion Island gives easy access to all the services of the French administration for expatriates who have chosen to settle in Mauritius.
The Mauritian residence permit
According to the regulations of the BOI (Board of Investment of Mauritius), the status of permanent resident permits a non-citizen to work and live in Mauritius for a period of ten years.
The residence permit is issued according to specific investment criteria, including the real estate sector.
The Permanent Residence Permit is automatic for any investment greater than $ 500 000 (US dollars), including children up to 24 years of age.
This license is attached to the property acquired and is renewable every 10 years.
The foreign acquirer and his family thus benefit fully from all the advantages associated with this investment scheme.
For real estate purchases below this threshold, the investor purchaser benefits from the continuous residence on the island (6 months per year) with all the advantages associated with it, in particular, the possibility of electing Mauritius as Tax Residence.
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