Rights and obligations of foreigners when purchasing real estate in Mauritius

Mauritius: tourism, real estate, and investments

The state of Mauritius is located in the Indian Ocean, and consists of a small number of islands on the East Coast of Africa. This small territory has an area of only 2040 square kilometers, but the population is quite dense, about 1.3 million people. The country's economy is based on tourism, the financial sector, textiles, and cane sugar production.The standard of living in Mauritius exceeds the average level in the region.

The popularity of Mauritius as a foreign investment destination

Year after year, Mauritius is becoming an increasingly popular destination for luxury vacations, attracting the attention of foreign investors interested in elite real estate. Many of them are purchasing expensive luxury properties here, starting from $500,000, taking advantage of active government programs.

Rules for foreigners buying real estate in Mauritius

Since the early 2000s, citizens of any country have been able to purchase real estate in Mauritius. In this case, the acquired object is transferred into full ownership, including a plot of land, and can be registered to a private person. can be registered in the name of an individual. However, for such a purchase must be approved by the Board of Investment Board.

Government programs for real estate acquisition in Mauritius

There are several government schemes for foreigners to acquire real estate without a permanent residence permit. Most residential properties in Mauritius are offered to foreigners through three main schemes:IRS (Integrated Resort Scheme), RES (Real Estate Scheme), PDS (Property Development Scheme).

• The IRS has been in existence since 2002 and allows the purchase of housing worth $500,000, granting the investor and their family the right to permanent residency. A registration fee of $70,000 is required for this scheme.
• RES allows you to purchase property of any value with development up to 10 acres. For transactions of $500 000 and above, the investor and his family can obtain a residence permit, with a registration fee of $25 000.
• The PDS scheme, introduced in 2015, allows foreigners to purchase real estate of various values, except for the accounted registration fee of $70,000.

Various options and conditions for purchasing real estate in Mauritius

Thus, Mauritius offers various options and conditions for foreigners to acquire real estate, depending on their status and preferences. The beautiful country of Mauritius attracts not only with its beauty but also with the conveniences for foreigners to purchase property.

Purchasing real estate in Mauritius

Those wishing to buy elite residential real estate in Mauritius can take advantage of the "Smart City" program, which opens new opportunities for investors. This program provides for the creation of special areas for comprehensive development, and only certified companies with licenses issued by the Prime Minister can be developers. To purchase real estate, a registration fee of 5% of the property value must be paid. However, investors and their families receive a benefit - the opportunity to obtain a residence permit (RP).

Real estate sales schemes

There are several schemes for selling real estate in Mauritius: IRS, RES, and PDS for new properties. Within the "Smart City" program, residential and commercial properties will be built, and infrastructure will be developed. Foreigners are allowed to purchase real estate starting from $500,000 and above, which also gives them the opportunity to obtain a residence permit.

Advantages for owners

• After purchasing real estate, the investor and their family can obtain a residence permit that extends to the owner, spouse, and children.
• For children over 18 years old, a deposit of $100,000 is required.
• The residence permit can be issued immediately after signing the contract, without waiting for the completion of construction.
• Property owners with a residence permit can stay in Mauritius for an unlimited time, while those without a residence permit are subject to the standard visa regime.
• Trips to Mauritius for Russians do not require a visa for short stays.

Taxes and obligations

• Property tax is not levied, but owners must pay fees for the maintenance of the complex.
• Taxes are levied only on income in Mauritius at the rate of 15%.
• Acquiring real estate in Mauritius can be a great investment and an opportunity to obtain residency.
• Russian owners are not obligated to pay taxes abroad, but tax residents must provide the appropriate reports.
• There is no annual property tax in Mauritius, and a favorable tax rate is in effect.

Citizens who actually reside in Russia for more than 183 days a year are required to notify the Russian tax authorities about their foreign bank accounts or the establishment of companies abroad. This is an important aspect to consider when looking into options for purchasing real estate outside the country.

Mauritius Island

One of the enticing options for purchasing property is Mauritius, a beautiful island in the Indian Ocean. Here, most locals are fluent in English, and there are real estate agencies with English-speaking staff. You can also find Russian-speaking companies.

Housing search

To start looking for suitable housing in Mauritius, it’s worth checking out the platform Prian.ru, where you can find information about various real estate properties. Although there may not be many listings, you can submit a request for housing that meets your requirements.

Real estate services

Searching for a realtor in Mauritius is not mandatory, but for many, it is a convenient way to get professional assistance. Real estate agencies can provide you with a list of suitable options and help with the preparation of all necessary documents.

Payment for realtor services

In Mauritius, there is no clear system for paying real estate agents. Some agencies charge a commission from the seller, while others split it between the parties. It's important to agree on the payment terms before starting the collaboration.

Conclusion of the deal

To finalize a real estate purchase in Mauritius, personal presence is required. The first step will be to sign a reservation agreement, which usually includes a payment of 5% of the selected property's value.

• Important:Citizens residing in Russia for more than 183 days a year must notify the tax authorities about their foreign accounts or established companies.
• Useful resource:Prian.ru is a platform for finding real estate in Mauritius.
• Realtor Services:Optional, but they can provide professional assistance in choosing and arranging real estate.
• Payment:The payment terms for realtor services in Mauritius can vary, so it's important to agree on them in advance.
• First step:Conclusion of a reservation agreement with payment of 5% of the cost of the object.

Acquiring property in Mauritius: key steps and formalities

Before purchasing property in Mauritius, a foreign client faces a number of procedures. According to the island's legislation, the buyer is required to open a bank account for transactions.

Final stage

The final stage consists of closing the thermal circuit, installing communications and interior finishing. communications and interior finishing. At this stage, all works are completed and the facility is put into operation. operation. After that, the object is handed over to the client and the relevant certificates are signed.

Registration of property rights

The fourth stage is the registration of ownership rights. The client retains the sales contract, which is formalized at the Bureau of Inland Revenue (BOI), along with all the necessary stamps and signatures from the seller. After full payment, the information about the new owner is entered into the national property registry of Mauritius.

The possibility of conducting a transaction remotely

Is it possible to conduct a real estate transaction remotely? Yes, if you have a representative in Mauritius authorized by a power of attorney. However, you will still need to travel to the island to arrange this power of attorney.

Additional expenses

Additional costs when purchasing real estate include a government registration fee, which is 5% of the purchase price under the PDS (Property Development Scheme). Purchases under the IRS (Integrated Resort Scheme) and RES (Real Estate Scheme) are subject to fixed fees of $70,000 and $25,000, respectively. The seller also pays a Land Transfer Fee, which is 5% of the property's value if owned for more than 5 years, and 10% if owned for less than 5 years.

Realtor and notary fees

The realtor's fee depends on the terms of the deal. Additionally, the notary charges their own commission, which is paid by the buyer according to a fixed tariff schedule based on the value of the property. All real estate transactions in Mauritius go through a notary and are subject to a value-added tax (VAT) of 15%.

Financial aspects of purchasing real estate in Mauritius

After receiving the amount of 53,750 rupees, we begin the process of applying a VAT of 15%, which brings us to a total of 61,812 rupees. The notary fee, which is 0.77% of the sale price of 8,000,000 rupees, is also included in the calculation.

Features for foreigners

Foreigners purchasing real estate in Mauritius can take advantage of special programs — IRS, RES, and PDS, which provide for a fixed fee of 1% + VAT charged by notaries.

Additional expenses

• State fees, administrative and stamp duties range from 2,500 to 10,000 rupees and are also taken into account when processing the transaction.
• The total costs for the buyer can reach 6-8% of the property's value.

Investment opportunities

Investors who invest from $500,000 in residential real estate are granted residency in Mauritius. There are several programs available, including the purchase of property in "Smart Cities," which offer various conditions for investment and living on the island.

Thus, in addition to the main purchase amount, it is important to consider significant additional expenses and tax obligations associated with acquiring property in Mauritius.

Content:

Real estate in Mauritius that is allowed for foreigners to purchase.
Rights and obligations of foreign owners
Searching for properties, realtors, and developers in Mauritius
Reservation of the property and collection of documents
Signing the purchase and sale agreement
Payment for real estate transaction
Registration of property rights
Additional expenses for the transaction

Summary: this needs to be remembered

Real estate in the "Smart City"
Foreigners' rights to purchase real estate
Program "Smart City"
What rights and obligations arise for a foreigner after acquiring property in Mauritius?

Foreigners' rights to purchase real estate

The Republic of Mauritius is an island nation in East Africa, specializing in tourism, finance, textiles, and sugar production. Foreigners can purchase luxury properties starting from $500,000 thanks to government programs.

What types of real estate are foreigners allowed to purchase in Mauritius?

Real estate in Mauritius can be purchased through three main schemes:

• IRS (Integrated Resort Scheme)
• RES (Real Estate Scheme)
• PDS (Property Development Scheme)

Real estate in the "Smart City"

The Smart City state program envisages the creation of integrated developments, including residential and commercial projects. Foreigners who invest $500,000 or more can obtain a residence permit.

What rights does a foreigner obtain after purchasing property in Mauritius?

Investors who invest $500,000 are entitled to obtain residency for themselves and their families. Owners only pay taxes on income from Mauritius; when traveling to the country, Russians do not need a visa for stays of up to 60 days.

What obligations does a foreigner have after purchasing property in Mauritius?

There is no annual property tax, but owners are required to pay fees for the maintenance of the complex. The tax for non-residents is 15%.