Mauritius: this island in the Indian Ocean, where the French are rediscovering that real estate can be simple!

The issues of rental and property rights are opening up for many, and this concerns not only locals but also foreigners. However, for the French who decide to purchase real estate on the island of Mauritius, there is no longer a need to worry about these questions. The local government is actively promoting its legal system, based on the principles of the Napoleonic Code, and offers favorable tax conditions along with minimal administrative barriers to attract both retirees and entrepreneurs for investment.

As of February 9, 2024, with an update on March 5, 2024, it can be noted that the Domaine de Bel Ombre project, covering an extensive area of 2,500 hectares, is known for its unique ecosystem and is a UNESCO World Heritage site. It features two golf courses and two luxurious five-star hotels. The last villas and plots are still available for sale within this construction project, which started back in 2008.

It is worth mentioning that real estate in Mauritius is not subject to property tax (IFI) and capital gains taxes, even if the owner is a tax resident of France. However, despite this, the real estate market is divided: foreigners cannot invest everywhere, for example, they cannot purchase land on the coast outside of resorts. Nevertheless, the supply is quite large, and prices vary from3500to10000euros per square meter.

Many French citizens coming to Mauritius either for business or with the intention of spending part of their retirement away from the cold show great interest in investing in local real estate. An investment of375000US dollars (about350,000The euro) allows for obtaining permanent residency on the island. It is worth noting that one can remain a tax resident of France while having resident status in Mauritius. This becomes particularly advantageous due to the tax agreement between France and Mauritius, which exempts from capital gains tax and wealth tax in France concerning property located in Mauritius.

Recommendation of the week

This week's recommendation from private asset management expert, Xavier Le Blanc, is: "Invest in non-listed infrastructure." According to him, the current market situation creates excellent opportunities for investments in vital sectors that contribute to a more sustainable future for our planet, such as:

• renewable energy
• transport
• digitalization
• water resource management
• waste disposal

Real estate sector

As for the real estate sector, in recent times20 yearsThe popularity of investing in so-called "bare ownership" has increased. This approach allows individual investors to purchase real estate at lower prices, as they are only buying the bare ownership while transferring the right to use it for a period of time.15to20 yearsto the social tenant. This is a beneficial collaboration, as it helps finance social housing for some and relieves others from tax burdens and rental issues.

After this period, investors regain full ownership rights to the property, but this moment can be critically important and requires detailed preparation.