INVESTING IN REAL ESTATE IN MAURITIUS
Essential Questions to Consider for Investing Securely in Mauritius
Investing in Mauritius offers the advantage of accessing attractive tax opportunities and interesting valuations, all in a secure and idyllic setting. Luxury real estate in Mauritius presents itself as a wise choice to quickly capitalize on your investment and grow your wealth.
However, like any investment of this magnitude, real estate investment in Mauritius comes with risks that are important to understand. Below, you'll find a series of frequently asked questions regarding this matter.
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Environment
Mauritius has numerous undeniable assets:
- Its paradisiacal beaches, crystal-clear lagoons, and exceptional biodiversity.
- The worldwide reputation of Mauritian hospitality.
- Its status as a leader in economic performance in Africa, ranking 8th globally according to the World Bank.
- Its position among the most sought-after luxury tourism destinations in the world.
- A prosperous and diversified economy, supported by a multicultural population composed of 49% Hindus, 32% Christians, and 17% Muslims.
- The presence of 13 world-renowned golf courses, as well as water sports and deep-sea fishing activities.
- Pleasant average temperatures ranging from 24°C to 29°C during the day.
To invest in real estate in Mauritius, non-nationals must necessarily turn to specific schemes established by the government, such as the PDS, RES, or IRS projects. These schemes offer investors the opportunity to fully acquire exceptional properties within real estate complexes.
The Property Development Scheme (PDS) merges the previous IRS and RES schemes, thereby removing previous area restrictions.
This scheme is distinguished by its increased precision, promoting better integration between high-end real estate development and environmental concerns, encompassing infrastructure, wellness activities, and shared services, all within a secure environment.
Furthermore, the PDS automatically provides for the acquisition of a residence permit for the buyer, their spouse, and their children (under 24 years old) when investing in real estate in Mauritius valued at over 375,000 euros.
If the buyer is not a Mauritian citizen, formal authorization from the Economic Development Board (EDB) is required, and this application can be submitted by the developer, a notary, or a service provider. The acquisition process and drafting of deeds are managed by a notary. Upon signing the property deed, the buyer is subject to a registration duty of 5%.
Notary fees as well as certain registration duties are payable at the time of signing the property title, representing approximately 1% of the property cost. No other taxes apply upon property acquisition.
The choice of structure for the purchase, ownership, and management of a property will depend on the objective of this acquisition (primary residence, secondary residence, investment, or rental).
The mortgage on the property to be acquired is typically the primary security provided, although other options or supplementary securities may be considered.
Yes, the property can be rented out for part or all of the year.
The rental market in Mauritius has undergone a radical transformation in recent years.
The practice of selling for rent is gaining popularity, especially for luxury residences, where owners with a second home rent it out for part of the year.
Investing in real estate in Mauritius is therefore an advantageous option, allowing for additional income generation.
What is the level of taxation applied to real estate properties or rental income?
You have the option to finance the acquisition using your own funds.
If you have sufficient income to repay a loan and can provide collateral, Mauritian banks may also provide financing for your acquisition.
Double Taxation Treaty:
There is a tax rate of 15% on income and rental income in Mauritius. Income from real estate received by a resident of France is taxable in Mauritius and not in France.
Capital Gain on Resale:
In the event of the sale of real estate, there are no taxes on capital gains. The capital gain realized on the sale of property held in Mauritius by a French tax resident is not taxable in France, nor subject to CSG/CRDS. Thus, in the case of repatriation to France or local reinvestment, there will be no taxation in France.
Succession:
There are no inheritance taxes in Mauritius.
IFI (France):
There is no real estate wealth tax (IFI) in Mauritius.
Property Tax and Other Taxes:
In Mauritius, there is no property tax, housing tax, or CSG.
Retirees:
The flat tax rate is 15%. French retirees retain their social security benefits, otherwise, they must subscribe to private expatriate insurance before leaving.
