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Mauritius property investment options for overseas buyers have increased since the Mauritian government adopted the Property Development Scheme (PDS) in 2015.
More than 50 real estate developments have since been built under the PDS. Besides providing a variety of residential options, the government adopted the PDS to encourage inclusive development, job generation, and creation of new life and leisure facilities.
Citizens, foreigners, and Mauritians living overseas may buy property under the PDS such as the luxurious apartments at the 136-unit Ki Resort by 2Futures, the leading property developer in Mauritius. PDS projects also offer villa, penthouse, and duplex options. Each PDS project must comprise at least six residential units.
Residences built under the PDS incorporate clubhouses, swimming pools, and sports and wellness facilities. Daily management services are provided. These include maintenance, security, and household services. Additionally, some may feature commercial facilities and public spaces towards promoting social interaction and a sense of community.
The PDS replaces the existing Integrated Resort Scheme (IRS) and Real Estate Scheme (RES). The latter were geared mainly to attract foreigners to Mauritius property investment options.
The IRS was launched in 2002. Under this scheme, foreigners are allowed to buy freehold property within an integrated residential development.
The size is limited to a maximum surface area of 0.53 hectares. At the time, the minimum qualifying investment required for automatic permanent residency was USD500,000. As of June 2020, this is now USD375,000. Investors pay no capital gains tax, minimal inheritance tax, and 15 percent income and corporate tax.
The Mauritian government introduced the RES in 2007. Projects developed under this scheme are in smaller land parcels. As a result, these are priced relatively lower than IRS properties.
Moreover, RES offers increased flexibility as there is no minimum investment amount for foreign buyers. However, properties for sale at less than USD375,000 won’t qualify the investor for permanent residency.
Property sales to foreigners under the PDS, IRS, and RES from 2005 to 2018 were estimated at MUR73.7 billion (USD2.01 billion). There were 1,186 IRS sales, 1,323 RES sales, and 228 PDS sales.
Top properties fetch gross rental yields ranging from 3.5 percent to 4 percent. This is a sizeable return for a Mauritius property investment.