Foreigners set to buy a home in Mauritius will typically pick from several residential development schemes initiated by the government. The developments offer upmarket properties with particular characteristics. All you need do is choose the one that suits you.
The country launched the first of these programmes, the Integrated Resort Scheme (IRS), in 2002. An IRS development has a footprint of at least 10 hectares. These luxury residences are developed with high-end amenities and management services, such as maintenance and security.
Mont Choisy Le Parc, one of the largest IRS projects in Mauritius, has 212 units.
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More land opened to developers
The Mauritian government next introduced the Real Estate Scheme (RES) in 2007 to enable foreigners to invest in Mauritius. RES developments also flaunt luxury features and homeownership available to foreigners. The difference is that the area of RES developments is smaller. These are in parcels ranging from a minimum of 4,000 square metres up to a maximum of 10 hectares. There is no required minimum price point.
The RES, in effect, opened more land for development for foreign homebuyers and investors. However, at least 25 percent of RES/IRS residential sales have to be to Mauritians or members of the Mauritian diaspora.
Scheme integration in PDS
The government next introduced the Property Development Scheme (PDS) in 2015. This programme combined the major features of the IRS and RES, allowing development of both small and large land parcels.
The PDS also set the transfer duty to a uniform 5 percent of a home’s purchase price. Previously the deed registration fee under the IRS was set at USD70,000. The fee was USD25,000 for RES projects. Notably, a PDS project is allowed to sell all of its residential units to foreigners.
Added option in G+2
The government added another channel for foreigners to buy a home in Mauritius. It amended the Non-Citizens (Property Restriction) Act in December 2016. This amendment allowed foreign buyers of apartment units in residential buildings at least two levels above the ground (G+2). It also set the minimum purchase price at MUR6 million (USD150,000).
There is no limit to the number of apartment units foreigners can buy. G+2 units can be rented out and are thus strong investment opportunities.
Residential development schemes are dynamic platforms that the government continues to finetune to excite foreign investors. It tweaked these programmes anew in June 2020 to help the country recover from the economic downturn due to Covid-19.
New perks for foreign homebuyers
Amongst other new perks, the government cut the price threshold for a Mauritius permanent residency privilege from USD500,000 to USD375,000. This new price point applies to all the government programmes designed to attract foreigners.
The Mauritian residency that these property development programmes offers to foreigners is a portal to many benefits including a liberal tax regime. These tax advantages and permanent residency offer are woven together with many dynamic factors affecting foreigners’ inclination to purchase a home. Talk to a 2Futures consultant to learn which residential development scheme suits you best.
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