These photos make you dream? I understand. The UN declared Mauritius as the happiest country on the African continent! Particularly prized for its idyllic landscapes, its sunny tropical climate and the many investment opportunities it offers, Mauritius remains a perfect destination to invest in real estate. Nestled in the heart of the Indian Ocean, the island has all the assets to fully enjoy a life by the sea and realize a dream of owning a property abroad.
In September 2020, after the end of the lock-down, Mauritius gradually relaunched its rental and sales activities. The real estate market has regained its dynamism thanks to the support of local authorities and the digitisation of the administration. But despite a wide choice of investments accessible to all budgets, the health situation has not allowed the real estate sector to return to the level of previous years.
Today all Mauritians hope that the new budget 2021-2022 called «BETTER TOGETHER» presented by the Minister of Finance, Economic Planning and Development of the Republic of Mauritius, The Honourable Dr. Renganaden Padayachy, and the subsequent Finance Act will have a positive economic impact. The announced measures will ensure the momentum of construction and real estate growth in the short and medium term.
Real estate acquisition and employment for non- Mauritian citizens
The minimum investment threshold for a foreign investment to qualify for Mauritian permanent resident status is decreased from USD 500,000 to USD 375,000. As a result, the minimum purchase price of a property for the buyer to benefit from the status of a Mauritian resident under existing real estate schemes also decreases from USD 500,000 to USD 375,000.
In order to attract and retain foreign talent and businesses, non-citizens holding a residence permit, an Occupation Permit or a Mauritian permanent resident permit, will be authorized for a period of 2 years (until June 30, 2022), to acquire a plot of serviced land not exceeding 2,100 m2 for residential purposes within a Smart City. The construction of this residential unit will however have to be completed within 5 years.
These government measures are in addition to numerous benefits such as living conditions, quality of life, tax benefits, political and economic stability and impact the real estate market and its prices and make Mauritius an essential place to make a quality investment. Over the past 20 years, Mauritius has undergone a total evolution. Indeed, the island through its new infrastructures, new highways, new schools and universities is developing considerably. There is a change in behaviour among Mauritians who wish to acquire property. The latter are therefore major players in the development of the real estate sector. In addition to the growing number of foreign investors in recent years, the real estate market and the law of supply and demand are gradually rebalancing. All this has naturally led to an increase in real estate prices on the island over the past twenty years. For example, to acquire a new apartment, it will cost between 200,000 euros and 350,000 euros. Obviously the prices will be different depending on the regions and the proximity to the sea, the amenities etc. However, we can see a spike in prices in all the regions that are explained by this increase in demand.
Read more about the improved conditions for Mauritius occupational permits following the enactment of the 2021 Finance Act: here
Read more about the Mauritian Budget here
Real estate tax exemptions for Mauritians
Exemption from the registration requirement for the acquisition of a newly built dwelling:
- Total exemption from the registration fee granted to any Mauritian when acquiring a newly built home is extended by 2 years (until June 30, 2022. In the process, the threshold relating to the value of the newly built housing concerned goes from Rs 6 million to Rs 7 million.
- This exemption also applies if the dwelling is acquired on the basis of a sale on-plan or under construction. (In the case of a forward sale or a sale in the future state of completion – VEFA)
- However, this exemption is not applicable in the case of a property on Pas Géométriques (lease) or a property that is part of the IRS, RES, PDS or IHS scheme.
First-time buyers in Mauritius: exemptions
A Mauritian is now exempt from registration fees as a first-time buyer even if his or her spouse is or was the owner of real estate acquired by inheritance (succession) provided the area of the land does not exceed 20 perches (compared to 10 previously).
Real Estate Transfer Tax Exemptions for Home Developers/Builders for Mauritians
The subdivision construction program will be extended:
- The period for the registration of projects with a minimum of 5 residential units with the Mauritius Revenue Authority (MRA) will be from July 1, 2020 to December 31, 2020
- No registration or transfer duty on the transfer of land not serviced in full ownership intended for the construction of a real estate complex provided that the land is transferred before December 31, 2020
- Construction of these units is expected to be completed by December 31, 2021
- A transfer tax exemption will apply on the sale of a dwelling (even under the VEFA) provided that the buyer is a Mauritian, and that the sale is made before June 30, 2022. In the process, the threshold relating to the value of the newly built housing concerned goes from Rs 6 million to Rs 7 million.
If you would like more information about how to invest in or set up in Mauritius, or about the attractive taxation of real estate in Mauritius, please contact us at consulting@rosemont.mc