Investment opportunities under the Mauritius Smart City Scheme
Such a major development in the Mauritian real estate sector comes with a plethora of opportunities for potential investors , including non-citizens . To spur investments in smart cities , the Mauritius government will be offering a package of fiscal and non-fiscal incentives to different classes of investors . The foreign investor could be : a promoter seeking to engage in a project under the scheme ; a developer wanting to acquire land to develop a component of a smart city project ; or an individual acquiring a property in the residential component of a smart city . Provided that they are issued with the respective certificates from the issuing body – the Economic Development Board ( EDB ) – promoters and developers will benefit from a number of incentives , including :
• exemption from corporate tax for a period of eight years
• exemption from Value Added Tax in respect of buildings and capital goods
• exemption from customs duty other than for furniture
• accelerated annual allowance at a rate of 50 % in respect of capital expenditure .
Under the scheme , foreign citizens having invested US $ 500,000 or more in a residential property will be eligible to apply for a residence permit for themselves , their spouse , children under 24 and up to three wholly dependent next of kin . The residence permit will remain in force for as long as the non-citizen holds the property . There is no restriction on the rental or resale of residential units bought under the scheme .
Strong interest marks debut of the Scheme
The introduction of the Smart City Scheme has been underpinned by a sharp interest from the local investor community , especially from large established landowners . To date , five projects have completed the application process , and have been issued with a Smart City Certificate from the EDB . Six other promoters have received a letter of intent . Considering the number of projects approved , or in the process of being approved , the respective promoters are vying to attract the interest of potential customers by differentiating their offering with specific hubs dedicated to education , health and medical services , logistics and free port , among others . Interestingly , one smart city promoter has applied for certification under the US-based LEED ( Leadership in Energy and Environmental Design ) programme . This would be a first for Mauritius , and one of very few in Africa .
How ABAX can help
ABAX can assist investors and non-citizens who would like to invest in a smart city project by processing their application with EDB , and setting up the proper structures for their investments . For more information , please contact :
Nousrath Bhugeloo Partner nousrath . bhugeloo @ abaxservices . com www . abaxservices . com
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