Offshore Guidebook | Real Estate Investor Magazine Offshore Guidebook 2014 | Page 38

MAURITIUS grow by 3.7% in 2014 and that inflation will remain subdued in 2014 at less than 4%. Mauritius has realised a remarkable economic transformation, attracting substantial investment from both local and foreign investors. Real estate According to the government’s estimation, the real estate sector in Mauritius will be the biggest driver of growth in 2014, providing large-scale employment and contributing significantly to the country’s growth. An increasing number of old sugar plantations of the island are turning to real estate with a portion of their agricultural land to build shopping centers or residential developments for foreigners. The construction boom expected, focusing on the luxury tourism market, as well as good infrastructure, make the island a popular destination for real estate investment. Investing Foreign nationals or non-Mauritian citizens are allowed to work and/or live in Mauritius under three distinct and simply laid down schemes: as a retired non-citizen; as a professional; or as an investor. A ‘Work & Live in Mauritius’ department within the country’s Board of Investment acts as a singlefacing service counter to expedite formalities for individuals and investors setting up in Mauritius. Foreign nationals, investors and non-investors alike, FAST FACTS Location 2,400 km off the south-eastern coast of Africa Capital Port Louis Population 1.3 million Population Growth 0.4% Main Language English (official language) and French Area 1,865 square kilometres 36 Offshore Handbook 2014 may also buy freehold property in Mauritius under the provisions of two specially studied schemes, the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES). Under the Integrated Resort Scheme (IRS), luxury villas and other residential properties can be sold freehold at a minimum price of U$D500,000 to foreigners who, de facto, receive a residence permit. The few IRS villas put on the market so far have proven very popular. The IRS targets the high-end segment of the international property market. The investor may sell the property with no minimum selling price restriction; rent the property, elect tax residency in Mauritius and is free to repatriate funds or revenue realised from the sale or renting of the IRS property. Under the Real Estate Scheme (RES), residential units are sold to non-citizens at no minimum price. However, acquisition of property worth at least U$D500,000 entitles the purchaser a residence permit. This scheme is targeted mainly for those investors, retirees and professionals who want to invest, work and live in Mauritius or for those individuals who want to have a second home or holiday retreat in Mauritius. As such, buying property in Mauritius brings an additional benef it, allowing investors and their dependant family members to reside in Mauritius as long as ownership is retained. A residency permit also entitles the resident to apply for an occupation certif icate which allows the resident to start a business or to become an employee of a company in Mauritius. After the government-prescribed number of years, investors can apply for a Mauritian passport in addition to their residency permit. RESOURCES Villas Val Riche Pam Golding Properties International Monetary Fund (IMF) www.reimag.co.za