Real Estate Investor Magazine South Africa October/ November 2019 | Page 57

Why invest in Mauritius?
Mauritius offers many benefits & advantages as indicated
below:
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Proven political stability, an impressive track record
of recognized eco-nomic rankings and indices, and a
steady economic growth for several decades.
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A safe business environment for investment, a
recognized rule of law.
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The most liberalized country on the African continent
and the most business friendly.
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Multicultural as well as multi-ethnic, Mauritius offers
a unique and peaceful lifestyle in this mix of cultures.
Is it economically viable?
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Whether you’re buying an apartment, villa,
commercial space or an of-fice in Mauritius, you’ll be
able to enjoy the country’s
advantageous fiscal framework
Due to the double taxation agreement signed
between several countries and Mauritius, you’ll
benefit from an exemption for real estate located in
Mauritius.
The rate of income tax is capped at 15 % in Mauritius.
The rate of land transfer tax is only 5 %.
No inheritance tax on Mauritian property.
No capital gains tax.
Full ownership of property in Mauritius
A non-citizen is eligible for a residence permit upon the
purchase of a villa un-der the PDS scheme when he/she has
invested more than USD 500,000 or its equivalent in any freely
convertible foreign currency.
The PDS is also a demarcation from the IRS - Integrated
Resort Scheme and RES - Real Estate Scheme in as much as it
does not differentiate between small and big landowners and
harmonizes the registration duty to a single rate of 5% instead
of USD 70,000 on registration of a deed under IRS and USD
25,000 under RES.
Property Development Scheme (PDS)
A foreign investor is fully able to invest in a villa or an apartment
in Mauritius and be the sole owner of his property. In fact,
in order to make this possible, the Mauritian government
implemented an investment scheme, named Prop-erty
Development Scheme (PDS).
The PDS’ principle is to enable foreigners to buy real estate
in the country in full ownership, with a minimum investment
of 500 000 USD allows the buyer to apply for permanent
residency.
Real estate projects developed under the PDS scheme are
subject to strict monitoring in order to ensure the security of the
investor. These projects must also be developed by recognised
promoters with a good track record and experience in the
field. Large financial guarantees and decennial guarantees are
mandatory. The environment and surrounding ecosystems
are important concerns that are taken in consideration during
the development of these res-idential schemes. Solar panels,
green spaces, optimum ventilation and light structures, water
collection...these elements are all necessary for the promot-
er to obtain the required permits and authorisations before
building starts.
Smart City Scheme (SCS)
In order to create better working and living conditions, via
foreign investment and the economic development of the
country, the Mauritian government has specially created the
This programme aims to provide an enabling environment
with many tax and non-tax incentives for investors and
residents. The development of smart cit-ies across the island is
the new real estate scheme that emerged at the same time as
the PDS.
The smart cities will be both commercial (offices, industrial
parks, work cen-ter etc.) and residential (villas, apartments,
duplexes, townhouses, shopping malls, numerous educational
and health facilities), and will offer a whole range of leisure
activities for visitors and residents (leisure centres, hotels
and restaurants, tourist attractions, cultural hub). High-tech
materials and the en-vironment are priorities for the SCS.
Controlling energy consumption, there-fore, is a primary
concern. Recycling will also be an important component of
these new cities. Local and foreign investors who wish to invest
in the devel-opment of a smart city will be exempted from
paying income tax and value-added tax on buildings.
More information can be found on real-estate-mauritius.com
SOURCE Sebastien Staub, Homes MU
SA Real Estate Investor Magazine SEPTEMBER/OCTOBER 2019
55