REAL ESTATE INVESTMENT 2021
An attractive tax policy stimulating property investment
I n addition to providing a favourable fiscal framework for all buyers to increase the value of their assets , with no wealth tax , no housing tax or property tax , a series of measures and incentives specific to the country , prove to be very appealing to international investors :
The permanent residence and tax permit
For any investment over USD 375,000 , it is possible to apply for permanent residence with the EDB . Not only does this permit enable investors to live , work and invest in Mauritius , but it also grants them the opportunity to become a tax resident – provided that they reside in the country for more than 6 months per year .
Permanent Residence Permit of 10 years will have the validity automatically extended to cover a 20-year period . Holders of a Permanent Residence Permit will be able to renew their permits and they will be given the flexibility to switch category between investor , professional and retired .*
An extensive body of Double Taxation
Treaties ( DTAA )
Investment Promotion and Protection Agreements ( IPPAs )
A highly attractive asset growth
Mauritius is signatory to 46 double taxation treaties with jurisdictions around the world . These treaties are designed to avoid double taxation of individuals and companies by defining the principle of tax residence and providing greater security for taxpayers and tax authorities in their international relations .
They represent a significant guarantee for investors by defining legal protections-such as international arbitration in case of breach of the treaty by Mauritius or one of the signatory states . They provide guarantees such as the free repatriation of invested capital and generated profits , protection against expropriation , the “ most favoured nation ” rule to protect investments made , or compensation for losses in exceptional cases ( wars , conflicts , etc .).
The Mauritian legal framework does not provide for taxation on the capital gains generated by the resale of land or property , no inheritance tax for direct heirs who are fiscal residents of the country , and no housing or property tax . These aspects reinforce Mauritius ’ status as a safe , attractive and first-class fiscal destination .
42 * Finance Act 2021