REAL ESTATE INVESTMENT 2021
A legal framework in favour of the Mauritian & foreign buyers
With regards to its rich history , Mauritian law is a legal system derived from both the French Civil Code and the British Common Law . While substantive law is more commonly derived from French law ( Civil , Criminal and Commercial Codes ), public law is derived from British law-as confirmed by the Constitution of Mauritius , established at independence in 1968 .
In terms of real estate , the rights of both Mauritian and foreign buyers are ensured by the Civil Code . It provides a legal framework for the VEFA ( Vente en l ’ État Futur d ’ Achèvement ) contract , which allows the sale of a property based on a plan or upon its construction , and by which the seller transfers their rights over the land and the ownership of existing buildings to the buyer , upon signing the deed of sale .
Among the advantageous legal aspects for foreign investors is the absence of inheritance tax for the owner ’ s direct heirs , provided that they are also tax residents of the country ( otherwise , the matter is subject to the laws of the country to which the owner is fiscally attached ).
48
In order to apply the same laws for all , Mauritian law takes precedence on the territory . However , ultimately , everything depends on the country where the buyer is domiciled , particularly for matters relating to the declaration of assets and inheritance tax . The situation of each investor must be studied individually for effective wealth management .
Didier Maigrot Notary , Didier Maigrot notary office