REAL ESTATE INVESTMENT 2021
Property acquisition through an investment structure
R eal estate investment , when it is incorporated into a more global asset strategy , can take various forms depending on the buyer ’ s objectives ( transfer of assets , estate management , tax optimisation , etc ). The buyer may choose to make the acquisition through different vehicles . The management company DTOS provides us with a summary to better understand each of the options available to foreign investors .
Property can be acquired primarily through the following vehicles :
1 A private company under common law which is registered with the Registrar of Companies (“ local company ”) and regulated by law under the Companies Act 2001
2 A private company licensed under the Global Business Corporation (“ GBC ”), issued by the Financial Services Commission ( FSC ) and administered by a Management Company
3 A Civil Society Holding Immovable Estate whose articles of association ( Deed of formation ) have been filed with the Registrar of Companies
4 A trust constituted under the Trust Act 2001 and administered by a Management Company Holding a trustee ’ s licence issued by the Financial Services Commission ( FSC ).
The main features and benefits of these vehicles :
• They can be 100 % owned by foreign nationals
• Confidentiality of data is guaranteed
• Administrative procedures are simple
• Reimbursement of VAT on the property purchase price , provided that these vehicles are subject to VAT
• The absence of foreign exchange controls in Mauritius allows the free repatriation of profits and capital
• They allow the safeguarding of family assets over the years in case of succession
• Taxation is simple and attractive :
- A single flat tax rate of 15 % ( except for Civil Society Holding Immovable Estate where the partners are liable for income tax on their share of the company ’ s income ) - No capital gains tax in Mauritius - No inheritance tax in Mauritius - No withholding tax on dividends distributed to shareholders
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