Mauritius Real Estate

Mauritius real estate

Foreign demand is driving the housing boom in Mauritius. The real estate market is thriving, and the island’s strong tourism industry has encouraged the growth of a luxury rental market (mostly in North and West Mauritius). The real estate market is seen as a ‘an undeniable pillar of the Mauritian economy. The interest rates are low, and the mortgage market is steadily growing.

Acquisition of property in Mauritius

Mauritius has multiple benefits including a convenient time zone, an enviable lifestyle, an amazing climate, and a safe environment. Tax incentives such as a double taxation agreement with over 40 countries (including nearby South Africa) and no capital gains and inheritance tax on property have lured many foreign buyers to this tropical island. In addition, investment to the country is secure and reliable and investors can look forward to a permanent residence permit (if they purchase property through the Mauritius Residence by Investment Program), as well as a multilingual and multicultural community, access to international schools, good private healthcare, and modern infrastructure. 

Prospective buyers are encouraged to seek reliable sources for real estate purchases, making sure that the developer they have chosen has a proven track record and arranges the necessary guarantees to ensure that the investment is protected. It is also important to manage the transaction process through a notary or escrow account (that is, not to pay funds directly to the seller).

Are there any restrictions on the acquisition of real estate in Mauritius by foreign buyers?

Yes, foreign buyers may only purchase properties in Mauritius under schemes approved and managed by the Economic Development Board such as:

• The Integrated Resort Scheme (IRS)
• The Real Estate Property Scheme (RES)
• The Property Development Scheme (PDS)
• The Smarty City Scheme (SCS)
• Ground +2 apartments (with a minimum purchase of approximately USD 147,000)

How can immovable property in Mauritius be acquired?

There are only a few steps to follow for this process: sign a reservation contract, provide all the required documents, pay a deposit into a dedicated escrow account, submit the application for permission to acquire property with all the relevant documentation, and complete the acquisition by signing the deed of sale.

Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?

No, there is no need; however, it is advisable to do so. Funds can be transferred to the notary directly.

What additional expenses will the real estate transaction incur?

Additional expenses include the registration duty fee of 5% of the net price, notary fees, and the application fee for the letter of approval through the Economic Development Board of Mauritius at a cost of USD 500.

What kind of returns can be expected from property investment in Mauritius?

Depending on the type of property, when the estate is fully operational, foreign investors could expect around 4% for smaller premises such as apartments or townhouses and duplexes.

How is rental income taxed?

At 15% of the individual income tax.

What other immovable property-related taxes and charges are imposed in Mauritius?

None; only monthly syndic or levy fees are applicable. In Mauritius, there is no land or property tax.