Can Foreigners buy Real Estate in Mauritius? Buy Property in Mauritius

With recent amendments to the Non-Citizen (Property Restriction) Act, driven by the Immigration Act 2022, the scope for foreign ownership of property in Mauritius has broadened significantly. Foreigners not only have access to specialized schemes such as the Integrated Resort Scheme (IRS) and Property Development Scheme (PDS), but they also have new opportunities outside these pre-approved schemes. The Mauritius Economic Development Board (EDB) is pivotal in outlining the guidelines, offering clarity on the country’s real estate landscape for non-citizens¹

However, prospective buyers should be aware of potential delays in obtaining PMO approval for purchases outside the designated schemes. Eligible non-citizens include those holding various residence or occupation permits, which entitle them to acquire residential property including villas, apartments, and land under specific conditions

.Heritage Villas Valriche, located in Bel Ombre, provides a seamless experience for foreign buyers, combining luxurious living with tax residency benefits.

Key Takeaways

The Non-Citizen (Property Restriction) Act has been updated to expand foreign ownership of property in Mauritius.
Real estate opportunities for non-citizens are not limited to IRS, PDS, or Smart City schemes.
The EDB acts as a guiding authority for foreigners looking to invest in Mauritian property.
Approval delays are possible for purchases outside designated schemes.
Eligible foreign buyers include those with various residency permits.

Foreign ownership of property in Mauritius is predominantly on freehold land, with prices ranging from USD 200,000 to over USD 10 million, depending on the scheme and property type¹. Buyers looking to attain residency through property acquisition must meet a minimum threshold of USD 375,000¹.

In conclusion, Mauritius is a sought-after destination for foreign investors and expatriates, with diverse real estate options that meet various investment needs.

Introduction

Mauritius, renowned for its idyllic beauty and strategic location, is an appealing destination for non-citizens seeking holiday escapes, lifestyle upgrades, or investment prospects. The island nation offers numerous real estate opportunities for non-citizens, facilitating the purchasing of real estate in Mauritius as a non-resident through various schemes like the Integrated Resort Scheme (IRS), Property Development Scheme (PDS), and Smart Cities². Notably, the introduction of the Premium Visa scheme in October 2020 encourages eligible foreigners to enjoy long-term stays in this COVID-safe haven, making it feasible for non-residents to consider permanent relocation².

One of the considerations for non-citizens is the range of financial implications tied to the purchase of property. For instance, transfer taxes in Mauritius can vary from 1-7% depending on the transaction value, while registration fees at the Land Registration Office typically range from 3-4% of the purchase price, plus a standard notary fee of approximately €300³. Moreover, a non-resident tax of €1000 is essential for acquiring a residence permit³.

Besides the lucrative legal framework for purchasing real estate, the costs for residential and commercial properties in Mauritius differ based on location and property type, offering a variety of options—from luxurious villas and modern apartments to rural plots³. Moreover, banks in Mauritius generally require a down payment of 30-40% for property loans, subject to the Central Bank of Mauritius’ approval³. This flexibility allows foreigners to tap into the vast array of real estate opportunities in Mauritius for non-citizens, boosting investment potential on the island.

Additionally, the Mauritian government has streamlined several real estate investment schemes to accommodate various types of investments. To qualify for permanent residence, non-citizens need to purchase properties above a certain threshold, generally set at USD 375,000 for most schemes². This incentive aligns with the broader goal of fostering continual growth in the real estate sector, answering the common query of whether foreigners can buy real estate in Mauritius with a resounding “yes.”
Learn more about buying property in.

Legal Framework for Foreigners Buying Property in Mauritius

legal requirements for foreigners buying property in Mauritius

Navigating the legal landscape for purchasing property in Mauritius as a foreigner requires understanding a few critical aspects. Foreign buyers need to be well-versed in recent legislative changes, the required permits, and potential delays in the approval process. Historically, Mauritius real estate laws for foreigners have evolved to facilitate economic growth while maintaining regulatory control.

Historical Restrictions and Recent Changes

Initially, property ownership by foreigners in Mauritius was significantly restricted, mainly allowing investments within designated schemes such as the Integrated Resort Scheme (IRS), the Property Development Scheme (PDS), and Smart Cities. However, with recent amendments to the Non-Citizen (Property Restriction) Act through the Immigration Act 2022, qualified foreigners can now purchase properties outside these schemes, provided they obtain the necessary permits⁴. These legislative reforms reflect the country’s efforts to attract foreign investment and diversify property ownership options.

Permits Required for Foreign Buyers

One of the essential steps to buying property in Mauritius as a foreigner involves securing the appropriate permits. Foreign investors are required to obtain approval from the Economic Development Board (EDB) for any residential property purchase exceeding USD 500,000. Moreover, a government duty of 10% is imposed on these transactions⁵. Understanding the specific legal requirements for foreigners buying property in Mauritius can aid in smoother transaction processes.

Approval Process and Potential Delays

The approval process for foreign property acquisitions can be intricate and time-consuming. Non-citizens must adhere to rigorous documentation requirements and may face extended waiting periods for permit approvals⁵. Additionally, the complexities of the permit process may influence the overall investment timeline. Hence, prospective buyers should plan meticulously to accommodate potential delays.

Popular Property Acquisition Schemes for Foreigners

popular property acquisition schemes in Mauritius

Foreign investors in Mauritius have a range of popular property acquisition schemes to choose from, tailored to different needs and preferences. These schemes include the Integrated Resort Scheme (IRS), Property Development Scheme (PDS), and the Smart City Scheme in Mauritius. Let’s explore these options in detail.

Integrated Resort Scheme (IRS)

The Integrated Resort Scheme (IRS) is designed to attract high-net-worth individuals by offering luxury properties in prime coastal areas. Investing in IRS properties not only provides a high standard of living but also offers benefits like tax residency under certain conditions and access to high-end amenities. Properties under the IRS scheme adhere to stringent quality standards, ensuring value for money for buyers [refer here]⁶. Additionally, IRS properties come with up to 20 years of residency for foreign investors⁷.

Property Development Scheme (PDS)

The Property Development Scheme (PDS) provides a diverse array of property options, including houses, duplexes, and apartments. Foreign investors are required to make a minimum investment of $500,000 to qualify for residence benefits⁷. The PDS emphasizes social and environmental sustainability by incorporating CSR initiatives, such as local employment and educational programs, ensuring a positive impact on neighboring communities⁶. This scheme offers flexibility in property selection while maintaining quality and value.

Smart City Scheme

The Smart City Scheme in Mauritius focuses on sustainable urban development by blending commercial and residential aspects. It promotes a modern living environment with green buildings, local materials, and green spaces. Properties under this scheme grant permanent residency to foreigners meeting certain investment criteria, thus providing robust incentives for investors. Mauritius ensures that developments adhere to green building standards, contributing to a sustainable and eco-friendly lifestyle⁶.

New Purchase Opportunities Outside the Schemes

While the above schemes are popular, new regulations have paved the way for property purchases outside these designated schemes. Although these opportunities come with various restrictions, they offer flexibility for foreign investors looking beyond IRS, PDS, and Smart City properties. Due diligence remains crucial for these investments to ensure legitimate and profitable ventures.

Types of Properties Available for Foreign Buyers

Types of properties available for foreign buyers

Mauritius offers a diverse range of real estate options tailored for foreign buyers. These options include modern standalone villas and houses, apartments, as well as serviced and bareland plots. Understanding these choices helps in making informed investment decisions.

Villas and Houses

The most luxurious types of properties in Mauritius for foreigners are villas and standalone houses. These properties often come with extensive amenities and expansive views. Foreigners can purchase villas outside the Property Development Scheme (PDS) and Smart City Scheme, though these villas must meet a minimum price threshold. For instance, houses must be worth at least USD 500,000, with an additional government duty of 10% applied to these transactions⁸. Purchasing such high-value properties also provides an avenue for investors to obtain permanent residence by investing at least USD 375,000⁸.

Apartments

Apartments in Mauritius cater specifically to foreign buyers and offer various sizes and luxury levels. Non-citizens can buy apartments available for non-citizens in Mauritius starting at MUR 6 million⁸. A crucial benefit of purchasing apartments exceeding USD 375,000 is the achievement of permanent residency, an attractive proposition for long-term investment⁸. Additionally, foreign retirees have the opportunity to secure a residence permit with property investments over USD 200,000⁸.

Serviced Land and Bareland

In recent years, there has been a growing interest in serviced land and bareland for foreign buyers in Mauritius. The development of sites like the Montagne du Lion Farm Living project under the Smart City Scheme by Ciel Properties reflects this trend⁹. The Property Development Scheme (PDS) and Smart City Scheme (SCS) enable foreigners to acquire freehold plots of land, which can later be developed into personalized residential spaces⁹. These serviced plots come with necessary infrastructures such as roads, utilities, and other urban amenities, ensuring a smooth transition from purchasing land to construction.

Property Type	Minimum Investment Required	Benefits
Villas and Houses	USD 500,000	Possible permanent residence, luxurious amenities
Apartments	MUR 6 million	Permanent residency for investments over USD 375,000
Serviced Land	Varied	Urban amenities, personalized development
Bareland	Varied	Investment opportunities

Mauritius presents an array of types of properties to meet the preferences and requirements of diverse foreign investors, from sumptuous villas and functional houses to practical apartments and versatile land options.

Procedures for Buying Property in Mauritius as a Non-Resident

procedures for buying property in Mauritius

The process of buying property in Mauritius as a non-resident involves understanding various steps and ensuring compliance with local regulations. This guide covers the initial documentation, financial requirements, and the role of notaries and legal advisors to facilitate a smooth property acquisition.

Initial Documentation

To initiate the procedures for buying property in Mauritius, non-resident buyers must prepare essential documents. These include the preliminary reservation contract and identification proof. The reservation contract indicates the buyer’s intent and reserves the property for purchase¹⁰. For property acquisition as an individual in Mauritius, approval from the Prime Minister’s Office (PMO) is required, while investors need approval from the Economic Development Board (EDB)¹⁰. These initial steps are crucial for a streamlined process, ensuring that the potential buyer is well-prepared for subsequent stages.

Financial Requirements and Payments

Understanding the financial planning for real estate investment in Mauritius is vital. Typically, non-residents adhere to the VEFA framework (Sale in Future State of Completion), which involves staggered payments linked to construction milestones. For instance, the security deposit, which ranges between 2% to 25% of the property value, is deposited into a special account managed by a notary¹⁰. Non-citizens purchasing a PDS unit off-plan follow the VEFA mode which includes payments such as 25% upon signing the deed, 10% upon completion of foundation works, 35% upon completion of the roofed-in phase, 25% upon completion, and 5% upon availability of premises¹¹.

Role of Notaries and Legal Advisors

The involvement of notaries and legal advisors is paramount to ensure secure transactions. Notaries draft and oversee the final sales contract, detailing the rights and obligations of both parties¹⁰. Legal advisors provide guidance on compliance with Mauritius’ property laws and assist in navigating approvals from relevant authorities. This collaboration guarantees that the property purchase is legally sound and executed smoothly.

Here’s an overview of the key financial stages in the VEFA process:

Payment Stage	Percentage of Property Value
Upon signing the deed	25%
Completion of foundation works	10%
Completion of roofed-in phase	35%
Completion	25%
Availability of premises	5%

By understanding these essential procedures and collaborating with professionals, non-resident buyers can navigate the procedures for buying property in Mauritius with confidence, ensuring a secure investment process.

Benefits and Limitations of Property Ownership in Mauritius for Foreigners

Benefits and Limitations of Property Ownership in Mauritius

Owning property in Mauritius for non-citizens presents numerous benefits despite certain limitations that must be considered. One of the key advantages includes the enticing tax advantages such as a flat tax rate of 15% on personal and rental income, and no council, property, inheritance, or capital gains tax¹². Additional non-tax benefits cover political, social, and economic stability, as well as a strong, reliable investment platform backed by a robust legal system¹³.

Mauritius provides various real estate investment programs like the Property Development Scheme (PDS), Smart City Scheme (SCS), and R+2 scheme, catering to diverse investment needs¹². Owning property in Mauritius for non-citizens also offers the potential for permanent residency based on the investment value, enhancing its appeal further¹³.

However, limitations exist alongside these benefits. Foreign investors can acquire only a single residential property, which must not exceed a maximum land area of 0.5276 hectares, and the property must have a minimum value of $500,000 or equivalent in another hard currency¹⁴. Additionally, there are financial implications such as a 10% acquisition tax and a 5% registration fee that prospective buyers must account for¹⁴.

While the benefits and limitations of property purchase in Mauritius are evident, the opportunities for property investment remain attractive. Mauritius sees an average annual return on property investment ranging from 4% to 10% and offers favorable bank loan rates for real estate investments around 1.20% over a 20-year period¹². Furthermore, incentives in Mauritius for attracting foreign direct investment contribute to the island’s booming real estate market¹³.

To summarize, the combination of lifestyle appeal, tax benefits, robust legal framework, and simplified administrative processes make owning property in Mauritius for non-citizens a compelling investment choice despite the underlying constraints¹⁴.

Category	Details
Tax Rate	15% flat tax on personal and rental income¹²
Property Value Requirement	Minimum value of $500,000¹⁴
Loan Rates	Approximately 1.20% over 20 years¹²
Acquisition Tax	10% additional tax¹⁴
Residency Permit	Based on investment program¹³

Can Foreigners buy Real Estate in Mauritius?

Foreign ownership of property in Mauritius is indeed possible, and the process has been eased through recent amendments to the island’s real estate regulations. Under various schemes such as the Property Development Scheme (PDS), Integrated Resort Scheme (IRS), and Smart City Scheme, non-citizens can fully own property, ensuring a range of residential options beyond traditional limits. For example, South Africans are increasingly investing in Mauritius, driven by lifestyle, cultural, and financial advantages¹⁵

The minimum price for an apartment under the Ground + 2 buildings scheme is MUR 6 million, granting multi-entry visas or permanent residency⁸¹⁵. Additionally, retirees over 50 years old who purchase property under the Property Development Scheme for senior living, priced over USD 200,000, are eligible for residence permits⁸. Moreover, for properties outside these schemes, foreigners must invest at least USD 500,000, plus a 10% government duty with approval from the Prime Minister’s Office required⁸.

Furthermore, a foreigner investing over USD 375,000 in real estate under the Sustainable City Scheme or the IRS can secure permanent residency⁸. Interestingly, non-citizens are restricted from buying villas on the beach unless a special dispensation has been provided⁸.

Over time, Mauritius has attracted many international investors due to its high rankings in ‘investment freedom’ by the 2013 Index of Economic Freedom and a favorable ‘ease of doing business’ scale by the World Bank¹⁶. Additionally, foreign buyers are drawn by the island’s stability; Mauritius boasts a steady currency, Mauritian Rupee, and a stable free-market economy, ensuring safe capital returns on investments¹⁶.

View listings of properties for sale in, including popular districts like Rivière Noire, Rivière du Rempart, and Savanne, with prices listed in multiple currencies⁸. This variety and flexibility make foreign ownership of property in Mauritius highly appealing to potential investors worldwide.

Case Studies: Successful Property Investments by Foreigners

successful property investments in Mauritius

Mauritius has seen considerable attraction from foreign investors, with successful property investments in Mauritius contributing significantly to economic growth. The high-end property sector has been a major recipient of foreign direct investment (FDI), totaling 63.3 billion rupees ($1.368 billion) from 2014 to mid-2022, making up approximately 40% of all inflows¹⁷. This surge can be attributed to factors such as appealing investment opportunities in coastal areas and promising rental income prospects.

Investment Opportunities in Coastal Areas

One of the most successful investment opportunities in coastal regions is the Heritage Villas Valriche, which alone attracted 13 billion rupees in FDI¹⁷. Another noteworthy example is the Tamarina Golf Estate and Beach Club, consisting of 119 villas, a restaurant, a boutique hotel, and an 18-hole golf course, all of which were fully sold and completed¹⁷. The success of such projects highlights the potential profitability of real estate investment in coastal areas. Additionally, specific IRS developments like Anahita in the east have been notably successful, with properties selling out quickly¹⁸.

Capital Appreciation and Rental Income

Real estate investment profitability in Mauritius is further emphasized by the substantial capital appreciation noted in many properties. Within designated programs such as the IRS and PDS, properties have exhibited significant increases in value. For instance, properties in the Anahita IRS development have enjoyed rapid sales and increased market value¹⁸. Furthermore, the robustness of the Mauritian property market is echoed in the fact that the local currency is used for pricing real estate targeted towards residents, sheltering investments from unfavorable foreign exchange fluctuations¹⁸. Rental income also presents lucrative opportunities, particularly in developments like Heritage Villas Valriche, which are popular among expatriates. The strategic location and high demand from tourists make these properties attractive for rental purposes.

Living as a foreign investor in Mauritius also brings various lifestyle benefits. The Mont Choisy Group CEO highlighted that approximately 30% of their clientele are South African buyers, followed by 30% French, and 15% from the UK¹⁷. The island nation provides a favorable investment climate bolstered by government incentives and a strategic location. With the construction boom, there is a growing selection of premium properties that cater to the needs and preferences of foreign investors, enhancing the overall appeal of property investment in Mauritius.

Conclusion

Mauritius presents an alluring landscape for foreign real estate investors, combining breathtaking natural beauty with a favorable economic environment. Understanding Mauritius property laws for foreigners is crucial, as the recent NCPR Act regulates the conditions for non-citizens to buy real estate, ensuring fair land resource management while providing clear investment opportunities. To invest in Mauritian property as a non-citizen, adhering to the legal framework is essential for a seamless acquisition process.

The investment landscape in Mauritius is particularly attractive given the country’s economic policies and incentives. The government implements no property tax or housing tax, and non-citizens can benefit from a single tax rate of 15%, which includes real estate investments. A double taxation agreement with more than 40 countries such as France, South Africa, and Luxembourg further enhances the investment appeal¹⁹²⁰. Investing a minimum of USD375,000 qualifies non-citizens for permanent residency, and the newly introduced Premium Travel Visa allows working remotely for a year with easy renewal options¹⁹.

For those considering such an investment, popular property acquisition schemes like the Property Development Scheme (PDS) and Smart City Scheme offer flexibility and advantageous conditions. Foreign investors in Mauritius benefit from streamlined administrative procedures, bolstered by high rental income opportunities due to tourism and the influx of foreign workers²⁰. By approaching property purchases with informed guidance, non-citizens can confidently navigate the Mauritian real estate market, balancing the dream of tropical living with strategic investment considerations. Explore more about the new NCPR Act regulations and how it shapes investment opportunities by visiting this detailed guide.

FAQ

Can foreigners buy real estate in Mauritius?

Yes, foreigners can buy real estate in Mauritius. With recent changes to the Non-Citizen (Property Restriction) Act following the Immigration Act 2022, non-citizens can now potentially own a residential property outside of pre-approved schemes like IRS, PDS, Smart City, or RES developments, subject to specific limitations and permits.

What are the real estate laws for foreigners in Mauritius?

Foreign ownership of property in Mauritius is governed by the Non-Citizen (Property Restriction) Act, amended via the Immigration Act 2022. Non-citizens need permits for purchasing properties above USD 500,000, and there are restrictions on rental and residency benefits outside designated schemes.

What permits are required for foreigners buying property in Mauritius?

Eligible non-citizens need permits such as residence, permanent residence, occupation, short-term occupation, or family occupation permits to buy property in Mauritius. Additionally, any residential purchase above USD 500,000 requires a special permit.

Are there any delays in the approval process for foreign buyers?

Yes, foreign buyers should anticipate potential delays in obtaining PMO (Prime Minister’s Office) approval for property purchases outside designated schemes like IRS, PDS, and Smart City developments.

What are the popular property acquisition schemes for foreigners in Mauritius?

The popular schemes include the Integrated Resort Scheme (IRS), Property Development Scheme (PDS), and Smart City Scheme. These schemes offer various benefits, such as tax advantages and residence permits.

Can foreigners buy property outside the designated schemes?

Recently, foreign buyers have been allowed to purchase properties outside designated schemes with specific limitations. However, they must obtain permits and there are restrictions on rental and residency opportunities.

What types of properties can foreigners buy in Mauritius?

Foreigners can purchase villas and houses with land limits, apartments, serviced land, and bareland, subject to regulatory conditions. Each type of property comes with specific restrictions and benefits.

What is the procedure for buying property in Mauritius as a non-resident?

The procedure involves initial documentation like the preliminary reservation contract, financial planning including payment schedules linked to construction progress, and collaboration with notaries and legal advisors to ensure secure transactions.

What are the benefits of owning property in Mauritius for non-citizens?

Benefits include lifestyle appeal, investment opportunities, tax advantages, and potential permanent residency based on investment in authorized schemes. However, certain properties come with restrictions, such as rental limitations.

Can purchasing property in Mauritius lead to permanent residency?

Yes, purchasing property under schemes like IRS, PDS, or Smart City can lead to permanent residency, provided specific investment thresholds and conditions are met. Properties outside these schemes do not qualify for permanent residency.

Are there successful case studies of foreign property investments in Mauritius?

Yes, there have been successful investments, particularly in coastal regions like Heritage Villas Valriche with notable capital appreciation. However, rental income opportunities are primarily available within designated schemes.