At the moment, one can legitimately wonder if it is really interesting to invest in Mauritius, more particularly in Mauritian real estate. The answer is yes: the benefits are far too numerous to pass up a lucrative opportunity, including a particularly effective return on investment (ROI)! What is the RSI? How to obtain it concretely? How is it calculated?
Mauritius, a country that takes care of its investors
The Mauritian government has understood that investors represent an invaluable added value for the country’s economy. Whether they are Mauritian real estate investors or investors from abroad, each of them benefits from numerous advantages that it would be a shame not to take into consideration.
Indeed, the acquisition of a property in Mauritius is accompanied by particularly sought-after advantages that are non-existent in many countries, notably
- One on personal and corporate income (salary, pension, profits, rental income, interest) of only 15%;
- No taxation on dividends and capital gains;
- No inheritance tax;
- The absence of taxation on profits from the resale of a property;
- The absence of double taxation for foreign investors, Mauritius being a signatory to 45 double taxation treaties.
Mauritian citizens benefit from a specific and interesting program called “Home Ownership Refund Scheme”.
How much does it cost to invest in real estate in Mauritius?
In Mauritius, a real estate transaction incurs direct costs of about 7% while the overall costs amount to about 15% of the actual sale price of the property.
On the other hand, the return on investment (RSI) is more than honorable, around 5% per year, when the property is rented. What exactly is this famous King? It is the sum of rental income minus the sum of costs and is calculated as follows:
(Investment gain – investment cost) / investment cost.
A numerical example:
- You have purchased a home for the local rental market;
- The purchase price of the property is 10 million rupees, which represents an annual investment of 500,000 rupees for you;
- To achieve this figure, you need to rent your property for Rs. 41,667 per month.
How to propose such a rent? Always rely on your real estate agent to keep your investment profitable. This professional is the key to a property that is always occupied, by reliable and serious tenants.
A return on real estate investment of 5%, more than an opportunity to seize!
A good return on real estate investment requires a good strategy. By choosing the right property, its location, your financing options, and by properly managing the costs, your ROI will be more than interesting.