Mauritian government refunds 5% on real estate acquisitions
Home Ownership Scheme is a scheme that has been in the news ever since it was announced by the Mauritian government on June 11. In order to encourage Mauritian citizens to invest in real estate, this scheme offers them a refund of 5% of the declared price of their property. Here’s what you need to remember.
How does the Home Ownership Scheme work?
According to the official texts, the Home Ownership Scheme is aimed at Mauritian citizens who acquire a property during the 2021-2022 financial year. Indeed, in return for this form of active participation in the revival of key sectors of the Mauritian economy, the Registrar General offers eligible buyers a refund of 5% of the declared value of their property, up to a maximum of 500 000 rupees per property.
What property acquisitions are covered by the Home Ownership Scheme?
The Home Ownership Scheme is applicable where a purchaser invests in the 2021-2022 financial year in :
- An apartment;
- The right to construct a residential building on an existing building as well as its share of a freehold property;
- A residential lot which is the subject of a deed duly registered and transcribed recording a condominium by-law, in accordance with articles 664 and 664-1 to 664-94 of the Mauritian Civil Code;
- A property sold under the regime of the sale in future state of completion (VEFA), in accordance with articles 1601-1 to 1601-45 of the Mauritian Civil Code ;
- A residence sold under the “Geometric Steps” regime, like the camps;
- A portion of bare land in freehold for the sole purpose of constructing a residential building;
- A freehold residential building that sits on a leased lot;
- A residence sold under one of the real estate schemes set up by the Economic Board of Development (EDB), i.e. Integrated Resort Scheme, Real Estate Scheme, Invest Hotel Scheme, Property Development Scheme and Smart City.
The conditions to benefit from the Home Ownership Scheme
The conditions for benefiting from the Home Ownership Scheme are as follows and must be strictly adhered to in order for any cashback application to be considered by the tax authorities:
- The deed for this property is to be executed and recorded in fiscal year 2021-2022, during the period beginning July 1, 2021 and ending June 30, 2022. The transfer, which is the subject of the deed, must be previously evidenced by a document (notarial deed, private signature document, reservation or transfer under suspensive condition) signed and registered during the period beginning on July 1, 2021 and ending on June 30, 2022.
- The applicant remains eligible for the Home Ownership Scheme even if he/she was exempted from paying the registration fee when the property was acquired;
- There are no age restrictions and no income level requirements for reimbursement;
- There is no limit to the number of properties acquired under the Home Ownership Scheme;
- The residential properties involved can be new or existing;
- In the case of a land acquisition, there is no time limit for the completion of the construction;
Properties not eligible for a Home Ownership Scheme application
No reimbursement is provided for the acquisition of the following assets:
- Any residential construction acquired through a civil real estate attribution company (SCI);
- Leased land or leased residential building ;
- Social Housing (e.g., NHDC);
- Land of more than one acre (4000 m²);
- Property acquired by prescription ;
- Property acquired in joint ownership by related persons, unless the other joint owner is the purchaser’s spouse, an ascendant or descendant, a co-heir of a deceased person, an heir, if the joint owners are brothers and sisters.
The number of claims under the Home Ownership Scheme is increasing month on month. Is this proof that the government is on the right track while giving a boost to the real estate sector?
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