Those wishing to invest in high-end real estate in Mauritius have a range of schemes specially designed for this purpose: VEFA, IRS, RES, PDS, SCS, Ground +2. Here are the details.
VEFA or “Sale in the future state of completion”
The system of sale in the future state of completion, or VEFA, allows the purchaser to choose and to buy his real estate on plan, i.e. during or before its construction. In return, he is protected by a certain number of guarantees (functioning of the equipment, ten-year guarantee or “guarantee of hidden defects”, damage insurance).
Framed by article 1601-3 of the Civil Code, “the sale in the future state of completion is the contract by which the seller immediately transfers to the purchaser his rights on the ground as well as the property of the existing constructions. The future works become the property of the purchaser as they are executed; the purchaser is required to pay the price as the work progresses. The seller retains the powers of the owner of the work until the work is accepted.
This option is perfect if the buyer wishes to invest in a new property while having the possibility of personalizing certain elements of his future home (room layout or floor coverings and furniture).
The Integrated Resort Scheme (IRS)
Introduced in 2001 by the Mauritian government in partnership with the BOI (Board of Investment, now Economic Board of Development Mauritius EDB), the IRS allows the purchase of a luxury villa located in a secure community and equipped with various services.
The purchase of an IRS home requires a minimum investment of $375,000. Moreover, the buyer and his close family members (wife, husband, children under 24 years old) can apply for the residence permit and enjoy it until the eventual resale of their IRS property in Mauritius.
The Real Estate Scheme (RES)
The Real Estate Scheme (RES) was introduced in 2007 and is not subject to a minimum sale price. If the buyer does not invest a minimum of 375 000 USD, he loses the eligibility for permanent residence in Mauritius, he can stay 6 months per year in the country.
The Property Development Scheme (PDS)
Introduced in 2015, the PDS is a slightly different concept. Although focused on luxury real estate sold under VEFA, it also takes into consideration other aspects that may be more telling in the current context. Indeed, the Property Development Scheme concept integrates flexibility, localized social and economic contribution, respect for the environment and ecology.
There is no minimum sale price for PDS properties, however, the minimum investment of $375,000 allows the buyer to benefit from the residence permit.
The Smart City Scheme (SCS)
Mauritius is working hard to become a sustainable destination while transforming itself into a hub for international business. The Smart City Scheme is a perfect illustration of this dual objective and presents particularly interesting conditions for foreigners. To repeat the specifics listed by the EDB:
- Any person, including a non-citizen, may acquire a residential property;
- An entity, including domestic or foreign corporations, companies, foundations, limited partnerships and trusts, may acquire a built residential property;
- No minimum price for the acquisition of a residential unit;
- First-time buyers in Mauritius are exempted from paying registration fees up to Rs. 200,000 for the acquisition of a residential unit under this program.
- Members registered under the Mauritian Diaspora Scheme are exempted from paying registration fees when acquiring a residential unit under this scheme;
- Any non-citizen who acquires residential property for more than US$37,000 (or its equivalent in any convertible foreign currency) may apply for a residence permit. The residence permit is issued to the applicant’s spouse or common-law partner:
- Spouse or partner;
- Child, stepchild or legally adopted child under 24 years of age;
- A fully dependent close relative, if unmarried, provided the number of dependents does not exceed 3;
- No restrictions on rental or resale of residential units;
- Lifetime vesting of the plan ;
- Incentives for non-citizen investors;
- A non-citizen who has held a residence permit for a continuous period of 2 years and has invested more than USD 5 million or its equivalent in Mauritius is entitled to apply for Mauritian citizenship.
The Ground+2 (G+2)
This program was launched in 2016 and allows you to buy a luxury apartment in a condominium building of at least two floors (G + 2) and for a minimum investment of 6 million rupees (approx. €150,000). For a minimum investment of 375 000 USD, the buyer can obtain a Mauritian residence permit. Finally, this system allows the purchaser to rent out his property.
These real estate schemes are of course available to Mauritian citizens wishing to invest in residential or rental property. For up-to-date information and professional guidance, do not hesitate to contact your real estate agent.