Foreign investors in real estate are more than welcome in Mauritius. So much so, that the government continues to implement many benefits for them, in order to facilitate their project of buying a property in this independent, modern and dynamic republic of the Indian Ocean. The Mauritian population has not been forgotten, as evidenced by the measures created to facilitate access to property.
Foreigners: new regulations for the acquisition of real estate in Mauritius
The 2022/2023 budget has introduced many regulations regarding the purchase of real estate in Mauritius.
According to the Economic Development Board (EDB), “residential properties acquired by more than one non-citizen as part of a ‘split ownership’ will be eligible to apply for residency provided that each non-citizen’s investment exceeds $375,000.
Holders of a Mauritian residence permit
From now on, foreigners with a Mauritian residence permit can acquire a property without having to go through the existing schemes (PDS, Smart City, etc.). Two conditions for this, investing a minimum of 350,000 USD and contributing 10% to the Solidarity Fund will be necessary.
Add to this the many other benefits that already exist:
- Income tax at 15%. Only those who reside in Mauritius for a minimum of 183 days per year and who are recognized as Mauritian tax residents can benefit from it;
- Rental income taxed at the standard tax rate (15%) ;
- No inheritance tax in direct descending line;
- No capital gains tax in case of resale;
- Absence of any property tax, housing tax, local tax, etc. ;
- Under French tax law, real estate investment in Mauritius is not concerned by the tax on real estate wealth (IFI). Recall that the IFI has replaced the wealth tax (ISF) since January 1, 2018.
For Mauritian investors in real estate
In order to facilitate home ownership for Mauritians, the government has extended the timeframe for the application of incentives already in place.
The Home Ownership Refund Scheme
Translatable as a homeownership reimbursement program, this new feature was introduced more specifically by the 2021/2022 budget. At that time, eligible citizens purchasing a house, apartment or freehold land to build a house were reimbursed 5% of the cost of the property up to a maximum of Rs. 500,000. The good news is that this redemption option is extended to June 30, 2023, for transactions made between June 12, 2021 and June 30, 2021.
The Home Loan Payment Scheme
Under the Home Loan Payment Scheme, any Mauritian who takes out a secured home loan to build a house can claim up to 5% of the loan amount, with a maximum of 500,000 rupees. This plan is also extended to June 30, 2023 for any transaction made between June 12, 2021 and June 30, 2021.