BUYING A PROPERTY IN MAURITIUS
AS A FOREIGN INVESTOR

Yes, foreign nationals can buy a property in Mauritius under specific government-approved schemes. The most common schemes for foreign property ownership include:

1. Integrated Resort Scheme (IRS): Allows foreigners to purchase luxury villas and apartments within designated developments, with access to amenities like golf courses, spas, and other facilities.
   

2. Real Estate Scheme (RES): Similar to the IRS but generally for smaller developments. Properties can include villas, townhouses, and apartments.
   

3. Property Development Scheme (PDS): Combines features of IRS and RES, emphasizing environmental sustainability and social inclusivity. Foreigners can buy high-end residential units in mixed-use developments under this scheme.
   

4. Ground+2 Apartments: Foreigners can purchase apartments in developments with at least two floors above the ground floor, with no minimum price threshold.

Foreign buyers in Mauritius are required to obtain approval from the Economic Development Board (EDB) before purchasing property. To qualify for a residence permit, the property must have a minimum value of USD 375,000, except for Ground+2 apartments, which have different criteria. All transactions must be conducted in a foreign currency through a local bank. Additionally, foreigners are restricted from purchasing agricultural land or property outside government-approved schemes.

The property developer or your solicitor will submit the application to the economic development board (EDB), along with the necessary documents and fees such as: A certified copy of passport, proof of address, bank references or proof of funds, evidence of funding sources and a signed reservation contract from the developer. The process generally takes about 4 to 6 weeks.

When purchasing a new build property as a foreigner, the following costs should be considered:

Registration Duty: A government fee set at 5% of the purchase price, this duty is required to officially register the property under your name. Notary Fees: Typically ranging from 1-2% of the property value, these fees cover the notary's role in managing the legal aspects of property transfers in Mauritius and ensuring compliance with local laws. Economic Development Board (EDB) Application Fee: A non-refundable fee of USD 1,000, required when applying for approval to purchase property as a foreigner in Mauritius.

Miscellaneous Fees: When purchasing a property in Mauritius, there are additional costs to consider. Bank charges may apply if you are securing a mortgage, covering loan application and processing fees. Currency exchange costs could arise if payments are made in a currency other than Mauritian Rupees. Additionally, utilities connection fees are required for setting up essential services such as water, electricity, and internet in the new property.

At Halle International, we strive to ensure a seamless and transparent process for purchasing new build properties in Mauritius. Here is a detailed guide to our buying process: 1. Initial Consultation: Contact Halle International to discuss your preferences, budget, and requirements. Our team of experienced agents will provide you with a curated list of available properties that meet your criteria. 2. Property Selection and Viewing: Once you have selected a few properties from our listings, we will arrange for viewings, either in person or virtually. Our agents will provide detailed information and answer any questions you may have about the buildings, plans, amenities, and neighbourhoods. 3. Reservation Agreement: After you have decided on a property, a reservation agreement must be signed. This agreement usually requires a reservation fee, which will secure the property for a specified period and prevent it from being sold to another buyer. 4. Due Diligence and Legal Checks: During the reservation period, our team, in collaboration with local legal experts, will conduct thorough due diligence. This includes checking the property's title, planning permissions, and ensuring there are no legal issues. 5. Purchase Agreement | deeds of sale: Once all legal checks are cleared, a formal purchase agreement is drafted. This contract, outlines the terms and conditions, payment schedule, and completion dates. Both parties will sign the agreement, and payment of funds is typically required at this stage. 6. Completion and Handover: Upon fulfilling all payment obligations and adhering to the contract terms, we proceed to the final completion stage. This involves the transfer of ownership and the handover of keys. Halle International will ensure all necessary documentation is completed and filed appropriately. 7. Post-Purchase Support: Our services don't end with the purchase. Halle International provides continual support, whether you need property management services, advice on furnishings, or assistance with settling into your new home. By following these steps, Halle International guarantees a stress-free and efficient buying experience for new build properties in Mauritius. Our commitment to professionalism and attention to detail ensures that your investment is secure and well-managed.

Yes, foreign-owned new build properties under IRS, RES, and PDS schemes can be rented out, offering excellent returns due to Mauritius' thriving tourism industry. Owners often use local management companies to handle bookings, maintenance, and guest services or use the developer's management services. Ground+2 apartments can also be rented, but it’s essential to adhere to local regulations.

The income tax rate on rental properties in Mauritius is a flat 15% on net rental income, applicable to both residents and non-residents. Net rental income is calculated by deducting allowable expenses such as maintenance and repair costs, property management fees, interest on loans, municipal taxes, and depreciation on furnishings or fittings from the gross rental income. Non-residents earning rental income from Mauritian properties are required to comply with local tax regulations, including filing an annual tax return. Engaging a local accountant is highly recommended to ensure compliance and optimise tax deductions.

Reselling your Mauritius property through Halle International is a streamlined and efficient process designed to achieve the best results. As an international real estate agency specialising in luxury properties, we offer a comprehensive service that includes market analysis, marketing strategies, and legal assistance. Here are the steps you need to follow:

1. Contact Halle International: Reach out to our team to discuss your intention to sell. Our expert agents will provide a preliminary consultation to understand your specific needs and the unique features of your property.

2. Property Valuation: We will conduct a thorough market analysis to determine the current market value of your property. This includes examining recent sale prices of comparable properties, current market conditions, and the location-specific demand.

3. Listing Agreement: Once you decide to proceed, we will enter into a listing agreement/Sales mandate. This formalises our partnership and outlines the terms of the sale, ensuring all aspects are transparent and professional.

4. Marketing Your Property: Leveraging our extensive network and marketing expertise, we will create a tailored marketing plan for your property. This includes professional photography, virtual tours, listing on premier real estate platforms, and targeted advertising campaigns to attract potential buyers.

5. Showings and Negotiations: Our agents will handle all inquiries, schedule showings, and manage negotiations. We aim to secure the best possible price and terms for your property with minimal hassle for you.

6. Legal and Financial Assistance: Selling property in Mauritius involves specific legal requirements. Halle International will guide you to experienced local solicitors to ensure all paperwork is correctly completed.

7. Closing the Deal: Once an offer is accepted, we oversee the entire closing process, coordinating with all involved parties to ensure a smooth and successful transaction. Reselling your property with Halle International ensures a professional, efficient, and effective process, maximising your investment's return. Contact us today to get started on your property resale journey

When reselling a property in Mauritius, it is essential to consider several tax implications. Firstly, non-citizens are subject to similar terms as citizens, with the primary concern being the Capital Gains Tax, which Mauritius does not impose on property sales. However, sellers may encounter other costs such as registration duties and notarial fees. Additionally, if the property was purchased under the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), or Property Development Scheme (PDS), there might be mandatory fees or levies payable to the Economic Development Board (EDB). It's advisable to consult with a tax professional or legal advisor to ensure compliance with all local regulations and to fully understand the financial impact of your property transaction in Mauritius.

Furthermore, Mauritius does not impose inheritance or estate duty, so if you sell the property as part of an estate or following the death of a property owner, no additional tax applies to the sale itself.

Overall, the resale of a property in Mauritius is largely tax-efficient due to the absence of capital gains tax.

Halle International is here to assist you with every step of your real estate journey, providing expert guidance tailored to the prestigious markets we operate in.

Buying property in Mauritius offers several advantages, including a favourable tax environment, with no capital gains tax, inheritance tax, or wealth tax. Foreign buyers can also qualify for residency if the property is valued above USD 375,000. The island boasts a stable economy, excellent infrastructure, and a high standard of living, making it ideal for both investment and lifestyle. Additionally, Mauritius offers a strong legal framework for property ownership, along with attractive rental yields, particularly in the tourism and luxury sectors. These factors make Mauritius an appealing destination for property investors. Contact us today to explore exclusive property opportunities in Mauritius. Whether you're looking for a luxury villa, a beachfront apartment, or a sound investment, our team is ready to help you find the perfect property to suit your needs. Reach out now and make your dream of owning a property in Mauritius a reality!

A leaseback property allows you to purchase a stunning new luxury holiday home, then lease it back to a dedicated management company specialised in the holiday market. This means you gain a prime freehold property some with guaranteed rental income for years.

Key Takeaway: Secure income and luxury real estate in one investment.