Real Estate | Mauritius
Overview
Foreign demand is driving the housing boom in Mauritius. The real estate market is thriving, and the island’s strong tourism industry has encouraged the growth of a luxury rental market (mostly in North and West Mauritius). The real estate market is seen as a ‘an undeniable pillar of the Mauritian economy. The interest rates are low, and the mortgage market is steadily growing.
Holding period of real estate: Necessary to maintain and renew residence permit
Minimum real estate investment: USD 375,000
Type of ownership: Sole or shared ownership
Rental income opportunity: Approximately 3%
Are there any restrictions on the acquisition of real estate in Mauritius by foreign buyers?
Yes, foreign buyers may only purchase properties in Mauritius under schemes approved and managed by the Economic Development Board such as:
- The Integrated Resort Scheme (IRS)
- The Real Estate Property Scheme (RES)
- The Property Development Scheme (PDS)
- The Smarty City Scheme (SCS)
- Ground +2 apartments (with a minimum purchase of approximately USD 147,000)
How can immovable property in Mauritius be acquired?
There are only a few steps to follow for this process: sign a reservation contract, provide all the required documents, pay a deposit into a dedicated escrow account, submit the application for permission to acquire property with all the relevant documentation, and complete the acquisition by signing the deed of sale.
Does the applicant need to open a bank account in order to purchase property, and if so, what is the procedure?
Additional expenses include the registration duty fee of 5% of the net price, notary fees, and the application fee for the letter of approval through the Economic Development Board of Mauritius at a cost of USD 500.
What additional expenses will the real estate transaction incur?
- Stamp duty at 5% of the sale price
- Notary fees at approximately 1.5% of the sale price
- Architect’s fee of approximately EUR 1,000
What kind of returns can be expected from property investment in Mauritius?
Depending on the type of property, when the estate is fully operational, foreign investors could expect around 4% for smaller premises such as apartments or townhouses and duplexes.
How is rental income taxed?
At 15% of the individual income tax.