Mauritius, with its tropical climate, beautiful beaches, and attractive tax incentives, has become an increasingly popular destination for expatriates seeking to invest in real estate. Whether you’re looking for a vacation home, a retirement property, or an investment opportunity, Mauritius offers a unique blend of benefits. However, as a foreigner, purchasing property in Mauritius involves specific legal procedures and requirements that are essential to understand. At JLSK, we offer comprehensive legal support to guide you through the entire process of buying property in Mauritius, ensuring that your investment complies with local regulations and is completed smoothly. This article will guide you through the steps involved in buying property in Mauritius as an expat.
Understanding the Legal Framework
Mauritius has clear regulations governing property ownership by non-citizens. The Non-Citizens (Property Restriction) Act (NCPR Act) sets the rules and guidelines for expatriates looking to acquire residential property. Under this law, foreign buyers must meet specific eligibility criteria, purchase requirements, and adhere to restrictions related to land ownership.
Who is Eligible to Buy Property in Mauritius?
Non-citizens are eligible to purchase property in Mauritius under certain conditions. These criteria are designed to ensure that property acquisitions contribute to the country’s economic development. Here are the categories of foreigners allowed to buy property in Mauritius:
- Permanent Residents – Foreigners holding a Permanent Residence Permit in Mauritius.
- Investors and Professionals – Those with a valid Occupation Permit as an investor, self-employed person, or a professional.
- Retired Non-Citizens – Individuals who have obtained a residence permit due to retirement status.
- Occupational Permits Holders – Foreigners holding an occupation permit, whether for work, investment, or business purposes.
However, not all foreigners are eligible to purchase property. For instance, spouses or dependent children of permit holders cannot directly buy property unless they meet the conditions outlined by the NCPR Act.
What Type of Property Can Be Purchased?
Foreign buyers can acquire residential properties, including apartments, villas, and houses, but there are restrictions based on the type and size of the property. According to the NCPR Act, non-citizens can purchase:
- Residential property – Stand-alone houses, villas, or apartments, but the property size must not exceed 0.5276 hectares (1.25 arpents).
- Serviced Land – Plot of land intended for residential use, but again, the size limit applies.
Some properties are off-limits to foreign buyers, including:
- Properties located on state land, such as Pas Géométriques.
- Agricultural land or land exceeding 1.25 arpents (0.5276 hectares).
- Properties already restricted under specific schemes like the Smart City or IRS (Integrated Resort Scheme).
The Minimum Price Requirement
One of the key factors in purchasing property as a non-citizen is the minimum price requirement. Under the NCPR Act, the purchase price for residential properties must be no less than USD 500,000 or its equivalent in any other hard currency. This price ensures that only serious investors and expatriates participate in the local real estate market.
The Government of Mauritius has set this minimum threshold to attract higher-quality investment while also ensuring that foreign buyers contribute to the economic development of the island.
Necessary Documentation
When applying to purchase property as a foreigner, several documents are required to demonstrate eligibility and verify the transaction. The following documents are typically necessary for a successful property purchase application:
- Application Form – A completed application form provided by the Economic Development Board (EDB).
- Passport Copy – A certified copy of the bio-data page of your passport.
- Proof of Residence Permit – A copy of the residence permit, occupation permit, or permanent residence permit.
- Presale Agreement – A copy of the presale agreement between you and the seller, signed and certified by a Notary Public.
- Valuation Report – A property valuation report from a certified surveyor.
- Financial Proof – A letter from a recognized financial institution certifying that you have sufficient funds to complete the purchase.
- Identification of Seller – Copy of the identification documents of the seller, including their business registration or any other relevant documents.
- Third-Party Authorization – If a third party is making the application (e.g., a notary, consultant, or real estate agent), a letter of authorization should be provided.
The Application Process
The process of applying to buy property in Mauritius involves submitting your documents to the Prime Minister’s Office through the Economic Development Board (EDB). The EDB plays a critical role in reviewing applications from foreign buyers. The process includes:
- Document Submission – Submit all necessary documentation, including your financial documents, identification, and proof of your permit status.
- Review and Approval – The application will be reviewed by the relevant authorities. Once approved, you will receive a certificate authorizing the purchase.
- Payment of Duties – You will need to pay registration duties, taxes, and possibly additional fees. These payments are typically 5% of the property’s value for both land transfer and registration duties, with additional duties on the buyer’s side amounting to 10% of the property value.
- Signing of Deed – Once approved, you will sign the deed of sale and officially acquire the property.
It is essential to consult with local legal professionals to ensure that the transaction complies with all regulations. At JLSK, we can assist you throughout this process to guarantee that every step is followed according to the law.
Resale or Transfer of Property
After purchasing a property, foreign buyers may sell or transfer their property, but they must first obtain permission from the Prime Minister’s Office before disposing of it. This ensures that foreign investors adhere to the terms and conditions outlined in the original approval, which may restrict property speculation or other unauthorized use of the property.
Key Considerations
While purchasing property in Mauritius is an attractive option, there are important things to consider before making an investment:
- Local Taxes and Duties – Buyers must understand the full range of taxes and duties applicable to property transactions, which can vary based on the type and value of the property.
- Construction Regulations – If purchasing serviced land, you are required to build a residential property within five years of the purchase date. Make sure you’re prepared for the construction process and any potential delays.
Conclusion
Buying property in Mauritius as an expat can be a rewarding investment. However, it is crucial to follow the legal procedures, understand the documentation requirements, and comply with the restrictions set by the government. With the proper guidance and preparation, expatriates can successfully acquire property in Mauritius and enjoy the many benefits this beautiful island offers. At JLSK, we are committed to supporting expatriates every step of the way to ensure that your property transaction is seamless, legally compliant, and meets your investment goals.
