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 while maintaining transparency and compliance with local regulations. Foreign buyers must meet specific eligibility requirements depending on the type of property and acquisition scheme. Below are the categories of foreigners allowed to buy property in Mauritius:
Non-citizens eligible to purchase property in Mauritius include the following categories:
1. Permanent Residents
- Who qualifies?
Foreigners who hold a Permanent Residence Permit in Mauritius are eligible to purchase property. - What can they buy?
- Properties in approved schemes (PDS, SCS, G+2).
- A primary residence outside approved schemes, provided the property is valued at USD 500,000 or more and the land does not exceed 0.5276 hectares (1.25 arpents).
2. Investors and Professionals
- Who qualifies?
Foreigners holding an Occupation Permit as:- Investors managing a business in Mauritius.
- Self-employed individuals operating a business or profession in Mauritius.
- Professionals working under valid contracts.
- What can they buy?
Similar to Permanent Residents, they can purchase:- Properties in approved schemes (PDS, SCS, G+2).
- A primary residence outside approved schemes (subject to USD 500,000 and size limits).
3. Retired Non-Citizens
- Who qualifies?
Foreigners aged 50 or above holding a Residence Permit for retirees. - What can they buy?
- Properties in approved schemes.
- A primary residence outside approved schemes, meeting the same financial and size criteria.
4. Occupation Permit Holders
- Who qualifies?
- Foreigners with an Occupation Permit for work, investment, or business activities.
- Includes professionals employed in Mauritius or running their own companies.
- What can they buy?
- Properties under approved schemes.
- A single residential property as a primary residence outside schemes, under the conditions outlined above.
- Who qualifies?
However, not all foreigners are eligible to purchase property in Mauritius. While permit holders have specific rights to acquire property, spouses or dependent children of permit holders are not automatically eligible to purchase property in their own name. They may only do so if they independently meet the conditions outlined by the Non-Citizens (Property Restriction) Act (NCPR Act).
Key Points to Consider:
Spouses of Permit Holders:
- They cannot purchase property in their name unless they hold their own eligible Residence Permit or Occupation Permit.
- Properties purchased by the permit holder are generally considered part of the family’s assets, but the title deed is limited to the permit holder unless specific legal arrangements are made.
Dependent Children of Permit Holders:
- They are not allowed to acquire property unless they meet the legal requirements for foreigners, such as holding their own Residence Permit or qualifying under an approved scheme (e.g., PDS, SCS, G+2).
- Dependent children may inherit property from their parents, subject to compliance with Mauritian laws.
Exceptions:
- If a spouse or child acquires their own eligible permit, they may then purchase property independently under the conditions outlined in the NCPR Act.
For families of permit holders, it’s advisable to seek professional legal guidance to structure property acquisitions and inheritance planning effectively. At JLSK, we provide expert advice to ensure compliance with local regulations while safeguarding your family’s assets.
What Type of Property Can Be Purchased?
Complete Guide to Buying Property in Mauritius as a Foreigner
Mauritius offers foreigners the opportunity to invest in real estate through well-regulated schemes designed to encourage economic development. Whether you are a resident or a non-resident, this guide outlines the available options, requirements, and essential details for purchasing property on the island.
1. Who Can Buy Property in Mauritius?
1.1 Non-Residents
Foreigners without legal residence in Mauritius can purchase:
- Properties under approved schemes, such as:
- PDS (Property Development Scheme): Luxury villas, apartments, and serviced plots.
- SCS (Smart City Scheme): Residential and commercial properties in smart city developments.
- G+2 (Ground +2 Scheme): Apartments in buildings of at least two floors.
- Resale properties in older schemes, including IRS, RES, and IHS.
1.2 Residents (Occupation or Residence Permits)
Foreigners holding a residence or occupation permit can purchase:
- Properties in approved schemes (PDS, SCS, G+2).
- A primary residence outside approved schemes, subject to strict conditions:
- Minimum property value: USD 500,000.
- Land size: Maximum 0.5276 hectares (1.25 arpents).
2. Approved Property Schemes: Options and Criteria
2.1 PDS (Property Development Scheme)
- Property Types: Luxury villas, apartments, and serviced plots with modern amenities (golf, spas, security).
- Minimum Purchase Price: No legal minimum, but properties typically start at MUR 6,000,000 (~USD 135,000).
- Construction Requirement: Serviced plots must be developed within five years.
- Residence Permit Eligibility: Properties worth USD 375,000 or more qualify buyers for a residence permit.
2.2 SCS (Smart City Scheme)
- Property Types: Residential and commercial properties in integrated urban developments.
- Minimum Purchase Price: No legal minimum, but properties are generally high-value.
- Residence Permit Eligibility: Investments of USD 375,000 or more allow buyers to apply for a residence permit.
2.3 G+2 (Ground +2 Scheme)
- Property Types: Apartments in buildings with at least two floors.
- Minimum Purchase Price: MUR 6,000,000 (~USD 135,000).
- Residence Permit Eligibility: Not available under this scheme, but ideal for investment or personal use.
2.4 Older Schemes (IRS, RES, IHS)
- IRS (Integrated Resort Scheme): Luxury villas with premium facilities (golf, pools).
- Residence Permit Eligibility: Applies to purchases above USD 375,000.
- RES (Real Estate Scheme): Smaller-scale developments compared to IRS, also eligible for a residence permit for investments over USD 375,000.
- IHS (Invest Hotel Scheme): Hotel rooms under long-term leases (60 years), with income-sharing arrangements.
- Residence Permit Eligibility: Not available under this scheme.
3. Taxes and Fees
For Properties Under Approved Schemes (PDS, SCS, G+2, IRS, RES)
- Registration Duty: 5% of the property value.
- Notary Fees: Approximately 1,15% of the property value.
- No Additional Duty: Approved schemes are exempt from the 10% additional duty.
For Properties Outside Approved Schemes (Local Properties)
- Registration Duty: 5% of the property value.
- Additional Duty: 10% of the property value for foreigners.
- Notary Fees: Approximately 1,15% of the property value.
4. Important Restrictions
Non-Residents:
- Can only purchase properties under approved schemes or resale properties in older schemes (IRS, RES, IHS).
- Cannot purchase properties outside approved schemes.
Residents (Occupation or Residence Permit Holders):
- Can purchase properties in approved schemes.
- Can buy a primary residence outside approved schemes, subject to conditions (USD 500,000 minimum, ≤ 0.5276 hectares).
Spouses and Dependents:
- Cannot purchase property in their own name unless they hold an individual permit.
- Dependents may inherit property, subject to Mauritian inheritance laws.
5. Why Choose Mauritius and JLSK?
Investing in Mauritius offers:
- Tax Advantages: No capital gains tax and full ownership available.
- Exceptional Lifestyle: Tropical climate, safety, and modern infrastructure.
- Residency Opportunities: For investments over USD 375,000.
At JLSK, we provide:
- Tailored Advice: Helping you find the right scheme and property to meet your goals.
- Comprehensive Expertise: Ensuring legal and tax compliance for your investment.
- End-to-End Support: From property selection to securing necessary approvals.
Make your investment journey seamless with JLSK, your trusted partner in Mauritius real estate. Contact us today to start building your future in paradise !
Necessary Documentation
When applying to purchase property as a foreigner, several documents are required to ensure eligibility, verify the transaction, and comply with legal and regulatory requirements. 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 your residence permit, occupation permit, or permanent residence permit (if applicable).
Presale Agreement
- A copy of the presale agreement (Promise de Vente) between you and the seller, signed and certified by a Notary Public.
Valuation Report
- A property valuation report from a certified surveyor or valuation expert.
Financial Proof
- A letter from a recognized financial institution certifying that you have sufficient funds to complete the purchase.
- If applicable, a copy of the loan approval letter for mortgage financing.
KYC (Know Your Customer) Documentation
- For both the buyer and seller, including:
- Proof of identity: Passport or national ID.
- Proof of address: Recent utility bill, bank statement, or government-issued document (dated within 3 months).
- Proof of source of funds: Evidence of how the funds for the purchase were obtained (e.g., bank statements, inheritance documentation, or business records).
- For both the buyer and seller, including:
Due Diligence Report
- A due diligence report verifying the legitimacy of the buyer and seller, usually conducted by a legal or financial advisor.
Identification of Seller
- Copies of the seller’s identification documents, including:
- Passport or ID card.
- Business registration documents (if the seller is a company).
- Copies of the seller’s identification documents, including:
Third-Party Authorization
- If a third party (e.g., notary, consultant, or real estate agent) is submitting the application, provide a letter of authorization signed by the buyer.
- Property Title and Ownership Documents
- A copy of the property’s title deed or ownership certificate, certified by the seller’s notary.
- No-Objection Certificate (NOC)
- For properties under specific schemes (e.g., IRS, RES, PDS, or Smart City), a No-Objection Certificate from the Economic Development Board (EDB) is mandatory.
- Tax Clearance Certificate (if applicable)
- A certificate confirming that all relevant taxes related to the property have been cleared by the seller.
- Bank Details for Transaction
- Information on the bank account to which funds will be transferred, for compliance with anti-money laundering (AML) regulations.
- Marriage Certificate (if applicable)
- If the buyer or seller is married, a copy of the marriage certificate may be required to confirm the marital regime (e.g., joint property or separate property).
- Additional Documents for Companies or Trusts (if applicable)
- If the buyer or seller is a corporate entity or trust, additional documentation may include:
- Certificate of Incorporation.
- Shareholder Register.
- Board Resolution authorizing the purchase or sale.
Why These Additional Elements Are Important
- KYC and Due Diligence: These are essential to comply with anti-money laundering (AML) laws and to verify the legitimacy of all parties involved.
- NOC and Tax Clearance: These ensure that the property complies with legal and financial regulations and that there are no outstanding liabilities.
- Marriage Certificate: Required to avoid disputes over ownership if the buyer or seller is married.
The Application Process
The process of purchasing property in Mauritius involves submitting your application to the Prime Minister’s Office via the Economic Development Board (EDB). The EDB is a critical intermediary, ensuring that all applications from foreign buyers comply with the relevant laws and regulations. The process typically includes the following steps:
1. Document Submission
You must prepare and submit all required documentation to the EDB. This includes:
- Identification documents (certified copy of passport).
- Proof of permit status (e.g., occupation permit, residence permit, or permanent residence permit).
- Financial documents demonstrating sufficient funds or mortgage approval.
- KYC documentation (proof of address, source of funds, etc.).
2. Review and Approval
The EDB and relevant authorities will carefully review your application to ensure compliance with Mauritian laws, including anti-money laundering (AML) regulations.
- If the application meets all requirements, you will receive a Certificate of Authorization permitting the purchase.
- For properties under specific investment schemes (e.g., IRS, RES, PDS, or Smart City), the EDB will issue a No-Objection Certificate (NOC).
3. Payment of Duties and Fees
Once the purchase is approved, you must pay the required duties and taxes. These typically include:
- Registration Duty: 5% of the property value.
- Land Transfer Tax: Paid by the seller but included in the transaction costs.
- Additional Duty (Buyer’s Side): 10% of the property value (specific to foreign buyers).
- Other notary and administrative fees, which vary depending on the property and transaction complexity.
4. Signing of the Deed
Once all approvals and payments are finalized:
- The deed of sale will be signed in the presence of a Notary Public.
- This step officially transfers ownership of the property to you.
- The notary ensures compliance with all regulations, including the disbursement of funds and the recording of the transaction.
5. Post-Acquisition Requirements
- The deed is registered with the Registrar of Lands to formalize the transfer of ownership.
- You will receive the title deed, confirming your ownership.
Consult Professional Assistance
Purchasing property in Mauritius as a foreigner involves navigating complex legal and financial requirements. It is essential to consult local legal professionals to ensure compliance and to streamline the process. At JLSK, we specialize in assisting foreign buyers with every aspect of property acquisition, ensuring that all steps are completed lawfully and efficiently.
Resale or Transfer of Property
After purchasing a property, foreign buyers are allowed to sell or transfer ownership. However, prior authorization from the Prime Minister’s Office is required before the transaction can proceed.
This requirement ensures that foreign investors adhere to the terms and conditions outlined in the original purchase approval. These conditions are designed to:
- Prevent property speculation or rapid resale for profit, which could undermine the objectives of Mauritius’ real estate investment policies.
- Ensure the property is not used for unauthorized purposes or in ways that breach the restrictions set out during the initial approval.
Foreign buyers must also comply with any applicable regulations related to taxes, registration duties, and legal procedures when transferring or selling the property. It is advisable to consult with a local legal professional to navigate this process smoothly and ensure full compliance with Mauritian law.
Key Considerations
Investing in property in Mauritius is an exciting opportunity, but it’s important to navigate the process with the right expertise. At JLSK, we are specialists in Mauritian real estate, offering comprehensive guidance to ensure a seamless and informed transaction. Here are some essential points to consider:
1. Local Taxes and Duties
Understanding the full range of taxes and duties associated with property transactions is critical. These can vary depending on the type and value of the property. With JLSK’s expertise, we’ll ensure you’re fully aware of all costs, including:
- Registration Duty: 5% of the property value.
- Additional Duties: 10% of the property value for foreign buyers.
- Notary Fees: Typically 1% of the property value, subject to variation.
- Annual Property Taxes: Applicable depending on the property type and location.
Our team at JLSK will guide you through these financial considerations, helping you plan ahead and avoid unexpected costs.
2. Construction Regulations
For those purchasing serviced land under approved schemes like PDS or Smart City, there is a mandatory requirement to build a residential property within five years of the purchase date. At JLSK, we’ll assist you in managing this process:
- Project Management: From selecting architects to liaising with contractors, we ensure your project is executed efficiently and to the highest standards.
- Regulatory Compliance: We’ll help you navigate building codes, anti-cyclonic standards, and other legal requirements.
- Mitigating Delays: With our local expertise, we anticipate and address challenges such as material availability, labor shortages, and permit approvals.
JLSK’s proactive approach ensures that your construction project is completed on time and within budget.
Why Choose JLSK?
With years of experience in the Mauritian real estate market, JLSK offers a one-stop solution for:
- Expert Market Insights: We help you identify the best opportunities tailored to your needs.
- Legal and Financial Guidance: Our team ensures compliance with all regulations, including KYC and due diligence requirements.
- Post-Purchase Support: Whether it’s rental management or resale strategies, JLSK provides ongoing assistance to maximize your investment.
Investing in Mauritius doesn’t have to be complicated. Trust JLSK, the leading real estate experts, to guide you every step of the way.
Conclusion
Buying Property in Mauritius as an Expat with JLSK Experts
Acquiring property in Mauritius as an expat can be a highly rewarding investment, offering both lifestyle and financial benefits. However, navigating the process requires careful attention to legal procedures, documentation requirements, and government-imposed restrictions. At JLSK, we specialize in guiding expatriates through every step of this journey, ensuring a smooth and successful property acquisition experience.
Why Choose JLSK?
- Seamless Transactions: Our team handles all aspects of the process, from initial property search to final deed signing, ensuring a stress-free experience.
- Legal Compliance: We provide expert advice to ensure full compliance with Mauritian laws, including KYC, due diligence, and government approval requirements.
- Tailored Solutions: Whether you’re looking for a primary residence, a vacation home, or an investment property, we align our services with your unique goals.
Our Commitment to Expatriates
At JLSK, we understand the challenges of investing in a foreign market. Our team is dedicated to:
- Educating You: We explain the legal procedures and restrictions, so you’re fully informed at every stage.
- Simplifying Documentation: From submitting the right permits to securing approvals, we ensure all paperwork is accurate and complete.
- Ensuring Your Success: With our in-depth market knowledge and hands-on approach, we help you maximize your investment while avoiding potential pitfalls.
The JLSK Advantage
Investing in Mauritius is more than a transaction—it’s an opportunity to embrace a unique lifestyle and enjoy the benefits of a secure and profitable market. With JLSK by your side, you can confidently navigate the process and focus on enjoying all that this beautiful island has to offer.
If you’re considering buying property in Mauritius, contact JLSK, the trusted experts, to make your vision a reality. Let us help you turn your investment into a lifelong reward.
