Mauritius is increasingly recognised as one of the leading African property markets for foreign investors. This rise in interest is largely down to a relaxing of the laws relating to buying property on the island, and the government has reported a significant rise in the number of foreign investors, particularly South Africans. But these investors are not just buying properties on Mauritius’ exceptional coastline, they are also buying residency.
The purchase of a residential unit acquired under schemes approved and managed by the Economic Development Board – the Property Development Scheme (PDS), the Integrated Resort Scheme (IRS), Smart City Scheme (SCS) and Residential Estate Scheme (RES) – offers the right to residency in Mauritius to a purchaser and their family, provided that the residential unit’s purchase price is above USD 500,000.
Owners may rent out the property, become tax resident in Mauritius and face no restriction on the repatriation of funds or revenue raised from the sale or renting of the property. Mauritius has no capital gains tax, dividends or inheritance tax and a universal tax rate of 15%.
Citizens of countries that are politically or economically unstable often wish to emigrate or take out an alternative residency or citizenship as an insurance policy if things at home take a turn for the worse. If these citizens have money to invest then it makes sense to do so in countries like Mauritius that will give them some kind of formal status in return.
So whether you are just thinking of buying a second home in a holiday destination in the Indian Ocean or you are looking to obtain a Mauritian residency permit (RP) as a ‘back-up plan’, Mauritius is an excellent option to explore.
More information on these options and advice on suitable structures to purchase and hold property in Mauritius is available upon request because this will depend on individual circumstances and requirements.