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Buying Property in Mauritius

The African nation of Mauritius, located in the Indian Ocean east of Madagascar, has recently opened up its property laws to allow increased foreign purchase of real estate. Mauritius has one of the strongest economies in Africa and is a stable country that is looking to expand its tourism and resort sector. This makes it an attractive place to look for potential investments.

 

There are three potential ways for foreigners to buy property on Mauritius: the Permanent Resident Scheme (PRS), the Integrated Resort Scheme (IRS) and the Scheme to Attract Professionals for Emerging Sectors (SAPES). For most people, the PRS or IRS are the most viable ways to go. The PRS is attractive to investors who want to spend long periods of time or live permanently in Mauritius. In order to qualify an investor must make a minimum $500,000 investment in a qualified business. This will also allow the investor to purchase up to 1.25 arpents of land, or 5,276 square meters.

 

For those who are not interested in investing in a business, the IRS is a good option. This is a new scheme that was enacted in 2006 to increase the tourism and resort business. Foreigners may buy luxury villas in a resort, and the property may be up to 1.25 arpents. For this scheme, the properties being sold are mostly off plan as most of the resorts are under development.

 

When buying, the main costs are associated with the notary. The notary will prepare the contract and requires passport and documents certifying that the buyer qualifies under the scheme. Notary fees range from .5% - 2% of the property value and registration fees are 10%. There is a 5% transfer tax, which is paid by the buyer or seller, depending on negotiations, and agency fees are up to 2%. For IRS properties, the registration and transfer tax is determined by the property value, so the vendor will know exactly what is owed in that case.