Foreigners can buy property in Mauritius thanks to the real estate projects devised by the Mauritian government and regulated by the Economic Development Board of the country. However, being a Mauritian resident offers many more advantages, especially when it comes to the purchase of a real estate asset.
Purchasing property as Mauritian Citizens
The Mauritian government has encouraged the purchase of new property with the introduction of home loans at low interest rates. Nearly all the banks on the island offer home loans as well as the Mauritius Housing Corporation (MHC), thus making it easier for the Mauritian citizen to own residential property.
The downside to loans offered to a foreigner is that they will be in the currency used in the latter’s native country. The interest rate for a loan in Euros will be set by the Euribor. Foreigners therefore do not enjoy the same interest rate as Mauritians. In addition to this, bank funding will cover only a maximum of 70% of the cost of the property. Paying notary and registration fees is up to you.
On the other hand, the process to obtain a loan from banks in Mauritius is smoother for those having a Resident Permit. Property bought under the Property Development Scheme acts as a guarantee for their investment, since there is the Vente en Etat Futur d’Achèvement (VEFA) provision, ensuring that the construction will be finished.
Being a fiscal resident in Mauritius gives the privilege of not having to pay wealth tax (Impôt sur la Fortune), property tax, tax on dividends and plus-values upon reselling your real estate asset. A mere 15% is levied as income tax as well as on profits obtained from companies outside Mauritius. Houses located in rural regions of the island are exempted from municipal tax.
The standard of real estate property in Mauritius
The Mauritian real estate market gives the citizen a large number of areas to buy or build his/her house to choose from. There are still many untouched lands in Mauritius and therefore much space to build a residence the way one would like.
Esthetically-pleasant and luxurious residential complexes as well as “smart cities” have been built around the island. The latter contain residential areas with facilities such as gyms, schools, supermarkets, offices, swimming pools and clinics in their vicinity.
You could benefit from such advantages too
Purchasing a real estate property at more than 500,000 USD in Mauritius under the real estate projects established by the Mauritian government and spending more than 183 days per year on the island will grant you the status of Mauritian resident, which entails the possibility to enjoy the aforementioned fiscal benefits.
If that was not enough good news for you, property programs under this scheme will allow you to have a say in the design and furnishing of your house. Moreover, spending nearly 6 months on the island will give you plenty of time to keep an eye on the progress of the construction work.
Mauritian residency gives a lot of advantages. Get your residency permit by investing in real estate property in Mauritius. But not just any property, of course! DECORDIER IMMOBILIER in Grand Bay is here to help you find the best one.