Buy Property In Mauritius
South Africa is a mere 3 500km from the paradise island of Mauritius, and it takes just under 4 hours to get there on a direct flight. It doesn't take much convincing to draw you to Mauritius, and the potential prospect of owning property on this magical island is an utter dream.
buy property in mauritius
In the last few years, the Mauritian government has put time and energy into developing investment schemes that create the opportunity for foreign nationals to own residential and commercial property. These schemes are designed to facilitate and foster foreign direct investment.
The latest amendments are incredibly positive for South African investors as the amendment carries with it a much lower minimum investment amount than other more costly schemes. So how exactly can South Africans max out all there is to offer and invest in property in Mauritius?
Looking for a luxury villa in a resort? The Integrated Resort Scheme (IRS) offers foreign investors and companies the opportunity to purchase upmarket villas up to 5 276 square meters (1.32 acres) in size. Incepted in 2002, the Integrated Resort Scheme (IRS) under the Companies Act (of Mauritius) 2001, encourages the development and sale of luxury residential and resort property in locations set aside by the government.
Foreign nationals are eligible for this scheme as long as they can secure an IRS property and invest a minimum of R7.3 million rand (US$500 000) excluding any relevant taxes. In addition, during the entirety of property ownership, this purchase ensures that the investor and their family holds a Mauritian residency permit as well as a tax resident permit.
If you're not looking for something as grand as a luxury high-end villa, the Real Estate Scheme (RES) is a scaled down version of the Integrated Resort Scheme (IRS) that offers investors a chance to engage in smaller scale property development. With the RES there is no minimum investment threshold making this a much more affordable option for those still looking to experience Mauritian life. One of the essential criteria is that total land ownership by any individual needs to be less than 10 hectares and that individual sites should not exceed 1 acre.
Starting in 2005, the Property Development Scheme (PDS) is the latest instalment by the Mauritian government to encourage foreign investment, and it allows for various types of residential development by foreign investors. PDS is a combination of the core elements of the Real Estate Scheme (RES) and the Integrated Resort Scheme (IRS). For all new developments and real estate projects, the PDS scheme has not replaced the IRS and the RES but merely presents different buying options for those interested in investing; such as the option to buy property less than MUR6 000 000.00 (equivalent to around R2.3 million).
Initially, 25% of all units were to be set aside for Mauritian nationals and members of the Mauritian Diaspora. However, this is no longer the case after amendments made to the PDS in 2016 and 2017. Now all property units can be purchased by foreign nationals wanting to invest, and there are no restrictions on the maximum land area owned.
As part of the PDS, permanent residency can be pursued by purchasing a property. The value of the property needs to be higher than US$375 000.00 which has been significantly reduced from the previous minimum of US$500 000.00.
The permit is maintained throughout property ownership, and it must be noted that should the property be sold, the residency will be forfeited. The greatest benefit of this permit is that property owners immediately qualify for a 20 year residency permit even when the property is still in development or purchased merely for investment. This is excellent news for those looking for a relatively easy route to permanent residency abroad.