Buying a new home in Mauritius: the guarantees and steps to follow
28 September 2018
Emigrate in Mauritius
20 December 2018
Buying a property is usually a lifetime investment. It is a decision to be made knowledgeably, especially if you are a foreigner. Beyond the dream geographical location, it is of course better to have all the information necessary to make the appropriate choice within the framework of the procedures dedicated to non-Mauritians and authorized by the law.
The Integrated Resort Scheme (IRS) in 2002 and the Real Estate Scheme (RES) in 2007 have merged in 2015 into a single Property Development Scheme (PDS) and the Integrated Hotel Scheme in 2009 was created for foreigners to buy in full ownership in the island.
In specific real estate programs
Since June 18, 2015, all real estate transactions certified before that date by the Economic Devlopment Board Mauritius (formerly Board of Investment), but in the process of being completed or completed, retain the names of IRS and RES. Those approved after this date are PDS. These are different from the previous ones on one essential point: the non-imposition of a minimum price for the purchase of a property, which nevertheless gives the right to a residence permit without a limit of duration, if it is fixed at least at US $ 500 000. http://www.edbmauritius.org/schemes/property-development-scheme/.
The harmonization of registration fees to 5% of the value of the property, the benefit of a damage guarantee structure, the obligation for developers to develop projects that respect the environment and the surrounding local populations are the other distinctive points of the PDS. The apartments and luxury villas of this type of program are at the heart of infrastructure and services available on site, such as golf, marina, restaurants, concierge, and fitness center with spa, nautical club, or others…
In a condominium residence
But an amendment of the law on the acquisition of real estate by foreigners adopted on December 20, 2016, allows buying one or more properties in a condominium of at least two floors (R 2), outside the IRS / RES / PDS. Provided that the amount of the acquisition is not less than 6 million rupees (approximately € 150,000). This can be claimed, after prior approval of its application by the Economic Development Board, http://www.edbmauritius.org, by the holder of an “Occupation Permit” (the one who works in Mauritius), a “Permit Residence” “(Who lives there without working as a pensioner) or a” Permanent Residence “(for a period of 10 years to live, to work in Mauritius and obtained under certain conditions).
The IHS (Integrated Hotel Scheme), an alternative investment formula, allows buying a room, a suite, an apartment or a villa that is part of a hotel complex. As their property is managed directly by the hotel, the investor will not be able to enjoy it permanently but only on the basis of a certain number of free nights.
What needs to be checked before the purchase
It is important to check a few points before committing to a purchase, such as inquiring about the developer’s experience if the program has not yet started, and making sure that he is the holder of a “Letter of Approval” and a ” PDS Certificate” issued by the EDB and the fact that they can obtain a Completion Guarantee in the case of a VEFA. Requesting a back-planning of the works with dates with a current sales statement, details about the quality of the materials used, the type of furniture to be expected and how the garden will be landscaped is also recommended before confirming your choice.
Moreover, depending on whether one buys for the purpose of making seasonal rentals or to reside in the year must determine the geographical location of the property concerned.
