Tags: G+2

Following the political transition in November 2024, the new government of Mauritius introduced regulatory changes to enhance the transparency and economic alignment of property transactions under the IRS, RES, IHS, PDS, and SCS schemes. Effective 13 December 2024, non-citizens acquiring residential properties must now pay 85% of the purchase price in Mauritius rupees, with the remaining 15% in either foreign currency or Mauritius rupees. These measures aim to strengthen the local economy while ensuring compliance with international financial standards.

As per the official communique of the Economic Development Board (EDB) Mauritius.

  1. On 6 December 2024, Cabinet took note of the amendments to be brought to the regulations on IRS, RES, IHS, PDS and SCS (Schemes) to provide for, inter alia, the mandatory requirements for non-citizens acquiring a residential property, under the Schemes, to effect payment of 85 % of the purchase price in Mauritius rupee to the promoter and the remaining 15 % of the purchase price in foreign currency or Mauritius rupee.

CURRENT PRACTICE

  1. Prior to these amendments, non-citizens acquiring a property under IRS, RES, IHS, PDS and SCS had the flexibility to pay the entire purchase price in foreign currency (USD or EUR or any hard convertible currency (FX)) or Mauritius rupee provided that the funds were transferred from overseas. If a loan was contracted from a local bank at least USD 500,000 had to be transferred from overseas.

NEW REQUIREMENTS

3.To align with evolving economic and regulatory considerations, the following regulations came into force on 13 December 2024:

a.Economic Development Board (Smart City Scheme) (Amendment No. 2) Regulations 2024;

b.Economic Development Board (Property Development Scheme) (Amendment No. 2) Regulations 2024;

c.Economic Development Board (Invest Hotel Scheme) (Amendment No. 2) Regulations 2024; and

d.Economic Development Board (Real Estate Development Scheme) (Amendment No. 2) Regulations 2024.

4.The key changes are outlined below:

MANDATORY CURRENCY REQUIREMENTS

  • 85% in Mauritius rupees: Non-Citizens acquiring a property under these Schemes, after having transferred funds to Mauritius from abroad in hard convertible currency, must now pay 85% of the purchase price in Mauritius rupee to the promoter.
  • 15% in foreign currency or Mauritius rupees: The remaining 15% of the purchase price can be paid in either foreign currency (USD or EUR or any hard convertible currency (FX)) or Mauritius rupee.

NOTARY’S ROLE AND RESPONSIBILITIES

In accordance with the Notaries Act, the purchase price or consideration, related to such acquisition by a non citizen of an immovable property, is transferred to the notary’s account in USD or EUR or any hard convertible currency (FX). The notary, in addition to their general duties:

i. should transfer to the IRS company, RES company, IHS company, PDS company, smart city company or smart city developer, as the case may be:

a) 85% of the consideration in Mauritius rupee; and

b) the remaining 15% in USD or EUR or any hard convertible currency (FX) or Mauritius rupee.

ii.shall cause a notarial deed drawn up by him to be registered with the Registrar General within 8 days from the date of the deed and make payment of registration duty in USD or EUR or any other hard convertible currency (FX) as is the current practice.

LOCAL LOAN FINANCING

Where the price of the property exceeds USD 750,000:

  • The first USD 750,000 or its equivalent in any hard convertible foreign currency shall be transferred to Mauritius and paid in Mauritius rupee to the promoter as per above.
  • A loan for the remaining amount of the purchase price may be contracted in Mauritius rupee with a bank in Mauritius, and the repayment of the loan is effected in any hard convertible foreign currency.

These amendments are effective as from 13 December 2024 and will apply to all new property acquisitions under the Schemes.

In the event of any ambiguity in the information contained herein, the provisions of the above-mentioned regulations shall prevail.

For any further query, please do not hesitate to revert back to us and we shall guide you through the process.

Source: EDB

Attention non-citizens holding a residence/occupation permit! This opportunity might be exactly what you've been looking for. Discover a perfect fit for your lifestyle.

ELIGIBILITY FOR THE ACQUISITION OF RESIDENTIAL PROPERTY
The following non-citizens are eligible to acquire a residential property of a minimum value of USD 500,000 for personal residence:
visa-application-form-tablet-Seeff-Mauritius
a. Main holder of a Permanent Residence Permit
b. Main holder of a residence permit issued by virtue of the purchase of an immovable property under the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Property Development Scheme (PDS), Invest Hotel Scheme (IHS), Smart City Scheme (SCS) or apartment located in ground +2 building
c. Main holder of an occupation permit as investor, professional, self-employed
d. Main holder of a short-term occupation permit
e. Main holder of a family occupation permit
f. Main holder of a residence permit as retired non-citizen
For the avoidance of doubt, the spouse, dependent child, parent or other dependent of the main holder of a permit shall not be eligible to acquire a residential property under section 3(3)(d) of the NCPR Act.

DEFINITION OF PROPERTY
A non-citizen may only purchase or acquire 1 (one) property under section 3(3)(d) of the NCPR Act being:

i. a residential property (stand-alone house, villa, apartment, etc) constructed on land not exceeding 0.5276 hectare (1.25 arpent)
ii. bare land or a plot of serviced land, provided that the area does not exceed 0.5276 hectare (1.25 arpent)
A non-citizen cannot purchase or acquire –
• a residential property situated on State land, including Pas Géométriques;
• a bare land classified as agricultural land;
• a plot of serviced land exceeding 0.5276 hectare (1.25 arpent); or
• a standalone residential property constructed on an extent of land exceeding 0.5276 hectare (1.25 arpent)
 
You may visit our website to view our portfolios of properties for sale now available to you: https://seeff.mu/property/?property_status=sale

Are you looking to live on the beautiful island of Mauritius or invest in a return on investment type of property? People from all over the world contact Seeff daily in search of the perfect real estate matching their needs.

Owning a property in Mauritius is made possible through different schemes put in place by the government.

Acquiring property can be a viable investment opportunity and it is advisable to consult with a local real estate agent who can provide personalised advice and guidance on acquiring property in Mauritius.

We invite you to view our portfolio of properties and developments for sale: (Click here to view our portfolio of properties for foreigners)

Let’s have a closer look at these schemes:

Apartments_Seeff_Mauritius_g_+2

Ground Floor + 2 Apartments

Non-citizens are allowed to purchase apartments in developments of at least two levels above ground (G+2) with the prior approval of the Economic Development Board.

Starting Price: As from MUR 6 million and up.

Residence Permit: Any non-citizen who has acquired an apartment for a price not less than USD 375,000 will be eligible to a residence permit. It remains valid so long as the non-citizen holds the apartment.

Intergrated_Scheme_Seeff_Mauritius

Integrated Resort Scheme (IRS)

The Integrated Resort Scheme (IRS) is meant for the development of luxurious residential units such as villas, apartments, penthouses, townhouses and serviced lands located in projects which boast golf courses, marinas, restaurants, shops etc.

The owners may rent the property, become a tax resident in Mauritius and face no restriction on the repatriation of funds or revenue raised from the sale or rent of the property.

Starting price: minimum price of USD 375,000.

Residence Permit: any person purchasing an IRS property to the value of USD 375,000 and above, is entitled to permanent residency, as well as his (her) spouse and any dependents. The spouse and children below the age of 24 are also granted a residence permit.

Non-citizens who have a residence permit under IRS will be exempted from an Occupation or Work permit to invest and work in Mauritius.

Real-Estate-Scheme_Seeff_Mauritius

Real Estate Scheme (RES)

The Real Estate Scheme (RES) is a smaller version of the IRS offering more affordable types of residences such as villas, apartments, penthouses and townhouses.

The owners may rent the property, become a tax resident in Mauritius and face no restriction on the repatriation of funds or revenue raised from the sale of rent of the property.

Starting price: no minimum price.

Residence Permit: any person purchasing an RES property to the value of USD 375,000 and more, is eligible to a residence permit. The spouse and children below the age of 24 are also granted a residence permit.

Non-citizens who have a residence permit under RES will be exempted from an Occupation or Work permit to invest and work in Mauritius.

Property_Development_Scheme_Seeff_Mauritius

Property Development Scheme (PDS)

The Property Development Scheme (PDS), which has replaced the IRS and RES, allows the development of a mix of residences for sale to non citizens.

The owners may rent the property, become a tax resident in Mauritius and face no restriction on the repatriation of funds or revenue raised from the sale of rent of the property.

Starting price: no minimum price.

Residence Permit: any person purchasing a PDS property to the value of USD 375,000 and up, is eligible to a residence permit. The spouse and children below the age of 24 are also granted a residence permit.

Non-citizens who have a residence permit under PDS will be exempted from an Occupation or Work permit to invest and work in Mauritius.

Smart_City-_Scheme_Seeff_Mauritius

Smart City Scheme (SCS)

The Smart Cities are large-scale mixed-use developments revolving around the work, life and play concept, with smart technology and pioneering innovation at their core. Within this scheme, a non-citizen can acquire villas, apartments, penthouses, townhouses as well as serviced lands.

The owners may rent the property, become a tax resident in Mauritius and face no restriction on the repatriation of funds or revenue raised from the sale of rent of the property.

Starting price: no minimum price

Residence Permit: any person purchasing an SCS property to the value of USD 375,000 and more, is eligible to a residence permit. The spouse and children below the age of 24 are also granted a residence permit.

Non-citizens who have a residence permit under PDS will be exempted from an Occupation or Work permit to invest and work in Mauritius.

Senior_Living-_Residence_Seeff_Mauritius

Senior Living Residence

Projects falling under the scheme PDS for Senior Living are designed for adults aged 50 years old and up who are looking for all the facilities offered to a senior citizen.

Starting price: no minimum price.

Residence Permit: The non-citizen aged above 50 years can choose to apply for a residence permit for himself/herself and his/her spouse or common law partner until such time the property is no longer owned or occupied by the retiree.

Invest Hotel Scheme

The Invest Hotel Scheme (IHS) allows a non-citizen to acquire units within a hotel and benefit from all the facilities offered.

Starting price: no minimum price.

Residence Permit: any person purchasing a unit/room under the IHS to the value of USD 375,000 and more, is eligible to a residence permit.

Source: EDB Mauritius

Get in touch with Seeff