Mauritius, the jewel in the crown of the Indian Ocean, attracts a large number of expatriates every year looking to invest in local real estate. To respond to this growing interest while regulating the market, the Mauritian government has put in place specific legal provisions, recently updated as part of the 2024-2025 budget. These new rules are designed to offer more opportunities to foreign investors, while ensuring sustainable and balanced management of the real estate market.
The Main Legal Provisions Concerning Real Estate Purchases by Expatriates
- Property in a specific program Expatriates can buy property in programs specially designed to attract foreign investors:
- Integrated Resort Scheme (IRS) / Real Estate Scheme (RES) / Property Development Scheme (PDS): These projects offer luxury villas, apartments or duplexes. The purchase of a property with a minimum value of 375,000 USD also entitles the owner and his or her family to a residence permit.
- Smart City Scheme: This program enables foreigners to buy residential property in areas designated as “Smart City”, focused on sustainable urban development.
- Freehold apartments Expatriates can also buy apartments in buildings with at least two floors (R+2), provided the purchase price is at least 6 million Mauritian rupees (MUR). This option is popular with investors looking to acquire residential property to live in or as a rental investment.
- Restrictions on other property types
- Agricultural land: Foreigners are generally not allowed to buy agricultural land, except for government-approved projects.
- Real estate outside specified schemes: Outside the IRS, RES, PDS and Smart City programs, foreigners can only buy residential property with specific government approval.
- Obtaining a residence permit The purchase of a property with a minimum value of 375,000 USD in the IRS, RES, PDS, or Smart City programs also enables the purchaser and his/her family to obtain a residence permit in Mauritius, an advantage that attracts many investors.
- All property purchases by foreigners must be approved by the Mauritius Economic Development Board (EDB). This process ensures that transactions comply with local laws and are aligned with the country’s development objectives. It is essential that investors follow these procedures scrupulously to avoid any future disputes or complications.
The New Provisions of the Law of 2024
The 2024 reform introduced several key changes that expand opportunities for expatriates while maintaining certain restrictions:
- Extended purchase options: Residence permit holders can now purchase properties outside the traditional schemes, provided the property has a minimum value of 500,000 USD and does not exceed 1.25 arpent.
- New taxes and costs: An additional acquisition tax of 10% now applies to real estate transactions by foreigners, in addition to the standard 5% transfer fee. This makes access to certain properties more exclusive.
Investors’ reactions and outlook
Expatriates’ opinions on these new laws are divided. Many welcome the opening up of the market and the new buying opportunities outside the usual patterns, allowing greater diversity in their investments. However, the high cost of entry and additional taxes are perceived as financial barriers that could limit market access to a wealthy elite.
In conclusion, the Access to Real Estate for Expatriates in Mauritius Act 2024 aims to balance the country’s attractiveness to investors while preserving the integrity of its real estate market. This legislation offers interesting opportunities, but also imposes strict conditions to ensure sustainable management of the market.
