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Real
Estate investors look towards
increasing long term value and gain
high rental yield. Land being
scarce, Mauritius is set to retain
its exclusivity and rare offering
with its idyllic beaches and
feel-good factor to work and live.
For these reasons, it is hoped that
real estate owners will continue to
retain high market value. The
government has introduced several
real estate schemes, the most
popular being the Integrated
Resort Scheme (IRS) and
Real
Estate Scheme (RES).
Integrated
Resort Scheme
The IRS is a popular scheme under
which non-citizens are allowed to
purchase luxury residential property
in Mauritius at the upper end of the
market by setting a minimum price of
USD 500,000 for a residential
property. Through the IRS, a foreign
buyer can acquire Mauritian
residency and enjoy the beaches and
peaceful living environment.
The IRS represents also a golden
opportunity for foreign investors
with experience in comprehensive
luxury residential developments to
join force with Mauritian
developers.
The Integrated Resort Scheme
provides:
- For the development of luxury
residential units of international
standing on Freehold land of more
than 10 hectares to be sold at a
price exceeding USD 500,000.
- High-class leisure and
commercial amenities and
facilities intended to enhance the
residential units. These may
include but not limited to, golf
course, marina, nautical and other
sport facilities, shopping mall,
restaurant and wellness centre.
- Day-to-day management services
such as security, maintenance,
gardening, solid waste disposal
and household services have to be
provided to the residents.
- For a social contribution in
terms of social amenities,
community development and other
facilities for the benefit of the
neighbouring community where the
IRS project is implemented.
Eligibility for acquisition of
residential property
The following persons may acquire a
residential property from an IRS
Company:
(a)
a non-citizen of Mauritius
(b) a citizen of Mauritius
(c) a company registered as
a foreign company under the
Companies Act 2001
(d) a company incorporated
under the Companies Act 2001
(e) a société, where its
deed of formation is deposited
with the Registrar of Companies
(f) a trust, where the
trusteeship services are provided
by a qualified trustee licenced by
the Financial Services Commission
Note: A qualified global business as
defined under the Financial Services
Act 2007 holding a Global Business
Licence cannot acquire property
under the IRS scheme.
Type of residential property
An IRS Company may provide the
following type of residential
properties:
• Luxury villa with attending
services and amenities
• Luxury apartment with attending
services and amenities
• Penthouse with attending services
and amenities
• Other similar properties used, or
available for use, as residence with
attending services or
Amenities
Extent of residential property
The extent of land in respect of
each residential property, other
than for an apartment or a
penthouse, is developed on land not
exceeding 0.5276 hectare (1.25
arpent).
Cost per residential property
The amount of investment in the
acquisition of a residential
property, including land not
exceeding
1.25 arpents, is not to be less than
US$500,000 (excluding taxes) or its
equivalent in Euro or GB pounds
sterling.
Real Estate Scheme
Under this scheme, any mix of
residences can be constructed within
a development area of less than 10
hectares (23.69 arpents) that is
also endowed with commercial and
leisure facilities. The Real
Estate Scheme (RES) is the
second scheme under which foreigners
are allowed to purchase a
residential property in Mauritius.
RES is also a lucrative investment
opportunity through which
residential properties can be
offered for sale to Mauritian
citizens.
Eligibility for development under
RES
- Only small landowners who own land
of an extent of at least 1 arpent
but not exceeding 10 hectares in
aggregate shall be allowed to
implement a project under the RES.
- The small landowner shall not have
any direct or indirect interest in
land where the total extent of land
exceeds 10 hectares in the aggregate
in Mauritius in any company, societe,
trusts or any other body corporate
or incorporate or by taking the
total extent of land owned by
his/her spouse and/or dependants of
less than 18 years.
- Any small landowner having met the
criteria of paragraph (1) can group
his land with other qualifying small
landowners for a project provided
that the lands are contiguous and
the total real estate development
area for the RES project does not
exceed 10 hectares.
- The small landowner or group of
landowners shall provide a written
declaration duly made by a notary
public in Mauritius giving the total
extent of land owned by him together
with any direct or indirect interest
in land he may have.
- The RES project shall be
implemented by a company
incorporated in Mauritius where the
small landowner or group of small
landowners shall be shareholder(s)
in the RES company equivalent to at
least the value of the land brought
in the RES company.
- The small landowner or group of
landowners shall retain shares in
the RES company until at least 1
year after completion of the
project. A project shall be
considered as being completed on
delivery of all residential units to
the buyers.
Eligibility for acquisition of
residential property
The following persons may acquire a
residential property from a RES
Company:
(a) a non-citizen of
Mauritius
(b) a citizen of Mauritius
(c) a company registered as
a foreign company under the
Companies Act 2001
(d) a company incorporated
under the Companies Act 2001
(e) a société, where its
deed of formation is deposited
with the Registrar of Companies
(f) a trust, where the
trusteeship services are provided
by a qualified trustee licenced by
the Financial Services Commission
Extent and cost of residential
property
The extent of land that may de used
for the development of a residential
property within the real estate
development must not exceed 1.25
arpents.
How can Moore Stephens help?
o
Advice and guidance
o
Identifying a resort/villa
o
Filing forms and submit your
application for IRS/RES with the
authorities
o
Liaising and making representations
with the authorities
o
Company formation, secretarial
services, consultancy services
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