WHY INVEST IN
A stable country where everyone is welcomed, a heavenly climate and nature, a thriving economy and a particularly attractive tax system! It is not surprising that real estate projects attract more than one on this paradisiacal island of the Indian Ocean.
The Mauritian government has developed its economic power through a policy that strongly encourages investment. A range of sound and transparent measures has been put in place to facilitate foreign investment. In real estate, it is opportune to take advantage of all these incentives ...
Investing in Real Estate Mauriitus
For a French taxpayer, investing in real estate in Mauritius now represents a real opportunity, even if it remains taxed in France ...
You will feel at home! Mauritians have an innate sense of hospitality and more... they are both francophones and anglophones. The mild tropical climate, the intense beauty of the landscapes, the turquoise waters of the lagoons and the immense white sandy beaches make this island a paradise. If we add that Mauritius is one of the safest countries in the world, this makes it possible to understand that it is one of the favorite destinations for holidays.
The political climate is stable and the economy is booming! Encouraging investment is the main focus of the Mauritian government's economic policy. The prosperity of the economy and the dynamism of the private sector are the result. This encouraging and reassuring environment explains why investing in Mauritius can be done in a long-term perspective.
Taxation is particularly appealing! 15% tax on profits or personal income. No taxation on dividends or capital gains. No social levies or property taxes. No TFR. No inheritance tax ... The Mauritian tax system is one of the lowest in the world! And the French investor enjoys an additional privilege thanks to a treaty of non-double taxation with France.
You can acquire a property in full ownership! There are many countries where a foreigner can only invest on leased land. To overcome this problem, the Mauritian government has put in place a regulated framework with a system allowing it to fully own its property:
The PDS (Property Development Scheme)
Since June 2015, the Mauritian government has decided to harmonize the regulation of real estate laws within a single legal framework, the PDS (Property Development Scheme), allowing both Mauritian citizens and foreign investors to fully own their property.
The PDS, the only legal framework now in force, replaces the two previous regimes: the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES). These two types of programs were distinguished mainly by the size, the fittings and the selling prices of the real estate project.
The PDS does not impose a minimum purchase price to allow the foreign investor to benefit from Mauritian tax benefits. As with the old IRS and RES schemes, the investor receives a residence permit if the amount of his investment exceeds USD 500,000.
Only recognized real estate developers with real expertise in the trade can develop PDS real estate projects. Moreover, their project must be environmentally friendly and fit perfectly with the neighboring Mauritian habitat.
The ecological aspect is taken into consideration: green areas, infrastructures favoring good ventilation, solar panels, water recovery ... are necessary elements for obtaining building authorizations under the new PDS scheme.
Good practice policy
In recent years, Mauritius has been breaking all records in terms of good governance, economic freedom and transparency, but also in terms of ethics. In 2014, the country was ranked as the most competitive African country in the world according to the World Economic Forum and 39th in the world. Always the same year, the IIAG (Ibrahim Index of African Governance) ranked it in first place with a score of 81.7 / 100. By 2015, Mauritius is in the 28th place in the overall ranking for ease of doing business. These are all indications that it is more than worthwhile investing in Mauritius.
Simplified and attractive tax savings
Mauritian tax rates are simpler and lighter, but this does not mean that the country is a tax haven as outlined above. Local taxation has been set at 15%, be it for income taxes, local company taxes, or Value Added Tax. On the other hand, for foreign companies using the country as a financial platform, such as Off-Shore companies, the tax rate on profits is between 3 and 15% depending on the status of the company: SARL, SA , Etc.
Non-double taxation agreements
Today, many foreign companies relocate part of their services to Mauritius to take advantage of the benefits of double taxation agreements, such as France, the United States, India and China, but also several countries African. These agreements allow foreign companies as well as foreigners working for their own account domiciled in the countries that have signed the agreements to pay only the tax on their Mauritian income in Mauritius and not in their country of origin.
Other tax benefits
In addition to local taxation of 15%, Mauritius also has other tax advantages. Indeed, unlike other countries, especially European countries, there are no taxes on property or property taxes in Mauritius. The same applies to taxes on dividends and inheritance taxes. A small point to clarify however, it is necessary to know that the heirs of a property located on the island residing in France, for example, will undoubtedly enter the estate assets French.
Real estate investment subject to a highly regulated framework
If a foreign investor wants to buy real estate in Mauritius as part of the legal arrangements (IRS, RES, IHS or PDS), it is important that he learns about the different approaches given that the real estate investment is subject to a Regulatory framework. The first point to be made is that all documents and contracts must be drawn up and recorded in French by notarial means and that the deposits must be deposited in escrow accounts. Other regulations are required, such as guarantees of completion of work for developers and VEFA (Sale in the State Future Completion).