The Integrated Resort Scheme or IRS, is a real estate investment system, open to Non-Mauritian citizens.
The Mauritian government put in place the IRS in 2002 which facilitates property ownership for the many foreigners looking to invest in real-estate on the island. This investment scheme is not only interesting because of the idyllic lifestyle which Mauritius offers, but also the tax advantages that come with it.
The Mauritian IRS in figures
is the minimum price of a property to be able to qualify for the IRS
is the minimum number of which an owner must spend on the island to be considered a resident of Mauritius for tax purposes
is the minimum surface area of the housing complex in which the property to be bought through the IRS is found
The multiple advantages of the IRS
There are many benefits of investing in property through the IRS on Mauritius. There are many highly prestigious real-estate developments waiting to be filled by people looking for an idyllic island lifestyle.
Investing in a property through the IRS allows the owner to obtain permanent residency status in Mauritius from themselves, their spouse and their dependent children. The IRS also means that any value that the house has gained when you resell the property remains tax-free.
You are able to be considered a Mauritian tax resident by spending 183 days a year in the Mauritian property bought through the IRS, or 270 days over 2 years.
Non-Double Taxation Agreement
- Mauritius has double taxation treaties with 32 countries including South Africa. Mauritian tax residents benefit from these agreements by not paying tax in their country of origin.
A lighter tax regime
- Becoming a property owner in Mauritius, opens up the possibility of becoming a Mauritian resident for tax purposes. Mauritius operates a lighter tax regime with a 15% top rate for income tax.
- Many taxes that exist in other countries don’t exist in Mauritius, such as taxes to local authorities and property taxes.
A better lifestyle
Of course the Mauritian IRS is a fantastic tax incentive, but more often than not it’s the island lifestyle that seduces people to become Mauritian residents.
Breathtaking landscapes, the beauty of the island’s nature, and the numerous sporting activities on offer, all come together to create an idyllic lifestyle. The new IRS Anbalaba housing project, in Baie du Cap, is nestled between a turquoise blue lagoon and a tropical forest.
Real estate investment schemes
The IRS is not the only specialised scheme of offer from the Mauritian government.
Real Estate Scheme: this scheme is for projects with a surface area ranging from 4,000m2 upto 10 hectares
Property Development Scheme: this system has no surface area restrictions. By law 25% of PDS schemes must be reserved for Mauritian investors. The tax and residency benefits of these schemes are also different.
SMART CITY scheme: this scheme allows foreigners to invest in smart city projects, which are based around technology, innovation and the environment.