Buying a property off-plan in Mauritius

What are the advantages of buying property off-plan in Mauritius?

A VEFA sale in Mauritius, also known as a ‘purchase or sale off-plan’, is a contract under which the purchaser buys a property to be built or under construction, on the basis of plans and descriptive and graphic documents presented by the developer.
What are the main advantages?

Diversifying and adding value to its real estate assets in Mauritius

The new property market in Mauritius is remarkably buoyant, attracting many foreign investors thanks to its advantages. Government reforms to make it easier for non-residents to acquire property, including access to Mauritian tax residency, have played a crucial role in the sector's growth.

New property developments in Mauritius offer modern infrastructure and very high quality services. Rental demand is dynamic and steady throughout the year, and the country's political and economic stability further enhances the prospects for increasing the value of its real estate assets in Mauritius.

VEFA property investment in Mauritius is therefore the ideal option for investors wishing to diversify their portfolio, while benefiting from an exceptional environment.

Access to sustainable, modern and energy-efficient properties

Our new-build properties in Mauritius meet the latest construction standards, particularly in terms of energy performance and compliance with environmental regulations.

Bioclimatic construction, sustainability, priority given to renewable energies, reduction of energy consumption by homes, optimisation of sunlight, etc... everything is done to control environmental impact and energy consumption.

Buying a VEFA property in Mauritius guarantees you optimum comfort, modern facilities and low maintenance costs, without having to plan any major renovation work in the years ahead.

Very attractive tax benefits

By investing in a new-build property in Mauritius, you can take advantage of some particularly attractive tax breaks:

• Reduced notary fees and VAT
• Tax on rental income capped at 15
• No property tax
• Exemption of property held in Mauritius from the Impôt sur la Fortune Immobilière (IFI) tax base
• Exemption from lineal inheritance tax on property held in Mauritius

Buying a customisable property

Buying off-plan gives buyers the opportunity to design and customise certain aspects of their future home, such as finishes, floor coverings, room layouts and equipment (subject to compliance with current regulations and the specific terms and conditions of the development).
This allows you to create a living space that perfectly suits your tastes and needs, and adds even more value to your investment in new-build property in Mauritius.

The VEFA sale, a real guarantee for your property investment in Mauritius

The introduction of the VEFA sale contract in Mauritius has provided optimum security and protection for investors. It is subject to specific regulations set out in the Mauritian Civil Code, the provisions of which are very similar to those of the French Civil Code.
Buying a VEFA property in Mauritius means you can benefit from a number of guarantees, both financial and relating to the construction itself.

Financial guarantee of completion

The GFA is compulsory for the developer, in order to protect the purchaser of the VEFA property. It is a financial guarantee under which a financial institution undertakes, in the event of the developer defaulting, to advance the sums required to complete the works.

In the absence of a GFA, a repayment guarantee allows the buyer to be reimbursed for any sums already paid if the VEFA property development is not completed. However, unlike a GFA, which guarantees completion of construction, a repayment guarantee entails cancellation of the sale of the building.

Ten-year guarantee

Under Mauritian law, the ten-year guarantee is similar to the French ten-year guarantee. It gives purchasers a period of 10 years from the date of delivery of the property in which to report and demand the repair of any defects that may affect the soundness of the building.

Building damage insurance

Damage cover is valid for the duration of the ten-year guarantee. It is taken out by the developer to enable the insurer to take immediate responsibility for work covered by the ten-year guarantee.

Equipment guarantee

The equipment guarantee is an optional guarantee, valid for 2 years. It covers equipment that can be separated from the building (shutters, taps, tiles, etc.).

What are the stages involved in buying off-plan in Mauritius?

A VEFA sale is a contract enabling the buyer to purchase a property that is under construction, or not yet built, and that the developer undertakes to deliver to the buyer once completed. As with all property transactions, the VEFA sale in Mauritius must be recorded by a notary.
What are the stages involved in buying off-plan in Mauritius?

VEFA sale regulations in Mauritius

According to article 1601-3 of the CTA: Mauritian Civil Code, ‘the sale in the future state of completion is the contract by which the seller immediately transfers to the purchaser his rights over the land and ownership of the existing buildings. Future works become the property of the purchaser as and when they are completed; the purchaser is required to pay the price as the work progresses. The seller retains the powers of the project owner until the work has been accepted.

The VEFA property reservation contract and the guarantee deposit

The CRP (Contrat de Réservation Préliminaire - Preliminary Reservation Contract) is an optional, but widely used, pre-contract for VEFA property purchases in Mauritius. Under the Mauritian Civil Code, by signing this reservation contract, the purchaser already commits to the purchase of the property.
The CRP must be drawn up before a notary and must include the following information:

• A description of the property for sale, together with a descriptive note
• The sale price and any conditions for its revision
• The date on which the final contract will be signed
• The deadline for completion of the work
• The legal terms and conditions governing the buyer's right to withdraw from the contract, with recovery of the depositThe financing condition precedent, if a bank loan is taken out.

When the CRP is signed, and in order to reserve the property, the buyer is required to pay a deposit into an escrow account. This deposit will remain untouched until the sale contract is signed, unless the contract does not go ahead.
The amount of the deposit is a maximum of 2% of the sale price, or 25% if the final deed of sale is signed in the same year as the CRP.
However, buyers still have the right to cancel their investment and recover their deposit if the developer fails to meet the completion deadlines set out in the CRP.

Signing the VEFA deed of sale

The VEFA deed of sale must be drawn up before a notary. It must include

• An exact, detailed description of the property
• the sale price
• The date of completion of the building
• The delivery date, expressed in months, with any penalties for late delivery
• Financial guarantees for completion of the work or repayment, and guarantees relating to the construction
• Reference to administrative authorisations (building permits, etc.)
• The payment schedule.

Payment of the purchase price is staggered, in order to monitor the progress of the work:

• 25% when the deed of sale is signed
• 10% on completion of the foundation work
• 35% when the roof is rendered watertight
• 25% on completion of the work
• 5% on handover of the keys to the purchaser.

Acceptance and delivery of the VEFA property

Acceptance of the building corresponds to the property developer's acceptance of the work carried out and completed.

Delivery of the VEFA property corresponds to the handover of the keys by the developer to the purchaser of the property. This activates the guarantees incumbent on the builder: GFA, Ten-Year Guarantee and Equipment Functioning Guarantee.
Purchasers have 12 months in which to make use of the GFA guarantee in the event of any defects or hidden faults.