Loan, formalities: the steps to becoming a property owner in Mauritius

Criteria to consider when searching for property in Mauritius

The search phase is a crucial step in your real estate investment project in Mauritius. The country offers a dynamic and diverse real estate market, driven by a thriving economy, political stability, and a strong real estate law based on French and British models.

The criteria to consider may include:

• The type of property sought: Luxury villa for a paradisiacal pied-à-terre, comfortable traditional house for retirement, new apartment with high rental potential, etc. Each project or lifestyle corresponds to a specific type of property.
• Buying off-plan: Off-plan sales (sales of a property to be built or under construction) are very common in Mauritius. In addition to offering the possibility of personalizing the property, they allow the buyer to benefit from strong guarantees and insurance (decennial warranty, financial guarantee of completion, and damage/work insurance). For more details, please refer to our dedicated article "Buying Property Off-Plan in Mauritius."
• The budget: Some real estate schemes in Mauritius indeed allow foreigners to become property owners with a minimum investment of 175,000 USD.
• The amenities and services: Gym, spa, pool, concierge service, property management, direct sea access, etc. Buying in Mauritius gives access to exclusive services.
• Mauritian permanent resident status: For investments over 375,000 USD, the Mauritian residence permit can be automatically granted to the buyer and their family.
• The profitability of the investment: Potential capital gains and rental profitability are key criteria for investing in real estate in Mauritius. Proximity to a major tourist destination or a new development area is a real guarantee of appreciation for your investment.

The different real estate schemes in Mauritius

The Mauritian government has implemented several schemes to secure and provide a legal framework for real estate investment for foreign buyers in Mauritius.

IRS (Integrated Resort Scheme)

The IRS is aimed at foreign investors looking for a high-end residence in Mauritius. These are large-scale projects: the developed land must exceed 10 hectares and offer premium infrastructures (golf course, spas, restaurants, etc.).

The minimum investment is set at 375,000 USD, and it automatically grants the investor and their family the right to obtain permanent residency. Domaine d’Anbalaba is one of the IRS real estate programs in Mauritius.

RES (Real Estate Scheme)

Introduced in 2007, the RES provides access to more modest and medium-sized real estate projects. Unlike the IRS, the RES is not limited to residential complexes and is accessible to a larger number of investors: there is no mandatory minimum purchase amount.

For an investment over 375,000 USD under the RES, the buyer and their family also benefit from the Mauritian residence permit. Otherwise, a 6-month stay permit is still automatically granted.

PDS (Property Development Scheme)

Launched in 2015 to replace and harmonize the IRS and RES, the PDS imposes no size limit. This scheme favors projects with a positive social and environmental impact. These projects must integrate sustainable development elements and comply with the latest environmental standards.

Projects initiated under the IRS and RES schemes before 2015 continue to operate under their original names. However, new projects exclusively follow the standards and criteria of the PDS. The minimum investment threshold under the PDS is set at 375,000 USD, and it also grants the benefit of the permanent Mauritian residence permit.

Smart Cities Scheme

Launched in 2015, the Smart Cities Scheme aims to promote sustainable and responsible urban development. It combines housing, commercial spaces, modern infrastructure, and technological innovations designed for a connected lifestyle that is resource-efficient.

G+2 Scheme

The G+2 scheme allows you to purchase an apartment in a building with two or more floors, with a minimum investment of 175,000 USD. It does not grant the right to a permanent Mauritian residence permit but provides access to excellent rental investment opportunities in Mauritius. Investing in G+2 is therefore considered an affordable entry point into the Mauritian real estate market.

Mauritian Taxation

Concerned with encouraging real estate investment, the Mauritian government has implemented several highly attractive tax measures for foreign investors:

• Income tax capped at 15%, including rental income;
• Full exemption from property tax or residence tax, including for second homes;
• Exemption of real estate located in Mauritius from the calculation base of the IFI (Real Estate Wealth Tax);
• Tax exemption on capital gains from the resale of real estate.

Financing your property purchase in Mauritius

Mauritius has numerous banks and credit institutions. Just like Mauritian citizens, it is entirely possible for a foreigner to apply for and obtain real estate financing.

In fact, this is often easier than in their home country’s institutions. However, Mauritian banks require a number of eligibility criteria to grant a mortgage loan to a non-resident:

Age: Maximum 65 years at the time of the financing request.

Currency: Foreign borrowers are financed in the currency they earn, which has an impact on exchange rates (currently favorable for Europeans, as the Euribor rate is more advantageous for them).

Opening a bank account in Mauritius: It is essential to hold an account with a local bank to apply for a loan.

Income: Applicants must provide proof of stable and sufficient income, as well as a length of residence corresponding to the loan duration. For non-residents, proof of foreign income and regular financial transfers are required.

Down payment: Mauritian banks do not lend the full amount required for the project. A down payment of 20% to 30% of the purchase price (excluding fees) is often required.

Debt ratio: In Mauritius, the maximum debt ratio is 70%. However, if your monthly income does not exceed 200,000 Mauritian rupees (approximately 4,035 €), you are not allowed to borrow more than 40%.

Financial or mortgage guarantees: Financing more than 50% of the property’s value requires a financial or real guarantee (mortgage on the purchased property). IRS, RES, or PDS programs offer additional security because they are subject to specific guarantees, making it easier to obtain a mortgage loan from Mauritian banks.

The procedures to follow to buy property in Mauritius

Buying property in Mauritius requires prior approval from the Economic Development Board (EDB), which is responsible for verifying the source of funds. This rule applies to both the acquisition of a primary residence and the purchase of a property intended for rental.

Once approval is obtained, it is the notary's responsibility to prepare the sales contract, the deed of ownership, and verify the compliance of supporting documents. The notary is also required to check for any charges or mortgages on the property.

At the time of signing the sales deed with the notary, the seller must pay the Land Transfer Tax, which is 5% of the sale price. The notary will then provide the signed sales deed to both parties (seller and buyer), as well as a copy to the Registrar General, who will proceed with the property registration. Afterward, the notary will provide an authentic copy of the deed of ownership to the new owner.

In the case of purchasing a property worth more than 375,000 USD, the buyer can then submit a residence permit application to the Economic Development Board (EDB), which is typically approved within about three weeks.

The documents to be provided are as follows (non-exhaustive list):

• Passport
• Birth certificate
• Marriage certificate
• KYC (Know Your Customer) document from the buyer’s bank
• Proof of funds certificate
• Sale promise or sale agreement ("Presale agreement"), if applicable
• Preliminary reservation contract for an off-plan sale (VEFA), if applicable
• A sample off-plan sale contract for an individual house, if applicable
• Construction permit and plans, if applicable
• R+2 building plan, if applicable