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Why invest in real estate in Mauritius?

Perspective

13/04/2022

Why choosing Mauritius for a real estate investment ?

Investing in real estate in Mauritius is popular for several reasons. While building a lasting asset base or generating additional income are among the primary reasons for investing in real estate, there are other benefits associated with the choice of investment location, particularly Mauritius. Discover the benefits and parameters of a real estate investment in Mauritius. 

Why should you be interested in investing in real estate?

Investing in real estate is accessible to everyone even with a small amount of money. Indeed, it is possible to make rental investments with little money to buy the property through a bank loan. Real estate investment is facilitated by low bank loan rates, around 1.20% over a period of twenty years. This makes it possible to support an investment project and constitutes a real leverage effect. Not to mention the numerous tax advantages available, particularly in Mauritius, which attract many property investors every year. 

 

Otherwise, real estate investment offers security and long-term profitability. The returns are higher than some financial investments. It is estimated that the annual return on a property investment in Mauritius is between 4 and 10%. This higher rate is mainly due to the permeability of the sector to economic fluctuations. Furthermore, investing in real estate abroad and in Mauritius allows one to enrich and diversify one's wealth and to receive other income that can enhance one's retirement. This property can be used as a residence, inheritance. It can also be rented out or even resold with a capital gain. In other words, investing in property in Mauritius allows one to diversify one's investments and to become a homeowner and enjoy many advantages.

What are the advantages of investing in real estate in Mauritius?

Mauritius is a dream destination that attracts many tourists from all walks of life. Some even decide to settle there and buy a house. It is possible for foreigners to buy a property in full ownership. Expatriation has several advantages made possible by the systems set up by the Mauritian government such as the Property Development Scheme (PDS, combining the IRS and the RES) or the Smart City Scheme (SCS) or more recently the R+2 (buying in a building with at least two floors). Taxation is also more lenient than in France. There is no council tax, property tax, inheritance tax or capital gains tax. Finally, personal and rental income is taxed at a flat rate of 15%. But what else? Mauritius offers a stable political and economic framework and allows for a property purchase with a high rental return. The tropical summer, which lasts about 6 months, remains the peak season for the influx of the million annual tourists, thus ensuring an important turnover. Hotels and rentals are very often booked in advance and are often fully booked. 

What are the different types of investment in Mauritius?

There are several ways to invest in real estate in Mauritius. Whether you want to buy or rent, Mauritius is full of different options. Indeed, villas, houses, penthouses, duplexes, flats and bungalows are available throughout the island. Some locations will be more suitable for a seaside setting or with access to the sea or directly on the water. Others will allow you to take advantage of more abundant vegetation or a more direct access to the city. The different types of investment are governed by regimes. Depending on the investor's profile, there are offers that favour luxury real estate, such as villas on golf courses, or those that are more directly aimed at people who wish to benefit from a retirement in Mauritius in flats or penthouses in the city centre for example. Find all the details here of the different investment programmes in Mauritius. 

 

Our BARNES Mauritius team, present on the whole island, is at your disposal for any information or to accompany you in an investment project in Mauritius. We can help you to choose the best solution to make your purchase. Do not hesitate to contact us here.