New rules, new opportunities: Update on real estate transactions in Mauritius

Important update for the real estate sector in Mauritius: Occupation and Resident Permit holders can now own their main residence outside schemes such as IRS, PDS, RES, R+2 and Smart City.

We've been waiting for it: the Non-citizen Property Restriction Act underwent a crucial amendment in 2022, and after much anticipation, the detailed guidelines have finally been unveiled. Let's analyze this new law.

Expanded property ownership opportunities

The following non-citizens can acquire residential real estate for their personal residence :

• Main holder of a Permanent Residence Permit
• Main holder of a residence permit issued by virtue of the purchase of an immovable property under the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Property Development Scheme (PDS), Invest Hotel Scheme (IHS), Smart City Scheme (SCS) or apartment located in ground +2 building
• Main holder of an occupation permit as investor, professional or self-employed
• Main holder of a short-term occupation permit Main holder of a family occupation permit

Property criteria

A non-citizen holding an Occupation or Residence Permit may purchase or acquire a single property. This may be :

• A residential property (detached house, villa, apartment, etc.) built on land not exceeding 0.5276 hectares (1.25 acres).
• A bare land or serviced land, provided that the surface area does not exceed 0.5276 hectares (1.25 acres). 

On the other hand, a non-citizen of Mauritius cannot buy or acquire a :

• Residential property situated on State land, including Pas Géométriques
• Bare land classified as agricultural land
• Plot of serviced land exceeding 0.5276 hectare (1.25 arpent)
• Standalone residential property constructed on an extent of land exceeding 0.5276 hectare (1.25 arpent)

Price point and taxes

To proceed with the acquisition, the property must meet certain financial criteria:

• Minimum price: more than 500,000 USD or equivalent in hard currency, i.e. around 23,000,000 Rs (current rate as at 15/02/2024) or 466,000 €.
• Payment of taxes: As with a traditional purchase, the buyer must pay 5% Registration Duty on the value of the property. Under the new law, in addition to the two above-mentioned taxes, the buyer will have to pay an additional 10% tax.
  
  The 5% Land Transfer Tax is payable by the seller.

Target audience

This amendment caters specifically to permit holders who have been in Mauritius for a considerable period and have identified a property of their choice outside the IRS, PDS, RES, R+2 and Smart City real estate schemes.

This groundbreaking amendment allows permit holders to buy their dream property outside the traditional schemes. The guidelines aim to simplify the process, providing a pathway for permit holders to own residences that align with their preferences and aspirations.

For further details or assistance in navigating this new opportunity, the BARNES Mauritius team is here to guide you.