The real estate sector has a bright future in Mauritius
How is the real estate sector in Mauritius doing after several months of confinement? This is probably one of the crucial questions that potential investors must ask themselves given the current context. Despite the crisis, Mauritius remains a secure investment destination. With the new measures introduced by the government, it is even more likely to attract many foreign clients.
What are the new measures introduced by the Mauritian government?
With the objective of facilitating investment in Mauritius, the Mauritian government has put in place a series of measures that are beneficial to non-Mauritians. The latter will be able to obtain a permanent residence permit under a property regime (IRS, RES, PDS or Smart City) by investing a minimum of 375,000 dollars instead of 500,000 dollars. In addition, the validity of a permanent residence permit will be extended to 20 years instead of 10 years.
Holders of a residence permit under these different schemes will also have the right to invest and work in Mauritius without having to apply for an additional permit.
To encourage foreigners to invest in the country, the government has also introduced a measure that allows the spouses of work permit holders to work in Mauritius without the need to apply for an additional permit.
Why does it make sense to invest in the real estate sector?
” Because of the decline in stock market values, the real estate sector appears more than ever to be a safe haven ,” highlights Vanessa Duvergé, a real estate sales consultant at Azuri Ocean & Golf Village, who has more than ten years of experience. According to her, this sector, which attracts many South African, French, English, Swiss, Belgian and Asian investors, has a bright future despite the crisis.
“Unlike the financial markets, which require a complex knowledge, a real estate investment does not require any particular technical or financial knowledge. The real estate sector has a reassuring “tangible” side, meaning that you can visualise or even visit your future home. ”
Even if they are unable to travel, some foreign clients are able to visit the property virtually and proceed with the purchase. “Customers trust us by confirming their purchases remotely,” adds Vanessa.
In the current context, buyers are saving between 5% and 10% on the acquisition cost thanks to a very favourable exchange rate. For example, 1 Euro is now equal to 47 rupees compared to 39 rupees before confinement. A good difference which reflects on the overall price of real estate properties.
Why is an investment in Mauritius secured ?
Mauritius has not registered any local cases of covid 19 since May. It is therefore considered as a secure destination. All sanitary measures are taken to ensure the health and safety of all: Checking the temperature, wearing a mask and using hand sanitizer. The Mauritian economy is also recovering, notably with the resumption of activities of many companies and the partial opening of borders.
Mauritius also benefits from an optimal security system. You can invest and live peacefully with your loved ones in complete safety. Legally speaking, the Mauritian civil code is governed by the Napoleon code. Like any democratic state, the powers are separate: the legislative, the legal and the executive.
When buying a property in Mauritius, the notary is present at the signing of the deed of sale. There is also the VEFA (Sales of Properties in Future State of Completion). You can make your payments in several instalments until completion according to a precise schedule. The bank will then issue you with a GFA (Completion guarantee). This guarantee protects you in the event of construction defects or failures.
In addition, the country offers very attractive tax advantages for foreign nationals. A single rate of 15% is applicable on income tax. Rental income is also taxed at a rate of 15%. This is an advantage for foreign investors who want to buy a property even if they are not Mauritian tax residents. In addition, Mauritius has signed a double taxation treaty with 33 countries, including France. This bilateral agreement thus makes it possible to avoid double taxation in terms of income and wealth tax.
How does Mauritius stand out from other countries?
In addition to its dreamlike landscapes, its diverse cultures, the legendary hospitality of its people and its advantageous tax system, Mauritius has several other assets to attract foreign investors. This destination allows them to enjoy a privileged living environment with its modern infrastructures (schools, shopping centres, health establishments). The island also offers very luxurious services: rental or purchase of luxury villas, gastronomic restaurants, sumptuous spas, transfers by helicopter or limousine.
If you choose to invest in Azuri Ocean & Golf Village, for example, you can live in a villa by the sea and enjoy many activities and facilities. This village, located in the north of the island, is home to tennis courts, a golf course which is under construction, a Montessori nursery school, a grocery shop and a café. As a resident of Azuri Ocean & Golf Village, you will also have the opportunity to interact with a community of fifteen different nationalities.
With direct flights and the installation of fibre optics, Mauritius also provides great connectivity to the rest of the world.
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Are you interested in investing in real estate in Mauritius? Contact our sales team on 5499 9995.