Many foreigners have been moving to Mauritius lately to invest in real estate in the country. The industry is thriving. Although widely appraised for its beaches and peaceful union of cultures, Mauritius is quickly turning into an investment hub in Africa, especially regarding the strong growth of real estate. Here is how you can benefit from property investment in Mauritius.
Stable growth in the Real Estate sector
The Mauritius Real Estate industry has registered a growth in the past years and now smart cities are on the rise. Smart cities represent an excellent opportunity to invest in luxury residential estates, industrial and commercial properties and land, providing an interesting return on investment.
Smart cities comprise of modern medical complexes, recreational activities, business parks, shopping malls, and leisure areas, amongst others. The value of real estate in smart cities is expected to rise in the coming years. Therefore, it is not only an opportunity to invest and gain a profitable amount back; smart cities will also become a lush lifestyle with accessible amenities nearby.
When establishing themselves in Mauritius, foreigners tend to acquire properties near the coasts or on the waterfront, or choose more secluded environment. Heedless of the geographical location, the number of properties has considerably increased since the last couple of years, and this trend is expected to rise to meet the ever-growing demand. With the objective of a resale or rental, the purchase of a real estate property in Mauritius will always remain profitable.
Why you should consider investing in real estate in Mauritius
Mauritius inhibits a perfect blend of cultures and traditions and everyone lives in harmony within the island. It is renowned for its dazzling beaches and tropical climate. Near the seaside or elsewhere, property investment in Mauritius is booming.
The political and economic stability in the island is one of the factors foreigners take into consideration when selecting where to invest and live. Other reasons for investing in a property in Mauritius, and to relocate to the island, include:
- Affordable standard of living;
- Rise of smart cities which prompt foreign property investment;
- Wide range of properties to rent and buy with affordable price;
- High literacy and most people speak English and French;
- Investor-friendly schemes allowing foreigners and expatriates to acquire one (or more) property(ies),
- English-speaking and French-speaking institutions (private primary, secondary and tertiary),
- Many leisure activities and nightlife;
- Internationally recognized golf destination;
- Modern and well-equipped health complexes; and
- The beaches are exceptional.
These are a few among many reasons why foreigners choose to relocate to Mauritius. In addition, investing in property in Mauritius could be an alluring long-term deal.
Relocation to and real estate investment in Mauritius
Before setting foot in the island, it is recommended to be accompanied by specialists who will be able to guide you. In Mauritius, there are specialised companies that provide an integrated set of services from real estate investment and real estate advice to concierge and administrative services, such as PLEION Private Services. This is ideal for investors and expatriates who want peace of mind when looking to purchase a new property and relocate with their family.
A simple tax regime
The tax regime in Mauritian does not include:
- Wealth tax
- Property tax
- Taxes on assets acquired in inheritance or as gifts
- Capital gains tax
- Exchange control
- Income tax on local dividend
There is a harmonized tax rate of 15% towards:
- Value Added Tax
- Corporate Tax
- Individual income tax
In addition, Mauritius has signed Double Taxation Avoidance Agreements preventing property investors from being taxed both in Mauritius and in their home country.
Mauritius is a renowned destination among investors and foreigners, especially when it comes to the setting up of offshore companies, investing, doing business, offshore IT outsourcing, as well as relocation.
A non-citizen of Mauritius investing in a property, worth at least USD 375,000 in designated real estate projects, in Mauritius is eligible to a residence permit. It also gives the buyer’s dependents (spouse, children and/or parents if retired) the right to a residence permit, allowing them to establish their tax residence and live in Mauritius.
Property owners can buy or sell their property, especially with the aim of generating capital gains. The residence permit remains active as long as the buyers remain the owners of their property.
The rental opportunity
The high demand for luxury properties (from foreigners and tourists) in a good way to generate a rental income. Indeed, by making their property available to foreigners or tourists, owners are able to generate considerable long-term and short-term rental income.
Mauritius has a number of Double Taxation Avoidance Agreements signed with countries from Europe, Africa and Asia. Depending on the owners’ country of origin, income derived from the rental of a property in Mauritius by a non-citizen of Mauritius is not subject to tax in his home country, but only in Mauritius, thus avoiding double taxation.
There has never been a better time to invest in property in Mauritius. With a stable economy and a welcoming investment climate, Mauritius is a great place to put your money.