Mauritius Extends and Expands Property Tax Incentives for Homebuyers

Great news for anyone looking to buy property in Mauritius! The government has extended and expanded several tax incentives designed to make homeownership more accessible. Here’s a breakdown of the key changes:

Registration Duty Exemption for Newly-Built Dwellings

• Extension: The program offering full exemption on registration duties for Mauritian citizens buying newly-built homes has been extended for two years, now covering purchases made up to June 30, 2022.
• Higher Threshold: The maximum value of a qualifying dwelling has been increased from Rs 6 million to Rs 7 million.
• Off-Plan and Under Construction Purchases: This exemption also applies to homes bought off-plan or during construction.

Important Note: This exemption does not apply to properties on Pas Géométriques (leasehold land) or within IRS, RES, PDS, or IHS developments.

Land Transfer Tax Exemption for Residential Projects

• Promoting Affordable Housing: Developers building housing projects of at least 5 residential units can benefit from exemptions on registration duty and land transfer tax.
• Deadline Extension: The deadline for project registration with the MRA has been extended to December 31, 2020.
• Construction and Sales Deadlines: Construction must be completed by December 31, 2021, and the residential units must be sold to Mauritian citizens by June 30, 2022.

Tax Exemptions for First-Time Buyers

• Inherited Property Considerations: The definition of a first-time buyer has been expanded to include individuals who inherited property with a land area of less than 20 perches.

Attracting Foreign Talent and Investment

• Reduced Minimum Investment: The minimum investment required for foreigners to obtain Permanent Resident status has been reduced from USD 500,000 to USD 375,000.
• Land Ownership for Non-Citizens: Non-citizens with residence permits can now purchase serviced land in Smart Cities for residential purposes.

Changes to Occupation Permits and Residence Permits

• Streamlined Process: The Work Permit and Residence Permit have been combined into a single permit.
• Longer Validity: Occupational and Residence Permits for retirees are now valid for 10 years (renewable).
• Reduced Investment Thresholds: The minimum investment required for an Occupational Permit has been lowered from USD 100,000 to USD 50,000.

Please note: These are budgetary measures announced in the 2020-2021 National Budget and are subject to approval by the National Assembly.

Permanent Residence Permits Extended

• 20-Year Validity: The Permanent Residence Permit has been extended from 10 to 20 years.
• Eligibility Requirements: Occupational Permit and Residence Permit holders who have held their permits for three consecutive years are eligible to apply.

Additional Incentives for Foreign Professionals and Retirees

• Investment Flexibility: Professionals with Occupational Permits and retirees with Residence Permits can now invest in other ventures without shareholding restrictions.
• No Additional Permits for Real Estate Investors: Non-citizens who have Residence Permits under various real estate schemes no longer need an Occupational or Work Permit to invest and work in Mauritius.
• Parents as Dependents: Occupational Permit holders can now bring their parents to live in Mauritius as dependents.

Cost Considerations for Buyers and Sellers

• Buyer’s Costs:
  • Agency fees: 2% of the sale price + 15% VAT
  • Registration duties: 5% of the sale price
• Seller’s Costs:
  • Agency fees: 2% of the sale price + 15% VAT
  • Land transfer tax: 5% of the sale price
• Rental Costs:
  • Agency fees for a one-year lease: Equivalent to one month’s rent + VAT

Document Checklist for Buyers and Sellers

To ensure a smooth transaction, both buyers and sellers will need to provide certain documents.

• Buyers:
  • Passport photos
  • ID card (photocopy)
  • Marriage certificate (if applicable)
  • Divorce certificate (if applicable)
  • Proof of address
  • Proof of occupation
  • Birth certificate
• Sellers:
  • Passport photos
  • Marriage certificate (if applicable)
  • Divorce certificate (if applicable)
  • Pin code and updated site plan (photocopy)
  • Birth certificate
  • Title deed
  • Certificate of approval (from Syndic, if applicable)

Take Advantage of These Opportunities

If you’re considering buying property in Mauritius, now is an excellent time to take advantage of these tax incentives and investment opportunities. Contact a real estate professional to learn more and find the perfect property for your needs.