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Mauritius is a beautiful Indian Ocean island nation that boasts blue beaches, political and economic stability, and a favorable taxation system. Mauritius is a destination of choice for both investors, retirees, and professionals looking to relocate, since it is not only a top tourist destination.
The acquisition of real estate is one of the most straightforward methods of relocating to Mauritius on a long-term basis. When you purchase a qualifying property in Mauritius, you can be granted an Occupation Permit (OP), a residency permit that also authorizes you to work or conduct business in Mauritius.
In this guide, you will go through the operation of the Occupation Permit system, the type of Mauritius property that can be considered as being eligible for an Occupation Permit, and what you should do to make the move to Mauritius.
What Is the Occupation Permit (OP)?
An Occupation Permit is a long-term work and residence permit granted by the government of Mauritius. It allows foreign nationals to live and work in the country within the confines of the law and is generally valid within a span of 10 years, with renewal.
An occupation permit is of three broad types:
Investor: To people who are investing at least USD 50,000 in a business in Mauritius.
Professional: To those who work with a local business with a minimum monthly salary of MUR 30, 000.
Self-Employed: Freelancers or small business owners who invested at least USD 35,000 in their personal business.
Occupation Permit holders are also permitted to invite their spouses and dependent children to stay in the country. The other benefits are an easy tax regime with a flat tax of 15% income tax, no capital gains tax, and no inheritance tax.
According to the Wikipedia article on residence permits, residence permits, or residence visas, are a type of legal document that grants long-term permission to reside and work in a foreign country, subject to certain conditions.
How Buying Property Helps You Qualify for Residency
Besides the business or employment opportunity, Mauritius also offers a property-based option of residency. Foreigners who invest at least USD 375,000 in a Mauritian property under an approved development scheme have the right to request a Residence Permit to stay as long as they remain the owners of the property.
Not all properties are eligible, though. The Mauritian government has established specific investment plans for real estate to ensure that foreign acquisitions are regulated.
Government-Approved Real Estate Schemes
- IRS (Integrated Resort Scheme): Luxury villas and estates that are occasionally located in resort developments with golf courses, marinas, or access to the beach.
- RES (Real Estate Scheme): Smaller luxury projects, which are also open to foreign purchases.
- PDS (Property Development Scheme): It is a modern scheme that provides sustainable development and integration.
- Smart Cities: Mixed-use projects, which include residential, commercial, educational, and recreational areas.
- G +2 Apartments: Buildings with three or more floor levels. The minimum price to buy is MUR 6 million (around USD 150,000), and only those apartments that are priced at USD 375,000 and above are permitted to reside.
These programs, as explicated by the Economic Development Board (EDB) of Mauritius, are meant to offer a secure and controlled investment atmosphere to foreigners to invest in the local real estate sector.
Once they have purchased the property and met the requirements, the buyers can apply for a Residence Permit that covers their spouses and children as well. It is a very convenient and effective method of acquiring a legal residency in Mauritius by way of real estate.
Find a Real Estate Agent and the Right Property
Buying property in a foreign land requires several legal and administrative formalities. It is of great importance to hire the services of a licensed real estate agent in Mauritius.
An authorized agent will be able to help you with:
- Determine properties that qualify under approved schemes in the category of residency.
- Compare locations and budgets of investment.
- Negotiate with the sellers or developers.
- Application assistance and legal assistance.
You can be sure that a local professional can provide you with verified property available in the market, in case you are looking for a villa for Sale near the ocean, or apartments in a Smart City area.
Such organizations as Ad Valorem are knowledgeable about how to advise international buyers. Not only do they know the Mauritian market, they know the laws that regulate that market, and they will make it a safe and sound investment.
Best Areas to Buy Property in Mauritius
Mauritius has a large variety of home environments, from bustling beach towns to serene country estates. The selection of the appropriate location is based on your lifestyle and personal needs.
Grand Baie/Pereybere (North)
An exciting seaside resort and one of the most favored spots among expatriates and tourists. Grand Baie is a great place to shop, eat, entertain, and engage in water sports. It is the most desirable location in terms of a luxury property and serviced apartments.
In case you want a villa for Sale with sea views, which is modern and in a quiet location, then this area is a great place to consider.
Black River and Tamarin (West)
It is ideal for individuals who enjoy nature, the outdoors, and more relaxed living. There are numerous gated communities, luxurious villas, and some of the most beautiful coastal scenery can be found in Black River.
Belle Mare & Beau Champ (East)
The East Coast is known to have its clean beaches and seclusion, hence it is a favorite place for those seeking a healthy, tranquil, and secluded lifestyle. There are several high-end resorts and golf estates in this region.
Moka and Smart Cities (Central)
Moka and other Smart Cities are centrally situated and near business centers, hence offering modern infrastructure, good education, healthcare, and business facilities. It is a perfect place to work and have a family.
Step-by-Step: How to Buy Property in Mauritius
Property acquisition in Mauritius is a very easy process that must be carried out within the local laws. Here is the procedure:
1. Choose a Property and Sign a Reservation Agreement
After you have selected an appropriate property, you will sign a Reservation Agreement, or a Compromis de Vente. A deposit percentage of 10-25%.
2. Hire a Notary and Conduct Legal Due Diligence
In Mauritius, any transaction involving property is to be conducted by a licensed notary. The notary will make sure the title of the property is clean, prepare the legal documents, and take care of the interests of both the buyer and the seller.
3. Request the Economic Development Board (EDB) Approval
Your notary or real estate agent will assist you in filing the necessary paperwork with EDB to have it approved to buy it. This includes:
- Evidence of nationality and identity.
- Proof of funds
- Description and value of property.
The process of approval takes an average of 2-4 weeks.
4. Finalize the Sale and Register the Property
After receiving the approval of EDB, the final deed is signed, and the remaining part of the purchase price is paid. The notary and taxes will register the sales, and the fees will be paid. You now own the property.
Apply for Your Residence Permit
After making the purchase of property, a Residence Permit can be applied to the EDB. You can do this even when you are still overseas.
The documents typically needed are:
- Application form
- Passport and birth certificate.
- Medical clearance certificates and police.
- Documents of health insurance (where necessary)
- Proof of payment and deed of Sale.
You will complete the process with an appointment in Mauritius, and EDB will provide you with an Approval in Principle. After permission, you will receive a Residence Permit that will last till you own the property.
Important Factors and Trapfalls
It is necessary that you also know the legal and financial provisions in place regarding foreign purchasers before you decide to purchase a property in Mauritius. It will keep you out of the pitfalls that so many people fall into, and your experience in investment will be a good one.
Legal Restrictions
The government only permits foreigners to purchase property using the approved real estate schemes. Any effort to avoid this can have dire legal consequences.
Additional Costs and Fees
Other than the cost of purchase, the buyer should take into consideration the following costs:
- Registration tax (5%)
- Notary fees (1–2%)
- Processing and application fees of EDB.
No annual property tax is charged, and no capital gains tax is charged, assuming that you will sell the property in the future.
Use Reputable Professionals
One should always deal with a licensed real estate agent and notary. When purchasing off-plan, you must ensure that the developer is reputable and that it offers financial guarantees.
Timing and Travel
With the help of a tourist visa, you may also visit Mauritius until your Residence Permit is approved. Ensure that your visa does not expire before you get a Residence Permit.
Conclusion
Real estate investment in Mauritius is one of the best and safest ways to ensure permanent residence in a politically stable and tax-friendly island paradise. An initial investment of USD 375,000 in a recognized project will grant you a Residence Permit with yourself and your complete family and all the benefits that are associated with it.
The Mauritius property market offers lots of opportunities both to live and to invest, whether you need a villa in a quiet coastal area or an apartment in a business district.
You can be just a few steps away from your new life in Mauritius.
