Property buying process in Mauritius

The buying process in Mauritius is well regulated by government and protects the purchaser on many fronts. In 2015, the regulation governing foreigners buying in Mauritius changed from IRS (Integrated Resort Scheme) and RES (Real Estate scheme) to what is now called PDS (Property Development Scheme) and Smart City Scheme

Property Development Scheme

The Property Development Scheme (PDS), which has replaced the IRS and RES, allows the development of a mix of residences for sale to non-citizens, citizens and members of the Mauritian Diaspora.

The PDS provides the following:

1. the development of luxurious residential units on freehold land of an extent of at least 0.4220 hectare (1 arpent) but not exceeding 21.105 hectares (50 arpents).
2. the development of at least six (6) residential properties of high standing;
3. high quality public spaces that helps promote social interaction and a sense of community;
4. high-class leisure, commercial amenities and facilities intended to enhance the residential units;
5. day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services; and
6. social contribution in terms of social amenities, community development and other facilities for the benefit of the community.

A non-citizen is eligible for a residence permit upon the purchase of a villa under the PDS scheme when he has invested more than USD 500,000 or its equivalent in any freely convertible foreign currency.

The PDS is also a demarcation from the IRS and RES in as much as it does not differentiate between small and big landowners and harmonizes the registration duty to a single rate of 5% instead of USD 70,000 on registration of a deed under IRS and USD 25,000 under RES.

Reference: http://www.investmauritius.com/schemes/pds.aspx

Integrated Resorts Scheme (IRS)

Under the IRS, residential properties such as luxury villas, apartments and penthouses can be sold freehold to foreigners at a minimum price of US$500 000, which entitles the purchaser to a residency permit. The IRS targets the top-end segment of the international property market as an attractive lifestyle investment, expected to yield high returns and escalate in growth over the next 10 years. IRS developments generally include luxury amenities such as a golf course, marina, beach club and wellness centre, as well as restaurants and other facilities.

Real Estate Scheme (RES)

Under the RES, residential units are sold to non-citizens at no minimum price. The RES allows the development of any mix of residences for sale on freehold land (not exceeding 10 hectares), and acquisition of property worth at least US$ 500 000 entitles the purchaser to a residency permit. The scheme targets those who want to invest, work and live in Mauritius, and those desiring to own a second home or holiday home there.

Acquiring ownership within a PDS, IRS or RES development in Mauritius

When purchasing a property within an IRS or RES development, the following persons or companies may acquire ownership:

• A non-citizen of Mauritius
• A citizen of Mauritius
• A foreign company registered under the Companies Act of 2001
• A Mauritian company incorporated under the Companies Act of 2001
• A trust, serviced by a qualified trustee licensed by the Financial Services Commission

Note: Global businesses as defined by the Financial Services Act of 2007 holding a Global Business License may not acquire property under the IRS or RES scheme.

Details of the buying process in Mauritius

A residential property under a PDS, IRS or RES may be sold either off-plan, during the construction phase or when the construction is complete. Once the decision to purchase a property has been made, you, as the client, would be required to complete the following process:

• Signature of Contract of Preliminary Reservations (CRP). The documents to accompany the CRP include a certified passport with photo, utility bill in the purchaser’s name and a Know Your Client (KYC) letter from the client’s bank
• Signature of 3 bank escrow agreements
• Signature of a site plan including unit number
• Signature of a finishing schedule and furniture schedule, if applicable
• Signature of selected unit plans

Buyers are issued completion guarantees prior to the signature of the title deeds and all deposits are housed in escrow accounts until the developer has all their guarantees in place.

Payment Schedule for buying PDS, IRS or RES property in Mauritius off plan

When purchasing an IRS or RES property off plan, the payment schedule is typically as below. However, it may differ in certain instances: