- Social, political stability and sustained economic growth
- A Peaceful, multi-ethnic with a unique lifestyle in a blend of cultures
- A Centre of excellence for Business
- A flexible and bilingual workforce
- An enviable work-life balance
- A pool of skilled and qualified professionals
- A competitive Trade and Export platform
- strategic geographical location at the cross-roads of Africa and Asia and convenient zone (GTM +4)
- Investment-friendly regulatory regime
The Fiscal regime includes:
- Harmonised corporate and income tax of 15%
- Value-Added Tax (VAT): 15%
- 100% foreign ownership
- Land Transfer tax: 5%
- No inheritance tax on property
- No withholding tax on interest and dividends
- Exemption from customs duty on equipment
Property Investment Opportunities for foreigners
Since 2002, Mauritius has opened its economy to foreign investors by setting up a series of property schemes allowing foreigners to buy a freehold property in Mauritius:
The IRS allows foreigners to purchase freehold property for residential purposes such as luxury and high-end apartments, duplexes or individual villas with a minimum investment of USD 500,000 (approx. 350 000 euros excluding taxes) for a maximum surface area of 1.32 acres.
Integrated Resort Scheme (IRS) properties can be found mostly on coastal regions within large resorts (golf estate, marina) and are built to international standards equipped with world class amenities.
All IRS properties are sold under the VEFA (Vente en Etat Futur d’Achèvement), a legal framework guaranteeing the completion of the project.
Purchasing an IRS property entitles the owner to a resident permit which also applies to the buyer’s spouse and dependents benefit from the country’s favourable tax system.
Once acquired the owner may rent or sell the property with no minimum selling price restriction and is free to repatriate funds or revenue raised from the sale or renting of the IRS property.
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 also harmonizes the registration duty to a single rate of 5%.
The main feature of the PDS remains the possibility of obtaining a residence permit provided the purchase price exceeds the sum of 500,000 USD or its equivalent in any other convertible currency. The residence permit remains valid as long as the non-citizen holds the property.
The PDS provides the following:
The development of luxurious residential units on freehold land of an extent of at least 0.4220 hectare (1 arpent);
- The development of at least six (6) residential properties of high standing;
- High quality public spaces that helps promote social interaction and a sense of community;
- High-class leisure, commercial amenities and facilities intended to enhance the residential units;
- Day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services; and
- Social contribution in terms of social amenities, community development and other facilities for the benefit of the community.
Under the Real Estate Scheme (RES), residential units are sold to non-citizens at no minimum price. However, acquisition of property worth at least U$D 500,000 entitles the purchaser a residence permit. RES properties are mainly targeted at
- retired non-citizens, irrespective of age and nationality
Real Estate Scheme (RES) properties are smaller residential developments usually built on land areas ranging between 4,220 and 100,000 m², and sold at no minimum price. Property types within this scheme include apartments, individual villas, duplexes in various regions (coastal regions and also inland).
Work, live and play is the Smart City’s concept which aims at creating better working conditions in the country by encouraging its economic development.
The Smart City Scheme provides a favourable, ecological and sustainable framework as well as numerous attractive fiscal and non-fiscal advantages to investors for the development of smart cities across the island.
Every smart city project under the Scheme shall be developed on an area of land of an extent exceeding 21.105 hectares (50 arpents) within which the development incorporates a mix of compatible land use including commercial, leisure and residential land use and consisting of a combination of office, light industrial, hotel, retail, public entertainment and housing so that the inclusive development achieves physical and functional integration and creates a pedestrian oriented urban environment.
- The creation of an environment-friendly working, living and leisure space
- The proper management, development and conservation of natural and man-made resources to promote ecologically sustainable development
Attractive package of fiscal and non-fiscal incentives to global investors include exemption from payment of:
- Income Tax for a period of 8 years from the issue of the SCS Certificate provided that the income is derived from an activity pertaining to the development and sale, rental or management of immovable property other than an activity in respect of the supply of goods and services.
- Value Added Tax paid on capital goods (building, structure, plant, machinery or equipment).
- Customs duty on import or purchase of any dutiable goods, other than furniture, to be used in infrastructure works and construction of building within the Scheme
- Land Transfer Tax and Registration Duty on transfer of land to a SPV provided that the transferor holds shares in the SPV equivalent to at least the value of the land transferred
- Land Conversion Tax in respect of the land area earmarked for the development of non-residential components (office and business parks, ICT and innovation clusters, touristic, leisure and entertainment facilities including hotels and golf courses, renewable energy and green initiatives)
- Morcellement Tax for the subdivision of land.
- First-time Mauritian buyers and buyers under the Mauritian Diaspora Scheme acquiring a residential unit will be exempted from registration duty
- Full recovery of VAT in terms of input tax allowable in terms of capital goods (building structure), plant, machinery and equipment
- Accelerated annual allowance granted at a rate of 50% of the costs in respect of capital expenditure incurred by any company operating within the Smart City Scheme
- A citizen of Mauritius
- A non-citizen
- A member of the Mauritian Diaspora
- A company incorporated or registered under the Companies Act
- A société, where its deed of formation is deposited with the registrar of companies
- A limited partnership under the Limited Partnerships Act
- A trust, where the trusteeship services are provided by a qualified trustee
- A Foundation energy-efficient equipment and green technology.
As with the other legal frameworks (IRS, RES, PDS), foreign investors in the SCS can apply for the Mauritian residence permit upon acquisition of a residence of at least USD 500,000