New rules, new opportunities: Update on real estate transactions on the Island

An important update for the real estate sector in Mauritius: Occupation and Resident Permit holders can now own their principal residence outside the traditional schemes such as IRS, PDS, RES, R+2 and Smart City. Here it is at last: The Noncitizen Accessible Property Restriction Act underwent a crucial change in 2022, and after almost 2 years, the detailed guidelines have finally been unveiled. Let's decipher this new law together.

Nouvelles règles, nouvelles opportunités : Mise à jour sur les transactions immobilières à l'Île Maurice

Expanded opportunities for home ownership

Non-Mauritian citizens who fall into one of the following categories can acquire residential property for their personal residence:

Principal holder of a Permanent Residence Permit
Principal holder of a Residence Permit issued under the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Property Development Scheme (PDS), Invest Hotel Scheme (IHS), Smart City Scheme (SCS) or G+2 apartment.
Principal holder of an Occupation Permit as an investor, professional or self-employed person
Principal holder of a short-term Occupation Permit
Primary holder of a Family Occupancy Permit

Ownership criteria

A non-citizen holding an Occupation or Residence Permit may purchase or acquire a single property. This property can be :

A residential property (detached house, villa, apartment, etc.) built on a plot of land not exceeding 0.5276 hectare (1.25 acres).
Bare land or serviced land, provided that the surface area does not exceed 0.5276 hectares (1.25 acres).

On the other hand, a non-citizen cannot buy or acquire :

Residential property located on state-owned land (i.e. “leasehold”, including “Geometric Steps”)

Undeveloped land classified as agricultural landServiced land of more than 0.5276 hectares (1.25 acres) * Residential property built on land of more than 0.5276 hectares (1.25 acres)

Price and taxes

To proceed with the acquisition, the property must meet certain financial criteria:

Minimum price : more than 500,000 USD or equivalent in hard currency, i.e. around 23,000,000 Rs (current rate as at 15/02/2024) or 466,000 €.

Payment of taxes : As with a traditional acquisition, the buyer will have to pay 5% Registration Duty on the value of the property. Under the new law, in addition to the two above-mentioned taxes, the buyer will have to pay an additional 10% tax.

The 5% Land Transfer Tax is payable by the seller.

Target audience

This change is specifically aimed at people who have been in Mauritius for a long time and who have identified a property of their choice outside the IRS, PDS, RES, R+2 and Smart City real estate programs.

This revolutionary change allows permit holders to buy their dream property outside traditional schemes. The guidelines aim to simplify the process by offering licensees a way to own property that meets their preferences and aspirations.

For more details or help in discovering this new opportunity, the BARNES Mauritius team is here to guide you.