Africa-Press – Mauritius. South Africans invest in properties in Mauritius for various reasons. The only way for foreigners to buy and develop property in Mauritius is through one of the approved schemes, each of which have their own basic requirements.
Why South Africans buy property in Mauritius South Africans only need to travel about four hours by plane to reach the white sandy beaches of Mauritius.
The allure of the natural landscapes, stable economic and political environment, and looser tax and business regulations are all elements that make this destination a popular choice among South Africans.
The Mauritian government also recognises the importance of tourism and foreign investment as a form of income in the country and therefore, have created different schemes to encourage foreigners, like South Africans, to invest in their country, especially in the property market.
Buying property in Mauritius as a South African The only way for South Africans to buy and own property in Mauritius is through one of the approved Property Development Schemes.
If a South African buys a property in Mauritius under one of these Economic Development Board schemes, they may also be able to qualify for a residency permit.
There are, however, a few considerations you will need to think about before you start investing in properties in Mauritius. The first is that you may only qualify for a Mauritian residence permit if your investment is equal or above 375 000 USD, which is just over R 5.5 million.
Secondly, the ownership can take place through you or through a Mauritian authority like the Mauritian trust or the Mauritian domestic company. With this in mind, there are three main schemes that are used by South Africans to purchase property in Mauritius, including the IRS, RES, and PDS schemes.
The Integrated Resort Scheme (IRS) Through the Integrated Resort Scheme (IRS), South Africans can purchase luxury residential and resort properties in specific areas. This scheme was developed under the Companies Act of 2001.
These properties are created to offer the best in worldwide luxury and are usually attached to a leisure or commercial space like a golf course, a marina, a restaurant, or a boathouse.
South Africans qualify for this scheme if they secure and invest a minimum amount of 500 000 USD, which would be R 7.3 million, in a designated IRS property. This amount excludes any additional taxes on the property or sale.
For as long as you own this property, you (and possibly your family) will be entitled to a Mauritian residency permit and a tax resident permit, which is what draws many South African investors to this scheme. The Real Estate Scheme (RES) The Real Estate Scheme is similar to the Integrated resort Scheme, but it is just on a smaller scale.
With this scheme, South Africans can invest in property in Mauritius under the conditions that the total size of the land you own is not more than 10 hectares, and each individual site, in the case that there are several, is no more than one acre.
This scheme differs from the IRS in that there is no minimum investment amount. However, for investors to be able to apply for a Mauritian residency permit, the investment must still be more than 375 000 USD, which is just over R 5.5 million.
If this permit is granted, you and your family will be able to reside in Mauritius on your property for as long as you own it. These smaller-scale investments appeal to a lot of people, because they are less expensive than the IRS Scheme, but still offer foreign investors the chance to experience the Mauritian culture and lifestyle.
The Property Development Scheme (PDS) The Property Development Scheme (PDS) combines elements of the IRS and RES schemes. This scheme aims to give foreign investors more flexibility when it comes to buying and developing property in Mauritius, and it places significant focus and emphasis on the social and economic improvement of the surrounding communities.
When this scheme was initially introduced, 25 percent of the acquired properties had to be sold to Mauritian nationals and members of the Mauritian Diaspora.
However, this has now been changed and all properties can be sold to foreigners, as there is no longer a restriction on the size of these properties. It is worth noting, however, that the same minimum amount of 375 000 USD applies for the application of a residency permit.
Final thoughts There are many different elements that appeal to South Africans to buy property in Mauritius. The only way to buy this property is by meeting the requirements of one of the three official schemes Mauritius has, namely, the IRS, RES, and PDS schemes.
For More News And Analysis About Mauritius Follow Africa-Press
