PDS / IRS / RES / IHS
The different models of investments in Mauritius:
Since 2002, it is possible for a foreigner, to purchase properties in full ownership according 3 types of investments:
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:
- 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;
- 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.
This model of real estate investment allows to buy a luxury villa, an apartment or a loft of prestige in a set of high standing extending on a property of a minimum surface of 10 hectares.
The acquisition of an immovable property under this model, must represent at least an investment of 500,000 $. A tax of 70,000$ (or 5% of the purchase value, whichever is greater) will be payable to the Government of Mauritius.
Can become buyers:
- foreign national, including spouse and assigns
- Any Mauritian citizen
- Any foreign or Mauritian company registered at Registrar of Companies “Companies Act” of 2001
This type of investment allows the purchaser and the members of his household to benefit from a residence permit, valid as long as he remains the owner of the property. This residence also makes it possible to opt for tax domiciliation in order to benefit from the attractive tax policy
These properties are usually built in heavenly settings within golf courses, marinas or wooded parks and offer infrastructure with a multitude of high standing services (individual pool, catering, caretaker service, health and fitness center, spa, shopping centers, shops, 24 /7 security and babysitting etc.…..)
It is possible to purchase an IRS property on plan, in VEFA (Buying off plan) or completed.
In some IRS projects, a rental management service is set up, allowing the property to be rented and generating income that will be taxed at a rate of 15%
A property under the RES regime is not subject to any minimum price but does not confer the right to reside in Mauritius unless the value of the property exceeds $ 500,000. In this case, the residence system applies in the same way as for the purchase of a villa under the RES regime.
On the other hand, persons acquiring a property worth less than $ 500,000 may, if they so wish, apply for a residence permit under the other provisions provided for this purpose, either as a contractor, professional, entrepreneur or retired.
Can be buyers:
- Foreign national, including spouse and assigns
- Every Mauritian citizen
- Any foreign or Mauritian company registered in the Register of Companies under the law” Companies Act” of 2001.
- A group of persons- partnership who’s deed of incorporation has been deposited or submitted at the Registrar of Companies.
Residential complexes under this regime must be built on a minimum of 4221 m2 and not exceeding 10 hectares. There is no minimum investment and some projects are accessible as from 100 000 euros.
It is possible to purchase an RES property on plan, in” VEFA”( sale off-plan) or completed.
The promoters of RES residences are required by law to set up a rental management and property marketing service in the case of a non- resident foreigner.
The income generated by these rentals will be taxed in Mauritius at the rate of 15%.
A tax of 25,000 $ will be payable to the Mauritian government for the acquisition of a RES property.
This model implemented in 2010, also called “Residence Hoteliere”-Hotel Residence or “ Combi Hotel” allows a physical or legal person, foreigner or not, to purchase or acquire a freehold property belonging to a luxury hotel establishment. This property can be a hotel room, an apartment or a villa, manage as part of a hotel complex.
There is no minimum investment.
The acquisition of the property does not allow to obtain the residence, nor to stay permanently.
Generally, the promoters of this type of product, offer to their customers between 20 and 30 free nights a year in the establishment, and sometimes even in another establishment of your choice but belonging to the same hotel group.
The acquired lot is the subject of a mandatory lease agreement between the purchaser and the hotel operator for the duration of the acquisition.
The rental and resale conditions are recorded in the Notarial deed.
This type of acquisition is a pure rental investment. The income is indexed on the turnover of the accommodation of the hotel; therefore, even if your lot is not rented, you still receive a share of the overall revenue from all lots.
In the case of renowned hotel groups, they have a good mastery of commercial skills, efficient sales and marketing structures, and are present on all major markets, thus enabling an optimization of the filling rate and revenues.
The net income is taxed at 15% and unlike the “timeshare” within the framework of the IHS, you are the owner of the whole property.