Irs Investment Property In Mauritius

By mYCZNbxh On June 10th, 2018

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By Sarah Lesur

The Integrated Resort Scheme (IRS) was initiated by the Government of Mauritius in partnership with the Board of Investment of Mauritius (BOI). The IRS scheme is designed to facilitate expatriates purchase resort and residential property on the island.

Until recent changes to legislation, expatriates weren’t permitted to buy property in Mauritius. However in 2002 the government of Mauritius made the decision to open the market to foreign purchasers on a selected basis through the IRS scheme, which permits the construction and sale of luxury properties to expatriates in particular regions.

Through the IRS scheme, international buyers can become Mauritian residents once they acquire a luxury property on the island. The villa owner and his family are allowed to dwell in Mauritius for as long as he holds the property. IRS villas are often built with extensive and high end leisure and recreational facilities such as golf courses, marinas or wellness centres.

The Indian Ocean island of Mauritius was described by Mark Twain as a ‘blueprint for heaven’. A stable democracy, a strong economy and harmonious cultural mix, blessed with a beautiful landscape of lush tropical bush, pristine coral reefs, white sand beaches, clear blue-green seas and year-round sunshine. Paradise on earth for a lucky few, as it’s only been the very wealthy who can afford to holiday there.

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But now savvy investors can purchase property in Mauritius and benefit from generous tax structures, as well as the island living that Mauritius offers.

By encouraging foreign investment here with favourable property offers, the government is expecting to secure a future in the tourism and service sectors. Until now, Mauritius has been heavily dependent on sugar and textile exports. These industries are now in decline due to EU quotas as well as competition from India and China, and also since a lot of the highly educated Mauritian population would rather work in offices and hotels.

Mauritius is 12 hours’ flying time from London. English is the official language, driving is on the left, the English curriculum is standard in schools, football is a national obsession and the average year-round temperature is 30C.

The maximum amount of land foreign investors can buy with the IRS scheme is 1.5 hectares and mortgages are available through Mauritian branches of the HSBC and Barclays Bank.

There is a fixed registration duty of 40,000 to consider, plus a fixed land transfer tax of 28,000 payable to the vendor on resale and a notary fee of 0.5 per cent. However, the advantageous tax breaks include no capital gains tax in Mauritius on re-sale for owners domiciled outside Britain, and no inheritance tax liability.

Purchasing a property on the island can be considered as both a realistic long-term investment and a unique holiday destination. So with purchase possible and an entry level in the region of $500,000, the IRS scheme will enable foreign investors to buy and live in Mauritius. The Minister of Finance, Rama Sithanen, said: ‘We need foreigners to settle here and invest in new business opportunities. Things are going well for us now, but we need to move forward and develop quickly if we are to continue competing internationally.’

And what of the impact of residential estates on this pristine island? ‘Distance is a natural protector,’ says Sithanen. ‘We’re deliberately creating exclusive resorts to protect what we have. It’s a balancing act between preserving the natural environment with low-impact development while creating new jobs.’

Mauritius offers some substantial opportunities to invest in resort villas under the IRS scheme. Luxury houses and other residential properties can be sold freehold with a minimum price of $500,000 USD to foreigners who then get a residence permit. The luxury IRS villas and properties that have been put on the market so far have proved very popular, with quick reservations and sales.

The investor may sell the property with no lower selling price restriction; or rent the property; elect tax residency in Mauritius; and is free to repatriate funds or revenue raised from the sale or renting of the IRS property. International property developers have said that the IRS scheme is a good and competitive investment, and a great way to purchase a property in Mauritius.

About the Author: Sarah Lesur is the Administrative Coordinator for www.advalorem.mu – a Real Estate company on the West coast of Mauritius specialising in

IRS Investment Properties

. You can find out more about the

Mauritius IRS scheme

at:

advalorem.mu

Source:

isnare.com

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