Last Updated on June 1, 2022 by Steven
Investment Models in Mauritius
Mauritius has become an appealing destination for many people globally. From investment opportunities to an environment that readily welcomes foreigners, the country is an offshore golden opportunity. Consequently, investing in their real estate is a great way to make income.
The Mauritius government has made it possible and easy for foreigners to live there, more so when they have invested in one of their models. The good thing about investing in Mauritius is enjoying the fantastic tax benefits of owning property. Here’s an overview of some investment models and what they contain.
1) Property Development Scheme (PDS)
The PDS umbrellaed the IRS and RES and allowed for the development of a mix of residences by residents and non-residents. To qualify, here is what you need to have:
- A person, whether of Mauritius descent or not
- An incorporated company that is registered under the company act
- A limited partnership under the Limited Partnerships Act
- A foundation under the Foundations Act
The scheme will provide for the following properties:
- The development of at least six luxurious residential properties
- High-quality public spaces, making the residential a great place to settle
- Social amenities
2) Integrated Resort Scheme (IRS)
The IRS is an initiative of the Mauritius government that aims to facilitate the acquisition of resorts and residential properties. Before the change in legislation, foreigners could not buy property in Mauritius. The government took up this initiative to ensure that foreigners were included in property acquisition, which would mean that the government would make money out of it.
In return, the villa owner and their family could reside at the property they buy for as long as they own it. This made it easier for foreigners to settle in Mauritius, unlike in the past.
3) Real Estate Scheme (RES)
With this scheme, small landowners are allowed to have a part in the development plans of Mauritius. It is like a smaller version of the IRS. The people who benefit from RES are more than those who benefit from IRS because small property owners form a larger part of the population.
These are some of the specifications under RES:
- The property size is between 1 acre and 10 hectares
- The land should be freehold which means it is not next to the beach. Since the beach is government-owned
- It is only available to small landowners who have owned the said land for over five years.
- The scheme provides day to day services like waste disposal, security, and maintenance
- There is no minimum investment value, unlike IRS that only allows for a minimum of USD 500,000
4) G + 2 Mauritius
Like the other mentioned programs, the G + 2 property scheme made it easier for locals and foreigners to acquire apartments and condominiums in Mauritius. Since its establishment in 2006, it has overseen over 30 new projects up and running. Even though the pandemic slowed everything down, business is expected to resume and pick up as more areas are opened up to the public.
One of the main selling points of G + 2 is the price. One can buy a two-floor apartment for about $150,000. There is no limit to the units you buy, making it a go-to for many people who want to own condominiums in the country. Its features are attractive to anyone who appreciates luxury living in Mauritius.
5) Invest Hotel Scheme (IHS)
The IHS allows hotel owners to raise money to further develop their hotels and villas by selling and leasing their units. It is open to both residents and non-residents. The scheme also allows companies to own some units and expand them accordingly. By allowing this, a non-resident is sure that they have a place to stay in Mauritius, and the hotel gets a steady flow of money from the rooms they have sold. The money goes into growing the villas which translates to more revenue at the end of the day.
Mauritius is not only a great place to visit as a tourist, but you can also make it your home. Thanks to the regulations made for the area, you can now own your place on the island and not have to worry about hotel prices fluctuations every time you visit. The investment opportunity is worth a try.