Invest in Mauritius properties while living abroad
Although finding and buying a property is not always an easy task to begin with, as you will need to find the perfect property that will suit your budget and criteria, yet also from the legal and administrative point of view things need to be on point.
So, first step would be to find a trustworthy real estate agent that will guide and walk you through the process, and who will explain you the terms and conditions of buying as a foreigner. With Maunopoly you can contact various local real estate agents and agencies for free directly on the platform.
Something to consider is that, although the government encourages foreign investors to settle in Mauritius, they will only be allowed in specific areas for acquisition, and you will not be allowed to buy a property directly with an individual. There are allocated programs accessible for foreigners, namely, but not limited to: PDS, IRS, RES. It is also possible, under certain conditions, to purchase one or more apartments under the G+2 scheme.
So, before proceeding with an acquisition, after you gained all necessary and RIGHT information on the procedures, you will have a choice between doing the purchasing remotely or wait until you are here on-site.
Some Real Estate Selection criteria to go over with your agent when searching for properties are, for example, whether it is a permanent or holidays residence, and to consider all issues corresponding to the criteria of your choice and, of course, your budget. Also, ask your agent to show you the surroundings on video to give you an idea about the spaces, and conditions of the residence your home is set in, and to give information about not only the direct, but also the proximity to shops, the beach, bus stops or schools, etc. and consider whether you like a vibrant or quieter zone.
Pictures can give you an idea of the property, yet if you are to live in the house yourself it is always advisable to really feel the place yourself. For investment purposes we would recommend quicker to buy on a distance, now that the pricing is interesting. In any way some of the things to go over with your agent regarding your possible future property are the condition of the house, the roof, the walls, the plumbing, the electrical installations, the heating, the air conditioning and all other accommodations.
Finally, what happens in the process of buying property in Mauritius when you happen to live abroad? Hereby a step-by-step explanation how the investment procedure works and to become a (foreign) property owner in Mauritius:
– You should conform to the Non Citizen Property Restriction Act as a foreign citizen. The first step is to submit an application to the Economic Development Board (EDB), which is in charge of all foreign investments in Mauritius.
– In that application you write:
1. A duly written request.
2. A copy of your passport.
3. A recommendation letter from your bank.
– Once approved by the EDB, you sign the CRP (Preliminary Reservation Contract).
– Then you sign the Deed of Sale.
– Transfer 10% of the total purchase price on an escrow account in a Mauritian bank, which has been opened by the notary of your choice, at least within 15 days after the CRP was signed.
– Pay the deposit, in the presence of your notary (your notary will be your representative if you are abroad). (Deposit is 90% of total price in case of a finished property (that could be a resale or a first sale), or 25% in case of VEFA investment, which is a property you buy before or during construction).
IMPORTANT NOTICE:
– In case of a mortgage, you will have to undergo the same procedure, either through a Mauritian, or your own bank.
– There will be notary fees of approximately 1.15% of the property value, and there will be a Registration tax of 5%.
– Wherever you are, share your thoughts, feelings, wishes, and expectations with your agent through appropriate communication tools so that your search to the right development and renowned developers will be tailormade supported from idea to completion.
