The IRS is an initiative of the Mauritian Government in collaboration with the Board of Investment of Mauritius. This program is designed to facilitate the acquisition of residential property by non-citizens on the island.
Until recent changes to legislation, foreigners were not permitted to purchase property in Mauritius. In 2002 the Mauritian Government took the decision to open the market to foreign buyers on a restricted basis through an IRS, which permits the construction and sale of luxury residential units to foreigners in particular locations.
An IRS is accompanied by high-class leisure and/or recreational facilities.
The IRS allows international buyers to become Mauritian residents and a unit owner and family are able to reside in Mauritius as long as the purchaser holds the property.
Currently, the minimum investment requirement is USD500,000 and every purchaser in an IRS will qualify for Mauritian residency.
Any one of the following are eligible to acquire property under the scheme:
- A citizen of Mauritius;
- A non-citizen of Mauritius;
- A company registered as a foreign company under the Companies Act (of Mauritius) 2001;
- A company incorporated under the Companies Act 2001;
- A societe, where its deed of formation is deposited with the Registrar of Companies;
- A trust, where the trusteeship services are provided by a qualified trustee licenced by the Financial Services.
Mont Choisy Property Development Ltd.
- The Purchaser and the Promoter sign a contract of preliminary reservation (‘CRP’).
- In terms of the CRP, 10% of the selling price is required as an initial deposit.
- Once the Promoter has advised the Purchaser that the project is going ahead (i.e. in all the relevant permits, financial, legal and technical requirements are in place), a Deed of Sale is signed.
- A Deed of Sale is the document in terms of which ownership of a residential unit in the IRS is transferred from the Promoter to the Purchaser, i.e. once you sign the Deed of Sale you are the registered owner of the unit.
Your deposit will be held in an escrow account opened with a Mauritian registered financial institution or alternatively in the Notary’s trust account until the Deed of Sale is signed. Once the Deed of Sale is signed, the deposit is released to the Promoter as part of the selling price.
Etude Didier Maigrot
1st floor Labama House
35 Sir William Newton Street, Port Louis
Tel: 2121262; 2123188
The acquisition of a unit off-plan or during construction of the project is governed by the provisions of a ‘vente en l’etat future d’achevement’ (‘VEFA’), in accordance with the Mauritian Civil Code.
The Promoter provides the Purchaser with a guarantee of future completion, Garantie Future d’Achévement (‘GFA’).
This GFA is issued by a registered financial institution in Mauritius and is a guarantee from the financial institution that the unit you have purchased will be completed and delivered to you in accordance with the project specifications and drawings.
The GFA is issued to you simultaneously with your signature of the Deed of Sale.
The selling price is payable in accordance with the schedule below and all the terms and conditions of the sale are detailed in the CRP.
Payment of the selling price tranches is dependent on the level of construction reached at the time of your purchase.
Payment of the sale price is generally payable in instalments as follows:
- 10% deposit payable within 15 days of signature of the CRP;
- 15% payable within 15 days after the Promoter has advised you that the project is going ahead;
- 10% upon signature of the Deed of Sale;
- 35% at completion of the structure;
- 25% at completion of the construction; and
- 5% upon delivery of the Unit.
The above percentages are upper limits (and can therefore be divided into smaller tranches) payable as works progress against progress certificates issued by the architect, quantity surveyor or principal agent.
Yes, banks are willing to finance up to 70% of your purchase. If finance is required, please contact the Promoter for assistance.
- Notary fee which is currently calculated on a sliding scale as follows:
- 2% on the first MUR250,000, subject to a minimum charge of MUR1,000;
- 1.5% on the next MUR500,000;
- 1% on the next MUR1,000,000;
- 0.5% on the remainder of the selling price;
- Value Added Tax, currently 15%, is also payable on the notary fee.
- Registration Duty, which is currently USD70,000 or 5% of selling price (whichever is higher).
- Board of Investment Application Fee, which is currently MUR10,000.
Yes, the purchase of golf Individual Membership is obligatory with the purchase of a unit. The Individual Membership Fee is not included in the selling price of your Unit and is payable on signature of the Deed of Sale.
Membership fee: MUR750,000
Yes, a ‘cahier des charges’ will be registered which sets out the building and architectural guidelines of the IRS.
The intention is to develop a golf course and other real estate that will enhance the residents experience on the estate. This will incorporate a variety of more leisure and residential developments to the same standard as those in Phase 1a and 1b.
The construction has already begun and delivery of the first units is expected has from end of 2017.
24 to 30 months from commencement of construction.
It is anticipated that construction will begin at the commencement of construction of the residential component.
Yes, all the different unit types will be constructed simultaneously.
Yes, La Peninsule and Banyan Grove apartments are all equipped with elevators in each block.
1 parking bays are provided per apartment within easy walking distance of each unit.
Storm water drainage and wastewater drainage will be dealt with in accordance with the engineers’ designs. There will be a combination of pipe and surface drainage.
The beach club will not be part of the IRS development and will be charged separately, at a rate still to be determined.
Mauritius is recognised as the one of the best administered economies in Africa and offers an ideal environment in which to do business.
This is partly due to the low level of taxation, with a flat corporate tax rate of 15% and tax residents in Mauritius are also subject to a flat tax rate of 15% on income earned or otherwise repatriated to Mauritius.
In addition, there is no inheritance tax, no capital gains tax and Double Taxation Agreements have been concluded with 47 countries, including France, South Africa, the United Kingdom, India and China.
Please contact Maitland (Mauritius) Management Services Ltd (“Maitland”) for any advice on the structuring of your purchase. Maitland, amongst other things, provide incorporation services, property management functions, company secretarial, corporate trustee, accounting and private equity fund administration services – both onshore and offshore.
Brendon Jones email@example.com
Brett Childs firstname.lastname@example.org
Tel +230 210 9334