Reduce Your Tax Burden Through Property Investment in Mauritius
PORT-LOUIS, Mauritius, August 6, 2014 /PRNewswire/ —
Living on a paradise island has always been your dream? Don’t look any further. Mauritius is the right destination. Located in the pristine turquoise waters of the Indian Ocean, Mauritius is a small tropical island, only 12 hours of flight from Paris. Since a couple of years, this heavenly destination has attracted a wide number of French expatriates who have wisely chosen to settle on the island. (According to current stats, French community is about 10 000 living in Mauritius).Their key objective: buy either a main or a secondary residence to benefit from the wide array of fiscal advantages offered to foreigners investing in real estate in Mauritius.
Since 2005, expatriates are allowed to buy a property in Mauritius thanks to the implementation by the Mauritian authorities of 3 schemes: Integrated Resort Scheme (IRS), Real Estate Scheme (RES) and Invest Hotel Scheme (IHS). By investing in either one of these schemes, foreigners benefit from the advantageous tax system of the island.
3 tailor-made property schemes expertly designed for expats
The Integrated Resort Scheme represents the ultimate in luxury. For a minimum outlay of US$ 500,000, you can acquire a luxury villa with a pool, usually in a residential complex with facilities that may include a golf course, a marina and restaurants, as well as sporting facilities and fitness centers. The IRS scheme concerns integrated property developments on over ten-hectare (twenty-five-acre) sites. In addition to the pleasure of living in a peaceful and idyllic setting, buying a villa automatically grants permanent resident status to the owner, his wife and dependents. The residence permit will apply for as long as the investor possesses a property in Mauritius. And, as the cherry on the cake, when you become a resident you pay only 15% income tax!
The other regime is Real Estate scheme (RES). Often less expensive than IRS villas, these properties offer quality services and facilities, often in delightful locations. The regulatory framework is slightly different. RES projects concern developments on less than ten-hectare sites and there is no set minimum price. Whilst buyers do not automatically qualify for a residence permit, if they wish to acquire one, they can to apply to the appropriate authorities if they meet certain legal provisions. In any case, it is possible to stay in Mauritius for six months of the year without a permit.
Finally, Invest Hotel Scheme (IHS), also known as Hotel Residence or Hotel Combi. It allows hotels or property developers to sell a room, a suite or a villa in a hotel to both citizens and non-citizens. Rules of co-ownership apply and the management of the property must remain in the hands of the hotel. The buyer has the right to occupy the room for 45 days per year, access to all hotel facilities to returns on his/her investment. However, this arrangement does not include the right to apply for a residence permit.
To discover Luxury IRS and RES units in Mauritius, check the Luxury Mauritius Magazine on the following link: http://www.
Take advantage of high rental yields
In case you are planning to live in Mauritius only a couple of months in a year, it is possible to let your property when you are abroad and take advantage of high rental yields. Depending on its geographical location, in general terms, a RES property bought for about € 500 000 may yield a monthly rental of about US$ 1800. Moreover, a homeowner may choose to let his property on a daily or weekly basis, which is even more profitable: between € 200-400 per day. This amount can be rise by 100% for more luxury beachfront villas. To ensure the smooth running of the operations here in Mauritius while you are abroad, you may turn to a rental pool programs run by specialized local companies.
And what about taxes in Mauritius?
In 20 years, Mauritius has built up a solid reputation as an investment hub, reliable and safe in terms of good governance as well as ethical, economic and political transparency. This little country, which combines a lively feeling for business with an attractive lifestyle, has achieved one of the fastest growth rates in sub-Saharan Africa. In 30 years, it has transformed itself from an economy dominated by sugarcane cultivation to a sophisticated and diversified service economy, with financial services playing a major role. The country has adopted a low-rate taxation system to attract more and more foreigners to settle on the island. Amongst them:
• No inheritance tax
• Tax credits of 80% for offshore companies
• 15% tax on company profits and personal income
• Value-Added Tax at 15% (refundable)
• No tax on dividends
• No customs duties or VAT on equipment
• No restrictions on repatriation of profits, dividends and capital
• No tax on short-term appreciation
About Luxury Mauritius Magazine
Luxury Mauritius Magazine is a high-end bilingual publication designed in Mauritius, geared towards business, real estate, luxury lifestyle, products and services in Mauritius. Through this magazine, we wish to invite our readers on a journey to the heart of our island by means of presentations by leading local and regional stakeholders prominent in their respective fields. Thanks to the expertise of interviewed professionals, we provide answers to questions set by potential buyers, investors and retired foreigners. You will also find testimonies of expatriates in settled in Mauritius.
