Many foreign investors choose to make a real estate investment in Mauritius to enjoy the sun and a lighter taxation all year round. However, becoming a permanent resident in Mauritius requires a foreigner to respect certain conditions. Investing in a PDS is a possible solution.
Become an owner to live in Mauritius
Any foreigner may become a permanent resident in Mauritius through a real estate acquisition under the legal regime of the PDS (Property Development Scheme). To take full advantage of the benefits that come with this type of investment, the latter has to invest a minimum of $ 500,000 HT in the purchase of a house in Mauritius, about 420,000 euros or the equivalent in any one other currency.
In theory, a foreigner is free to buy real estate in the old or the new. Nevertheless, the goods available for purchase in Mauritius are, for the most part, new properties. Among these, there are residential properties built as part of a PDS.
The PDS scheme to settle in Mauritius
The PDS scheme mainly concerns luxury residences with at least 6 units of luxurious villas or luxury apartments, large spaces and various leisure and commercial facilities. These are luxury resorts with swimming pools, golf, tennis, restaurants and grocery stores. It also includes management services such as gardening, cleaning, maintenance work, security guards. In other words, it is not a question of buying a residential property anywhere on the island but of choosing a luxurious residence among the various programs scattered all over the island. And most of the PDS programs in Mauritius are built in tourist areas like Grand Baie, Tamarin or Grand Gaube.
The PDS is therefore particularly suitable for investors who are comfortable with a luxurious community lifestyle.
Luxury real estate prices in Mauritius
Luxury real estate is undergoing a remarkable development in Mauritius in the last five years. And that has a cost! Investing in a real estate property under the PDS scheme commits the buyer to various non-negligible expenses. For example, access to the pool or golf within the residential property is not free. As for the investment threshold estimated at 500 000 $ (420 000 euros), it is rather theoretical since a minimum of 450 000 euros is required to acquire a beautiful villa provided with quality materials and reasonable living spaces. And prices can even vary from 1 million euros up to 10 million euros in the very high end.
An easy buying process for foreigners
The Mauritian government rolls out the red carpet to foreign investors, especially because they are improving the country’s economy. Also, the purchasing process applied in Mauritius is exactly the same as that which is in France. In addition, many PDS property development companies approved by the Mauritian State are at the disposal of investors to support them in their acquisitions. A sales agreement called “preliminary reservation contract” will first be signed by the buyer, accompanied by the payment of a deposit corresponding to 10% of the price of the property. A housing situation plan in the residence will then be ratified by the purchaser, with the plans of the acquired unit and a schedule of finishes. Once the work has been completed, a notary will draw up a final sales contract in French, accompanied by the last payment, i.e 90% for a completed property. If it is a residence under construction, the buyer will have to pay 5 to 10% of the total amount at the signing of the definitive contract of sale, since he will have already made 6 fixed payments according to the progress of the works, before handing over the keys. The publication of the sale to the local land registry will then be done by the notary and it remains for the buyer to pay the registration fee of 5% of the price, the Treasury of Mauritius.