Budget Speech bodes well for property investment in Mauritius
The 2021/2022 Budget Speech offers good news for foreigners wishing to invest in property in Mauritius with a view to relocating or having a second home on the Indian Ocean island.
The idea behind the 2021/2022 Budget Speech presented by the Mauritian Finance Minister on 11 June is to encourage economic growth on the island. Key to this are initiatives for infrastructure enhancements on the island as well as making foreign investment in property as attractive as possible for non-Mauritian citizens.
One of the measures introduced is the alignment of transfer duties for properties within IRS and RES developments. This is great news, says Richard Haller, Director of Pam Golding Properties (Mauritius). “It means that transfer duties are the same for all properties within any of the IRS, PDS, RES and Smart City developments. This will make purchasing the more-established higher-end developments more affordable, particularly for properties below US$1m.
“Importantly, the amendment now allows property investors to work or open businesses in Mauritius if they have a residence permit issued through the purchase of real-estate. It’s excellent news for those wishing to call Mauritius home,” Haller adds
The property options offered by Pam Golding Properties in Mauritius becomes hugely attractive to foreigners wishing to purchase residences with a view to relocating and/or working on the island, with the possibility of permanent residency for purchases over US$375 000 being a major drawcard.
In addition, the 24-year-age limit has been dropped, which means that the number of dependants (parents, grand-parents and children) who may join the permanent resident potentially increases.
Summary of key Budget Speech points
- A non-citizen who purchases or otherwise acquires a residential apartment in a property of at least Ground + 2 floors at a price of US$ 375 000 or more will be issued with a residence permit for themselves and their dependents, and is exempted from needing a work or occupation permit. (This work-permit exemption also applies to IRS/RES/PDS property purchases over US$375 000.)
- Property registration duty on the sale of an IRS or RES residential property will be levied at the rate of 5% or USD 70 000 (whichever is lower), which is in line with all other property registrations duties.
- The validity period for occupation permits for professionals has been extended from three to 10 years.
- Spouses of occupation permit holders investing or working in Mauritius no longer need to apply for an occupation or work permit.
- The maximum 24-year-age limit for dependants has been waived.
- The 10-year Family Occupation Permit for those contributing USD 250 000 to the Covid-19 Projects Development Fund has been introduced as a new category.
- Work permits have been extended to include foreign carers and maids to work in Mauritius.
- A dedicated concierge service for investors and retirees entering Mauritius is being set up.
- A privilege club scheme (ie privileged access to hotels, golf courses, restaurants, private medical institutions, among others) is being set up.
- Non-citizens holding an occupation permit as a professional will be given the flexibility to switch jobs without having to submit a new application, provided the minimum criteria are met. Self-employed non-citizens holding an occupation permit will be allowed to incorporate a one-man company and employ administrative staff.
- A non-citizen will be eligible for an occupation permit irrespective of their visa category when they arrive in Mauritius.
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