Mauritius is a popular destination for many French investors. Are you looking to buy a villa on Mauritian territory? Discover how to successfully complete your acquisition project under the best conditions.
Mauritius, a privileged real estate market for buyers
Mauritius attracts a significant number of foreign investors each year thanks to the numerous advantages of its territory: exceptional natural heritage (paradise-like landscapes, sandy beaches, turquoise blue lagoon), excellent activities and services (beach activities, golf, hotels, gourmet restaurants), favorable economic conditions for investment (advantageous taxation, simplified purchasing procedure for foreigners, secure legislative and judicial framework).
The importance of French buyers
Mauritius shares a common history of over 300 years with France. Today, this special bond translates into strong economic relations. In fact, France is Mauritius' top economic partner, and the French are very present in the island's real estate market: French villa buyers represent 44% of the market's buyers, and the territory had over 15,000 French residents in 2018.
How to buy a villa in Mauritius?
French individuals who wish to buy a villa in Mauritius benefit from simplified purchasing procedures. Since 2015, the acquisition of a villa is subject to compliance with a single program: the PDS, or Property Development Scheme (which replaced the previous IRS and RES investment programs). However, two other special schemes still exist for the purchase of specific properties:
- The IHS (Invest Hotel Scheme) regulates the purchase of properties (villas, apartments, rooms) belonging to a hotel complex
- The SCS (Smart City Scheme) for the purchase of properties built within a "smart city" development project.
What is the PDS?
The Property Development Scheme now governs all real estate transactions carried out by foreign buyers on Mauritian territory. Mauritian nationals can also be eligible. It is a residential real estate development program regulated by the Mauritian authorities and approved by the Economic Development Board. All villas sold under a PDS program are high-end properties, either luxury villas or beachfront villas. They include management services and various additional amenities (security, maintenance, and upkeep).
What are the main conditions for purchasing under the PDS?
The specific purchasing process under the PDS allows buyers to acquire real estate as full property. Several conditions facilitate transactions carried out by foreign investors:
- Real estate purchases can be made in foreign currencies
- The transaction can involve off-plan purchases (vente en état futur d'achèvement) or renovated older properties
- It is possible to finance the operation with the contribution of local banks: several acquisition modes are possible (individual ownership, local company, trust, GBC...)
- Several construction guarantees are mandatory: Financial Completion Guarantee (GFA), ten-year guarantee for construction defects and structural flaws, biennial guarantee after delivery for hidden defects and non-structural flaws.
How to obtain state authorization?
The PDS program is accessible to all French citizens earning a minimum monthly salary of 3,000 dollars. This income can also be in the form of a pension, annuity, or retirement allowance...
Note that the involvement of a Mauritian notary is mandatory (a notarial system similar to the French one).
To obtain a certificate issued by the Economic Development Board (EDB), the application must be submitted through the developer of the residential real estate program, who himself holds a certificate issued by the EDB. The application can also be made online on a dedicated platform.
Good to know: when the property value exceeds 500,000 dollars, the buyer, as well as their spouse and dependents, are eligible for a residence permit. This permit is valid for the entire duration of the property title.
Advantages for French buyers
Several specific conditions secure the purchase of real estate for French buyers:
- Real estate law based on the French Civil Code
- Computerized cadastral system and legal security of land and buildings
- Property deed in French, notarized and authentic, registered in the National Register of Titles in Mauritius
- Bilateral investment protection agreement between France and Mauritius (IPPA)
How to get information on all measures related to buying a villa?
The Economic Development Board (EDB) is the sole contact for any questions regarding the purchase of real estate in Mauritius. Our luxury real estate agency can also assist you in settling on the island and guide you through the various steps of a real estate transaction. Come meet our luxury real estate experts in Mauritius at any time! We welcome you in the Grand Baie area, or you can contact us online or by phone.