IRS, RES, PDS, SCS, Ground+2: Property Schemes in Mauritius open to Foreigners
In order to promote foreign investment in real estate projects in Mauritius while ensuring control over lands, the Mauritian government has implemented Real Estate Schemes with precise criteria.
All schemes described in this article below are governed by the Economic Development Board [formally known as the Board of Investment], a "satellite" organisation of the government with the mission of facilitating business and foreign investment in Mauritius.
In this article, we are comparing five Real Estate Schemes which are all open to foreigners: the Integrated Resort Scheme (IRS), the Real Estate Scheme (RES), the Property Development Scheme (PDS), the Smart City Scheme (SCS) and the Ground+2 (G+2). Let’s discover their specificities and advantages.
1. Integrated Resort Scheme (IRS)
Established in 2001 by the Mauritian government in collaboration with the Board of Investment (BOI), the Integrated Resort Scheme allows foreigners to purchase luxurious villas attached to a leisure and/or commercial space such as a golf course, a marina, a restaurant, a boathouse, etc.
Conditions & Benefits of an IRS project:
The construction of an IRS property is carried out on a fully owned land of more than 24 acres (10 hectares).
The minimum price of an IRS unit is USD 375,000.
IRS properties are sold exclusively off-plan and offer protection to the buyer.
The buyer and his dependents (spouse and children under 24 years of age) are eligible for a residence permit, valid for the duration of the buyer's ownership of the property.
There are many IRS projects in Mauritius. HORIZON Properties offers some in its portfolio such as this property at La Balise Marina.
2. Real Estate Scheme (RES)
With the IRS program benefiting mainly to large sugar companies; in 2007, the Mauritian authorities launched the Real Estate Scheme (RES). This program encourages owners of smaller plots of land to invest in more affordable projects with fewer restrictions.
Conditions & Benefits of a RES project:
A RES project must have a minimum of 6 high-end residential units. Such a project must be on freehold land of 1 to 24 arpents (less than 10 hectares), offering the possibility of investing in smaller properties.
Unlike the IRS, there is no minimum sale amount.
Compared to the IRS, a residence permit is not automatically offered when buying a RES. To obtain the same, the buyer should invest in a unit worth USD 375,000 minimum. If this is not the case, the buyer will only be able to live in Mauritius for a maximum of 6 months per year.
There are many RES projects in Mauritius, among them, Manta Cove which has been developed by HORIZON Properties itself.
3. Property Development Scheme (PDS)
In the same logic of expanding the Mauritian borders, the government has launched the Property Development Scheme (PDS) in 2015. This program is based on the same legal concept as the IRS and the RES but offers even more flexibility as well as a greater and more localized social and economic contribution.
Conditions & Benefits of a PDS project:
PDS properties are built on lands of any size from 1 acre to 50 acres.
Like IRS, PDS properties are sold exclusively as VEFAs but do not have a minimum purchase price.
The PDS projects have a social dimension for the benefit of local businesses contributing to the Mauritian community, thus allowing for the integration of the local economy. They are subject to strict control based on respect for the environment and its ecological aspect.
Through an investment of a minimum of USD 375,000, the buyer is granted a residence permit, allowing his/her expatriation or retirement in Mauritius.
The Waterclub located on the West side of the island is the very first PDS project developed by HORIZON Properties.
4. Smart City Scheme (SCS)
In addition to the PDS, the Government has set up the Smart City Scheme to promote Mauritius as an international business hub and encourage sustainable development.
Conditions & Benefits of an SCS project:
Foreign investors can purchase delivered/built or VEFA real estates, regardless of their value. However, a minimum amount of USD 375,000 is still required to benefit from a residence permit.
The buyer is guaranteed of purchase protection, but cannot purchase virgin land and proceed with its self-construction.
Foreign investors who have had a residence permit for at least two years can apply for Mauritian citizenship if they invest at least USD 5 million.
5. Ground+2 (G+2)
Still in the same spirit of attracting foreign capital, in 2016 the door is open to non-citizens wishing to invest in apartments in Mauritius.
Conditions & Benefits of a G+2 project:
The buyer can invest in units located on the second floor of a block of 6 apartments and built on freehold lands.
The minimum price of a G+2 unit is USD 150,000.
G+2 properties are sold exclusively as VEFA and do not offer a permanent residence permit.
The purpose of these various programs is to enable foreigners to invest in exceptional properties with top-of-the-range infrastructure. All purchasers must submit an application for acquisition to the Economic Development Board, accompanied by information and documents in accordance with the official guide of this entity.
In this process of acquisition and investment, HORIZON Properties accompanies you and offers you its portfolio of beachfront and waterfront real estates in Mauritius. For more information, please contact us by filling in this contact form.