FMImmobilier Ltd

Administrative, legal procedures and formalities to be undertaken so as to enable a foreigner to acquire a Mauritian property within an ‘IRS’, a 'PDS' or a 'RES'?

A-Acquisition Process: What are the steps?

A specific request, duly substantiated, completed and signed, must be presented to the Board of Investment (BOI) on behalf of the purchaser, accompanied by numerous supporting and civil status documents. Each application includes a non-refundable application fee of a flat rate of RS 10, 000 payable to the Director of the Board of Investment. An application is deemed admissible and ready to be processed by the Board of Investment when its Application is accompanied by the payment and by all the information and documents required by the BOI. It is only after receipt of the official authorisation from the BOI that the concerned purchaser might become the owner of the desired unit;

Prior to its purchase, the buyer will have to open with a local bank of his choice a bank account into which will be channelled the funds related to its acquisition;

All legal formalities pertaining to the relevant acquisition will be made with a notary: sales agreement, escrow account, Deed of Sale...

B-Procurement process: who is eligible to purchase a property in Mauritius?

The following persons or entities wishing to purchase one of the properties described above, will be able to acquire such a property in Mauritius:

- A foreign national,

- A Citizen of Mauritius,

- A company registered as a foreign company under the Companies Act 2001,

- A company incorporated under the Companies Act 2001,

- A type of partnership ['SCI'] whose act of incorporation is deposited with the 'Registrar of Companies'

- A "trust" where the trustee has, first, been previously & duly authorized by the Financial Services Commission (' FSC ').

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C-Procurement process: which documents are to be produced?

1. For a foreign national willing to acquire a property in Mauritius, the following documents are required:

- Certified copy of the first 5 pages of the passport of the future owner;

- A ‘Bank Referenced Letter’ accompanying the Application certifying that the ‘KYC ' (Know Your Client) procedures towards the buyer has been positively achieved.

2. For obtaining the Mauritian residency permit, the following documents must be handed over to local authorities:

- The 'Application' for Residency Permit;

- The certified copy of the first 5 pages from his passport;

- A medical certificate stating that 'the application covered' not the subject of any contagious disease;

- If the applicant is accompanied by dependents (wife, spouse, child..) it must provide additional documentation such as birth certificates, marriage, divorce, certified copy of the first 5 pages of the passport of each dependent, the medical certificate of each dependent and the morality certificate of his wife / spouse.

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It should, finally, be recalled that Mauritius offers to foreign buyers a very favourable tax environment.

Indeed, investors who buy Mauritian property under their own name can benefit from significant tax advantages such as:

• Benefit of the provisions of double taxation treaties signed by Mauritius with 43 countries;

• Privileged tax rate [15%] for companies (‘IS’) and individuals (‘IR’);

• No taxes on capital gains;

• No taxes on heritage estates;

• No residential taxes nor property taxes;

• No tax on dividends and free repatriation of capital.