Tax Benefits & Information
Integrated Resort Scheme and Residency
In 2002 the Mauritian government introduced the Integrated Resort Scheme (IRS), which authorizes foreigners to buy property in Mauritius for the first time since 2002. This scheme has significantly boosted demand for property in Mauritius and allows non-resident property purchasers and their immediate dependents to qualify for automatic Permanent Residency for as long as you own your property.
Villas sold under the IRS scheme must form part of an approved development of villas, built to international standards, with world class amenities and facilities. The minimum selling price of a villa is set at $500,000 and the maximum extent of the land is limited to 0.5276 hectares (1.32 acres). A villa can be acquired off-plan or during the construction phase.
Tax Benefits
- Automatic residency
- No inheritance tax
- No capital gains
- No VAT
- 15% income tax
Residents in Mauritius don't have to pay any wealth, inheritance, capital gains tax or VAT. However, a disposal tax is applied on the sale of a property of around £35,000 to the buyer and £25,000 to the vendor.
The government is also developing a range of tax-free incentives and plans to make Mauritius a duty free island by 2011. There are no exchange controls in Mauritius, so you can operate whatever foreign accounts you wish and can repatriate cash freely.
Anyone wishing to let their property out is legally required under Mauritian law to enter into a rental pool operated by a designated rental management company. Net rental income is charged at the nominal rate of income tax at 15%. There are no exchange controls in Mauritius; enabling anyone to operate whatever foreign accounts they wish. People who form a Mauritian corporation will not have to declare any assets, because the company will then own the assets.
Property Taxes
Transfer Tax equivalent to 5% of the purchase price on the deed of sale is payable by the seller (Les Villas de Bel Ombre Limited) on the sale of an IRS villa, and is recovered from the buyer as part of the gross sales value indicated on the price list. Registration Duty of US$70,000 is payable by the buyer on the purchase of an IRS villa. The seller will pay this on behalf of the buyer and recover the funds from the buyer as part of the gross sales value indicated on the price list. For more details on IRS scheme please click here.
We recommend that all buyers should seek professional tax planning advice relevant to their own respective tax domicile, prior to purchasing property in Mauritius, in order to minimize liabilities to taxes and duties.
