Process of acquisition of a property

Who may acquire a residential property from an IRS, RES or PDS Company

  1. a non-citizen of Mauritius
  2. a citizen of Mauritius
  3. a company registered as a foreign company under the Companies Act 2001
  4. a company incorporated under the Companies Act 2001
  5. a société, where its deed of formation is deposited with the Registrar of Companies
  6. a trust, where the trusteeship services are provided by a qualified trustee (management company or such other person resident in Mauritius) licenced by the Financial Services Commission.

Important considerations prior to property purchase

  1. A residential immovable property within the IRS/RES/PDS framework can be sold either based on a plan, during the construction phase, or upon completion of the construction.
  2. Where the acquisition of an immovable property is made on the basis of a plan or during the construction phase, the contract shall be governed by the provisions of a “vente à terme” or “vente en l’état future d’achèvement”, as the case may be, in accordance with the provisions of the Code Civil Mauricien. (Mauritian civil code)
  3. A sale for future delivery is the contract by which the seller undertakes to deliver the building upon its completion, and the buyer undertakes to take delivery of it and to pay the price of it at the date of delivery. The transfer of ownership is achieved by operation of law by the acknowledgement of the completion of the building through an authentic instrument; it is effective retroactively on the day of the sale.
  4. A sale in a future state of completion is the contract by which a seller transfers at once to the buyer his rights in the ground as well as the ownership of the existing structures. The residential units to be constructed become the property of the buyer as they proceed and the buyer is bound to pay the price of them as the work proceeds. The seller is responsible for its construction until completion.
  5. In accordance with the provisions of Article 1601-30 of the Code Civil, the price of a residential unit when sold under “vente en l’état futur d’achèvement” is payable in instalments as the work progresses,
    • Upon signing of the deed: 25%
    • Upon completion of the foundation works: 10%
    • Upon completion of roofed-in phase: 35%
    • Upon completion: 25%
    • Upon availability of premises: 5%
  6. The amounts are called up gradually and as the works progress in accordance with the modalities stipulated in the deed of sale.

Process of acquisition of property under the IRS or RES or PDS schemes

  1. A non-citizen, citizen, company, société or trust wishing to acquire property under the IRS, RES or PDS scheme shall make an application to the Economic Development Board using the property acquisition and Management System.
  2. The application should be submitted by the IRS/ RES/ PDS Company or a representative of the buyer.
  3. At time of application, a non-refundable processing fee (per application submitted) by cheque drawn in favour of the Economic Development Board of Rs 10,000 for acquisition in IRS/ RES and Rs 20,000 for acquisition in PDS is payable.
  4. An application shall be considered as ready for processing at the date by which all the information, particulars and documents have been duly submitted and considered complete by the Economic Development Board.

Issue of Residence Permit upon acquisition of a residential property

  1. A residence permit under the Immigration Act is granted to a non-citizen only upon acquisition of a residential property whose value exceeds USD 375,000 or its equivalent in other freely convertible currencies.
  2. Where payment shall be effected in currencies other than USD, the Economic Development Board will use the exchange rate at selling price in force at time of signature of the title deed.
  3. The residential property is deemed to be acquired and registered following payment of the relevant registration duty to the registrar general.
  4. The IRS or RES or PDS Company must inform EDB by way of a letter addressed to the Chief Executive Officer on registration of the immovable property and submit a certificate from the Notary (Notary Certificate) to the effect that the deed drawn has been duly registered and transcribed. The certificate should include the price of the property.
  5. The residence permit granted to the non-citizen shall remain in force until such time that the non-citizen shall hold the residential property under the scheme or where the person nominated by the company’s secretary, director, gérant or qualified trustee, of the entity, as the case may be, informs the Economic Development Board to terminate the residency.