The procedure and conditions for purchasing real estate in Mauritius according to the RES program.
RES (THE REAL ESTATE SCHEME)
Introduced in 2007, the RES (Real Estate Scheme), being smaller in size than the IRS, offers a greater variety of properties scattered around the island. It also provides for the development of luxurious residential units of international standing on freehold land of a minimum of 1 arpent (+/- 4100 m2) but not exceeding 10 hectares (+/- 97,200 m2).
There is no minimum price established for properties purchased under the RES scheme.
Residential complexes in RES programs must include at least 6 residential units, with mandatory services like :
- Security service.
- Landscaped area
- Services for maintenance and cleaning of the territory.
Who can become the owner of real estate in Mauritius under the RES program:
- Foreign buyers and members of the family.
- Local Buyers
- Local and foreign companies registered under the 2001 company act.
- Trusts registered under the Financial Service Commission (F.S.C.).
Obtaining a Residence Permit when buying a property through the RES program
A person who purchases real estate under the RES is not automatically entitled to the Permanent Residence in Mauritius for himself and his family (spouse, children) unless the value of the purchased property exceeds US$ 500,000. If this is the case, the owner and his dependants, retains this status for as long as this property is in his possession.
If the property purchase price is above US$ 500,000 and is bought by a legal entity, foreign company or trust, even if there are more than one shareholder or beneficiaries, only one of these beneficiaries and his dependants is entitled to the permanent residence permit.
But, this permanent resident permit can be transferred at any time to another shareholder of the company or beneficiary of the trust by official notification to the Board of Investment.
Terms of purchase of real estate in Mauritius under the RES program.
Since the cost of objects under the RES program does not have a minimum price limit, the registration fee is 5% of the value of the property, or US$ 25 000 whichever the higher.
The immovable property under the RES scheme may be purchased either on the basis of plan, during the construction phase or in the finished state.
When sold under the VEFA provision (French law term for: sale in the future state of completion) the payments are to be made by instalments according to a pre-established schedule based on the progress of construction work.
The procedure for buying property through the RES program.
- First, a potential buyer (non-resident or non-citizen of Mauritius) who wishes to purchase real estate on the island, applies to the Board of Investment (BOI) in order to obtain consent to such a purchase. He has to fill a detailed application.
- The Board of Investment considers this application, which requires a certain package of documents, after which, if all conditions are met, the Board of Investment approves the deal and the agency can further formalize the conclusion of a transaction for the purchase of real estate.
If the potential buyer is a foreigner, the following documents must be prepared and submitted to the Board of Investment of Mauritius.
- Passport + national ID card. The document must be submitted in the original together with a notarized translation into English or French if it is in a different language.
- Birth certificate. The document must be submitted in the original together with a notarized translation into English or French if it is in a different language.
- A certificate of criminal record (Morality certificate) issued not earlier than 3 months before the filing of documents. It is also necessary to attach a notarized translation into English or French if document is in a different language.
- A letter of recommendation from the bank that serves the buyer attesting of decency and good business reputation.
- Medical documents that confirm the absence of dangerous and transmissible viruses, including Hepatitis C, HIV / AIDS, a conclusion on the state of health. (ONLY FOR THOSE APPLYING FOR A PERMANENT RESIDENCE PERMIT).
According to current legislation, if the buyer qualifies for permanent resident status his family, (spouse, children, and other dependants) also have the right to obtain the permanent residence permit and live in Mauritius, though the age of children cannot exceed 24 years.
To obtain a Residence Permit for family members of the buyer, each family member must provide the same documents as the buyer, excluding the letter of recommendation from the bank.
If the documents submitted by the buyer meet the conditions, the period for consideration of the documents by the Board of Investment does not exceed 30 days.
This material is provided for informational purposes and the list of documents may be changed.
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