IRS Property in Mauritius

The Integrated Resort Scheme (IRS) is an initiative of the Government of Mauritius in association with the Board of Investment of Mauritius. The IRS programme is designed to allow non-citizens buy resort and residential property in Mauritius.

Until recent changes to legislation, non-citizens weren't permitted to buy property in Mauritius. But in 2002 the government of Mauritius made the decision to open the market to foreign purchasers on a selected basis through the IRS project, which allows the building and sale of luxury villas to foreigners in specific regions.

Through the IRS scheme, international buyers can become Mauritian residents once they purchase a luxury house on the island. The house owner and his family are allowed to dwell in Mauritius for as long as he holds the villa. IRS villas are often built with extensive and high end leisure and recreational amenities such as golf courses, marinas or fitness centres.

The Indian Ocean island of Mauritius was described byMark Twain as a 'blueprint for heaven'. A stable democracy, a strong economy and harmonious cultural mix, blessed with a beautiful landscape of lush tropical bush, pristine coral reefs, white sand beaches, clear blue seas and year-round sunshine. Paradise on earth for a lucky few, as it's only been the very wealthy who can afford to holiday there.

But now clever investors can invest in property in Mauritius and benefit from beneficial tax structures, as well as the island lifestyle that Mauritius offers.

By encouraging overseas investment here with favourable property offers, the government is expecting to secure a future in the tourism and service sectors. Until now, Mauritius has been chiefly dependent on sugar and textile exports. These industries are now in decline because of EU quotas as well as competition from India and China, and also since a lot of the highly educated Mauritian population would rather work in offices and hotels.

Mauritius is 12 hours' flying time fromLondon. English is the official language, driving is on the left, the English curriculum is standard in schools, football is a national obsession and the average year-round temperature is 30C.

The maximum amount of land foreign investors can purchase with the IRS scheme is 1.5 hectares and mortgages are available through Mauritian branches of the HSBC and Barclays Bank.

There is a fixed registration duty of �40,000 to consider, plus a fixed land transfer tax of �28,000 payable to the vendor on resale and a notary fee of 0.5 per cent. However, the advantageous tax breaks include no capital gains tax in Mauritius on re-sale for owners domiciled outside Britain, and no inheritance tax liability.

Buying a property on the island can be considered as both a good long-term investment and a unique holiday destination. So with purchase possible and an entry level in the region of $500,000, the IRS will enable foreign investors to buy and live in Mauritius. The Minister of Finance, Rama Sithanen, said: 'We need foreigners to settle here and invest in new business opportunities. Things are going well for us now, but we need to move forward and develop quickly if we are to continue competing internationally.'

And what of the impact of residential estates on this pristine island? 'Distance is a natural protector,' says Sithanen. 'We're deliberately creating exclusive resorts to protect what we have. It's a balancing act between preserving the natural environment with low-impact development while creating new jobs.'

Mauritius offers some solid opportunities to purchase luxury villas under the IRS scheme. Luxury houses and other residential properties can be sold freehold with a minimum price of $500,000 USD to foreigners who then get a residence permit. The luxury IRS villas and properties that have been put on the market so far have proved very popular, with overnight reservations and sales.

The investor may sell the property with no minimum selling price restriction; or rent the property; elect tax residency in Mauritius; and is free to repatriate funds or revenue raised from the sale or renting of the IRS property. International property developers have said that the IRS scheme is a good and realistic investment, and a good way to buy a home in Mauritius.
Mauritius IRS