In early 2017 the Mauritian government changed the Non-Citizens (Property Restriction) Act so that foreign investors can now buy apartments outside of the pre-existing foreign buyer-designated IRS, RES and PDS developments.
This is especially beneficial to South African property investors, as investing in the IRS, RES and PDS developments is significantly more expensive than the new, lower, minimum investment amount of MUR6 million.
So how do South Africans, in particular, take advantage of the amended law and invest in property outside of the IRS, RES and PDS developments?
Mauritian Banks have made mortgage loans are available to South Africans, and other applicable foreign investors, at interest rates of between 7% and 9%, to those who meet the strict qualification criteria, and who are able to finance at least 40% of the purchase themselves. To facilitate the process South African investors who, a) have a valid tax clearance certificate, and b), can get approval from the Reserve Bank for the transfer of funds needed, have an individual investment allowance of ZAR10 million per year.
The nuts and bolts
Potential investors will need to register with the Mauritian Board of Investment (BOI) and obtain a security clearance. Once that is in place, and funds are secured in both South Africa and Mauritius, investors will be able to buy any property in any development with a minimum value of the MUR equivalent of ZAR2.2 million. Buying property in Mauritius doesn’t come with automatic permanent residence, rather it is an easier way for foreigners to invest in the growing economy that is Mauritius, and to benefit from owning property on one of the most beautiful islands in the world.
Owning property on a tropical island a stone’s throw away from South Africa aside, there are more than enough reasons to invest in Mauritian property. Diverse Mauritius is politically stable and is one of the healthiest and most stable economies in Africa. It is a tourism and investment drawcard to the rest of Africa, to Europe and to America; with a solid business infrastructure, a skilled workforce and established rule-of-law when it comes to investment.
So, if you are a South African, or a foreigner from an approved investment country, with upwards of MUR6 million or ZAR2.2 million to invest, why not join one of the most exclusive economic zones in the world with a property of your dreams?
Visit www.homes.mu or call +230 57 94 64 37