Tourism is the pillar of any economy and isolated islands such as Mauritius make quite a substantial contribution. The island is not only a fashionable tourist destination but also a heaven for those looking to buy a second home. Relocating here is beneficial in so many ways. The many tax benefits, promising returns and low crime rate are just some of the reasons why you should not miss the opportunity of investing in Mauritius real estate. If these arguments will not convince you, then maybe the warm climate will make you reconsider. Should you change your mind the following details will come in handy.
Buying a house through IRS
Mauritius is the embodiment of the perfect tropical island: it is 61 kilometers long and it is surrounded by coral reef. Equally important is that it has one of the most stable governments in Africa, which has made efforts to implement a policy for attracting foreign tourists. Nonetheless, any foreigner who is considering buying a property on the island has to go through the IRS development. Non-citizens are entitled to a residency permit only if they buy residential properties through the IRS, which implies making a minimum purchase of $500 000.
This residency is allows the buyer either to find a job or start a business. Thanks to the popularity of the program, foreigners are now given the chance to buy exclusive residences at cheaper prices. Whether you opt for a villa, an apartment or a penthouse, you benefit from amenities like golf courses or beach clubs.
What happens under RES?
The main difference between IRS and RES development is that the latter does not give foreigners the possibility to purchase real estate at minimum price. While the RES allows the development of mixed residences for sale, the purchaser has to invest at least $500 000 in order to be entitled to a residency permit. The scheme is addressed mostly to those who are interested to both invest and live in Mauritius, but also to those who are thinking about buying a second home. The perks that come with obtaining the residency permit, such as occupation certificates, apply to spouses and dependents as well.
A tax paradise
One of the reasons why Mauritius is a popular residential location is the 15 percent tax rate, which includes income and corporation tax. Additionally, there is no taxation on capital gains and buyers are free from paying the inheritance tax. On the other hand, you should be aware that dual residences are taxed two times. In other words, depending on the place of effective management, companies are subject to double taxation: in Mauritius and in South Africa.
Life on the island
The island is an excellent dwelling for families who are considering relocating. The educational system is surprisingly good and the crime rate is significantly low. The tax rate makes it possible to start a thriving business, not to mention that there are many job opportunities. Since the indigenous have no claim whatsoever over the land, families are free to do no matter what with their properties.