The Real Estate Scheme (RES) is a residential scheme that has been set up in 2007 under the aegis of the Mauritius Board of Investment (BOI) and it is governed by the following legislative framework:
• Investment Promotion Act 2000, as amended.
• Investment Promotion (Real Estate Development Scheme) Regulation 2007, as amended.
The main characteristic of a RES project is that a non citizen is allowed to acquire a residential property on a freehold basis in an approved project.
Who can purchase in a RES?
a) a non-citizen of Mauritius
b) a citizen of Mauritius
c) a company registered as a foreign company under the Companies Act 2001
d) a company incorporated under the Companies Act 2001
e) a société, where its deed of formation is deposited with the Registrar of Companies
f) a trust, where the trusteeship services are provided by a qualified trustee licensed by the Financial Services
Commission
Can a non citizen obtain a residence permit under the RES?
A non citizen is eligible for a residence permit under the RES provided that the value of the property exceeds USD 500,000. The residential property is deemed to be acquired on its registration and payment of the fixed duty of USD 25,000 to the registrar general. The buyer’s dependents also are eligible for a residence permit namely the following:
a) Spouse or common law partner
b) Child , stepchild, adopted child under the age of 18
c) Children over the age of 18 pursuing full-time education in Mauritius
d) Dependent next of kin
What is the basis of acquisition under the RES?
An immovable property for residence under the RES may be acquired either on the basis of a plan, during the
construction phase or when the construction is completed.
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 sale in a future state of completion also known as “Vente en l’Etat Futur d’Achèvement” (VEFA), in accordance with the provisions of the Mauritian Civil Code.
What are the buyer’s rights and guarantees?
a) A Real Estate Scheme project is carried out by a company issued with a RES certificate under the Investment Promotion Act by the Mauritius Board of Investment.
b) The provisions of the Code Civil Mauricien (Articles 1601-1 to 1601-45) protect the buyer’s rights and obligations with regards to the property being bought “on the basis of a plan” or “as construction works progress”.
c) The involvement of a banking institution as party to the transaction provides further guarantee of completion of works. The promoters have entered into an agreement with the Mauritius Commercial Bank (MCB), listed on the Banking Almanach recognized by the Bank of Mauritius, which will provide a guarantee of due completion namely “Garantie Financière d’Achèvement” (GFA) by way of surety to each buyer at the signature of the title deed. MCB is one of the largest banks in Mauritius.
d) The “Contrat de Vente en l’Etat Futur d’Achèvement” (VEFA) followed by a “Règlement de Co-Propriété” relating to common and shared property and services and the “cahier de charges” protect both parties of the contract.
What is an Escrow Account?
A buyer purchasing an immovable property under the Real Estate Scheme and where the contract of the acquisition of the immovable property is governed by the provisions of a sale under VEFA , the buyer has to open an account in a commercial bank in Maurtius in the name of Escrow Account which will be controlled by the bank. On signature of the preliminary contract, the buyer is required to deposit the reservation amount in the escrow account and the escrow account is opened only after the Know Your Client (KYC) exercise by the bank.
Can a buyer rent his property?
According to the provisions of the RES legislations, a buyer is allowed to rent his apartment only through the developer or any management company appointed by the developer. The income derived from the rental of the property shall be liable to corporate tax at 15%.
We shall introduce you to our accredited agents for short term and long term rental of your property.
Can a buyer resell his property?
The buyer is allowed to resell the property but if he has obtained a residence permit through the acquisition of the property, he will lose the residence permit on resale.
Can I obtain a loan for the financing of my acquisition?
Financial solutions with attractive terms can be provided by financial institutions on a case to case basis and are available for the part finance of the purchase of the property. If required we may introduce you to our main financial institution for the project namely :The Mauritius Commercial Bank .
Please note that information contained in this factsheet is valid at the time of printing (01 March 2011).