The Mauritian economy has undergone a major transformation since its Independence in 1968. The country has gradually moved from sugarcane monoculture to other sectors like real estate, tourism and the export processing zone. The implementation of economic diversification and democratisation policy has fostered inclusive growth, human capital development and upward social mobility.
IRS, the first property scheme open to foreign buyers
The Integrated Resort Scheme (IRS) was introduced in 2002 to allow foreigners to acquire freehold property in Mauritius. Certain conditions apply for the purchase of residential property under the scheme, including a minimum investment of USD500,000 (excluding taxes) and a maximum plot area of 0.5341 hectares.
The IRS is much more than just a property scheme; this integrated resort development concept has revolutionised the market.
Why invest in the IRS Scheme in Mauritius?
The IRS programme offers various advantages to buyers, including eligibility for a residence permit and a favourable tax environment. Mauritius has tax treaties with 44 other countries and the country has a flat 15% income tax rate for both individuals and corporations. There is also no tax on capital gains, inheritance, dividends and capital. From a South African perspective, the SADC property allowance which came into effect in 2010 allows individuals to invest in excess of the annual limit of ZAR4 million per person on the outflow of funds from the country.
The Real Estate Scheme (RES) was launched in 2007 to accommodate smaller-scale developments with a maximum area of 10 hectares. The Invest Hotel Scheme (IHS), which allows foreigners to own a hotel room or villa, was also implemented in 2010.
The IRS and RES programmes gave way in 2015 to a single legal framework, the Property Development Scheme (PDS). This decision by the Mauritian Government aimed at harmonising the regulation of real estate laws within a single legal framework.