
Mauritius, an idyllic island nation in the Indian Ocean, has become a popular investment destination for South Africans. With its pristine beaches, lush landscapes, and favourable tax regime, Mauritius offers a compelling blend of lifestyle and financial benefits for South Africans looking at options for a destination for second residency by property investment, whether for retirement or relocation.
Read more: Have you considered…Emigrating from South Africa to Mauritius?
A new era for South African investors in Mauritius
In recent years, Mauritius has opened its doors wider to foreign property investors, particularly those from South Africa. A significant change in legislation has made it easier for South Africans to invest in Mauritian property outside of the traditional IRS, RES, and PDS schemes.
Why invest in Mauritian property from South Africa?
- Tax advantages: Mauritius is a tax-friendly environment, with no capital gains tax, inheritance tax, or wealth tax. This makes it an attractive destination for high-net-worth South African individuals and businesses.
- High quality of life: Mauritius offers a high standard of living, with excellent healthcare, education, and infrastructure. The island’s multicultural society and warm hospitality make it a welcoming place for expats. South Africans will enjoy its world-class beaches, luxurious resorts, and laid-back lifestyle.
- Strong economic growth: Mauritius has a stable economy and a pro-business environment. The government’s commitment to economic development has led to significant growth in various sectors, including tourism, finance, and technology.
- Investment opportunities: The Mauritian government offers various investment schemes, such as the Property Development Scheme (PDS) and the Real Estate Scheme (RES), which provide incentives for foreign investors.
Read more: Mauritius: A perfect haven for South African expats and business owners.
Buying property in Mauritius as a South African – what expats need to know about the Mauritian property market
The Mauritian property market offers a diverse range of options when it comes to property for sale in Mauritius for non-residents – from luxurious villas to affordable apartments. Some of the most popular areas for property investment by South Africans include:
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- Grand Baie: A bustling coastal town with a vibrant nightlife, upscale restaurants, and beautiful beaches.
- Pereybere: A peaceful seaside village with stunning beaches and a relaxed atmosphere.
- Trou aux Biches: A family-friendly destination with calm waters and a wide range of water sports.
- Belle Mare: A picturesque coastal region known for its pristine beaches and world-class golf courses.
Residency by investment in Mauritius for South Africans
Mauritius offers several residency programs for foreign investors, including the Permanent Residence Permit. By investing in a property worth at least USD 375,000, you can obtain a permanent residency permit in Mauritius for yourself and your family. This allows you to live and work in Mauritius without any restrictions.
Mauritius property investment – the South African connection
Mauritius is easily accessible from South Africa, with direct flights from major cities like Johannesburg and Cape Town. The flight time is approximately four to six hours, making it a convenient weekend getaway or a long-term relocation destination.
Read more: Moving to Mauritius from South Africa – what you need to know.
Understanding the legal process of buying property in Mauritius as a South African
When investing in Mauritian property, engaging the services of a reputable real estate agent and a qualified lawyer is vital. They will guide you through the legal process, which typically involves the following steps:
1. Choosing your property: Explore many options, from beachfront villas to cosy apartments. Consider factors like location, size, amenities, and budget. Research popular areas like Grand Baie, Pereybere, Trou aux Biches, and Belle Mare.
2. Appointing a local agent: A knowledgeable agent can guide you. They can help you find suitable properties, negotiate prices, and handle paperwork. Ensure your agent is registered with the Estate Agent Board of Mauritius.
3. Obtaining financing: Explore financing options from Mauritian banks or other lenders. Consider factors like interest rates, loan terms, and eligibility criteria. Be prepared to provide necessary documentation, such as proof of income and assets.
4. Securing a residence permit (if applicable): You may be eligible for a residency permit, depending on your investment. Consult with an immigration lawyer to understand the specific requirements and procedures. The Permanent Residence Permit is a popular option for foreign investors.
5. Engaging a lawyer: A qualified lawyer will guide you through the legal process. They will conduct due diligence, draft contracts, and handle property registration. Ensure your lawyer is registered with the Law Society of Mauritius.
What legal process is involved in buying a property in Mauritius as a foreigner?
- Property selection: Choose a property that aligns with your budget and preferences.
- Due diligence: Conduct thorough legal and financial due diligence to ensure the property’s title is clear and there are no encumbrances.
- Appointment of a notary: A notary public will handle the legal formalities and ensure compliance with local laws.
- Exchange of contracts: Both parties sign a sale and purchase agreement outlining the terms and conditions of the transaction.
- Payment of stamp duty: Stamp duty is a government fee based on the property’s value.
- Transfer of ownership: The property title is transferred to your name at the Land Registry.
Buying property in Mauritius as a foreigner – financing your investment
Mauritian banks offer mortgage financing to foreign buyers, subject to certain conditions. Typically, you’ll need to have a good credit history and a substantial down payment. It’s advisable to consult with a local bank or mortgage broker to explore your financing options.
You’ll also need to consider the following when buying a property in Mauritius:
- Currency exchange: Understand the exchange rate between the South African Rand and the Mauritian Rupee.
- Property management: If you’re not a resident, consider hiring a property management company to oversee maintenance and rental income.
- Insurance: Protect your investment with comprehensive property insurance.
- Visa requirements: Ensure you have the necessary visas and permits to enter and stay in Mauritius.
Buying property in Mauritius as a South African
Mauritius offers a unique blend of natural beauty, economic stability, and tax benefits. Mauritius is a strong contender if you’re looking for a vacation home, a retirement retreat, or a business opportunity. By investing in Mauritian property, you can enjoy a luxurious lifestyle, secure your financial future, and experience the beauty of this tropical paradise.
How can FinGlobal help?
Are you a South African dreaming of a tropical lifestyle or business opportunities in Mauritius? FinGlobal can assist you in transferring funds offshore to make this dream come true. Our expert team specialises in South African exchange control and expat tax compliance. Whether you need assistance with foreign exchange, retirement annuity cash-ins, or tax emigration, we’ve got you covered.
Contact us today to learn more about our convenient, cross-border financial services and start your Mauritian adventure!