According to statistics by the Mauritian Board of Investments (BOI) 30 percent of foreigners who have bought property in the Integrated Resort Schemes (IRS) on the island are from South Africa, 37% are from France and the UK third with 20%.
The Integrated Resort Scheme (IRS) is an initiative of the Government of Mauritius in collaboration with the BOI and is designed to facilitate the acquisition of resort and residential property by non-citizens on the island.
In 2002 the Mauritian Government took the decision to open the market to foreign buyers on a restricted basis, which permits the construction and sale of luxury villas to foreigners in particular locations, and subject to certain conditions. To date, five projects have been completed: Tamarina, Anahita, Villa Valriche, ClubMed Albion and Belle Riviere. Three developments are currently under construction and due to be delivered in 2013 (Azuri, La Balise, and Matala).
Foreign investors automatically qualify for permanent residence for themselves and their immediate family if they invest a minimum of USD500 000 (R4.5m) or more in the Integrated Resort Schemes.
A leading property development company on the island, the Indian Ocean Real Estate Company (IOREC), is currently investing USD500 million (R4.5bn) in developing Azuri, the latest luxury ocean-front resort on the north-east coast comprising 269 residences. Of the 132 units available under the IRS dispensation, 92 have so far been sold and 30% of those have been sold to South Africans.
Mr Murray Adair, CEO of IOREC, says a combination of factors make Mauritius an attractive investment proposition for foreigners right now. Mauritius is among the top twenty countries in the world according to the World Bank Index for Ease of Doing Business. Based on the latest Statistics Mauritius forecast, the Mauritian economy will grow by 3.4% this year.
Mauritius offers foreign investors a favourable and competitive investment environment.
Some of these advantages are:
• A 15% tax rate;
• No inheritance or capital gains tax;
• 100% foreign ownership; and
• Free repatriation of profits, dividends and capital.
“This, coupled with a temperate climate, a stable democracy, a sophisticated financial services industry and the leisurely lifestyle make it an ideal proposition for people from all over the world to invest in Mauritius,” says Mr Adair.
Mr Adair says Integrated Resort Schemes have become important stimuli for the building, construction and propertysector in Mauritius.
He says while the average price of residences sold under IRS projects is about $1.6m, foreign buyers can obtain free-hold residences at Azuri from $500 000 upwards.