Acquiring Permanent Residence in Mauritius:

Strategically located in the Indian Ocean at the crossroads of Africa and Asia, Mauritius presents itself as a premier international business hub and a window of opportunity for foreigners wishing to establish viable investment projects on the island. As a means to further encourage investors to seize business and investment opportunities in Mauritius, Government has introduced a Permanent Residence Scheme for eligible foreign businessmen.




Integrated Resort Scheme (IRS) Why buy in Mauritius?

• Limited offering of residential properties available to overseas purchasers under new IRS scheme, with Mauritian residency rights.
• Favourable tax regime
• Voted in the top 3 island resort destinations in the world by Condé Nast Traveller
• Ideal year-round climate
• Championship level golf courses
• World class windsurfing, kite surfing, destination diving and water-skiing
• Mountain biking, hiking, riding and nature excursions
• Horse racing, deep sea fishing, sailing and tennis

The Integrated Resort Scheme (IRS) has been introduced to attract inward investment into Mauritius. IRS offers non-Mauritian citizens the opportunity to acquire freehold residential property in specific resorts approved by the Board of Investment (BOI). This is a limited offering, as government policy gives provision for around 3,000 properties over the next 10 years. IRS provides for the development of luxury residential schemes of international standing as well as extensive and high class leisure and recreational facilities.

Mauritius has a stable political, legal and economic environment with very low crime rates. A non-citizen, approved by the BOI, may obtain a residence permit (including spouse and dependants), upon investing a minimum of $500,000 US in the acquisition of a villa. A buyer will pay no capital gains or inheritance tax in Mauritius. The country benefits from double taxation avoidance treaties with 32 countries.



What is the Integrated Resort Scheme (IRS)?
The IRS is basically a project for the construction and sale of luxury villas to foreigners in an idyllic setting near the beautiful coastal region of Mauritius. The acquisition of a villa for residential purposes only by a foreigner under the Scheme will allow the foreigner and his family to reside in Mauritius as long as he holds the property.

The luxury villas
Villas sold under the scheme form part of a complex of luxury villas of international standing with facilities including: golf course, marina and individual swimming pool, nautical and other sport facilities, health centre, catering. Maintenance, waste disposal, gardening, security and other household services are also included.

The extent of land in respect of each villa shall not exceed 1.25 arpents (0.5276 hectares). The villa can be acquired on the basis of a plan or during the construction phase.

Residence Permit under IRS
The acquisition of a villa under the Scheme shall grant 'resident status' to the investor, his spouse and dependents. A residence permit granted under the IRS shall remain in force until such time as the non-citizen holds immovable property in Mauritius under the scheme. Application for Residence Permit shall be made at the time of applying for IRS.

Cost of a luxury villa
A minimum investment of USD 500,000 is required in the investment of a luxury villa. Out of the USD 500,000, the sum of USD 70,000 shall be extracted as payment of a fixed duty (Land Registration Duty) to the Government of Mauritius.

   1. Non- citizen of Mauritius (including his spouse and dependants);
   2. A foreign company under the Companies Act (of Mauritius) 2001;
   3. A citizen of Mauritius;
   4. A company incorporated under the Companies Act 2001.

Selling back of immovable property.
Possible provided written notice is given to the Board of Investment 30 days prior to the sale. 'Resident status' will be lost on selling back the villa.

Investment incentives under IRS
The IRS is basically a project for the construction of luxury villas of international standing with high class amenities and facilities. This involves substantial investments and thus various investment incentives are available for companies endowed with an investment certificate under the Scheme:

   1. Buyer pays fixed rate registration Duty of USD 70,000 (or sum equivalent in MUR if
       natives or local company).
   2. No authorisation from Prime Minister's Office required for acquisition of immovable
       property by non-citizens or companies registered as foreign companies under
       Companies Act.

OTHER PERMANENT RESIDENT SCHEMES:
There are additional Schemes to attract investment by non-Mauritians by granting them the status of permanent resident in Mauritius. However, a minimum investment of USD 500,000 is required to be eligible for a Permanent Resident Status.

Where to invest the USD 500,000?
The investor may invest the money:
  
   1. In a special fund called the "Permanent Resident Investment Fund" earning annual interest
       after deducting a management fee of 10% payable to the Accountant-General. Unless
       re-invested in a 'qualified activity', the investment shall be locked in the Fund for a period
       of 10 years.*
   2. In a 'Qualifying Business Activity'.
   3. In securities quoted on the Official List of the Stock Exchange of Mauritius. 4 In an equity
       fund.

*An investor who invests in the Fund may transfer whole or part of the balance standing to his credit in the Fund for onward investment into a 'qualifying activity', in securities on the Stock Exchange of Mauritius or in an equity fund, either in his own name or as a promoter or director of a company.

What is a "Qualifying Business Activity"?
Investors cannot invest in all types of businesses under the Scheme. Investors can only invest in the following 'qualifying business activities' authorized under the Scheme:

   - Manufacturing (EPZ)
   - Financial Services
   - Hotel, Tourism
   - Fishing & Marine
   - Resources
   - Agro-based Industry
   - Freeport Operations
   - Information Technology
   - Concession Projects
   - Film Production
   - Operational Headquarters of Multinationals


Where an investor invests in a 'qualifying business', he shall make an application for an Investment Certificate (e.g. Pioneer Status Enterprise, EPZ Certificate, ICT, etc.) to the Board of Investment.

Cessation of business or reduction of sum invested
An investor, who within a period of 5 years of becoming a permanent resident, ceases his business activities or reduces the sum invested to below USD 500,000 shall be deprived of his status of permanent resident.

Permanent Residence Status
Upon a minimum investment of USD 500,000, the investor will be eligible for Permanent Residence (PR) Status. He will be exempt from work and residence permits. He can also apply for PR status for his:

   - spouse;
   - children, stepchild or his lawfully
   - adopted child*
   - next-of-kin*
   - Wholly dependent next-of-kin of an unmarried applicant provided the number of
     dependents does not exceed 3.

Each of the above people shall separately fill an Application Form for PRS.

*A next-of-kin or child above the age of 18 shall also make a deposit of a minimum of USD 100,000 with the Accountant General in Mauritius via bank transfer of the funds. The deposit will not bear any interests.

Acquisition of immovable property
Investor can acquire for residential purposes only:

   • a flat or portion of land or immovable property not exceeding 1.25 arpents;
   • Should be at least 100 metres away from sea frontage.

Exemptions
Every investor shall be:
  
   1. Exempt from the requirements of a work permit as long as he maintains his investment
       to a minimum of USD 500,000.
   2. exempt from payment of duties and taxes on imports of household and personal effects
       imported solely for his personal use and his family; exempt from seeking the
       authorization of the Prime Minister's Office for the acquisition of immovable property in
       Mauritius.


The investor who becomes a permanent resident under the Permanent Residence Scheme may apply for Mauritius citizenship after meeting the provisions of the Mauritius Citizenship Act (1968).



CONTACT US AT investor@ableimmigration.com further information.

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