FEES

Expenses incurred FOR A RENTAL

Contract of one or more than one year: I month rent in advance+ I month deposit (guarantee)+ 1 month as agency fee + VAT paid both by the lessor and the lessee (landlord and tenant)

Contract less than 6 months: 1 month rent in advance + 1-month deposit (guarantee) + 20 % vat as agency fee (paid only by the lessor -landlord)

Fees and costs shall be due upon signing of the contract.

COSTS INCURRED FOR A PURCHASE OR A SALE:

1. Agency fee: 2% of the transaction + 15 % VAT (apply on the amount of the commission)
2. For all transactions not exceeding more than 1 million: Rs 25,000 vat included
3. Registration duty: 5% on the amount for second time buyers

First time buyers are exempted from the 5% registration duty in case land not exceeding more than 20 perches and not more than Rs 2 million and so far no property has been registered on their name before nor any inheritance received.

First time buyers are exempted from the 5% registration duty when purchasing a residential unit not exceeding more than Rs 4 million taking into consideration that no property has been registered on their name before nor any inheritance received.

Notary fees are paid by the buyer and are calculated as follows:

• 2% on the first Rs 250 000.
• 1.5% on the next Rs 500 000.
• 1% on the next Rs 1 000 000.
• 0.5 % on the remaining sum

In addition, there is the VAT which is 15%, as well as different expenses which vary from one notary to another.

Documents required by the notary:

1. National Identity card (Mr and Mrs)- copy
2. Passport size photos (Mr and Mrs)
3. Birth certificate (Mr and Mrs)- copy
4. Marriage certificate- Divorce certificate (copy)
5. A proof of address(copy)
6. Profession must be provided
7. Site and location plan of the property
8. A copy of the title deed
9. Co-ownership regulations- copy
10. Clearance letter from the syndic or property management
11. Clearance certificate for tax from the Municipality.
12. Letter from bank (in case there is any mortgage associated with the property)
13. Water and electricity receipt (bill already settled)

1. Agency fee: 2% of the transaction + 15 % VAT (apply on the amount of the commission)
2. For all transactions not exceeding more than 1 million: Rs 25,000 vat included
3. 5 % LTT (Land Transfer Tax) on the amount of the transaction.
4. Seller will have to pay for the Pin Code (Parcel Identification Number) recommended by the government and for the sales plan commonly known as the “Site Plan De Vente)- costs varies according to the surface area of the property and if deemed necessary or recommended by the notary, the seller will have to pay for Land Surveying Report “Rapport D’arpentage).

Agency fees and other external costs are due on the day of signing the deeds.

RPC POLICY-RULES AND REGULATIONS

1. All contacts proposed by RPC to the landlord are strictly confidential.
2. Site visits must be confirmed two days before, be assured that all relevant information regarding a property have been provided to you by the agent. Once the site visit is over the client is requested to sign our visiting voucher as per our policy.
3. Landlord are not allowed to deal directly with the visitor, third party or contacts proposed by RPC during exclusivity without the consent of the agency/ agent.
4. Duration of a mandate is granted to the agency for a period of 6 months.
5. The agent must inform the evolution of the transactions and gives advice during exclusivity to the landlord and he must also submit his report after a site visit.
6. Lease agreement exceeding Rs 30,000 for commercial space is done by a lawyer and the cost is shared 50 -50 by both the lessor and the lessee.
7. Any offer should be submitted by mail or by registered post.

TO SURVEY A LAND

If you wish to build on a plot of land in Mauritius or simply want to make some adjustments or for plantations without encroaching on the neighbour nor confront the urban planning rules, it is very important to know the exact limits and the surface area. Title deeds and cadastral department do not always offer sufficient guarantees and are generally imprecise or hazy.

• You must retain the service of a land surveyor to delimit a piece of land: he alone is able to proceed to what is called a demarcation.
• The demarcation allows to set the limits of the property by fixing material references: landmark
• He is bound to give considerable advice, he must give proposal, among the range of services he can offer, the one that best meets your needs.
• The documents submitted by him to you must be duly signed and dated, and he must also affix his stamp
• These mentions are very important because this testifies that the plans and documents were drawn by a surveyor who holds himself responsible.
• A written report will legally define the property boundaries. So, to give its authenticity, make it publish to the conservator of the mortgages.
• Land surveyors also make topographical surveys that are used by architects and engineers to draw buildings and house plans.

DIFFERENT TYPES OF FILED BOUNDARIES

If the neighbours agree among themselves, a cordial and friendly demarcation is carried out with the help of one or several land surveyors. It is very important that this agreement specifies the contribution and sharing the associated costs in between them.

If you are in conflict or not in good terms with your neighbours, and if they do not want to go through a friendly or cordial demarcation, you must seek a judicial demarcation.

Land surveyors in Mauritius fix their rates freely by agreement with their respective clients. There are no scales, the price varies from one cabinet to another. They are, in general, calculated according to an hourly rate, which can be different according to the complexity of the tasks. We advise you to seek several quotations in different enterprises in order to compare the prices. The price may also be calculated on a daily basis. The price of topographic services must be displayed in places where they are visible to customers.

• The price (TTC-ATI) All Tax Included of the ten benefits commonly practised by land surveyor.
• Travelling expenses and other remunerated conditions.
• If the service has not been provided in the land surveyor’s office, but on the spot, a document with the same information must be presented to you, before any interventions.
• Finally, a documentation, presenting their lists of services with indication with their tariffs published, must be visible to the client and held at their disposal.

INVEST IN MAURITIUS

For all disposals and acquisitions, all financial transactions are carried out at the notary.

The agency helps you to gather all the necessary documents, accompanies you and makes a follow up of your documents till the signature of the notarial acts.

For investing in a property in Mauritius, you need to fill all the following requirements or conditions:

• Be of Mauritian nationality
• Be married with a Mauritian under the system of community and goods
• To be a Mauritian resident
• Buy under the IRS / RES / PDS scheme

To obtain a resident permit, you need to meet one the following conditions or requirements:

• Purchase an IRS/RES project for an amount up to 500,000$
• Invest and register a society/company (investors, professionals and entrepreneur)
• Spending your retirement in Mauritius.

The property bought under the IRS or RES regime acquires a status which allows his owner to resell it to a client of Mauritian nationality or foreigner. This status is related to the good and is passed from one owner to another during the eventual resales

A foreigner has the right to stay in Mauritius 6 months in a year as tourists and 3 months for business affairs.

Occupation permit allows a foreigner wishing to create an economic activity in Mauritius, to reside or to acquire a property, and work. It serves both as a working and resident permit.

You will have the choice between 3 types of permit :

• The investor’s license
• Professional permit
• The contractor’s license.

Occupation permit for a duration of three years is granted by the Government of Mauritius according to the following eligibility criteria:

• Investor: the commercial activity must generate an annual turnover higher than 3 million rupees for an initial investment of 100,000$
• Professional: he must have a work permit with a minimum wage of Rs 30,000
• Entrepreneur: revenue from the commercial activity must generate a revenue higher than Rs 600,000, with an initial investment of 35,000$

Beyond 3 years, a permanent resident permit of 10 years renewable can be granted after studying the documents by the Mauritian authorities.

In case of acquisition of a real estate through a real estate company (SCI) with several partners, only one of the shareholders will obtain the resident title.

When a foreigner obtains a resident permit in Mauritius, his wife and his children less than 18 years old can also obtain the resident permit.

You must be 50 years old or older and justify to the Mauritian authorities, a minimum amount of 40,000$ annual income to provide for your expenses.

You will then be granted a resident permit allowing you to stay in Mauritius and therefore you are exempted from taxation, and then you can opt to purchase a property according to conditions set for foreigners.

You can also rent a house or an apartment for an indefinite period.

The companies act of Mauritius allows the set up or creation of a company with 100 % of foreign capital. There is no restriction on generated profits, dividends and capital.

In case of option for residence tax, which implies that you are staying more than 183 days in Mauritius, you benefit from the conditions applicable for any Mauritian taxpayer:

• Single rate of income tax at 15%
• Taxes on local companies at 15%
• Value Added Tax at 15%
• No tax on dividends and capital gain tax
• No direct right of succession.
• No taxes on wealth

More information on the Board of Investment website: http://www.investmauritius.com/ BOIPortal_fr/

Many countries have concluded a tax treaty with Mauritius to avoid double taxation and thus allowing foreigners and companies residing in these countries to pay tax in Mauritius from their income.

Thereby, foreign income. from real estate located in Mauritius are imposed in Mauritius at the rate of 15%.

When buying a property in a real estate project under the IRS or RES scheme for an amount for an extra amount of 500,000$, a foreigner may claim to obtain a permanent resident permit. The resident title will give him the right to exempt from tax, when he will stay more than 183 days in Mauritius.

PDS / IRS / RES / IHS

The different models of investments in Mauritius:

Since 2002, it is possible for a foreigner, to purchase properties in full ownership according 3 types of investments:

The Property Development Scheme (PDS), which has replaced the IRS and RES, allows the development of a mix of residences for sale to non-citizens, citizens and members of the Mauritian Diaspora.

The PDS provides the following:

1. the development of luxurious residential units on freehold land of an extent of at least 0.4220 hectare (1 arpent).
2. the development of at least six (6) residential properties of high standing;
3. high quality public spaces that helps promote social interaction and a sense of community;
4. high-class leisure, commercial amenities and facilities intended to enhance the residential units;
5. day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services;
6. social contribution in terms of social amenities, community development and other facilities for the benefit of the community.

A non-citizen is eligible for a residence permit upon the purchase of a villa under the PDS scheme when he has invested more than USD 500,000 or its equivalent in any freely convertible foreign currency.

The PDS is also a demarcation from the IRS and RES in as much as it does not differentiate between small and big landowners and harmonizes the registration duty to a single rate of 5% instead of USD 70,000 on registration of a deed under IRS and USD 25,000 under RES.

This model of real estate investment allows to buy a luxury villa, an apartment or a loft of prestige in a set of high standing extending on a property of a minimum surface of 10 hectares.

The acquisition of an immovable property under this model, must represent at least an investment of 500,000 $. A tax of 70,000$ (or 5% of the purchase value, whichever is greater) will be payable to the Government of Mauritius.

Can become buyers:

• foreign national, including spouse and assigns
• Any Mauritian citizen
• Any foreign or Mauritian company registered at Registrar of Companies “Companies Act” of 2001

This type of investment allows the purchaser and the members of his household to benefit from a residence permit, valid as long as he remains the owner of the property. This residence also makes it possible to opt for tax domiciliation in order to benefit from the attractive tax policy

These properties are usually built in heavenly settings within golf courses, marinas or wooded parks and offer infrastructure with a multitude of high standing services (individual pool, catering, caretaker service, health and fitness center, spa, shopping centers, shops, 24 /7 security and babysitting etc.…..)

It is possible to purchase an IRS property on plan, in VEFA (Buying off plan) or completed.
In some IRS projects, a rental management service is set up, allowing the property to be rented and generating income that will be taxed at a rate of 15%

A property under the RES regime is not subject to any minimum price but does not confer the right to reside in Mauritius unless the value of the property exceeds $ 500,000. In this case, the residence system applies in the same way as for the purchase of a villa under the RES regime.

On the other hand, persons acquiring a property worth less than $ 500,000 may, if they so wish, apply for a residence permit under the other provisions provided for this purpose, either as a contractor, professional, entrepreneur or retired.

Can be buyers:

• Foreign national, including spouse and assigns
• Every Mauritian citizen
• Any foreign or Mauritian company registered in the Register of Companies under the law” Companies Act” of 2001.
• A group of persons- partnership who’s deed of incorporation has been deposited or submitted at the Registrar of Companies.

Residential complexes under this regime must be built on a minimum of 4221 m2 and not exceeding 10 hectares. There is no minimum investment and some projects are accessible as from 100 000 euros.

It is possible to purchase an RES property on plan, in” VEFA”( sale off-plan) or completed.

The promoters of RES residences are required by law to set up a rental management and property marketing service in the case of a non- resident foreigner.

The income generated by these rentals will be taxed in Mauritius at the rate of 15%.

A tax of 25,000 $ will be payable to the Mauritian government for the acquisition of a RES property.

This model implemented in 2010, also called “Residence Hoteliere”-Hotel Residence or “ Combi Hotel” allows a physical or legal person, foreigner or not, to purchase or acquire a freehold property belonging to a luxury hotel establishment. This property can be a hotel room, an apartment or a villa, manage as part of a hotel complex.

There is no minimum investment.

The acquisition of the property does not allow to obtain the residence, nor to stay permanently.

Generally, the promoters of this type of product, offer to their customers between 20 and 30 free nights a year in the establishment, and sometimes even in another establishment of your choice but belonging to the same hotel group.

The acquired lot is the subject of a mandatory lease agreement between the purchaser and the hotel operator for the duration of the acquisition.

The rental and resale conditions are recorded in the Notarial deed.

This type of acquisition is a pure rental investment. The income is indexed on the turnover of the accommodation of the hotel; therefore, even if your lot is not rented, you still receive a share of the overall revenue from all lots.

In the case of renowned hotel groups, they have a good mastery of commercial skills, efficient sales and marketing structures, and are present on all major markets, thus enabling an optimization of the filling rate and revenues.

The net income is taxed at 15% and unlike the "timeshare" within the framework of the IHS, you are the owner of the whole property.