Real Estate Scheme (RES)

The Real Estate Scheme (RES) is a key initiative by the Mauritian government to attract foreign investment in the real estate sector. This scheme is designed to provide flexibility and accessibility to smaller landowners and investors, complementing the larger Integrated Resort Scheme (IRS). The RES plays a significant role in boosting the local economy by promoting the development of high-quality residential properties and enhancing the appeal of Mauritius as a premier destination for property investment​ (Mauritius Property)​​ (Fine & Country)​.

What is the Real Estate Scheme (RES)?

The Real Estate Scheme (RES) was introduced to allow non-citizens to acquire residential properties in Mauritius. This scheme was implemented to cater to smaller-scale developments, providing an alternative to the larger Integrated Resort Scheme (IRS). The RES allows the development of residential projects on plots of land ranging from 4,220 square meters to 10 hectares. Unlike the IRS, the RES does not impose a minimum investment threshold, making it more accessible to a broader range of investors​ (Mauritius Property)​​ (L’Express Property)​.

The primary goal of the RES is to facilitate the acquisition of freehold property by foreign investors, thereby stimulating the real estate market and contributing to the economic growth of Mauritius. This scheme also aims to enhance the quality of residential offerings and attract high-net-worth individuals seeking luxury living in a stable and attractive environment​ (Residency in Mauritius – RIM)​​ (PropertyCloud)​.

Benefits of the Real Estate Scheme

Advantages for Foreign Investors Investing in RES properties offers several advantages for foreign investors. One of the most significant benefits is the ability to acquire freehold property in Mauritius. This provides a sense of security and long-term investment potential. Additionally, the RES allows investors to enjoy luxury amenities and high-quality living standards without a minimum investment requirement​ (Mauritius Property)​​ (Fine & Country)​.

Economic Impact on Mauritius The RES has a substantial positive impact on the Mauritian economy. By attracting foreign capital, the scheme boosts the real estate market and creates numerous job opportunities in construction, real estate, and related sectors. The influx of affluent foreign investors also stimulates local businesses and services, further enhancing economic growth and development​ (L’Express Property)​​ (Mauritius Property Matrix)​.

Lifestyle Benefits and Amenities Provided Properties developed under the RES typically include high-end amenities such as leisure facilities, commercial areas, and day-to-day support services like waste disposal, security, and maintenance. These features provide a comfortable and convenient living environment for residents, making RES properties highly desirable. Additionally, the serene and picturesque settings of these developments offer an enhanced quality of life for investors and their families​ (Mauritius Property)​​ (Real Estate in Mauritius)​.

Eligibility Criteria for RES

To invest in RES properties, potential buyers must meet specific eligibility criteria. These criteria ensure that the scheme attracts genuine investors who can positively contribute to the Mauritian economy.

Who Can Invest in RES Properties?

  • Non-citizens: Individuals and foreign companies are eligible to invest in RES properties. This inclusivity aims to attract a diverse range of investors from different backgrounds.
  • Financial Proof: Investors must provide proof of funds to demonstrate their financial capability to meet the investment requirements, ensuring they can support the acquisition and maintenance of the property​ (Mauritius Property)​​ (Residency in Mauritius – RIM)​.

Minimum Investment Requirements

  • Unlike the IRS, the RES does not have a minimum investment threshold, allowing more flexibility for investors with varying budgets. This lack of a minimum investment value makes RES properties accessible to a broader range of investors​ (L’Express Property)​​ (PropertyCloud)​.

Legal and Financial Prerequisites

  • Investors must comply with all legal and regulatory requirements set by the Mauritian government, including obtaining necessary permits and approvals for property acquisition. This compliance ensures that all transactions are transparent and legally sound​ (Mauritius Property)​​ (Mauritius Property Matrix)​.

Types of Properties under RES

The RES includes a variety of residential properties designed to cater to the diverse preferences of international investors. These properties are built to high standards and include a range of amenities to enhance the living experience.

Villas

  • Luxury Villas: RES villas are designed to offer spacious living areas, private gardens, and often come with swimming pools and other high-end facilities. These villas provide a blend of luxury and privacy, making them ideal for high-net-worth individuals​ (Fine & Country)​​ (Real Estate in Mauritius)​.

Townhouses and Apartments

  • Modern Residential Units: In addition to villas, the RES includes townhouses and apartments that provide a blend of luxury and convenience. These properties are typically part of larger residential complexes that offer shared amenities like fitness centres, communal gardens, and recreational areas​ (L’Express Property)​​ (Mauritius Property Matrix)​.

Additional Facilities

  • Leisure and Commercial Amenities: RES developments are equipped with commercial and leisure amenities, including shops, restaurants, and wellness centres. These facilities provide a comprehensive living experience for residents, enhancing the overall appeal of RES properties​ (Mauritius Property)​​ (Real Estate in Mauritius)​.

How to Invest in RES Properties

Investing in RES properties involves a detailed process that ensures compliance with legal and financial requirements. Here is a step-by-step guide to the investment process:

Step-by-Step Guide to the Investment Process

  1. Initial Consultation: Potential investors consult with real estate agents and legal advisors to understand the RES scheme and identify suitable properties.
  2. Property Selection: Investors select a property that meets their preferences and budget. This step involves visiting properties and reviewing their features and amenities.
  3. Legal and Financial Preparation: Investors gather necessary documents, including proof of identity, financial statements, and source of funds. They also undergo due diligence checks to ensure compliance with regulatory requirements​ (Mauritius Property Matrix)​​ (Residency in Mauritius – RIM)​.
  4. Purchase Agreement: Once a property is selected, a purchase agreement is signed, and a deposit is paid to secure the property. This agreement outlines the terms and conditions of the purchase, providing legal protection to both parties​ (L’Express Property)​​ (Real Estate in Mauritius)​.
  5. Final Payment and Transfer of Ownership: The final payment is made, and ownership of the property is transferred to the investor. This step includes registering the property with relevant authorities and obtaining the necessary permits and approvals​ (PropertyCloud)​​ (Mauritius Property Matrix)​.

Documentation and Legal Requirements

  • Investors must provide comprehensive documentation to prove their eligibility and financial capability. This includes identity proof, financial statements, and evidence of the source of funds. Compliance with these requirements ensures the transparency and legality of the transaction​ (Mauritius Property Matrix)​​ (Residency in Mauritius – RIM)​.

Costs Involved

  • Initial Investment: While there is no minimum threshold under RES, properties are typically high-value, luxurious units.
  • Additional Costs: Investors should be aware of additional costs, including taxes, legal fees, and maintenance fees. These expenses vary depending on the property and its location, and they should be factored into the overall investment budget​ (Mauritius Property)​​ (Real Estate in Mauritius)​.

Residency Benefits of RES

The Real Estate Scheme (RES) in Mauritius offers significant residency benefits for investors and their families, making it an attractive option for those looking to establish a long-term presence on the island.

Residency Permits for Investors and Their Families

  • Automatic Residency: By investing in an RES property, foreign investors can obtain a residence permit. If the investment exceeds USD 375,000, the investor and their family members (spouse and dependent children) are eligible for a Permanent Residence Permit. This permit allows them to live, work, and study in Mauritius indefinitely as long as they maintain ownership of the property​ (Mauritius Property)​​ (L’Express Property)​​ (Residency in Mauritius – RIM)​.

Tax Benefits and Incentives

  • Favourable Tax Regime: Mauritius offers a highly favourable tax regime for RES investors, including no capital gains tax, no inheritance tax, and a low corporate tax rate of 15%. These benefits make Mauritius an attractive destination for high-net-worth individuals and business owners​ (Fine & Country)​​ (PropertyCloud)​.
  • Double Taxation Agreements: Mauritius has double taxation agreements with several countries, which can help investors avoid being taxed twice on the same income. This is beneficial for those with international business interests​ (Residency in Mauritius – RIM)​.

Long-Term Residency and Citizenship Options

  • Path to Citizenship: While the RES initially provides permanent residency, it also opens pathways to citizenship. After maintaining residency for a specified period (typically five years), investors may apply for Mauritian citizenship, subject to meeting the necessary legal requirements and criteria set by the Mauritian government​ (L’Express Property)​​ (Mauritius Property Matrix)​.
  • Quality of Life: Mauritius is known for its high quality of life, excellent healthcare system, and top-tier educational institutions. Residents enjoy a safe and stable environment with a pleasant climate and beautiful natural surroundings, enhancing the overall appeal of living in Mauritius​ (Mauritius Property)​​ (Residency in Mauritius – RIM)​.

Comparison with Other Property Schemes

Mauritius offers several property schemes for foreign investors, each with its unique features and benefits. Here’s a comparison of the RES with other prominent schemes:

Integrated Resort Scheme (IRS)

  • Scale and Investment: The IRS focuses on large-scale luxury developments with a minimum investment of USD 375,000. It grants automatic permanent residency to investors and their families, offering extensive luxury amenities and services​ (Mauritius Property)​​ (Fine & Country)​.
  • Residency Benefits: Similar to the RES, the IRS provides permanent residency but requires a higher minimum investment. The IRS projects often include golf courses, marinas, and other high-end facilities​ (Fine & Country)​​ (L’Express Property)​.

Property Development Scheme (PDS)

  • Flexibility and Social Impact: The PDS allows for the development of mixed-use projects that include residential, commercial, and leisure facilities. It emphasizes environmental sustainability and social integration, requiring developers to contribute to the local community​ (L’Express Property)​​ (Real Estate in Mauritius)​.
  • Investment Requirements: Similar to the IRS, the PDS requires a substantial investment (typically USD 375,000 or more) but offers more flexibility in terms of project size and location​ (Residency in Mauritius – RIM)​​ (Mauritius Property Matrix)​.

Smart City Scheme (SCS)

  • Sustainable Development: The SCS aims to create sustainable and self-sufficient urban developments that combine residential, commercial, and industrial components. These projects are designed to promote innovation, environmental sustainability, and economic diversification​ (Real Estate in Mauritius)​​ (Residency in Mauritius – RIM)​.
  • Residency and Investment: The SCS requires a significant investment and offers similar residency benefits to the IRS and RES. However, it focuses more on creating integrated, smart urban spaces with advanced infrastructure​ (Residency in Mauritius – RIM)​​ (Residency in Mauritius – RIM)​.

Frequently Asked Questions

What is the minimum investment required for RES properties?

There is no minimum investment required to purchase a property under the Real Estate Scheme (RES) in Mauritius. This flexibility allows a wider range of investors to participate in the scheme, unlike the Integrated Resort Scheme (IRS), which requires a minimum investment of USD 375,000​ (Mauritius Property)​​ (L’Express Property)​​ (Mauritius Property Matrix)​.

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