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Property in Mauritius: what you need to know
For many South Africans, Mauritius is a destination of choice to buy property – not just for its pristine beaches and island atmosphere, but also for its strong global business environment, accessibility and compelling investment, taxation and residency options. However, you need to consider many factors before signing on the dotted line, including form of ownership, and the effect of various Mauritian and South African rules and regulations. Here’s what you need to know.
South Africans can purchase property in Mauritius only in one of the approved Integrated Resorts Schemes and Real Estate Schemes – sometimes jointly referred to as Property Development Schemes (there’s also an Invest-Hotel Scheme (IHS) for hotel developers, not covered here). Deciding which property to buy is only the first of a number of decisions you need to make, however. A key decision is the form of ownership you’d like – there’s no one-size-fits-all solution.
When buying property in Mauritius, you must consider:
The four structures most South Africans consider when purchasing a property in Mauritius are:
* = A Mauritian société can also be used to replace the Mauritian domestic company, but this option is not covered here.
^ = If a special purpose vehicle (SPV) has been structured for the express purpose of avoiding the mandatory provisions of the forced heirship rule in Mauritius, the structure could be challenged and seen as a sham, which would make the Mauritian laws of succession applicable.
There are no hard and fast rules in terms of which option to choose, and each situation needs to be assessed on its own merits. Here are some examples:
If you have any questions about buying property in Mauritius, please call Nick Jeffrey on 021 672 1865 or email nickj@privatewealth.sanlam.co.za.
Sanlam Private Wealth manages a comprehensive range of multi-asset (balanced) and equity portfolios across different risk categories.
Our team of world-class professionals can design a personalised offshore investment strategy to help diversify your portfolio.
Our customised Shariah portfolios combine our investment expertise with the wisdom of an independent Shariah board comprising senior Ulama.
We collaborate with third-party providers to offer collective investments, private equity, hedge funds and structured products.
We can help you maximise your returns through an integrated investment plan tailor-made for you.
Niel Laubscher has spent 10 years in Investment Management.
Have a question for Niel?
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