Mauritius is a small island nation located in the Indian Ocean. It is a popular tourist destination for its crystal clear waters, white sand beaches, and lush vegetation.
Mauritius is also increasingly becoming a popular destination for people looking to purchase land for settling in the country or as an investment.
However, there are some things potential buyers should be aware of before making any purchase. Before buying land in Mauritius, this article will outline some key things to know.
Can A Non-Citizen Buy Land In Mauritius?
Yes, foreigners can buy land in Mauritius. Thanks to The Non-Citizen Property Restriction Act, foreigners can now own a piece of this island country. However, there are some restrictions in place. Anyone can apply to the Prime Minister’s Office, and he has the final say on whether or not you receive your certificate.
Furthermore, the EDB (The Economic Development) is the approval body for serviced land plots. Non-citizens with an occupation permit, residence permit, or permanent residence can purchase a plot to build their home in a designated area.
There is also a program called the Property Development Scheme (PDS) that allows non-citizens who hold authorizations from the EDB to acquire residential properties.
Other Considerations Before Buying Land In Mauritius
Before acquiring land in Mauritius, consider the type of title you will get. There are two types of titles in Mauritius: freehold and leasehold. Freehold titles are more desirable, giving you complete property and land ownership.
On the other hand, leasehold titles only give you the right to use the property for a certain period. After the lease expires, the property will revert to the landowner.
Other factors include:
1. The title deed of the seller
The title deed is a crucial document in any real estate transaction. It verifies that the seller owns their property and what legal form they use for themselves, either as an individual or through a partnership like LLCs (Limited Liability Companies).
The title deed will show you how big your plot is and whether it’s residential or agricultural. Before skirmishing through various land for sale in Mauritius portals, check with local authorities if no mention of the latter factor appears in the land documents.
When purchasing land, be sure to check the survey report. However, please do not rely on it too much because older reports may no longer apply and can lead you astray. A more recent registration number will always provide accurate information.
If you want to build your house there, the land should have access to electricity and water networks. If this isn’t possible due to location restrictions or other reasons, construction can incur extra expenses for buyers.
2. The Land Value
An overvalued land assessment may significantly inflate the value of your home. To verify this, you will need to contact a professional real estate agent or certified appraiser who can assess its current market price based on recent sales in that region and provide any other relevant information concerning the plot’s worthiness for purchase.
Additionally, the land condition is an essential factor when building construction projects. The engineers, architects, and surveyors can help check this to ensure that there will be no problems later in the process.
3. Role of a notary in buying land
Notaries are a vital part of any land transaction. Buyers commission them to verify the title and ensure there aren’t any liens on their property, which is why they need an experienced individual who can do this job properly. Legal issues could arise down the line if the verification process is not handled well when buying new land.
Once both parties sign the deed, the notary will register it with the local Registration Office. The fee for registering this sale is payable by both parties to formalize it before time runs out on its deadline.
What Is The Process Of Buying Land In Mauritius Like?
The process of buying land in Mauritius is relatively simple. Once you’ve found a property you’re interested in, you’ll need to sign a Reservation agreement. Next,
- Deposit a holding deposit of around 5 – 15% of the purchase price into an escrow account.
- It permits an additional 15 – 20% on the purchase price, including hidden costs such as transfer fees, legal fees, and Notary services.
- Set out for a mortgage
- Take life insurance to cover the mortgage
- Open a bank account
- Sign the Sales Agreement. It has the time frame within which the sales will complete.
Other Associated Costs With Buying Land In Mauritius (Legal Fees, Transfer Taxes, Etc.)?
Here is a complete breakdown of fees that you have to pay to the notary of real estate in Mauritius
- Registration Fees 5%
- Notary fees as per a specific scale of fees
- Agency Fees 2% plus 15% VAT
What Are The Benefits Of Owning Land In Mauritius?
Mauritius is a beautiful country with a lot to offer. The climate is relatively warm and sunny year-round, the beaches are pristine, and the people are friendly. Owning land in Mauritius allows you to enjoy all the country has to offer while providing a solid investment.
First-time buyers get total exemption from registration duty on the first MUR 2.5 m. It also entitles you to a permanent residency permit; however, the investment should be no less than $350,000.
Overall, buying land in Mauritius is a sound investment with many benefits. The process is relatively easy, and the country offers a favorable tax regime, making it an ideal place to invest your money.