RES (Real Estate Scheme)

Mauritius Real Estate Scheme (RES)

        This publication contains guidance for promoters who want to engage in a project under the Real Estate Scheme, companies that a hold a RES Certificate and any person intending to acquire a residential property under the scheme. These guidelines are based upon the Investment Promotion Act and Investment Promotion (Real Estate Development Scheme) Regulations 2007 as amended. They are designed to provide information and assist decision-making. They are not intended to replace the provisions of the laws and should not be construed as one. Neither should they be interpreted as prescribing an exclusive course of management.

        Whilst care has been taken to ensure that the information provided herein is accurate and correct at the time of publication, users of this publication are advised to seek guidance from the Board of investment in case of uncertainty or ambiguity encountered in reading. The Board of Investment shall, in no circumstances whatsoever, be held liable to any person arising from use of information contained herein.

 

INDEX


 

A. BACKGROUND

This set of guidelines aims to:

  1. Define procedures required to be followed by promoters in line with requirements under the Investment Promotion (REDS) Regulations 2007;
  2. Provide a comprehensive and user-friendly guide and reference document to assist investors to submit projects under the scheme;
  3. Avoid any misunderstanding in the interpretation, application or implementation of agreed procedures, rulings and regulations and ensure that all RES projects are always in pursuance of and are consistent with the REDS Regulations.

More specifically, this set of guidelines shall:

  1. Facilitate the submission and processing of applications for new project through a clear, streamlined and more transparent project development, evaluation, approval and implementation process; and
  2. Ensure the application of the provisions of the Investment Promotion Act and the Investment Promotion (REDS) Regulations 2007.

Definition of terms

For purposes of these guidelines, the terms and phrases used herein shall be understood to mean as follows:

2.1
Bank guarantee – An indemnity letter in which a bank in Mauritius commits itself to pay a certain sum if the RES Company fails to perform as per the terms and conditions.
   
2.2
Board of Investment – Statutory body established under the Investment Promotion Act which issues the RES Certificate.
   
2.3
EIA – EIA is a study that predicts the environmental consequences of a proposed development. It evaluates the expected effects on the natural environment, human health and on property.
   
2.4
Letter of Approval – Document issued by the Board of Investment on approval of a project and lays down the terms and conditions that should be satisfied for the issuance of the RES Certificate. Letter of Approval entitles the RES Company to benefit from exemption of Morcellement Act, registration duty and land transfer tax. The RES Company can sign a “contrat préliminaire en état future d’achèvement”.
   
2.5
RES Company – A Company incorporated under the Companies Act 2001 that holds a letter of approval for the development of a project approved by the Board of Investment under the Real Estate Scheme for small landowners. A RES company can carry out one or more RES project.
   
2.6
Purchaser – Any person investing in the acquisition of a residential property under the RES.

 

Legal Basis

The legal basis for these guidelines is the:

  1. Investment Promotion Act 2000, as amended
  2. Investment Promotion (Real Estate Development Scheme) Regulations 2007
  3. Investment Promotion (Real Estate Development Scheme) (Amendment) Regulations 2009

 


 

B. THE REAL ESTATE SCHEME

About the scheme

The Real Estate Scheme (RES) for small landowners allows the development of any mix of residences for sale mainly to non-citizens on freehold land of an extent of at least 1 arpent but not exceeding 10 hectares (23.69 arpents).

The Real Estate Scheme provides:

  1. for the development of residential units of international standing on freehold land of at least 1 arpent but not more than 10 hectares (23.69 arpents).
  2. commercial facilities and leisure amenities attached to the residential units developed under the scheme.
  3. day-to-day management services to the residents such as security, maintenance, gardening, solid waste disposal and household services.

 

Eligibility for development under RES

  1. Only small landowners who own land of an extent of at least 1 arpent but not exceeding 10 hectares in aggregate shall be allowed to implement a project under the RES.
  2. The small landowner shall not have any direct or indirect interest in land where the total extent of land exceeds 10 hectares in the aggregate in Mauritius in any company, societe, trusts or any other body corporate or incorporate or by taking the total extent of land owned by his/her spouse and/or dependants of less than 18 years.
  3. Any small landowner having met the criteria of paragraph (1) can group his land with other qualifying small landowners for a project provided that the lands are contiguous and the total real estate development area for the RES project does not exceed 10 hectares.
  4. The small landowner or group of landowners shall provide a written declaration duly made by a notary public in Mauritius giving the total extent of land owned by him together with any direct or indirect interest in land he may have.
  5. The RES project shall be implemented by a company incorporated in Mauritius where the small landowner or group of small landowners shall be shareholder(s) in the RES company equivalent to at least the value of the land brought in the RES company.
  6. The small landowner or group of landowners shall retain shares in the RES company until at least 1 year after completion of the project. A project shall be considered as being completed on delivery of all residential units to the buyers.
  7. A non citizen is not allowed to acquire land to develop a RES project but can partner with a Mauritian land owner for a RES project.

 

Extent of real estate development area

A project under the RES must be developed on land of at least 1 arpent but not exceeding 10 hectares.

 

Eligibility for acquisition of residential property

The following persons may acquire a residential property from a RES Company:

  1. a non-citizen of Mauritius
  2. a citizen of Mauritius
  3. a company registered as a foreign company under the Companies Act 2001
  4. a company incorporated under the Companies Act 2001
  5. a société, where its deed of formation is deposited with the Registrar of Companies
  6. a trust, where the trusteeship services are provided by a qualified trustee licenced by the Financial Services Commission

Note: A qualified global business as defined under the Financial Services Act 2007 holding a Global Business Licence cannot acquire property under the RES scheme.

Extent and cost of residential property

  1. The extent of land that may de used for the development of a residential property within the real estate development must not exceed 1.25 arpents.
  2. There is no restriction on the minimum amount of price for the acquisition of a residential property under RES.

 


 

C. THE RES CERTIFICATE

RES Certificate

  • A RES certificate issued under section 18 of the Investment Promotion Act is conclusive evidence that all the requirements of the Act and the Investment Promotion (Real Estate Development Scheme) Regulations 2007 as to an investment project submitted to the Board of Investment have been complied with. From the date of issue of the certificate, the company is responsible for the development, implementation and management of the RES project in accordance with the approval granted by the Board of Investment.
  • The Company issued with an RES Certificate has to implement the project as approved by the Board of Investment and cannot change the use of the real estate development area, as approved, without the prior approval of the Board of Investment.

 

Stages followed for issue of RES Certificate

Stage 1: Submission of application by a company for RES Certificate

Stage 2: Issue of Letter of Approval by BOI

Stage 3: Obtention of permits and licences by relevant authorities for the project

Stage 4: Provide bank guarantee

Stage 5: Issue of RES Certificate

 

Stage 1: Submission of application for RES Certificate

  1. An application for an RES Certificate must be made online to the Managing Director of the Board of Investment using the Property Acquisition and Management System – https://pams.investmauritius.com/Login/.
  2. The duly completed application form must be submitted with the following mandatory documents:
    1. Certificate of Incorporation together with the register of shareholders– Conclusive evidence issued by the Registrar General that a company is incorporated under the Companies Act 2001 and is a body corporate with the name by which it is registered.
       
    2. Detailed business plan containing:-
      1. Background of promoters and investors
      2. Project components and description
      3. Proposed date of start of construction
      4. Marketing plans
      5. Detailed financial structure of project
         
    3. Site location plan by sworn surveyor and context plan as per Outline Scheme – Plan showing the exact location of the immovable property. The context plan should show also the surrounding properties, site configurations, streets and other features near the site. [It is recommended that the promoter consults the local authority to see whether the site is located within or on edge of settlement boundary and as to whether the site is affected by zoning in the Outline Scheme i.e mineral resource, road by pass, airport restriction zone, wetland, stone crushing plant, others]
       
    4. Detailed master plan for the whole project – A document that describes, with a map, the overall development concept.
       
    5. House Architecture and drawings - Drawings showing the artistic impressions of the residential components
       
    6. Title Deed of the land where the RES project shall be implemented
       
    7. Valuation report of the subject property where the project shall be implemented – the valuation report has to be prepared by a chartered land valuer.
       
    8. A written declaration made by a notary public on behalf of each applicant (landowner) giving the total extent of land owned by the landowner together with any direct or indirect interest in land he/she may have in Mauritius in a body corporate or incorporate as well as the total land area owned by his/her spouse or dependants of less than 18 years.
       
    9. Documents showing proof of funds – A document (audited financial statements, letter of arrangement from bank or bank confirmation) that demonstrates that the investor has the ability and funds available for the development of the project. The purpose of the document is to ensure that the funds required for the transaction are obtainable and legitimate proof that the investors have the funds. A bank confirmation or letter of arrangement may suffice. The account holder must request a letter from the bank or brokerage house to the effect that the sum in question (equity capital) is available in the account for the client's investment. The proof of funds should represent at least 20% of the total cost of the project.

 

Note 1: The Board of Investment reserves the right to request for any additional information or documents for determination of the application.

Note 2: An application shall be considered as ready for processing by the Board of Investment at the date by which all the information, particulars and documents have been duly submitted and considered as complete by BOI.

 

Stage 2: Issue of registration certificate and Letter of Approval

  1. A registration certificate and a letter of approval are issued to the company making the application for the RES certificate where the project meets the criteria of the scheme, in particular those set in Regulations 13 – 18 of the Investment Promotion (REDS) Regulations 2007.
  2. The Letter of Approval entitles the RES Company to benefit from exemption from the Morcellement Act, registration duty and land transfer tax. It enables the RES Company to sign a “contrat préliminaire en état future d’achèvement” with the purchasers of residential units.
  3. The letter of approval is valid for a period of 12 months from the date of the letter. The letter of approval stipulates all the conditions that should be met for the issue of the RES Certificate to the company, in particular:
    1. Obtention of the land conversion permit from the Ministry of Agro-Industry, if applicable;
    2. Obtention of the EIA Licence or PER, as the case may be, from the Ministry of Environment and National Development Unit;
    3. Obtention of the Building and Land Use Permit from the District or Municipal council
    4. Provision of a bank guarantee of 25,000 rupees per residential property to the Board of Investment.
    5. A written declaration that the landowner(s) shall retain shareholding in the RES company at least 1 year after completion of the project.

 

Stage 3: Issue of RES Certificate

A RES Certificate is issued after:

  1. Submission to the Board of Investment of the title deed duly registered and transcribed that witnesses the transfer of land to the company holding the letter of approval for implementation of the RES project;
  2. Submission of the register of shareholders of the company;
  3. Obtention of the Building and Land Use Permit from the District or Municipal council;
  4. A bank guarantee of 25,000 rupees per residential property is furnished in favour of the Board of Investment and
  5. The written undertaking is given to BOI that the landowner(s) will retain shares in the RES company equivalent to at least the value of the land brought in the RES company until at least one year after completion of the project.

 

A RES Certificate is issued subject to the following terms and conditions:

  1. The RES Company shall at all time be responsible for the execution, promotion, development and the proper implementation of the scheme in accordance with the approval granted by the Board of Investment.
     
    1. The RES Company shall only conduct such business or activity, being business or activity permissible under the laws of Mauritius. Where such business requires any licence, authorization, permission, or consent (however described), the business must not be undertaken until such has been obtained.
    2. The RES Company shall keep at its registered address a copy of such business licence/authorization, permission or consent (however described) obtained from any other Authority in relation to the conduct of its activities.
       
  2. The RES Company shall forthwith notify the Board of Investment of any material change from the RES scheme as approved by the Board.
     
  3. The RES Company shall –
    1. implement the scheme as approved by the Board;
    2. not change the use of the real estate development area without the approval of the Board.
       
  4. The RES Company shall provide the Managing Director at least once every quarter with a report on the work progress and the general implementation of the project.
     
  5. The RES Company shall not sell any residential property under the Scheme unless the person acquiring the residential property has obtained the authorization under the Investment Promotion (Real Estate Development Scheme) Regulations 2007.
     
  6. The Board of Investment shall be informed of any change in shareholding structure and the general financial condition of the RES Company during the entire phase of the implementation of the scheme. Where the RES Company has delegated, subcontracted or assigned any part of the works required in pursuance to the scheme, the Board of Investment shall be notified forthwith of such appointments.
     
  7. The income tax payable by the RES Company as well as the exemption from income tax on dividends paid to shareholders shall be in accordance with the provisions of the Income Tax Act, as amended.
     
  8. The RES Company is warned that pursuant to section 27(1) of the Investment Promotion Act any person who contravenes the Investment Promotion Act and the Investment Promotion (REDS) Regulations 2007 shall commit an offence and shall, on conviction, be liable to a fine not exceeding 100,000 rupees and to imprisonment for a term not exceeding 3 years.

 

Stage 4: Provide bank guarantee

  1. Provide bank guarantee in favour of the Board of Investment and written undertaking that the landowner shall retain shareholding in the RES company.

 

Stage 5: Issue of RES Certificate

  1. Issue of RES Certificate

 


 

D. SALE OF RESIDENTIAL PROPERTY

The following persons may acquire a residential property from an RES Company:

  1. a non-citizen of Mauritius
  2. a citizen of Mauritius
  3. a company registered as a foreign company under the Companies Act 2001
  4. a company incorporated under the Companies Act 2001
  5. a société, where its deed of formation is deposited with the Registrar of Companies
  6. a trust, where the trusteeship services are provided by a qualified trustee (management company or such other person resident in Mauritius) licenced by the Financial Services Commission.

Note: A qualified global business as defined under the Financial Services Act 2007 holding a Global Business Licence cannot acquire property under the RES scheme.


Basis of sale of residential property

  1. An immovable property for residence under the RES may be sold either on the basis of a plan, during the construction phase or when the construction is completed.
  2. Where the acquisition of an immovable property is made on the basis of a plan or during the construction phase, the contract shall be governed by the provisions of a “vente à terme” or “vente en l’état futur d’achèvement”, as the case may be, in accordance with the provisions of the Code Civil Mauricien.
  3. A sale for future delivery is the contract by which the seller undertakes to deliver the building on its completion, and the buyer undertakes to take delivery of it and to pay the price of it at the date of delivery. The transfer of ownership is achieved by operation of law by the acknowledgement of the completion of the building through an authentic instrument; it is effective retroactively on the day of the sale.
  4. A sale in a future state of completion is the contract by which a seller transfers at once to the buyer his rights in the ground as well as the ownership of the existing structures. The residential units to be constructed become the property of the buyer as they proceed and the buyer is bound to pay the price of them as the work proceeds. The seller is responsible for its construction until completion.
  5. In accordance with the provisions of Article 1601-30 of the Code Civil, the price of a residential unit when sold under “vente en l’état futur d’achèvement” is payable in instalments as the work progresses, as follows:
    • Upon signing of the deed: 25%
    • Upon completion of the foundation works: 10%
    • Upon completion of roofed-in phase: 35%
    • Upon completion: 25%
    • Upon availability of premises: 5%
       
  6. The amounts are called up gradually and as the works progress in accordance with the modalities stipulated in the deed of sale.

 

Documents to be submitted prior sale property

The RES Company must submit to BOI after the issue of the RES Certificate and prior sale of any immovable property under the RES, final specimen copies of the following documents:

  1. “Contrat de réservation préliminaire a une vente en etat future d’achevement”A contract witnessing the reservation made by the applicant with the RES Company for a specified plot in the RES project. The contract is governed by the provisions of article 1601-38 of the Code Civil Mauricien.
  2. “Contrat de vente en état future d’achèvement d’une maison individuelle” – The contract of sale between the RES Company and the buyer. This contract is governed by the provisions of the Code Civil Mauricien;
  3. Guarantee of due completion by way of surety conformably to article 1601-34(b) of the Code Civil Mauricien – A formal agreement that the RES company has entered into with a banking institution in Mauritius to ensure the financing and implementation of the villa. The banking institution should be listed on the Banking Almanach recognized by the Bank of Mauritius;
  4. “Reglement de co-propriete” et “Cahier de Charge” – These are defined in the sales contract under vente en état future d’achèvement.


Note 1:
No application for acquisition of a residential property by non-citizens, or citizens or other authorized entities shall be considered for processing by the BOI if the above documents have not been duly submitted to the BOI.

Note2: A contrat preliminaire can be drawn after obtention of a letter of approval from BOI. At time of signature of the contract, the purchaser has to deposit at most 25% of the value of the property in an escrow account deposited with either a bank or a notary public.

Note 3: A VEFA contract can be drawn only after obtention of a RES certificate.

 

Acquisition of residential property

  1. A non-citizen, citizen, company, société or trust wishing to acquire property under the scheme shall make an application to the Board of Investment using the property acquisition and Management System at https://pams.investmauritius.com/Login/.
  2. Every application for the acquisition of property under the RES together with such information, particulars and documents as specified in this guideline and a non-refundable processing fee of 10,000 rupees must be made through the RES Company and addressed to the Managing Director of the Board of Investment.
  3. The non-refundable processing fee of 10,000 rupees must be paid through cheque by the RES Company and drawn to the order of the Board of Investment. (The RES company may pay in advance a sum for a batch of application)
  4. An application shall be considered as ready for processing by the Board of Investment at the date by which all the information, particulars and documents have been duly submitted.

 

Screening of application

  1. The RES Company shall carry out due diligence exercise through a reputable bank for all applications received prior submission of same to the Board of Investment. The RES Company’s bank shall carry a Know Your Client (KYC) exercise and open a bank account for the client called the “Escrow Account”.
  2. The RES company may sign the “Contrat de réservation préliminaire à une vente en état future d’achèvement” for the plot. The potential buyer shall deposit at most 25% of the amount of investment in the acquisition of the property in the bank.
  3. The RES Company shall forward the completed application form duly filled and signed to the Managing Director of BOI for approval.
  4. In the case of a non-citizen, the following documents must be submitted to the BOI:
    1. Duly authenticated copy of first 5 pages of passport
    2. Letter from the bank certifying the KYC exercise for the client.
       
  5. In the case of a Corporate Applicant (Company):
    1. Certificate of registration evidencing the company is registered as a foreign company under the Companies Act 2001 or Certificate of incorporation under the Companies Act 2001, as may be the case;
    2. Letter from the bank certifying the KYC exercise for the client.
       
  6. In case of trust where the trusteeship services are provided by a qualified trustee
    1. Evidence from the Financial Services Commission that the trustee is a qualified trustee under the Trust Act 2001
    2. Letter from the bank certifying the KYC exercise for the client.
       
  7. In case of a societe where its deed of formation is deposited with the Registrar of Companies
    1. Evidence of the societe having a file number with the Registrar of Companies and deed of formation deposited with the Registrar of Companies
    2. Letter from the bank certifying the KYC exercise for the client.
       
  8. In the case of a Citizen of Mauritius:
    1. The applicant is required to submit along with the application form to acquire property in Mauritius, his/her National Identity card and letter from the bank certifying opening of an escrow account.

 

Residency in Mauritius

  1. Pursuant to Regulation 22(1) of the Investment Promotion (REDS) Regulations 2007, a residence permit under the Immigration Act is granted to a non-citizen only upon acquisition of a residential property the value of which exceeds USD 500, 000. The residential property is deemed to be acquired on its registration and payment of the fixed duty of USD 25, 000 to the registrar general.
  2. The RES Company must inform BOI by way of a letter addressed to the Managing Director on registration of the immovable property and submit a certificate from the Notary to the effect that the deed drawn has been duly registered and transcribed. The certificate should include the price of the property.
  3. The residence permit granted to the non-citizen remains in force until such time the noncitizen shall hold the residential property under the scheme or the where the person nominated by the company’s secretary, director, gérant or qualified trustee, of the entity, as the case may be, informs the Board of Investment to terminate the residency.

In the case of a non-citizen, the following documents must be submitted to the BOI:

  1. To apply for the status of residence in Mauritius, the following documents must be submitted by the RES company using the Property Acquisition and Management System to the BOI:
    1. Duly filled in “application to enter Mauritius” form for a residence permit
    2. Birth certificate
    3. First 5 pages of each dependent’s passport
    4. Medical certificate to the effect that the applicant is free from any contagious diseases
    5. Morality certificate
       
  2. If applicant is accompanied by dependents (his spouse or common law partner, his child, stepchild, lawfully adopted child, under the age of 18 years, or above the age of 18 years and who is pursuing full-time education, or a wholly dependant next-of-kin, documentary evidence of relationship, i.e. birth and marriage certificate, copy of the first 5 pages of each dependent’s passport, medical certificate of each dependent and morality certificate of spouse.

In the case of a Corporate Applicant (Company):

  1. If the company intends to apply for the status of residence in Mauritius for any shareholder in the company, executive director or chief executive officer of the company, the following additional documents must also be submitted to the BOI:
    1. A board resolution from the company’s secretary or director nominating a noncitizen (shareholder, executive director or chief executive officer of the company) to reside in the residential property and be entitled to residence permit.
    2. The documents requested in paragraph 4 (a), (b), (c), (d) and (e) for the nominee must accompany the application for residence permit. If nominee is accompanied by dependents, documentary evidence of relationships i.e. birth and marriage certificate, copy of the first 5 pages of each dependent’s passport, medical certificate of each dependent and morality certificate of spouse.

In case of trust where the trusteeship services are provided by a qualified trustee

  1. If the qualified trustee intends to apply for the status of residence in Mauritius for a beneficiary of the trusts, the following additional documents must also be submitted to the BOI:
    1. A letter from the qualified trustee nominating a non-citizen (beneficiary of the trust) to reside in the residential property and be entitled to residence permit.
    2. The documents requested in paragraph 4 (a), (b), (c), (d) and (e) for the nominee must accompany the application for residence permit. If nominee is accompanied by dependents, documentary evidence of relationships i.e. birth and marriage certificate, copy of the first 5 pages of each dependent’s passport, medical certificate of each dependent and morality certificate of spouse.

In case of a société where its deed of formation is deposited with the Registrar of Companies

  1. If the gérant of the société intends to apply for the status of residence in Mauritius for an active associate of the société, the following additional documents must also be submitted to the BOI:
    1. A letter from the gérant nominating a non-citizen (active associate of the société) to reside in the residential property and be entitled to residence permit.
    2. The documents requested in paragraph 4 (a), (b), (c), (d) and (e) for the nominee must accompany the application for residence permit. If nominee is accompanied by dependents, documentary evidence of relationships i.e. birth and marriage certificate, copy of the first 5 pages of each dependent’s passport, medical certificate of each dependent and morality certificate of spouse.

 

Rental of residential property by a purchaser

  1. The owner of a residential property may rent his/her property through the RES Company holding the RES Certificate or a service provider appointed by the RES Company to provide property management services.
  2. The RES Company must inform the Board of Investment of the service provider that has been appointed.

 

Resale or transfer of residential property by a purchaser

  1. The owner of a residential property is allowed to resell his/her property.
  2. Where the owner of a residential property intends to sell or transfer the property, he/she is required within 30 days prior to the sale, give notice in writing thereof to the Managing Director. A copy of the notice shall be given to the RES Company.
  3. The sale or transfer of the residential property can only be made to:
    1. a non-citizen of Mauritius
    2. a citizen of Mauritius
    3. a company registered as a foreign company under the Companies Act 2001
    4. a company incorporated under the Companies Act 2001
    5. a société, where its deed of formation is deposited with the Registrar of Companies
    6. a trust, where the trusteeship services are provided by a qualified trustee licenced by the Financial Services Commission
       
  4. The person acquiring the residential property is required to submit an application as per these guidelines. The application must be accompanied by an attestation of opening a bank account through which money for payment shall be transferred and a non-refundable fee of 10, 000 rupees paid by mode of a cheque drawn to the order of the Board of Investment.

 


 

E. DUTY AND TAXES

 

Duties and taxes on acquisition of land for IHS project
Duty   Rates
Land Transfer tax for property (excluding the value of any building thereon) the value of which does not exceed MUR 50 million (payable by the seller of land on the value of the property excluding the value of any building standing thereon)  
Levied on the difference between the value of the immovable property transferred and the value of
shares held by the transferor (if any) in the RES company at the following rate:
  • 10% on the value of the property – transfer is made after a period not exceeding 5 years of the date of acquisition of the property
  • 5% – transfer is made after a period exceeding 5 years of the date of acquisition of the property
Land Transfer tax for property (excluding the value of any building thereon) the value of which exceeds MUR 50 million (payable by the seller of land on the value of the property excluding the value of any building standing thereon)
 
Levied on the difference between the value of the immovable property transferred and the value of
shares held by the transferor (if any) in the RES company at the following rate:
  • 15% on the value of the land – transfer is made after a period not exceeding 5 years of the date of acquisition of the property
  • 10% on the value of any building existing on the property – transfer is made after a period not exceeding 5 years of the date of acquisition of the property
  • 10 % on the value of the land- transfer is made after a period exceeding 5 years of the date of acquisition of the property
  • 5 % on the value of any building existing on the property – transfer is made after a period exceeding 5 years of the date of acquisition of the property
Registration duty
(payable by the company intending to do the RES project on the value of the property)
 
Levied on the difference between the value of the immovable property transferred and the value of shares held by the transferor (if any) in the RES company at the rate of 5%


Note 1:
With the landowner holding shares in the RES company equivalent to the value of the land, no registration duty and land transfer tax are payable.

* Note 2: The rate of 10% or 15% applicable on transfer of immovable property is suspended in respect of all deeds of transfer signed between 23 May 2009 and 31 December 2010. Thus, during that period, there will be a single rate of land transfer tax of 5%.

Duty and taxes on acquisition of residential property by purchaser from RES Company
Duty   Rates
Land Transfer tax
(payable by the RES Company on the value of the property)
 
5% of the value of the property *
Registration duty
(payable by the purchaser)
 
USD 25, 000


*A developer of a RES project can pay the land transfer tax on the transfer of a residential property under Vente en l’Etat Futur d’Achèvement (VEFA) in 4 equal 6-monthly instalments provided that they submit, at the time of registration of the deed of transfer, a bank guarantee equivalent to the remaining balance of the land transfer tax leviable. .

Duty and taxes on acquisition of residential property by purchaser from a person holder of a residential property , i.e resale of residential property
Duty   Rates
Land Transfer tax
(payable by the seller of residential property)
 
5% of the value of the property
Registration duty
(payable by the purchaser)
 
USD 25, 000

 

Transfer of shares

A land transfer tax is leviable on a deed of transfer of shares in a company which owns immovable property (freehold or leasehold) and is payable by the seller on the value of the shares transferred or on open market value of the immovable property comprised in the assets of the company in the proportion of shares transferred against the total number of shares issued by the company, whichever of the two options is lower, where the transfer is made:

  1. for all the properties (excluding the value of any building thereon) the aggregate value of which does not exceed MUR 50 million at a rate of
    1. 10% on the value of the property – transfer is made after a period not exceeding 5 years of the date of acquisition of the shares
    2. 5% on the value of the property – transfer is made after a period exceeding 5 years of the date of acquisition of the shares
       
  2. for all properties (excluding the value of any building thereon) the aggregate value of which exceeds MUR 50 million at a rate of
    1. 15% on the value of the land – transfer is made after a period not exceeding 5 years of the date of acquisition of the shares
    2. 10% on the value of any building existing on the property – transfer is made after a period not exceeding 5 years of the date of acquisition of the shares
    3. 10 % on the value of the land- transfer is made after a period exceeding 5 years of the date of acquisition of the shares
    4. 5 % on the value of any building existing on the property – transfer is made after a period exceeding 5 years of the date of acquisition of the shares

 


 

F.  WRITTEN DECLARATION OF LANDOWNER IMPLEMENTING A PROJECT UNDERTHE SCHEME

 


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Original Content supplied by: Board of Investment