WHAT ARE THE INVESTMENT CONDITIONS ON THE ISLAND ?


The Taxe System

In addition to the extremely pleasant living conditions that make the island a dream destination, a lot of French people are mainly attracted by the favourable conditions for investment and the very advantageous tax system, since a few years now.

TAX BENEFITS

No property tax
No housing tax
No CEHR (Exceptional Contribution on High Incomes)
No IFI (wealth tax on Real Estate assets)
No donation fees
Transferable at any time
No inheritance tax for lineal descendants in Mauritius
Only 15% income tax including for rental income
No CSG/CRDS (Generalised social contribution / Contribution to the repayment of social debt)
No added value tax on resale neither in Mauritius nor France

Mauritius’ only tax corresponds to registration fees and is applied when buying and reselling a property up to 5% of the price of the property.

In the event of death, the property belongs to the heir and is taxable as part of the estate assets in France, if the heir resides in France.

Thanks to the double taxation treaty, Mauritius’ tax system allows foreigners who have invested in real estate in Mauritius and derive income from it to pay tax only to Mauritius.

This agreement was signed with 44 countries, including France, on 11th December 1980. An amendment was signed on 23rd June 2011 to strengthen the exchange of information and intelligence between tax authorities in order to promote transparency.

The income is tax-free when the money returns to France.

LA DETAXATION PLUTOT QUE LA DEFISCALISATION

The main asset of the rental investment in Mauritius is the advantageous Mauritian tax system !

WHAT IS TH PDS PLAN ?

Mauritian legislation on property acquisition has been simplified by replacing the IRS and RES property programmes with a single property acquisition law, the Property Development Scheme (PDS).

The PDS will establish the framework allowing a foreign investor to make a real estate investment in Mauritius. These PDS programmes enable foreign investors to purchase their property in full ownership.

The purchase of a property under the PDS plan allows you to obtain a residence permit if the investment exceeds USD 500,000 or the equivalent in another freely convertible currency.

The PDS system does not take into account the size of land ownership and harmonises registration fees at the single rate of 5%.

The buyer can transfer his built property under a PDS programme without any minimum price. This transfer may be made to Mauritian citizen or non-Mauritian nationality or to a member of the Mauritian diaspora.

CONCEPT OF MAURITIAN RESIDENT

 

A French citizen can stay on the island without a visa as a tourist for 3 months. This period is extendable by 3 months (once a year) on request from the Mauritius Passport and Immigration Office.

By “residence” is meant the right to stay on Mauritian territory without a visa for a period of more than 6 months.

This permit is automatically issued when purchasing a property built under the PDS law and whose purchase price is greater than or equal to 500,000 USD.
This permit is issued for the purchaser, his spouse and children under 24. It is granted for a period of three years, renewable for a 10-year permanent resident visa.
This permit remains valid during the possession time of the property. In case of resale, the permit is transferred to the next purchaser together with the property.

CONCEPT OF MAURITIAN TAX RESIDENT

BEING A PERMANENT RESIDENT IN MAURITIUS DOES NOT MEAN THAT YOU ARE AUTOMATICALLY A TAX RESIDENT

 

Fiscal year in Mauritius : From July 1st to June 30th .
According to Mauritian tax regulations, a “tax resident” can be any person domiciled in Mauritius and who has stayed there:

  • Either for a period of more than 183 days during the current fiscal year.
  • Or for a period of more than 270 days during the current fiscal year and the 2 previous year.

How does the French tax administration define this status?

A person is considered to be domiciled for taxation purposes in France if she meets one or several of following requirements :

  • His/Her home remains in France (spouses or partners of a civil solidarity pact and children).
  • He/She works as an employee in France.
  • The centre of his/her economic interests is in France, i.e. the place where the taxpayer derives most of his income.
RESIDENCE PERMIT FOR RETIRED PERSONS

 

This permit allows a foreign national over 50 years of age to reside in Mauritius. It does not allow him to work.

OCCUPATION PERMITS

 

These are permits that allow foreign nationals to work and therefore reside in Mauritius. There are 3 categories of them :

  • “Professional”: an employee in a Mauritian company.
  • “Self-employed”: self-employed worker.
  • « Investor » : Investor

For more information

PERMANENT RESIDENCE PERMITS

 

A foreign national who has a residence permit for retired persons or occupation permits for 3 years may apply for a 10-year permanent residence permit.

THE PERMANENT RESIDENCE PERMIT FOR COMMERCIAL INVESTMENT

 

The holder of an occupation permit “Investor” who has invested at least $135,000 in a so-called “eligible” activity in Mauritius will be entitled to a permanent residence permit for a period of 10 years.

For more information

For example

The centre of his/her economic interests is in France, i.e. the place where the taxpayer derives most of his income.

For further information, it is highly recommended to consult a lawyer specialised in taxation and international mobility.

(Crédit: Cabinet Lefebvre – 2017)