PDS, RES IRS: the differences between these three schemes

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The Integrated Resort Scheme (IRS), the Real Estate Scheme (RES) and Property Development Scheme (PDS) are programmes designed to facilitate the acquisition of residential property by non-citizens in Mauritius.

All the three schemes allow development and sales of luxurious residential units to foreigners. However, there are major differences between IRS, RES and PDS. Discover them below:

The developed surface areas

The IRS is the first scheme set up by the Mauritian Government in 2001, with the collaboration of the Board of Investment (BOI). The land area developed under the IRS shall exceed 10 hectares.

La Péninsule (projet IRS)

On the other hand, the RES, launched in 2007, is a slimmed down version of the IRS. The thinking behind this scheme is to let smaller land owners have a share of the property development pie. The project property size must be between 4 000 m2 and 10 hectares. RES allows smaller investors to convert their land and boost their property investment, with more limited budget.

The PDS is the result of a merge of the Integrated Resorts Scheme (IRS) and Real Estate Scheme (RES), which came into force in 2005. There are no more restrictions on the maximum land area with this new scheme. This is one of the several amendments made to the PDS after the 2016/2017 budget. Another amendment to the PDS scheme is that henceforth, developers are not obliged to sell at least 25 percent of residential units to Mauritian citizens or members of the Mauritian Diaspora. All units can be acquired by foreigners willing to invest in Mauritius.

The Property Development Scheme is basically an integrated project with a social dimension to the benefit of the neighbouring Mauritian community. The projects are subject to strict controls regarding respect for the environment and must focus on the ecological aspect.

Le projet PDS KI Grand Baie Residences

The purchase price

Under the IRS the minimum selling price of a villa is set at USD 500,000. It differs with the RES concept where there is no minimum investment value, just like the PDS regime.

The residence permit

When buying an IRS, a residence permit is automatically granted to the purchaser. The residence permit will remain valid as long as the holder maintains ownership of the property. This permit residence allows the purchasers to opt for a tax paradise in Mauritius and thus benefit the particularly favourable fiscal policy of the country (provided that he stays in Mauritius for more than 183 days per year). This residence permit is also valid for the purchaser’s family, like his spouse and children till the age of 24 years. It’s a great difference with the RES which does not automatically entitle the purchase to a Mauritian permit residence. A residence permit is issued to a foreigner during his acquisition of RES over 500 000 USD. If is not the case, the buyer will not be eligible for a permanent residence permit and will be able to reside in Mauritius up to six months a year in Mauritius.

PDS, similarly to the IRS, has the advantage of allowing the buyer to emigrate or to retire in Mauritius with a permanent residence permit, through an investment of a minimum amount of 500 000 USD.

The villas

Concerning the villas, a PDS project must have a minimum of 6 luxurious residential properties. It was announced, during the presentation of the last budget, that the area of a lot of land for construction of a villa has been extended, from 0.5 acre (2110 m2) 1.25 acre, 5 275 m2.

The registration fee

Regarding the IRS and the RES, the fixed cost associated to the properties require the property owners to pay either 5% registration fee of the final value of the property, or an amount equivalent to 70 000 USD for IRS or 25 000 USD for RES. The PDS scheme thus differs from RES and IRS, in order to harmonize the programs, namely the small and large lots will be subject to the same constraints with a single tax. The registration fee of the purchase price of a residential property under the PDS scheme is 5%.

Projet RES - Royal Park Resort

Moreover, the projects developed under IRS and RES continue to develop under the respective names. As for the new projects launched since the implementation of the PDS, they are considered as PDS projects.

Any purchaser should submit his application to the Board of Investment (BOI) in Port Louis. The duly completed and signed application form must be submitted with the all the mandatory documents in accordance with the official guide of the Board.

Discover the IRS projects, RES projects and the PDS projects available on the market.

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