This year’s budget, tabled by Finance Minister R. Padayachy on the 11th of June, required some huge financial decisions to address the pandemic.
Given that the real estate sector in Mauritius has endured further setbacks during the lockdown, and that the future remains highly uncertain, the government intends to take positive and innovative actions to encourage future investment in the sector.
Should you buy now?
Opportunities are emerging for those planning to ’invest in real estate. In addition to the construction of 12,000 social housing units (announced in the 2020-2021 budget), the government is pledging to "boost residential construction projects" and plans to invest Rs 2 billion to support the purchase of land and property, and construction by individuals. Consequently, each purchaser in the fiscal year 2021-2022 will benefit from a refund of 5% of the cost of the property, representing an amount not exceeding Rs 500,000.
Likewise, if someone seeks a home loan to construct a residence, 5% of the amount of the loan is refundable. The refund will not exceed the sum of Rs 500,000. To encourage a dynamic resurgence, the Minister of Finance is also working with Mauritian banks on a new mortgage scheme for the independent and self-employed, offering them a 100% housing loan.
In the case of a first-time buyer, an exemption can be granted on the first Rs 5 million of the cost of the residential property built.
Competitive incentives for foreigners
In addition to facilitating the purchase of property for foreign investors by means of a digital power of attorney, the Government intends to facilitate their access to the country. As a result, the Occupation Permit will be amended as follows:
- The validity of the Occupation Permit for professionals is extended from 3 to 10 years;
- Spouses holding an Occupation Permit, who wish to invest or work in Mauritius, will be exempted from applying for an Occupation or Work Permit;
- The maximum age limit of 24 years for dependants will be removed;
- A new category under the Occupation permit will be created - the Family Occupation permit, valid for 10 years for those who contribute at least Rs 250,000 to the Covid-19 Projects Development Fund.