Mauritius showcases the strengths of its real estate in the face of competition
I’MAURITIUS ISLAND did not say his last word. While Portugal, Spain but also Thailand or Dubai increasing the calls of the foot to seduce a clientele of international real estate investors, this destination traditionally appreciated by the French regularly reminds the assets that it has to put forward. The French clientele remains the first and 15,000 of our compatriots live there. Last month, Maurice was on his annual tour of France to present his latest opportunities. The opportunity to discuss new developments in the regulatory or fiscal framework while discovering the latest villa or apartment projects offered for sale.
Thus, for more than a year the legislation on the conditions of residence on the island has been relaxed. It is now enough to invest 375,000 dollars to obtain a residence permit, exempting its holder from administrative formalities and allowing him to work on site. But above all, for large budgets, each tranche of 375,000 euros for the same property gives rise to the issuance of a residence permit for the children and/or the spouse of the buyer, married or not. A significant development, even if it is less vital for French customers than for other nationalities whose travel is more difficult.
Neither IFI nor capital gains tax
It is this same residence permit that gives access to local taxation for tax residents (who spend most of the year on the island). Wages as well as company profits are taxed at a maximum of 15% and the VAT is at the same rate. Finally, a double taxation agreement makes it possible to tax real estate income only in the country where the property is held. And with the purchase as with the resale, there is only a government tax of 5%, no local tax, neither land nor housing, nothing specific on the capital gains and the goods do not return not in theIFI.
But what makes the difference is above all the local way of life. “Our typical customer is a 50-year-old entrepreneur who has worked hard and taken risks and now wants to enjoy life, explains Christophe Piquet, commercial director at Heritage villas Valriche. He is often a golfer and in any case someone who is attached to the magnificent setting of the island. Nature is the new luxury.” Installed on a huge domain of 2500 hectares (the domain of Bel Ombre with its emblematic castle, in the south of the island), the Valriche villas are residences of the IRS type occupying 108 hectares. The latest project of one of the first areas of this type launched on the island, is accompanied by the opening next December of a second golf course.
On this program, there are still around twenty villas for sale and 6 to 7 bare land. Prices are on par with the claimed trim level: anything below $1.3 million. For this price, you can afford a residence of 162 m² on a plot of 600 to 700 m². The only cheaper opportunity is a villa, delivered ready-to-finish for 950,000 euros. Otherwise, the most luxurious models, baptized Bliss villas, start at 3 million dollars and climb to 4.3 million. Here, there are very large single-storey dwellings (438 m²) on vast plots of 1400 to 1800 m² offering the best views.
Reputed to be expensive, Mauritius due to its insularity has suffered even more than other places from price increases since the health crisis. “Between the materials, the routing and the fact that operations are selling in dollars, the costs of exiting operations have almost jumped by 25%”, believes Christophe Piquet. To pass this bitter pill, he points out that at the same time the average capital gains over 10 years in this sector amounted to 26%.
25% price increase
For its part, 2Futures offers lower prices, on apartments, it is true. This developer, established on site for 15 years, notably offers apartments on The Essence program, in the Trou aux Biches sector (north of the island) from 274,000 dollars (a price that does not entitle you to a residence permit) . Prices for 2- and 3-bedroom units climb to nearly $700,000 and soar to $1.35 million for a 3-bedroom penthouse. On the west coast, La Pirogue residences offers 45 apartments and penthouses, not to mention a swimming area of more than 400 m² and its pool bar. It costs more than 700,000 dollars here for a 2-bedroom apartment and even 1.8 million for the large 4-bedroom penthouse.
The advantage of these two programs is that they combine a hotel service for owners with an integrated rental management system. A formula that allows you to earn revenue while being able to enjoy your property (unlimited for The Essence and a maximum of 60 days for La Pirogue residences). “Our customers are looking for serenity and well-being, emphasizes Jeanne Desvaux de Marigny, sales consultant in France for 2Futures. The hotel service is a real plus in this sense, while with rental management you can hope to rent your property for a period of 4 to 6 months without worrying about anything.”
