International buyers looking to invest in residential properties in Mauritius under the IRS, RES, IHS, PDS, and SCS schemes should note recent regulatory amendments. Effective 13 December 2024, these changes introduce specific payment requirements to enhance local currency usage while ensuring a smooth transaction process for foreign investors.
What’s New?
1. Mandatory Payment Structure:
- 85% in Mauritian Rupees: Buyers must now transfer funds from abroad in a hard convertible currency (USD, EUR, etc.) and pay 85% of the property price in Mauritian rupees.
- 15% in Foreign Currency or Mauritian Rupees: The remaining 15% can be paid either in a hard convertible currency or in Mauritian rupees.
2. Role of Notaries:
Notaries play a crucial role in ensuring compliance with these regulations. Upon receiving the purchase price, they must:
- Transfer 85% in Mauritian rupees to the property developer.
- Process the remaining 15% in foreign currency or rupees, as the buyer specifies.
- Register the deed with the Registrar-General within 8 days and handle payment of registration duties.
3. Loan Financing:
For properties priced above USD 750,000, buyers must transfer a minimum of USD 750,000 (or its equivalent in any hard currency) to Mauritius and pay it in Mauritian rupees. The remaining amount can be financed locally with a loan in Mauritian rupees, but loan repayments must be made in foreign currency.
Who Do These Changes Affect?
The amendments apply to all new property transactions initiated after 13 December 2024. You must comply with the updated payment regulations if you’re considering purchasing a luxury villa, beachfront residence, or off-plan unit under any of the schemes listed above.
Important Note: These rules are designed for properties developers sell under the regulated schemes. If you’re dealing with an individual seller, these changes may not apply, though further clarification is expected. We recommend consulting your notary or real estate advisor for tailored guidance.
What About Existing Transactions?
The previous rules should apply if your transaction were initiated before 13 December 2024. You should check with your notary to confirm the exact payment requirements for your specific case.
Why Were These Changes Introduced?
The new regulations aim to strengthen the Mauritian rupee’s role in property transactions while maintaining Mauritius’s appeal to foreign investors. By requiring a significant portion of the purchase price to be paid in the local currency, the government seeks to balance economic stability with ongoing investment growth.
Navigating the New Regulations
Understanding and navigating these changes can be challenging, especially for international buyers. At LIVERIA – International Realty, we specialize in guiding foreign investors through Mauritius’s entire property acquisition process. From selecting the right property to ensuring compliance with local regulations, we’re here to assist you every step of the way.
