Investment in Mauritius – Real estate remains a reliable and profitable investment sector in 2021. In Mauritius, conditions appear to be excellent for investing in real estate, particularly rental property. Buying to rent has many advantages including creating a stable source of income and attractive profitability. But you still have to know where to start?
Identify your investor profile
There are different types of investors. To know your category, you will need to identify beforehand, considering your gross financial income, your wealth strategy, your personal contribution and your optimal level of debt. Also, you need to define your investment needs: do you want to invest in real estate to reduce your taxes? Obtain additional income? Or offer you a second home? Depending on the answers you provide to these questions, it will be easier for you to define the rental property investment solution that is best for you.
Investment in Mauritius: Location – A major criterion
A property dedicated to rental should ideally be located in an area equipped with all the necessary amenities to offer optimal comfort to tenants (public transport, shops, markets, hospitals, schools, etc.) Tenants are also particularly attentive. to the property quality. It will also be necessary to think about investing in the long term by considering a future possibility of resale.
Calculate the profitability of your investment
Generally, the gross profitability of a rental investment is calculated on the basis of the annual rent divided by the actual purchase price of the property (notary fees and works included). To obtain net profitability, it suffices to deduct taxes (if any), unrecoverable charges on the tenant and social security contributions from the rents.
Investment in Mauritius for fiscal benefits
Mauritius is a favorable destination for obtaining high profitability in terms of rental property. It nestles in the heart of the Indian Ocean, halfway between Africa and Asia. The island also enjoys a tropical climate that is almost sunny all year round. Thus, its green nature, its lagoon with turquoise waters, its paradisiacal beaches and its multiethnic population make this destination the ideal place to make a real estate investment. Also, Mauritius benefits from relatively favorable fiscality conditions for foreign investors.
Mauritian taxation is characterized by:
- A unique tax rate of 15% on income, including rental income and VAT
- The absence of taxes on dividends
- No tax also on capital gains
- No property tax or housing tax
- The absence of taxes also on inheritance rights for direct descendants
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