Buying a new-build property in Mauritius is attracting an increasing number of foreign investors. Seduced by the many advantages of Mauritian life, they are diversifying their property portfolio, preparing for retirement or making rental investments.
With an exceptional quality of life, luxury property developments, simplified administrative procedures and advantageous taxation, the Mauritian government has introduced a number of measures to encourage residential property investment.
Among these measures, VEFA (or off-plan) has proved to be a major innovation in the Mauritian property sector, attracting an international clientele. Today, VEFA is a must for property developments such as IRS, PDS, RES, Smart City and G+2.
Offering tax incentives, the opportunity to personalise your future home, solid guarantees and a legal framework inspired by French law, buying property off-plan in Mauritius has many advantages. This strengthened legal framework provides security and reassurance for foreign investors wishing to buy a new property in Mauritius.
What are the advantages of buying a new-build property in Mauritius? Why invest in new-build property in Mauritius? What are the procedures and guarantees available to foreign investors?
The advantages of buying property off-plan in Mauritius
A VEFA (Vente en l’Etat Futur d’Achèvement) in Mauritius, or ‘off-plan purchase’, allows the buyer to purchase a property that is under construction or to be built, based on plans and descriptive documents provided by the developer. Here are the main advantages of this type of purchase:
Diversification and enhancement of property assets
The new property market in Mauritius is booming, attracting many foreign investors thanks to its many advantages. Government reforms facilitating the acquisition of property by non-residents, including access to Mauritian tax residency, have given a major boost to the sector.
New property developments in Mauritius offer modern infrastructure and high-quality services. Rental demand is stable and steady throughout the year, and the country’s political and economic stability further enhances the prospects for increasing the value of real estate assets in Mauritius.
VEFA property investment in Mauritius is therefore an ideal option for investors wishing to diversify their portfolio while benefiting from an exceptional environment.
Access to sustainable, modern and energy-efficient properties
The properties we buy off-plan in Mauritius are brand new and comply with the latest construction standards, particularly in terms of energy performance and compliance with environmental regulations.
These projects focus on :
- Bioclimatic construction
- Sustainability
- Priority use of renewable energies
- Reducin energy consumption in housin
- Optimising sunlight
Every effort is made to minimise environmental impact and energy consumption. Buying a VEFA property in Mauritius guarantees optimum comfort, modern facilities and low maintenance costs, without the need for major works or renovations in the years to come.
Attractive tax benefits
By investing in a new-build property in Mauritius, you benefit from a number of tax advantages:
- Reduced notary fees and VAT
- Tax on rental income capped at 15
- No property tax
- Exemption from Impôt sur la Fortune Immobilière (IFI) for assets held in Mauritius
- Exemption from lineal inheritance tax on property held in Mauritius
A property that can be customised
VEFA allows buyers to personalise certain aspects of their future home, such as finishes, floor coverings, room layouts and equipment, while complying with current regulations and the specific terms and conditions of property developments. This gives you the opportunity to create a living space that perfectly suits your tastes and needs, adding value to your property investment in Mauritius.
VEFA: a guarantee for your investment
The VEFA sale contract in Mauritius guarantees optimum security for investors, as it is regulated by the Mauritian Civil Code, which is similar to the French Civil Code. Here are the main guarantees offered:
- Financial completion guarantee : Protects the buyer in the event of default by the developer, ensuring that the work is completed.
- Ten-year guarantee: Covers defects affecting the solidity of the building for 10 years from delivery.
- Damage to building work insurance: Provides immediate cover for work covered by the ten-year guarantee.
- Equipment functional guarantee: Optional, valid for 2 years, covering equipment that can be separated from the building.
Stages of the VEFA purchase in Mauritiu
Reservation contract and security deposit
The Preliminary Reservation Contract is a preliminary contract, often used for VEFA property purchases in Mauritius. It must include :
- Property description
- Sales price and revision conditions
- Date of conclusion of the final contract
- Deadline for completion of the work
- Legal conditions for waiver and recovery of the security deposit
- Financing condition precedent in the event of recourse to a bank loan
When the CRP is signed, the buyer pays a deposit (maximum 2% of the sale price, or 25% if the final deed of sale is signed in the same year). This deposit is refundable if the developer fails to meet the completion deadline.
Signing of the VEFA deed of sale
The deed of sale must be drawn up before a notary and include :
- Detailed description of the property
- Price list
- Completion and delivery date
- Financial guarantees of completion or repayment
- Administrative authorisations
- Payment schedule :
- 25% on signature of the deed of sale
- 10% on completion of foundation work
- 35% on completion of waterproofing
- 25% on completion of work
- 5% on handover of keys
Acceptance and delivery of the property
Acceptance of the work by the developer marks acceptance of the work carried out. Once the keys have been handed over, the property is delivered and the guarantees are activated: GFA, ten-year guarantee and equipment operating guarantee. Purchasers have 12 months in which to make use of the GFA guarantee in the event of any defects or hidden faults.
Le Domaine d’Anbalaba: The ideal IRS development for your off-plan purchase in Mauritius
The IRS property development programme, Domaine d’Anbalaba is the ideal solution for off-plan investment in Mauritius.
Located in Baie du Cap, in the south of the island, in a green setting, this upmarket estate offers a range of options for investing in new Mauritian property, perfectly suited to your plans and expectations.
Explore their prestige villas, luxury flats or bioclimatic villas, all available to buy off-plan. Selling off-plan in Mauritius ensures that future homeowners have a secure purchase at every stage of the project. For a property developer, this guarantees genuine financial solidity.
To find out more about VEFA property purchase solutions in Mauritius, contact us!
