The PDS Program
The Property Development Scheme (PDS) is a scheme that was introduced in 2015, aimed at facilitating the acquisition of a property in Mauritius. It encompasses existing property schemes including IRS, IHS and RES. The scheme has the following features :
- Luxury residential units must be built on plots with a minimum area of one acre (i.e. 3,418.74 m²).
- Each plot must cover an area of at least 5,275 m².
- Each development must include at least 6 luxury residential properties.
- It must also include quality public spaces that encourage social interaction and a sense of community.
- Quality leisure and commercial facilities, as well as management services for residents such as maintenance, security, gardening and waste disposal are also required.
- Finally, the scheme must make a social contribution by providing facilities.
Eligible properties for the PDS scheme may include luxury villas, luxury apartments, penthouses, or similar properties for residential use, with or without services.
The advantages of investing in a PDS property in Mauritius
Investing in a property under the PDS scheme in Mauritius offers a number of advantages. Investors can benefit from a favourable tax policy, in particular by obtaining a permanent residence permit for properties worth more than USD 375,000 or the equivalent in freely convertible currency. In addition, registration fees are harmonised at a single rate of 5%.
You can make the most of your property by renting it out through specialist estate agencies in Mauritius. Private individuals and companies can also take advantage of a tax rate of just 15% and registration fees of 5% on property transactions. It is important to note that in Mauritius, there is no capital gains tax on the sale of the property, no withholding tax on interest and dividends, exemptions from customs duties on equipment, and the possibility of freely repatriating profits, dividends, and capital.
For French buyers, investment in property under the PDS regime is not taken into account when calculating wealth tax (ISF). In addition, there is no general social security contribution (CSG), property tax, or council tax. As a result of the double taxation agreement with France, income fro property rental is taxed at 15% in Mauritius.
Who is eligible for the PDS program?
The PDS program is open to various entities, including individuals, companies, trusts, and foundations. Mauritian citizens, resident and non-resident foreigners, and members of the Mauritian diaspora may be eligible. For those with an occupation, residence, or permanent residency permit in Mauritius, various types of schemes are available, including PDS real estate projects developed under the PDS, as well as apartments in buildings of at least two storeys (G+2).
The procedures for investing in a PDS property
The procedures include finding a property developer specialising in PDS schemes, such as Evaco Property, who will guide you in choosing the right scheme for your requirements. The Evaco Property team will take care of all the procedures involved in acquiring your property. This includes submitting a purchase to EDB Mauritius (via the developer or notary). The documents required include an application form for a resident's permit, a letter from the bank certifying KYC (Know Your Client) compliance, a notarised copy of the first five pages of your passport, your birth certificate, an extract from your criminal record less than six months old, and other documents depending on your status (individual, company, etc.).
As far as payments are concerned, the payment method takes the form of a VEFA (Vente en l'Etat Futur d'Achèvement), with installments at different stages of construction, such as signing the reservation, obtaining the GFA (Garantie Financière d'Achèvement), signing the title deed, etc. In addition to the sale price, the purchaser must pay registration fees, notary fees, and administrative costs.
Investing in a property under the PDS scheme in Mauritius offers an exceptional opportunity to take advantage of an idyllic living environment, attractive tax benefits and a promising investment in this corner of paradise in the Indian Ocean.
Benefits of PDS in Mauritius:
- Freehold acquisition.
- Get a permanent residence permit for any purchase of 375,000 USD or more.
- The purchase of a property with a high rental return.
- The sale is regulated by a VEFA contract (sale of property before completion ) ensuring a financial guarantee of completion.
- The purchaser becomes the owner of the land and the buildings in progress as soon as the sales contract is signed.
- Access to an attractive tax system.
- The PDS status allows the buyer to resell the property in the desired currency and to local or foreign clients.
The PDS scheme
Any PDS scheme must also provide commercial and leisure space within the complex and have day-to-day facilities such as security, maintenance and garden care.
Mauritius is a popular destination for tourists because of its beautiful white sandy beaches, tropical climate and many other attractions.
However, our island doesn’t attract only, many foreigners want to settle in Mauritius, either to work or simply to enjoy their retirement.
A foreigner is eligible to obtain a permanent residence permit if they invest an amount equal to or greater than $375,000 in the acquisition of a property through the PDS scheme.
For information on real estate development, residential or land permit, investment and business schemes, tax systems and new regulations, you may read more articles on the EDB website. (Economic Development Board).
You may also have more details on the Mauritian economy and its social background.