finance

Q:
A:

What is the process of buying a property in Mauritius?
The Purchaser and the Promoter sign a contract of preliminary reservation (‘CRP’).

  • In terms of the CRP, 5% of the selling price is required as an initial deposit.

  • Once the Promoter has advised the Purchaser that the project is going ahead (i.e. in all the relevant permits, financial, legal and technical requirements are in place), a Deed of Sale is signed.

  • A Deed of Sale is the document in terms of which ownership of a residential unit in the RES is transferred from the Promoter to the Purchaser, once you sign the Deed of Sale you are the registered owner of the unit. This will entitle a purchaser to immediately apply for a residence permit if their purchase price exceeds USD 500,000.

  • The purchaser will make staged payments in line with the Government implemented VEFA system through to the completion of construction.

     Stage

    Action 

    %

    Total

    Stage 1

    Initial Deposit –

    On signature of Reservation CRP

    5%

    5%

    Stage 2

    On signature of Deed of Sale

    20%

    25%

    Stage 3

    On completion of the Foundations

    10%

    35%

    Stage 4

    On completion of  structure / roof

    35%

    70%

    Stage 5

    On completion of Construction

    25%

    95%

    Stage 6

    On delivery of Unit

    5%

    100%

Q:
A:

By purchasing a unit off-plan, how is my purchase secured?
The acquisition of a unit off-plan or during construction of the project is governed by the provisions of a ‘vente en l’etat future d’achevement’ (‘VEFA’), in accordance with the Mauritian Civil Code.

The Promoter provides the Purchaser with a guarantee of future completion, Garantie Future d’Achévement (‘GFA’).

This GFA is issued by a registered financial institution in Mauritius, usually a bank, and is a guarantee that the unit you have purchased will be completed and delivered to you in accordance with the project specifications and drawings.

The GFA is issued to you simultaneously with your signature of the Deed of Sale.

In the case of Royal Park, the GFA will be issued by The Mauritius Commercial Bank Ltd, the largest bank on the island.

Q:
A:

Is it possible to obtain a mortgage?
The Mauritius Commercial Bank Ltd (MCB) is willing to finance up to 60% of the purchase price

  • Interest Rate : LIBOR + 5% (for foreign currencies)

Q:
A:

Are there other fees payable in addition to the purchase price?
Notary fee which is currently calculated on a sliding scale as follows:

  - 2% on the first MUR 250,000, subject to a minimum charge of MUR1,000;

  - 1.5% on the next MUR 500,000

  - 1% on the next MUR 1,000,000

  - 0.5% on the remainder of the selling price

  - Value Added Tax, currently 15%, is also payable on the notary fee.

  • RES Registration Duty to Board of Investment Application (BOI), which is currently USD 25,000

  • IRS Registration Duty to Board of Investment Application (BOI), which is currently USD 70,000

  • IHS Registration Duty to Board of Investment Application (BOI), which is currently USD 70,000

  • BOI Application Fee, which is currently MUR 10,000

Q:
A:

Where will my deposit be held?
Your deposit will be held in an escrow account opened with a Mauritian registered financial institution or alternatively in the Notary’s trust account until the Deed of Sale is signed. Once the Deed of Sale is signed, the deposit is released to the Promoter as part of the selling price.

Q:
A:

Will my deposit attract interest?
Yes

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