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Property Investment Made in Heaven

When Mark Twain first visited the island in 1896, he claimed that God made heaven after visiting Mauritius. This heavenly island, long the paradise for high-end holidaymakers, is also becoming one of the world's top destinations for high-end property investment.
Situated in the Indian Ocean, 2,000km off the east coast of Africa, Mauritius is the stuff tropical dreams are made of. Almost totally surrounded by coral reefs which protect the miles of pristine white beaches, Mauritius is a favourite with tourists, honeymooners and expat retirees. But in spite of its idyllic surroundings, Mauritius has only recently entered the property investment radar.
Until just four years ago, foreigners were not permitted to buy property on the island, but since then the Mauritius government has introduced a series of measures designed to attract foreign property investment to the country. All foreigners currently require permission from the Board of Investment and Mauritius property can be purchased under two schemes, the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES).
IRSs are luxury complexes offering mostly villas and high-end facilities. A minimum purchase is necessary (currently US$500,000) and foreigners may buy a maximum of 1.25 arpents (around 5,275m?؂Ǩ‚Ä°). A major advantage offered by a purchase within an IRS is that property ownership goes hand-in-hand with permanent residency for the owner and family. Purchasing a home located within a RES has no restrictions, although properties are usually smaller (and cheaper) than those in an IRS and residency permits are not automatically available.
Recent government incentives for investment in property include major tax benefits or reductions for developers. For example, developers purchasing freehold land before the end of 2010 and carrying out construction to the value of Rs50 million by June 2011 are exempt from land transfer tax and registration fees.
Property investment in Mauritius attracts high costs, which include 5% or 10% transfer tax (10% if the property has been owned for less than five years) and 5% registration fees. However, many prices for IRS properties are all-inclusive of investment costs. Mauritius has no capital gains or inheritance taxes and the government has advanced plans to make the island duty-free by next year, which should provide a major boost for tourism.
Mauritius is one of Africa's most stable countries and has a solid track record of strong economic growth. The island's GDP increased by 5.3% in 2008 and is predicted to grow by 2.5% this year at a time when the vast majority of countries are in negative growth. In the World Bank's Doing Business Survey 2008, Mauritius ranks 1st in Africa and 24th in the total 181 countries.
With strong economic credentials, dream surroundings and direct flights available from numerous European capitals including London, Paris and Rome, maybe 2009 is the year to put Mauritius on your property investment map.

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