Mauritius: Overview

RENTAL YIELDS

Yields are moderate at 6.17% in Mauritius

Property prices are around US$700 to US$850 per sq. m. A 100-square meter (sq. m.) property in Port Louis can be bought for around US$85,000. A 500 sq. m. property would cost around US$350,000.

A 500-sq. m property in Port Louis can produce income from rent of around 6.17% per annum. The general rule here is that the smaller the property, the lower the yields. With a 200-sq. m property, the yield can go down to about 4.5%.

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TAXES AND COSTS

Rental income tax is high in Mauritius

Effective Tax Rate on Rental Income
Monthly Income	US$1,500	US$6,000	US$12,000
Tax Rate	12%	16.7%	17.4%
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Source: Disclaimer

Rental Income: Net income is taxed progressively at 10%, 20%, 25% and 30%.

Capital Gains: There are no capital gains taxes.

Inheritance: There are no inheritance, gift, wealth, or estate taxes.

Property Tax: The National Residential Property Tax is levied at MUR10 (US$0.32) per sq. m. of surface area of residential land and MUR30 (US$0.96) per sq. m. for flats and apartments.

Residents: Since acquiring permanent residency is required for holding property in Mauritius, income received in and derived from the country will be liable to taxes.

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BUYING GUIDE

Mauritius transaction costs are high

Total round-trip cost is around 18% to 20%. Notary fees vary from 0.575% to 2.3%, inc VAT. The seller shoulders most expenses, including the 10% registration fee.

Properties are mostly quoted in either Mauritian Rupee or US dollars.

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LANDLORD AND TENANT

Rents are fixed for 3 years in Mauritius

Mauritian rental law is generally pro-tenant.

Rent: The initial rent is regulated by the Fair Rent Tribunal and cannot be changed within the first three years of tenancy. Rent increases must be justified by the landlord.

Tenant Security: A landlord must go through the court system when evicting a tenant, as only District Courts have the power to evict. In case of eviction due to landlord’s use of the property, the court can order that the tenant be compensated for any prejudice suffered.

ECONOMIC GROWTH

Emerging sectors boost economy

Over the past two decades, Mauritius has emerged as one of Africa’s strongest economies, backed by a stable political system. Over the past two decades, real output growth averaged around 6% annually. This led to a doubling of real GDP per capita and tremendous improvements in social indicators.

Mauritian culture is a product of settlement by inhabitants from other civilizations, French, European, Indian, Chinese, English, and African. There is no indigenous culture. This makes Mauritius a rich melting put of religions, foods, and influences.

English is the official language, but French is widely spoken and Creole, a French dialect, is preferred by locals.

Inflation has been subdued from more than 10% in 1989-1992 to below 6% from 2003-2000.

However, in recent times, Mauritius' sugar and textile industries have struggled, because of the erosion of preferential trade agreements, and harsh international competition.

The Government is embarking on an ambitious diversification strategy, encouraging the Information and Communications (ICT) sector, and promoting the island as a seafood hub.