Real estate transactions : who pays how much and when

Real estate transactions : who pays how much and when

As with all commercial transactions dealing with real estate, there exists administrative and tax fees attached. It is crucial to master these issues so as to avoid unpleasant surprises when drawing a check.

The notary fees in Mauritius vary according to the property value. He will in fact apply a 2% fee on a property valued up to Rs 250 000, a 1,5% fee up to Rs 500 000, a 1% fee up to Rs 1 000 000 and a 0.5% fee for properties valued above Rs 1 750 000. However, notary fees can be a little more expensive in transactions relating to PDS scheme and VEFA properties. Furthermore, it must be remembered that notary fees are to be paid by the buyer.

When looking forward to buy properties in Mauritius, foreign investors must go through the Economic Development Board. In doing so, they will have to pay a Rs 10 000 non refundable fee.

One should keep in head that a 5% property transfer tax is applied on all real estate transactions.

As a reminder, foreigners can acquire property under the PDS regime or in so-called R + 2 programs (residence with a ground floor and at least 2 floors, property value of Rs 6 million minimum or about 150 000 euros). They will have to turn to the Economic Development Board (EDB) to initiate the necessary acquisition procedures. A non-refundable sum of Rs 10,000 (about 250 euros) is claimed for an application in a PDS program.