The concept of Smart City projects in Mauritius

The Smart City Scheme is an ambitious economic development programme aimed at consolidating the Mauritian international business and financial hub by creating ideal conditions for working, living and spurring investment through the development of smart cities across the island.

The development of smart cities in Mauritius is opening up a plethora of investment opportunities.

The smart city project is an initiative to stimulate innovative scientific and technological activities, provide technology-driven facilities to the business community and create a vibrant city lifestyle.

The Government of Mauritius has set up the Smart City Scheme to provide an enabling framework and a package of attractive fiscal and non-fiscal incentives to investors for the development of smart cities across the island.

The smart-city concept is about providing investors, nationals and foreigners, with options for living in sustainable, convenient and enjoyable urban surroundings.

These new cities will be built around the work-live-play lifestyle in a vibrant environment with technology and innovation at their core.

The concept paves the way for investors to develop and invest in:

• a mix of commercial, leisure and residential uses that, as a whole, achieves physical and functional integration and creates a pedestrian-oriented urban environment
• a combination of office, light industrial, education, medical and tourism clusters
• high technology and innovation cluster
• infrastructure to service green-field sites with roads and inspiring landscaping
• clean technology aimed at carbon and waste reduction, efficient transport
• low-energy-consumption buildings
• digital solutions, urban sensing technologies and big data analytics
• energy production and water management and utilities
• high-end residential estate
• real estate investment management

Incentives for developers and investors

A company investing in the development of a smart city and/or its components is exempted from payment of:

• Income Tax for a period of 8 years from the issue of the SCS Certificate provided that the income is derived from an activity pertaining to the development and sale, rental or management of immovable property other than an activity in respect of the supply of goods and services.
• Value Added Tax paid on capital goods (building, structure, plant, machinery or equipment).
• Customs duty on import or purchase of any dutiable goods, other than furniture, to be used in infrastructure works and construction of building within the Scheme
• Land Transfer Tax and Registration Duty on transfer of land to a SPV provided that the transferor holds shares in the SPV equivalent to at least the value of the land transferred
• Land Conversion Tax in respect of the land area earmarked for the development of non-residential components (office and business parks, ICT and innovation clusters, touristic, leisure and entertainment facilities including hotels and golf courses, renewable energy and green initiatives)
• Morcellement Tax for the subdivision of land.

Other tax incentives for the buyers

• First-time Mauritian buyers and buyers under the Mauritian Diaspora Scheme acquiring a residential unit will be exempted from registration duty
• Full recovery of VAT in terms of input tax allowable in terms of capital goods (building structure), plant, machinery and equipment
• Accelerated annual allowance granted at a rate of 50% of the costs in respect of capital expenditure incurred by any company operating within the Smart City Scheme on energy-efficient equipment and green technology.

Land purchase

A smart city will be developed over an area exceeding 21.105 hectares (50 arpents). Foreign companies can acquire land under the Smart City Scheme to develop projects and their key components

Residency

• Any person any entity including foreign companies and trusts can acquire residential units in a smart city
• Any non-citizen acquiring a residential unit above USD 375,000 under the scheme is eligible to a residence permit for himself and his family
• No restriction on rental or resale of residential units
• Possibility for a retired person to acquire life rights under the Smart City Scheme.

Mauritian Citizenship

A non-citizen having held a residence permit for a minimum period of 2 years and having made an investment over USD 5 million in Mauritius may apply for Mauritian citizenship.

Sale of serviced land to third-party developers

The master developer may sell serviced land to another company to develop a component of a smart city project.

(Source : EDB)

You can also visit our page listing all of our projects eligible for acquisition by a non-resident: https://www.parklane.mu/en/projects/foreigners.html

The Property Development Scheme (PDS) has replaced since August 2015 the IRS and RES schemes.

The programme is designed to facilitate the acquisition of residential property by non-citizens in Mauritius. The PDS is basically an integrated project with social dimensions for the benefit of the neighbouring community and allows for the development and sale of high standing residential units mainly to foreigners.

The Property Development Scheme provides for the following:

• 1. development of a minimum of 6 luxurious residential units on freehold land of an extent of at least 0.4220 hectare (1 arpent) but not exceeding 21.105 hectares (50 arpents).
• 2. high quality public spaces that helps promote social interaction and a sense of community
• 3. high-class leisure, commercial amenities and facilities intended to enhance the residential units.
• 4. day-to-day management services to residents including security, maintenance, gardening, solid waste disposal and household services.
• 5. social contribution in terms of social amenities, community

Eligibility for acquisition of residential property

• The following persons may acquire a residential property from a PDS Company:
• (a) a natural person, whether a citizen of Mauritius, a non-citizen or a member of the Mauritian Diaspora;
• (b) a company incorporated or registered under the Companies Act;
• (c) a société, where its deed of formation is deposited with the Registrar of Companies;
• (d) a limited partnership under the Limited Partnerships Act;
• (e) a trust, where the trusteeship services are provided by a qualified trustee; or
• (f) Foundation under the Foundations Act.

Note: A qualified global business as defined under the Financial Services Act 2007 holding a Global Business Licence may acquire property under the PDS scheme.

The residential properties may be a mix of:

• Luxury villa with attending services and amenities
• Luxury apartment with attending services and amenities
• Penthouse with attending services and amenities
• Other similar properties used, or available for use, as residence with attending services or amenities

Extent of residential property

The extent of land in respect of each residential property, other than for an apartment or a penthouse, is developed on land not exceeding 2,100 square metres excluding common areas.

Do not hesitate to search for our properties “accessible to foreigners” through the Advanced Search on our site or send us your criteria and we will be happy to assist you

You can also visit our page listing all of our projects eligible for acquisition by a non-resident: https://www.parklane.mu/en/projects/foreigners.html

Real Estate Scheme (RES) properties are usually smaller residential developments (they can only be built on land areas ranging between 4,220 and 100,000 m2), which can be sold at no minimum price. The acquisition of a RES property will not entitle you to a residence permit, unless you purchase a RES property worth at least US$ 375,000. You will find a variety of property types within this scheme (individual villas, duplexes, apartments…) in various regions (coastal regions and also inland).

The acquisition of a RES property will only allow you to obtain a residence permit if the acquisition price exceeds USD 375,000

Below that price, you can become the owner, but cannot obtain a Residence Permit. You can therefore stay in Mauritius according to the immigration laws in force, that is to say no more than 6 months per year, or apply for a residence permit (visit the website https://www.edbmauritius.org/work-and-live-in-mauritius/occupation-permitresidence-permit/ for more information on the different types of residence permits).

RES properties are mainly targeted at investors, professionals or retirees who have chosen Mauritius to live, work, invest or enjoy as a holiday retreat.

Do not hesitate to search for our properties “accessible to foreigners” through the Advanced Search on our site or send us your criteria and we will be happy to assist you

You can also visit our page listing all of our projects eligible for acquisition by a non-resident: https://www.parklane.mu/en/projects/foreigners.html

Integrated Resort Scheme (IRS) properties can be found within large resorts (golf estate, marina,…) mostly on coastal regions (North, West , South and East coasts) and offer a variety of luxury and high-end freehold property types : apartments, duplexes or individual villas, sold at not less than US$ 500,000 by law. They offer luxury facilities to the residents. These may include a golf course, a marina, nautical and other sport facilities, shops, restaurants, wellness centers and other “à la carte” services. As the owner of an IRS, you will receive residence permit for as long as you remain owner of the property, as well as your spouse and your dependents (up to the age of 24 years old).

Do not hesitate to search for our properties “accessible to foreigners” through the Advanced Search on our site or send us your criteria and we will be happy to assist you

You can also visit our page listing all of our projects eligible for acquisition by a non-resident: https://www.parklane.mu/en/projects/foreigners.html

Buy an apartment in a Ground + 2 complex

The Non-Citizens (Property Restriction) Act allows foreigners to purchase apartments in condominium developments of at least two levels above ground (G+2) with the prior approval of the Economic Development Board (EDB). The amount payable for the acquisition of an apartment must not be less than MUR 6 million or its equivalent in any other freely convertible foreign currency.

Any non-citizen, with or without an occupation permit, residence permit, permanent residence permit, may acquire apartments in a Ground + 2 complex.

The purchase of an apartment in a Ground + 2 complex does not grant the foreign buyer with a RESIDENCE PERMIT if the property bought is bought for less then USD 375,000. The buyer will be granted a 6 month permit (per calendar year).

However, any non-citizen who has acquired an apartment for a price exceeding USD 375,000 (or its equivalent in any convertible currencies) will become eligible for a Mauritian Residence Permit. This legislation allows noncitizens with or without an occupational permit to invest in more than one luxury apartment.

The apartment should of course be found in a building of at least two floors above ground floor, as indicated above.

Contrary to what many people think, a non-citizen can purchase one or more apartments ANYWHERE IN THE BUILDING provided the building is a Ground + 2 building (2 floors above the Ground Floor).

Do not hesitate to search for our properties “accessible to foreigners” through the Advanced Search on our site or send us your criteria and we will be happy to assist you

You can also visit our page listing all of our projects eligible for acquisition by a non-resident: https://www.parklane.mu/en/projects/foreigners.html