Real Estate & Hospitality
Nicolas Vaudin, Real Estate Industry Group
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“Bridging the gap to allow middle income earners a foothold on the property ladder”
- Deposits from prospective buyers used to finance infrastructure works of residential morcellements is no longer allowed.
- Increase in new residential Morcellement Fees per square meter as follows:
- Less than 8 lots: from Rs10 to Rs15
- 8 lots or more: from Rs10 to Rs30
- Housing Empowerment Scheme for families earning up to Rs50,000 per month:
- Loan-to-Value ratio for loans increased from 90% to 95%;
- 20% of loan value will be guaranteed by Government;
- 2-year moratorium on capital repayment; and
- Refund of VAT up to Rs300,000.00 on construction of houses or purchase of apartments costing less than Rs2.5m
- Property development structured through a “Société Civile Immobilière d’Attribution” where the Société was formed before 22 December 2012 will be subject to taxation rules applicable prior to 22 December 2012.
- As of 01 January 2014, Land Transfer Tax (LTT) will be capped at a flat rate of 5% irrespective of the number of years the property has been owned.
- LTT on resale of IRS changed from $50,000 to the higher of $50,000 or 5% .
- Registration Duty (RD) on acquisition of RES changed from $25,000 to the higher of $25,000 or 5%. Whilst LTT on resale is revised from $25,000 to the higher of $25,000 or 5%.
- Investment Promotion (Real Estate Development Scheme) Regulations amended to allow companies holding a GBL1 to purchase residential property under IRS/RES Schemes.
- High net-worth individuals who have chosen to retire in Mauritius, will now have the right to purchase an apartment upon a minimum transfer of US 120,000 dollars at the time of application.
- On-line application of Building and Land Use Permit will be finalised within 14 days.
- Exemption on LTT and RD for Housing Estates Scheme is extended for one year.
- Claw back of VAT on commercial buildings sold before the 20th year is being reviewed when transfer is made between VAT registered persons.
- Exemption from land duties and taxes on the takeover or merger of an ailing manufacturing company under the same term and conditions relating to the safeguard of employment.
“Increasing the pace of growth through a focus on destination marketing, improved air access and product quality”
- Joint Public Private Tourism Committee will be set up to focus on the destination marketing strategy.
- Air Mauritius will develop, offer and actively market a Dual Destination Strategy to tourists from Asia at attractive fares.
- Improving air access through:
- Five Air Mauritius flights a week to China in 2014.
- Daily service from Emirates using Airbus A380 aircraft as from mid-December 2013.
- New weekly service by TUI Airlines from London using the Dreamliner in April 2014.
- Target emerging markets through the renewal of partnerships for flights and accelerating national preparedness to cater for the needs of these customers.
- An independent study has been commissioned to look at the pricing of airfares.
- Special Fund of Rs25m will be used to increase arrivals from regional destinations during the low season in combination with a discount shopping package.
- No prior clearances will be required from Fire and Health authorities, Police and MRA before relevant permits or licenses are issued by the Tourism Authority.
- The tourism product will be improved through the implementation of the following cleaning and embellishment measures:
- Control of stray dogs
- Cleaning of villages
- Re-profiling of beaches and rehabilitation of coral reefs
- Removal of financial contribution to the Consolidated Fund for the development of a hotel on state land not previously leased for hotel purposes.