Investment Opportunity and the Integrated Resort Scheme (IRS)

Attracting foreign capital has always been a major objective in the country's economic development strategy. Numerous advantages, including tax incentives are already offered to foreign investors. As a means to further encourage investors to seize business and property investment opportunities in Mauritius, Government has introduced a Permanent Residence Scheme for eligible foreign businessmen. This leaflet provides details on the Permanent Residence Scheme.

The Integrated Resort Scheme (IRS) is legislation passed by Government that now enables foreigners to own full title property in Mauritius. An IRS is basically a project for the construction and sale of luxury villas to foreigners in an idyllic setting near the beautiful coastal region of Mauritius. The acquisition of a villa for residential purposes only by a foreigner under the Scheme will allow the foreigner and his family to reside in Mauritius with Permanent Residency as long as he / she holds the property.

The focus of the IRS is with high end, luxury residential properties (minimum investment value of US$500,000.00) located on resorts / lifestyle developments of leading international standards. Past IRS developments have typically incorporated championship golf course offerings, in addition to all the amenities associated with a tropical island tourist destination (beach clubs, water sports, restaurants etc.). However, the island's first Marina IRS development has been launched by Espral International / HM&A, this being La Balise.

Why Mauritius as an Offshore Investment Destination?

• Mauritius continues to develop itself as a financial and investment hub for both private and commercial segments of the international market and is ideally positioned to benefit from the African and Asian markets.
• Mauritius' close proximity to South Africa (4 hours) makes it a highly accessible investment, business and holiday destination.
• Mauritius boasts a stable and democratic political environment for 40 years.
• Economically Mauritius is one of very few global countries that continues to exhibit strong GDP growth at around 5-6% per annum.
• The World bank rates it 27th of 178 countries in its Doing Business Survey 2008; the Heritage foundation and Wall Street Journal's Index of economic freedom places it 18th out of 157 and 1st in Africa; The World Economic forum's global competitiveness report rates it 1st in Africa; its in the top 25 of the AT Kearney's Offshore Index, and the Ibrahim Index of African Governance run by Harvard University declared it the best run out of 48 African countries.
• Unemployment in the 560000 work force is below 9% and falling. Schooling is free and compulsory with 97% literacy and there is effective free health support.
• Budget deficit is down from 5.5% to 3.8% of the GDP.
• The island has near-perfect climate, friendly people and low crime rate.
• Extremely strong tourism growth. The Mauritian Government's tourism development strategy focuses on further growing the tourism sector from approximately 1 million per annum currently, to 2 million in 2015.
• The country's economic performance has been accelerated by a strong emergence of the financial services sector making use of the highly attractive taxation and investment policies of the Government.
• The Integrated Resorts Scheme (IRS) now enables foreigners (non-Mauritian residents) to buy and own full title property in Mauritius.
• The IRS property market in Mauritius is still in a youthful phase, but has already seen exceptional growth 40% - 50% pa appreciation on IRS properties with the future outlook highly buoyant.

Why Mauritius has Become so Popular with the Top End South African Investor Market?

The level of SA buyers investing in IRS schemes in the first few years of inception have substantially exceeded demand expectations. The key benefits or attractions of this investment property market to South Africans include;