The RES is a special residential scheme launched by the local government to enable foreigners to acquire properties in Mauritius. All projects developed by Evaco Group are covered by the RES scheme.
An RES scheme residence is not subject to any minimum price (as compared to the IRS scheme where properties are sold at a minimum price of $500,000). However a foreigner buying a RES residence for $500,000 or more is given a permanent residence permit.
The benefits of the RES scheme:
This approval RES (Real Estate Development Scheme) was validated after that of the IRS so as to offer a greater variety of properties, and thus allowing the development of more accessible projects being less imposing than the IRS terrain.
On the other hand, it allows smaller Mauritians developers to convert their land and boost their property investment. This scheme mainly concerns the agricultural landowners of medium sized, unlike IRS developments that have mainly concerned large sugarcane companies; the main landowners in Mauritius.
Evaco is regarded as the reference of real estate programs, better known as RES. 3 real estate projects have been built under this particular plan: The villas Athena, apartments of the Domain des Alizées and, currently in construction, villas at Clos du Littoral that will be finalized in late 2014.
Therefore, the Real Estate Scheme (RES) allows the development of residential projects that can be sold to foreigners. However, it is mandatory that the project is done on a minimum plot of land of 4300 m2 and a maximum of 10 hectares. The program must consist of a minimum of 6 residential lots. It is not feasible for a foreigner to acquire a single property; the residence will automatically be part of a condominium.
Everything RES program must also provide a commercial space and leisure at the resort, and have daily facilities such as the security service, maintenance, and maintenance of gardens.
The promoter must make an application with the Board of Investment (BOI). A duly registered company in Mauritius must establish the application in which the promoter and holder of the land must be shareholders. These shareholders are required to keep their shares in the RES company until 1 year after delivery of the project. After reviewing the case, the BOI will give the sponsor, a RES certificate under section 18 of the Investment Promotion Act, meaning that all the conditions are fulfilled according to "Act and the Investment Promotion (Real Estate Development Scheme) Regulations 2007".
Before submitting this RES certificate, the authorities will ensure that all buildings’ permits and licenses are in compliance. Furthermore, it is also mandatory to provide a financial guarantee of completion late 1601-1634 under section (b) of the Mauritius Civil Code.
When the certificate is issued, the company that owns the project is responsible for the marketing phase, development and management of the RES project sold. After obtaining the certificate, the project cannot be altered without prior approval of the BOI.
A foreign investor can buy property freehold, in a residential program built and marketed under the framework RES in Mauritius. There is no minimum price-selling imposed by the authorities for these properties. The developer is free to produce high standard programs or lower categories.
The list of natural or legal persons entitled to acquire property under the RES is :
According to the Regulation 22 (1) of the Investment Promotion (REDS) Regulations 2007, a residence permit is issued to a foreigner during his acquisition of RES over 500 000 USD. The notary shall issue a certificate confirming that the deed has been signed for an amount greater than 500 000 USD.
The permit is valid as long as the purchaser remains holder of his property. The purchaser gives this permit to women and children up to the age of 24.
At the signing of the deed of sale, a registration fee is paid to the notary for a minimum amount of 25,075 Usd or 5% of the value of the acquisition.
The owner can undertake seasonal rentals RES with his property, which makes it a very good rental investment. However, it must go through the RES company that made the project or the provider mandated by the promoter.
The owner can sell, at any time, to the same people previously mentioned.
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