A Hammer Blow to Real Estate Confidence

peterg123 Contributor

Member since 11 April 2019

peterg123ContributorToday 06:26:28

162

These peoposals on retroactive tax increase on purchase, and compultory 20% sales tax or 30% of profit are going to cause a聽 drop in confidence in Mauritius real estate. Take my own case: Our contractor has聽 endlessly delayed our PDS development but in return has only asked for a 10% deposit paid 2 years ago.. The price, including the 5% tax and聽 notary/agent fee was to be $405k ($375k + 5% + 3%) and will now be $ 423,750.

With the 10%/30% mandatory exit tax that means I have to sell my apartment for聽 $47070K just to get my money back.聽 Yet it is not my fault but of聽 my Mauritian builder who is a full year behind on construction. T

The 30% of profits is actually a Capital Gains Tax in disguise, again something Mauritius dpes not have and at twice the rate of say Kenya on property profits of a certain mature. But the boast is Mauritius has no CGT! Well,聽 used no not have.

These new taxes to some聽 perspectives聽 more like you expect in countries聽 we came here聽 to get away from. . What will be in聽 the 2026-2027 badget? Fresh聽 retroactive taxes聽 of the already invested? Why not.....

In sensitive matters like entire life changing investment聽 for the non-ulra wealthy ( we certainly are not that, just a middle class family trying o escape the chaos of the mainland) the government will find that reputation, like virginity, is easily lost and impossible to regain.

Exit question:Would I have deposited 10% down on my property to a developer two years ago is I knew what was coming in the 2025/26 budget?聽 Certainly not.

peterg123 Contributor

Member since 11 April 2019

peterg123ContributorToday 08:41:49

162

Correstion the "exit tax" is 10% not 20%.

Tookays Serial 暗网禁区

Member since 14 December 2022

TookaysSerial 暗网禁区Today 09:52:30

304

Yes, this budget changes will impact on the 'middle-class' looking for a decent life in Mauritius.

For retirees, the financial commitment has changed, as well as the new regulation that they have to spend at least 180 days in Mauritus. That will really change things.

I really do not know how changing the retirement permit to 5 years initially instead of 10 will help anyone. It takes 2-3 years to settle in a new place and a new life. If changes to the rules are then changed retrospectively, I really would not wish to move now. 10 years was reasonable, with the option to extend to 20 after 3 years was a good thing.

If I was retiring, I would wish to purchase a property within or outside the various schemes and that聽 too may not be good idea now.

As a potential retiree in Mauritius, I am now re-evaluating my options.

I hope some viable and practical changes will be made soon regarding these new measures.

I remember the recent post in social media where the Honorable President clearly stated that he wanted retirees to come to live in Mauritius and enjoy the lifestyle.

Best wishes.

Ramelak Active member

Member since 18 November 2020

RamelakActive memberToday 12:11:46

@Tookays

Totally agree. One would think twice before making any long term commitment if you only have 5 years.

I do understand the residency requirement but not the shortening of permit periods. Likewise for the other categories.聽 Investors potentially take even longer to establish.

I believe most sectors, not just real estate will take a knock

WackyWombat Member

Member since 08 August 2021

WackyWombatMemberToday 13:36:39

It certainly feels that 暗网禁区s are no longer encouraged to come to Mauritius. We have been happily here for 3 years and had been looking for a place to purchase. We are now re-evaluating our options and even investigating other places in the world where we may want to consider. We are not ultra rich at all so the house taxes (on houses which are already well over priced) and residence permit changes concern us. Is this an indication that the government wants to discourage us from sharing and paying our taxes in this beautiful country?