The property development scheme, commonly known as PDS, puts foreigners on the same pedestal as Mauritians to invest and own properties in Mauritius. There is still a need to see clearly through the smoke and mirrors. Our article will make things a lot easier for you to understand the list of PDS projects, how the PDS companies sell residential property and how you can buy them.
How to buy and sell residential property under the Property Development Scheme in Mauritius
Eligibility to acquire residential property under PDS
To begin with, understanding the standard of procedure for buying and selling property under the PDS scheme, the first step naturally becomes “eligibility” to own such property.
The following persons are eligible to own/buy property under the Property Development Scheme:
- A company registered under the Companies Act;
- A person who is a citizen of Mauritius, a member of the Mauritian Diaspora or even a non-citizen.
- A limited partnership registered under Limited Partnerships Act;
- A trust where qualified trustees undertake the trusteeship services;
- A société whose deed of formation is deposited with the Registrar of Companies or
- Foundation under the Foundations Act.
Moreover, even a competent global business under the 2007 Financial Services Act definition, which holds a Global Business License, can acquire property under this PDS scheme.
Obtaining the Board of Investment’s prior approval is mandatory to be truly eligible to purchase property in Mauritius under the PDS. A non-refundable amount of €2,485 accompanies the application file. If you consider acquiring a resident permit, BOI may also request a medical file.
Finding the right property under PDS in Mauritius: List of PDS projects
Several PDS projects are listed online in which you can look for the ideal property to invest in. You must understand that you will not find a similar list of PDS projects for real estate agents. So it is always better to check a bunch of lists before investing a chunk of your liquid asset into an immovable one. Some PDS projects might be the same, and some might be unique to an agent or a bunch of them.
Buying and selling of residential property: Simplifying the process.
Now that you know your eligibility to buy dwelling houses under PDS in Mauritius. It’s time to get into the minutes of how to purchase from a PDS company.
Select the property
The first thing to do is choose a property under Mauritius’s PDS per your preferences and budget. Considering factors like size, design, amenities, and location is essential.
Due diligence
Once you have selected the property, it’s time to conduct due diligence. It generally includes verifying the developer’s track record and reviewing applicable licenses or permits. Getting legal advice is an excellent idea at this stage as this ensures a smooth and legal transaction.
Get it reserved
Once you have shortlisted the residential property of your choice, it’s time to sign a reservation agreement and pay a reservation fee. It concretes your interest in the property.
Sales agreement
Once you have reserved the property, you must enter a sales agreement with the PDS Company. The sales agreement effectively binds both parties and clearly outlines the purchase terms and conditions. Moreover, it mentions the payment schedule, price and additional provisions.
Taking care of payment
Payments are a crucial step in making the living property your own. So naturally, the next step is to fulfill the due payment obligations. Usually, it includes paying a deposit in scheduled installments. You must understand the payment terms and have a payment plan in place.
Sealing the deal
Once the payment has been settled, sales completion kicks in. The ball now goes to the PDS Company’s court as they have to arrange the necessary legal documents. Such documents generally include the transfer of ownership and sale deeds, which needs to be signed by you. It is usually at this point the rest of the payment is paid.
Property handover
After the completion of the sale, the PDS Company will arrange to hand over the property to you. The handover process typically includes property inspection and receiving the keys.
Residency permit (if applicable)
Depending on the valuation of the property, if you are a non-resident, you may also be eligible for a residency permit in Mauritius. You can consult your PDS Company for further clarity on the requirements and processes for obtaining a residency permit.
It is necessary to understand that these steps are easy and fast. And depending upon the PDS Company you choose. Getting help from a qualified legal or real estate professional is advisable.
Bottom Line
Buying land in Mauritius through the Property Development Scheme is a lucrative opportunity for anyone, especially foreigners. Before investing in the property, go through the list of PDS projects and choose a reliable real estate agent to make things go smoothly.
