Legal Information about purchasing of Residential Property in Mauritius
(Matala Lifestyle Estate and Spa)

The residential component of this development is located on 15.6 hectares of land found in the valley leading to the Black River Georges and entrance to the National Parks on the west coast of Mauritius.

Matala Lifestyle Estate & Spa consists of 52 villas with an infrastructure consisting of roads and services and other collective facilities, all subject to the terms and conditions of and governed by the “Home owners Association”.

Eligibility for acquisition of residential property

The following persons may acquire a residential property from an IRS Company:

• a non citizen of Mauritius
• a citizen of Mauritius
• a company registered as foreign company under the Companies Act 2001
• a company incorporated under the Companies Act 2001
• a societe, where its deed of formation is deposited with the Registrar of Companies
• a trust, where the trusteeship services are provided by a qualified trustee licenced by the Financial Services Commission

Note: A qualified global business as defined under the Financial Services Act 2007 holding a Global Business cannot acquire property under the IRS scheme.

Screening of application
The IRS Company shall carry out due diligence exercise through a reputable bank for all applications received prior submission of same to the Board of Investment. The IRS Company’s bank shall carry a Know Your Client’s (KYC) exercise and open a bank account for the client called the “Escrow Account”

Reserve of your Villa
To reserve your villa the buyer (You) and seller (Matala Properties Limited) enter into a (CRP) “Preliminary Reservation Contract” prior to signing the “Deed of Sale” (DOS) and whereby the buyer deposits the equivalent of 5% of the purchase price on the Deed of Sale with an independent escrow agent.
This secures your reservation and your villa selection until such time that your certificate to purchase has been issued to you by the Mauritian Authorities.
In the event that no approval to purchase is given by the Mauritian Authorities the 5% escrow deposit will be returned you at this point.

The Purchase of your Villa
When the Mauritian Authorities issues you the approval to purchase your Villa, the CRP is replaced by a Deed of Sale and the Developer issues the buyer a bank completion guarantee together with the freehold title of your land which is registered by a notary in the name of the buyer.

Payment schedules
In accordance with the Mauritius Civil Code, article 1601-30, the price set out in your Deed of Sale is payable as certain events in the  work and construction process happen.

• 30% on signature of the Deed of Sale whereby the title of the land is registered in the name of the buyer: (this includes the release of the 5% escrow deposit) together with the 5% transfer tax, USD 70,000 registration duty.
• 5% on completion of the villa foundations.
• 35% when the roof is completed and the villa is closed in.
• 25% on completion of the villa in terms of the Deed of Sale.
• 5% when the villa is made available to the buyer.

Taxes
Registration Duties (IRS tax)
Registration Duty of USD 70,000 or 5% of the purchase price whichever is higher is payable by the buyer on the purchase of an IRS Villa. (This is included in the gross sales value indicated on the price list.) The seller will pay this on behalf of the buyer recovering the funds in the villa price.

Transfer Tax
The Transfer Tax equivalent to 5% of the purchase price on the Deed of Sale is payable by the seller (Matala Properties Limited.) on the sale of an IRS Villa, and is recovered from the buyer as part of the gross sales value indicated on the price list.

Legal Costs
The Promoter has appointed an independent notary to manage the conveyance of the properties at a fee of 0.5% of the purchase price of the villa which is payable directly to notary by the buyer. (This fee excludes VAT of 15%)
There will be an additional costs amounting to approximately USD 200 payable directly to the notary for processing fees.

Completion Guarantee
The Promoter is required by law to furnish a Bank Completion Guarantee assuring the buyer that the construction of the villa will be fully completed.
The Promoter is also liable for 10 years for latent defects to which the architects, contractors and other persons linked to the promoters by contract for work, are themselves bound pursuant to 1792 and 2281 of the Mauritius Civil Code as from the date the villa is made available to the buyer.

Important Notice
There is no inheritance tax or capital gains tax in Mauritius, but we would recommend that all buyers seek professional advice on tax planning, relevant to their own respective tax domicile prior to purchasing a villa in Mauritius, in order to minimise liabilities to taxes and duties.