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					Q & A on RES

Real Estate Scheme (RES) – How to invest in this new scheme?

Following the measures announced in the Budget Speech 2007/08, the Investment Promotion
(Real Estate Development Scheme) Regulations 2007 came into operation on 29th November
2007. This scheme is an extension of the IRS and it is especially designed for small land-

Please find below a series of Frequently Asked Questions (FAQs) about this new scheme.

1. What is RES?

The Real Estate Scheme is a new scheme which has been introduced by the Government at
beginning of December 2007 to allow small landowners to develop their land by building
residences, commercial and leisure facilities for sale mainly to non-citizens.

2. Who can develop a RES project?

1. Small landowners who own at least 1 arpent but less than 10 hectares in total. The
   computation of the 10 hectares will take into account the total extent of land owned by the
   landowner, his/her spouse & dependents who have not yet reached the age of 18. Land
   owned in a company, société or trust will also be computed.

2. The landowner should have owned the land for at least 5 years.

3. I have, this year, inherited a piece of property owned by my parents for 5 years. Am
   I eligible for the scheme?


4. Can a landowner group together with other landowners?

A landowner can group with other qualifying landowners, that is, each landowner should
satisfy the two criteria above, in question (2), and also ensure that:
     a) the extent of the land does not exceed 10 hectares in the aggregate; and
     b) the plots of the land for development are contiguous

Only one project will be allowed on the site.

5. Can I develop a RES project on state land?

No. A RES project can be developed only on freehold property.

6. Is this scheme only for sugar cane planters?

No, any landowner whether in rural or urban area satisfying the two criteria above, in question
(2) is eligible.

7. Should my land be located within settlement boundaries to be eligible for RES?

No, development is also allowed on the edge or outside settlement boundaries, provided you
satisfy the policies of the relevant Outline Scheme.

8. Who should I consult to confirm compliance with the Outline Scheme?

You should consult the Planning Department of the local authority (District Council or
Municipal Council) of the area

9. What can be developed within a RES project?

You may build villas, apartments, penthouses. The project should also comprise commercial
and leisure facilities.

10. Can I build high-rise apartments in towns?

Before embarking on a project, check with the Municipal Council whether the area to be
developed is suitable for high-rise development.

11. What are the planning constraints for the development of the project?

You need to consult the Planning Policy Guidance (PPG) issued by the Ministry of Housing
and Lands and available on .

12. How can I find investors for my project?

You may register yourself with the Board of Investment by providing all information in
electronic format on our Land Database System on our portal at .
BOI will then put you in touch with investors as and when they may express an interest

13. What should I do to develop such a project?

You should first incorporate a company under the Companies Act 2001 where the value of the
shares held in the company is equivalent to at least value of your property. Then you should
submit an application for a RES Certificate to the Board of Investment as per the RES
Guidelines which are posted on our portal at .

14. What are the documents that I need to submit at the time of application?

The application form duly filled in (enclosed within the RES Guidelines) along with the
following documents:

           1. Certificate of Incorporation
           2. Detailed business plan
           3. Site location plan by sworn land surveyor and context plan as per Outline
           4. Planning brief for sites located outside settlement boundaries
           5. Detailed master plan

           6. Artistic impression of the residential units
           7. Copy of the title deed in respect of each plot of land
           8. A written declaration made by a notary public confirming the landownership of
              each landowner in the company and certifying the eligibility criteria
           9. Documents showing proof of funds

15. How long does it take to process my application?

Once you have submitted your application, BOI shall effect a site visit along with the relevant
local authority to confirm the development potential of the land. In case there are issues which
have to be dealt with other institutions, BOI will act as facilitator.

BOI shall then issue a Letter of Approval when the project meets the requirements of the

BOI shall only issue a RES Certificate on obtention of the following documents::

       • EIA license for the development of houses and apartments above 50 units within 1
         km from high water mark
       • Land Conversion Permit for conversion of land which has been under cultivation of
         sugar cane, tea or tobacco (SIE Act)
       • Building and Land Use Permit
       • Provision of a bank guarantee of MUR 25,000 per residential property to the Board
         of Investment
       • Each landowner gives a written undertaking to the Managing Director that he will
         retain shares in the RES Company equivalent to at least the value of the land
         brought in the RES Company until at least one year after completion of the project

16. How much land conversion tax should I pay?

Area of land converted                        Rates of land conversion tax (MUR / ha)
0.25 hectare but less than 0.50 hectare               50,000
0.50 hectare but less than 1.00 hectare               250,000
1.00 hectare but less than 5.00 hectares              1,000,000
5.00 hectares and above                               1,500,000

17. My land is located outside Settlement Boundaries, has not been under sugar cane,
    tea or tobacco cultivation for the past 10 years. Do I still need to apply for a Land
    Conversation Permit?

No, but you have to submit a declaration to that effect to the Ministry of Agro Industry which
will confirm same within two weeks.

18. Who will finance the cost of basic infrastructure in case the site is not serviced?

The RES Company.

19. When can I start construction?

On receipt of the Building and Land Use Permit and RES Certificate.

20. When can I start marketing and taking reservations of the residential units?

As from the Letter of Approval, the RES Company may only sign a contract pending
completion of the building and cause the buyer to transfer 5% of the value of the property in
an escrow account.

21. When can the sale of the residential units take place?

On obtention of the RES certificate.

22. Should I sell only to non-citizens?

In addition to non-citizens, you may also sell to a citizen of Mauritius, a local or foreign
company registered in Mauritius, a trust or a société.

23. Can I also sell the commercial and leisure facilities?

Yes. However, an authorization from the BOI is required where sale is made to a non-citizen.
The non-citizen can only acquire the property under the name of a company incorporated in
Mauritius and registered as an investor with the BOI.

24. Is there a fixed minimum price for sale of the residential units?

No, there is no fixed minimum price.

25. What are the taxes applicable on sale of residential units?

The buyer should pay a registration duty of US$25,000 and the RES Company should pay 5%
of the value of the property as land transfer tax when the deed for the sale of the property is
registered and transcribed.

26. What are the benefits to the RES developers?

On obtention of the Letter of Approval, the RES Company is exempted from:

   -   Land Transfer Tax
   -   Morcellement Act
   -   Registration Duty

27. Where can I have more information about the scheme?

You may access the guidelines and application form on the BOI portal at or contact BOI on 203 3800 for an appointment or send an email to


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