News

18/07/2019

The Smart Cities Scheme is an ambitious path to consolidate Mauritius’ status as an international business and financial hub with modern infrastructure paving the way for an ideal environment for working, living and encouraging investment through the development of Smart Cities across the Mauritius.

The main objectives of the Smart City Schemes are:

  • The creation of an environment-friendly working, living and leisure space aiming at generating its own resources in terms of energy and other utilities and providing for a state of art connectivity, smart modern transportation and reducing traffic congestion
  • The proper management, development and conservation of natural and man-made resources for the purposes of promoting the social and economic welfare of the community and a better environment
  • Sustainable development
  • The promotion of targeted economic activities resulting to an increase in foreign direct investment and export to rapidly growing economies, while at the same time strengthening the industrial and service base and an economic diversification path

The Scheme has elaborated on the regulatory framework and fiscal and non-fiscal incentives to investors for the development of smart cities across the island such as:

Incentives to Smart City Company

a) A smart city company (holder of SCS Certificate) is exempted from the payment of:

   i. Income tax for a period of 8 years

  ii. Land transfer tax and registration duty 

  iii. Land conversion tax in respect of the land earmarked for the development of non-residential            component

  iv. Customs duty on the import or purchase of any dutiable goods, other than furniture, to be used        in the infrastructure works and construction of buidings under the smart city scheme

  v. Customs duty on furniture provided that the processing of the furniture results into value            addition of at least 20% of the C.I.F value at import

 vi. Morcellement tax for the subdivision of land

 b) Value Added Tax (VAT) - the developer shall recover VAT paid on building and capital goods

c) A smart city company issued with a SCS Certificate is granted accelerated annual allowance at a rate of 50% of the costs in respect of capital expenditure incurred on certain items

d) The Smart City Company may sell serviced land to another company to develop a component of the smart city project

e) Sale of immovable property can be made by way of ‘Vente en Etat Futur d’Achevement’(VEFA) or ‘Vente a Terme

f) Land transfer tax for immovable property sold on VEFA is payable in four 6-monthly instalments

Incentives to purchaser of a residential unit

a) Any person including a non-citizen may acquire a built-up residential property

b) An entity including domestic or foreign companies, société, foundation, limited partnership and trusts can acquire a built-up residential property

c) No minimum price for the acquisition of a residential unit

d) Any non-citizen acquiring a residential property for a sum exceeding USD 500,000 (or its equivalent in any hard-convertible foreign currency) is eligible to apply for a residence permit

e) No restrictions on the rental or resale of residential units

f) Possibility to acquire life rights under the Scheme

Incentives to non-citizen investors

A non-citizen having held a residence permit for a continuous period of 2 years, and having invested over USD 5 million or its equivalent in Mauritius, is eligible to apply for registration/naturalization as a citizen of Mauritius.

HOW MITCO CAN HELP?

  • Advisory services – to accompany, guide and advise on your project;
  • Assistance to the applicants to compile all the documentation;
  • Assistance for the selection of real estate property;
  • Advise and implementation of structure for acquisition of property;
  • Assistance for debt financing structuring with financial institutions;
  • Liaise with notaries, real estate developers and stakeholders;
  • Compliance services with authorities for licence, permits and tax declaration; and
  • Administration services beyond completion of property.