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Mauritius is a sought-after destination for investors with its attractive tax regime, including no inheritance tax. However, its forced heirship rules and potential tax implications for South African investors highlight the importance of careful estate planning when acquiring property in Mauritius, says Colin Sher, Director for Sable International in Mauritius.
Forced heirship rules
In Mauritius, immovable property is subject to civil law and forced heirship rules, which apply to Mauritian citizens and foreigners. This results in a significant portion of the estate automatically reserved for children, regardless of what a will states.
For instance, one child inherits half, two children inherit two-thirds, and four children inherit three-quarters of the property. The surviving spouse is granted a “usufruct” over the property. This means they have the right to use and enjoy the property for the rest of their life, but they don’t own it outright. This arrangement ensures financial security for the spouse while preserving the property for the heirs.
An estate’s remaining “free portion” can be allocated to anyone, including individuals or entities like charities, through a will. A valid will is essential to maintaining control over this portion of an estate. The will must be registered in Mauritius to ensure it complies with local laws.Â
Tax implications for South African residents
The challenge for South African tax residents is that the child’s share of the inheritance, minus the value of the spouse’s usufruct, might exceed R3.5 million, making it subject to estate duty in South Africa.
This can be especially tricky if the child is a minor, as managing their inheritance can create additional legal and financial complications.
Property ownership structures
Sable International, located in Grand Baie, Mauritius, specialises in securing our clients’ strong real estate investments that qualify for permanent residency. We also tap into Sable International’s tax and wealth expertise.
Sable Wealth suggests structuring the property ownership through a company, with the company’s shares held by a trust, as trusts cannot directly invest in property in Mauritius.
This approach may not work for UK-domiciled residents, but our UK-based experts can provide tailored advice depending on your situation. However, this structure can be costly and isn’t suitable for everyone. It’s essential to consider your overall assets and circumstances before proceeding.
Our team of tax experts offers free consultations to help you navigate these decisions. Contact our Realty offices in Mauritius, and we’ll guide you every step of the way.
Sable International has property, tax, wealth management, forex, and residency experts to ensure your property purchase is a seamless process that can be securely managed in-house.
We’d like to introduce you to Azuri Ocean and Golf Village: land & sea in perfect harmony
Azuri Ocean & Golf Village on Mauritius’ northeast coast has grown into a vibrant and welcoming community since its launch in 2012.
The village combines the beauty of island living with an active, cosmopolitan atmosphere, offering an authentic experience that sets it apart. The location offers perfect harmony between land and sea.
Over the past 12 years, Azuri has attracted diverse residents worldwide, with more than 200 families now calling this idyllic spot home. Residents enjoy a safe environment coupled with a genuine sense of community.
The smart city still has much to offer at just 50% of its full development potential.
Azuri Village embodies a model of urban and social integration. In addition to its stunning natural surroundings, the village offers restaurants, shops, a spa, and vibrant communal spaces, all centred around a spectacular five-star resort hotel and an award-winning nine-hole golf course.
The village has various prestigious homes, including beachfront apartments, spacious duplexes and luxurious golf villas, offering something for everyone.
Current phases on sale include Celimar, which offers stunning sea-view apartments and penthouses, and Amara Phase 2, which has two—and three-bedroom luxury golf villas. These villas create a sense of spaciousness and offer breathtaking views overlooking the golf course.
Azuri’s Smart City vision includes even more conveniences, such as expanded shopping areas, an RM gym and offices, making it a true “live-work-play” environment.
Apartment prices start at Rs 23,000,000 (USD 485,160), and golf course villas begin at Rs 28,400,000 (USD 599,066).
These new phases are selling quickly due to their competitive pricing, offering buyers excellent capital appreciation and strong returns on investment.
For further details, contact us at [email protected].
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