9 Essential French Terms for Foreign Investors in Mauritius Real Estate

Investing in real estate can be an exciting opportunity, especially in a tropical paradise like Mauritius. However, for foreign investors, navigating the local real estate market may present some unique challenges. Understanding key terms, particularly those in French, can significantly facilitate the investment process. Let's explore these 9 essential French terms that foreign investors should familiarize themselves with when investing in property in Mauritius.

1. Projet de vente (Sales project): Projet de vente refers to the sales project or development plan of a property. It outlines the details of the project, including the construction or renovation plans, amenities, and pricing. Foreign investors should review the projet de vente to gain a comprehensive understanding of the property they are considering.  2. Acte de vente (Deed of sale): Acte de vente refers to the deed of sale, which is a legally binding document that transfers ownership of the property from the seller to the buyer. This document outlines the terms and conditions of the sale, including the purchase price, payment terms, and any contingencies. It is crucial for foreign investors to carefully review and understand the acte de vente before signing it.  3. Notaire (Notary): In Mauritius, a notaire plays a significant role in real estate transactions. They act as a neutral third party, ensuring that the transaction follows legal requirements. The notaire is responsible for preparing the necessary documents, such as the acte de vente, and overseeing the transfer of ownership. Foreign investors should engage a reputable notaire to ensure a smooth and legally compliant investment process.  4. Bail emphytéotique (Emphyteutic lease): Bail emphytéotique is a long-term lease commonly used for land ownership in Mauritius. It grants the lessee (the investor) the right to use and develop the land for an extended period, typically up to 99 years. This leasehold arrangement allows foreign investors to acquire long-term control over the property without full ownership.  

5. Contrat de Réservation Préliminaire (CRP): CRP, which stands for Contrat de Réservation Préliminaire, refers to the preliminary reservation agreement. This agreement is typically signed between the buyer and the developer in the early stages of a property project. The CRP outlines the basic terms and conditions of the transaction, including the property details, purchase price, payment terms, and reservation period. It serves as an initial commitment from the buyer and provides a level of assurance to secure the property before the completion of the project.  6. Frais de mutation (Transfer fees): Frais de mutation refers to the transfer fees associated with the change of ownership in a property transaction. These fees typically include government taxes and administrative charges. Foreign investors should be aware of the frais de mutation and factor them into their investment budget.  7. Promoteur immobilier (Real estate developer): The promoteur immobilier is the real estate developer responsible for the construction or renovation of properties. They oversee the entire development process, from obtaining permits to delivering the finished project. Foreign investors should research and choose a reputable promoteur immobilier to ensure the quality and timely completion of their investment.

8. Promesse de vente (Promise of Sale): Promesse de vente, also known as a promise of sale, is a preliminary agreement between the buyer and the seller. It outlines the terms and conditions of the future sale, including the purchase price, payment schedule, and any conditions that need to be fulfilled before the final sale. The promesse de vente serves as a commitment from both parties to proceed with the transaction. Foreign investors should carefully review this document and seek legal advice to ensure their interests are protected.  9. Vente en l'État Futur d'Achèvement (VEFA): VEFA, which stands for Vente en l'État Futur d'Achèvement, refers to the sale of a property under construction. It allows buyers to purchase a property before its completion, providing them with the opportunity to acquire a property at a potentially lower price and participate in the design and customization process. Foreign investors should carefully review the VEFA agreement, which outlines the terms, payment schedule, and delivery date of the property.

Investing in Mauritian real estate holds immense potential for foreign investors seeking profitable opportunities in a stunning tropical setting. By acquainting themselves with these 9 essential French terms and staying updated with evolving regulations and opportunities, or seeking professional Real Estate Advisory services, investors can navigate the market more effectively and position themselves for long-term success. With careful consideration of the unique aspects of the Mauritian real estate landscape, foreign investors can enjoy the benefits of their investment for years to come while maximizing their returns and taking advantage of the thriving opportunities available in this vibrant market. If you are considering venturing into the realm of real estate investment in Mauritius or wish to explore the array of tax-saving strategies available, we invite you to reach out to our experienced professionals at Blue Diamond Capital. You can contact our team here to discuss your investment goals and discover the opportunities that await you. Published by: Levana Naidoo, Property Investment Director May 17, 2023