Senior Living Residences
Smart City companies and developers are now starting to flesh out the concept of purpose-built luxury retirement-based communities. This comes in the wake of the recent law which will allow expatriates above 50 years to stay in and buy or rent purpose-built retirement residences.
Senior living essentially refers to homes that cater to adults aged 50+ who are looking to live independently in a peer environment. Seniors who gravitate towards such housing options tend to have no major health issues and are active enough to take care of themselves. Such projects usually provide facilities for recreation and socialising, including a clubhouse, health club or gym, facility management services, focused on the needs of the elderly.
The new law, which came into effect in May 2019, allows a non-citizen retiree to apply for a residence permit for himself/herself and his/her spouse or common law partner until such time the property is no longer owned or occupied by the retiree.
The following fiscal incentives are being granted under the Scheme:
- a 5-year income tax holiday to a foreign retiree issued with a residence permit under the scheme on pension income and other income remitted to Mauritius by himself/herself and his/her spouse or common law partner; and
- to the promoter of a project:
- a 5-year income tax holiday on profits generated;
- exemption from customs duty on the importation of machinery, equipment, construction materials and other inputs including furniture in semi-knocked down form on the condition that at least 20% local value addition is incorporated therein; and
In addition, standard VAT exemption granted in respect of a purpose-built building for a residential care home will apply.
The new laws will encourage foreign investors who are attracted by our lifestyle, sun, security and first-class amenities an attractive option. The weather in Mauritius is conducive for 8 months a year even for people from colder climates, which is a major attraction for retirees around the world. Florida is a great example of how weather becomes a big factor in deciding where people would like to spend their retired lives.
To benefit from the above, projects have to be approved under the Property Development Scheme (PDS) relating to senior living.