1         Pre-implementation cost

1.1      Incorporation of a company

1.2     Permit for non-citizen investors to work in Mauritius

Occupation Permit for Investor

This permit allows non-citizens to both reside and work in Mauritius.  An investor may be eligible under the following conditions:

• The proposed business activity should generate an annual turnover of over Rs 4 million per non-citizen investor; and,
• The investor should make an initial investment of US$ 100,000 or its equivalent in freely convertible currency.

The dependents of an occupation permit holder may also apply for residence permits. It takes three days to process and obtain a residence permit which is issued for a maximum period of three years.

The fee for an occupation permit for an investor is Rs 10 000.

A bank guarantee of Rs 50 000 made in favour of Government of Mauritius is required while that for dependent is Rs 20 000 per dependent

Guidelines for application for an Occupancy Permit

2        Land and related cost

2.1      Cost of land

The price range of land can vary from around US$ 40 000 per arpent to US$ 400 000 per arpent depending on the location and also on the availability of infrastructure.

2.2      State Land

Tourist-related projects can be developed on State Land (refer to HOTEL DEVELOPMENT ON STATE LAND IN MAURITIUS for eligibility and process). Promoters of all tourism projects on State Land are liable to a contribution to the Tourism Fund that is empowered to finance tourism related projects and tourist sites and attractions in regions with high touristic potential. The contribution is calculated as follows:

• State Land with sea frontage – Rs 1.5 Mn per arpent of land leased and proportionately for part of an arpent;
• State Land located on the inland side of the coastal road – Rs 750 000 per arpent of land leased and proportionately for part of an arpent;
• No contribution for other inland projects

The rental rate of State Land has to be paid in advance annually. The rental varies by Zone and lies between Rs 400 000 to Rs 800 000 per arpent for new leases and between Rs 300 000 to Rs 600 000 per arpent for existing leases as defined by the law (please click).

2.3      Taxes and duties

Registration duty - Registration duty is payable by the buyer upon acquisition of an immovable property at a rate of 5 % of the value of the property.

Land Transfer Tax (LTT) – LTT is levied on a deed of transfer of immovable property. The rate for the LTT is  either 5 % or 10 % of the value of the property:

• 5 % on the value of the property if transfer is made after a period exceeding 5 years of the date of acquisition of the property

• 10 % on the value of the property if transfer is made after a period not exceeding 5 years of the date of acquisition of the property

Transfer of shares

The same principle applies to the transfer of shares:

2.4      Land Conversion Permit

Where a plot of land is classified as agricultural land and that it is proposed to be used for non-agricultural purposes, a land conversion permit from the Ministry of Agrio-Indsutry and Food Security is required.  Please click here for the land conversion process. A land conversion tax is normally paid. However no tax is paid for theconstruction of hotels or the setting up of a glof course or other touristic facilities or installation by the holder of a registration certificate issued by the Board of Investment.

2.5      Building and Land Use Permit

A Building and Land Use Permit Application is a formal request to the Municipality or District Council for permission to carry out a proposed development/building. The processing fee for application for Building and Land Use Permit is Rs 500.

Fees for issue of Building and Land Use Permit

3         Cost related to the implementation of a tourist-related project

3.1      Environment Impact Assessment

EIA is a study that predicts the environmental consequences of a proposed development. It evaluates the expected effects of the development on the natural environment, human health and on property. The study requires a multi-disciplinary approach. The cost of preparing an EIA report can range from Rs 750 000 to several million of rupees depending on the complexity of the report. Tourist-related developments that require an EIA include:

• Construction of breakwaters, groins, jetties, revêtements and seawalls
• Construction of marinas
• Creation of, and/or development on, barachois
• Desalination plant
• Hotel and Integrated Resort Scheme, including extension, with first boundary within 1 kilometre from high water mark
• Lagoon dredging and reprofiling of sea beds

3.2      Preliminary Environment Report

A Preliminary Environment Report (PER) is a simplified form of EIA and this preliminary analysis is undertaken to identify the impacts associated with the proposed development and the means of mitigation. The cost of preparing a PER can range from Rs 100,000 to Rs 200,000. Tourist-related development that require a PER include:

• Creation of bathing areas by mechanical means
• Mechanical removal of marine flora such as sea grasses and marine algae

3.3      Indicative fees of tourist-related service providers

The table below gives an indication of the fees charged by service providers.

3.4      Cost of Construction

The indicative average price of construction by type of building is as follows

4         Operation cost

4.1      Taxation

Value Added Tax (VAT) - The VAT is a tax on goods and services and the rate is presently fixed at 15%.

Corporate Taxation - Tax rate on chargeable income of companies is 15%.

Alternative Minimum Tax (AMT) - Where the normal tax payable for an income year by a company is less than 7.5 % of its book profit, the company should pay either 7.5 % of its book profit or 10 % of dividends declared in respect of that year, whichever is lesser.

Environment Protection Fee (EPF) – all hotels, guest houses and tourist residences of more than 4 bedrooms have to pay EPF at a rate of 0.85 % of turnover on a monthly basis before the 20^th of the following month.

Corporate Social Responsibility (CSR) – Mandatory contribution to a CSR fund has been established by Government so that registered profitable companies have to contribute two per cent of their book profit towards approved programmes or approved NGOs that contribute to the social and environmental development of the country.

4.2      Permits and Licences

Tourist Enterprise Licence

Any operator of a tourist activity in Mauritius has to apply for a Tourist Enterprise Licence from the Tourism Authority.

The annual fess for the license is as follows for tourist accommodation facilities:

The annual fees payable for annexed activities within tourist accommodation facilities include:

Source: Tourism Authority

Other government charges

4.3      Cost of public utilities

Electricity

The Central Electricity Board is the sole authorized distributor of electricity in Mauritius. The tariff for hotels and restaurants that fall in the category of commercial users varies between MRU 5.83 and 10.01 per kWh and a security deposit of Rs. 500 per kW or fraction thereof of total is imposed. Detailed tariffs are available here

Water

The Central Water Authority is responsible of the distribution of water in Mauritius. The tariff     for Hotels, Board Houses and Guest Houses is as follows:

Wastewater

The Wastewater Management Authority is responsible for the collection, treatment and disposal of wastewater. The present wastewater tariff is Rs. 20.00 per m3 (flat rate).

4.4      Telecommunication

4.5      Human Resources

Selected indicative monthly average basic salary scale in the hospitality sector

National Pensions Scheme

Employers should pay contributions on insurable wage or salary as per rates below.

National Savings Fund

It provides for payment of a lump sum (contributions + accrued interest) at retirement age. Every employer (public, private or para-statal) has a legal obligation to contribute 2.5% of the total basic prescribed wage of each of his employees aged between 18 and 60. Non-citizens are not covered under the Scheme.

Other charges

• Training levy of 1.5 % of gross basic salary
• Payment of one month end of year bonus
• Payment of maternity leave (12 weeks)
• Refund of travelling cost

Occupation permit

As for investors, professionals can also apply for an occupation permit (work and residence permit) given the following condition is met:

• The basic monthly salary of a professional under a contract of employment should exceed Rs 45,000 to be able to register in Mauritius

The application fee is Rs 6 000 if the period applied for is 2 years or less and Rs 10 000 for period above 2 years and up to 3 years.

Work permit

Non-citizens who are not eligible for an occupation permit, have to apply for a work permit. The Work Permit fees are as follows:

4.6      Payment of Copyright Fees

* based on a scheduled 10% annual increase

A dispute, relating to the amomt of fees payable, between AHRIM and the Mauritius Society of Authors (MASA) has been referred to the Supreme Court. It is expected that the case will be heard mid 2011.

4.7      Submission and processing of an Electronic declaration – Software Licence

The submission of an electronic declaration of returns and payment of taxes to the Mauritius Revenue Authority, and contributions to the Ministry of Social Security, requires a software licence from the Mauritius Network Services which costs Rs 40 000 for a 5 user licence. The service charges for submission of electronic declarations are as follows:

4.8      Listing on the Stock Exchange

An application fee of MRU 50, 000 is charged to every new applicant.

Disclaimer: AHRIM shall not be liable to any claim for compensation for any expenditure incurred by an investor or any other person from the use of the above information in the event that a project fails or is not implemented as a consequence of changes in costs which are beyond the control of AHRIM.