Réunion Island is a lively French overseas department in the Indian Ocean, just east of Madagascar and southwest of Mauritius. This tropical island is famous for its marvelous natural landscapes, combining towering volcanic mountains, lush rainforests, and spectacular beaches. One of its most notable features is Piton de la Fournaise, one of the world’s most active volcanoes, whose normal eruptions create a dramatic contrast to the island’s serene coastal areas and provide a unique draw for nature enthusiasts and adventurers.
The climate of Réunion is tropical, with warm temperatures year-round. The island encounters a rainy season from November to April and a cooler, drier period from May to October, making it perfect for beachgoers and mountain trekkers. Réunion’s natural beauty features its rich cultural diversity, showing a combination of French, Creole, African, Indian, and Chinese influences. This melting pot is evident in the island’s vibrant festivals, flavorful cuisine, and the Réunion Creole language, widely spoken alongside French.
As part of France, Réunion is also within the European Union, benefiting from European trade agreements, infrastructure, and investment, though it faces challenges of employment and economic disparity. Tourism is a significant part of the economy, attracting visitors to explore its hiking trails in the volcanic cirques, especially in areas like Cirque de Mafate, or to enjoy the marine life along its coral reefs and clear lagoons. The island’s diverse ecosystem and lively cultural scene give Réunion a unique appeal, merging the tranquility of a tropical paradise with the lively spirit of a multicultural community.
Can foreigners buy property on Reunion Island?
Yes, foreigners can buy property on Réunion Island. As a French overseas department, Réunion follows French property law, which does not restrict foreign real estate ownership. Here is a detailed guide to the process and considerations for foreigners interested in purchasing property on Réunion Island:
Legal Framework and Ownership Rights
- Therefore, Réunion Island is part of France and subject to French law. No specific restrictions or additional permissions are mandatory for foreigners to buy property in Réunion.
- Foreign buyers enjoy the same legal protections and ownership rights as French nationals, including the right to lease, rent, sell, or transfer property.
Types of Properties Available
- Réunion offers a range of real estate options, including apartments, villas, bungalows, and land parcels. Properties vary in style and setting, from beachfront locations to mountainous regions and urban centers.
- Coastal towns, particularly around Saint-Denis, Saint-Gilles, and Saint-Pierre, are popular with buyers looking for residential or vacation properties. Inland areas may offer more affordable options with scenic views of the island’s volcanic landscape.
Real Estate Market Considerations
- The real estate market in Réunion is quite stable, as the island has limited space for new development, which can drive demand.
- Prices can differ significantly based on location, property type, and proximity to the coast. Coastal properties are more expensive, while rural areas offer comparatively lower prices.
- Because of its location, Réunion can attract investors and those looking for vacation or retirement homes.
The Property Buying Process
- Finding a Property: Foreign buyers often work with local real estate agents who understand the Réunion market and can help with language and administrative barriers.
- Offer to Purchase: Once a suitable property is found, the buyer can make an offer, which, if accepted, leads to a preliminary contract known as a promesse de vente or a compromis de vente.
- Preliminary Contract (Compromis de Vente): This binding agreement outlines the terms of sale. A deposit (typically around 5-10% of the purchase price) is required at this stage. Either party can back out, but financial penalties may apply if the terms are breached.
- Cooling-Off Period: French property law provides a 10-day cooling-off period after signing the preliminary contract, which the buyer can withdraw from the buying with no penalty.
- Final Contract (Acte de Vente): After due diligence and any necessary property checks, the sale concludes with the signing of the acte de Vente. This official document transfers property ownership and is signed in the presence of a notary (notaire).
- Registration and Title Transfer: The notary registers the sale with the local land registry, and the buyer receives the official title to the property.
Financing Options
- Foreign buyers may finance the purchase through French banks or financial institutions in their home country. French banks offer mortgages to non-residents, although the terms may differ for foreign nationals.
- Buyers should provide proof of income, bank statements, and other financial documentation.
- Interest rates for property in Réunion are similar to those on the French mainland, though terms vary by lender.
Costs and Taxes
- Notary Fees: Typically, 7-8% of the property price is for older properties, and 2-3% is for new builds.
- Registration Fees and Taxes: French property purchases are subject to transfer duties and taxes. These include the taxe de publicité foncière (land registration tax).
- Annual Property Taxes: Property owners in Réunion must pay local property taxes, including the taxe foncière and taxe d’habitation (if the property is occupied).
- Capital Gains Tax: Foreigners selling property in Réunion are subject to French capital gains tax on any profit made. However, there may be exemptions or reductions based on how long the property has been owned.
Special Considerations for Foreign Buyers
- Language Barrier: French is the official language in Réunion, so knowledge of French or hiring a translator might be necessary for non-French-speaking buyers.
- Local Expertise: Dealing with a local real estate agent and notary is strongly recommended to navigate local regulations, property assessments, and contractual agreements.
- Currency Exchange: Réunion uses the euro (EUR). Buyers from countries with different currencies should consider exchange rate fluctuations, especially if financing the property with foreign funds.
Visa and Residency Implications
- Owning property in Réunion does not grant residency rights or the ability to live in France long-term. For extended stays, foreigners may need to apply for a long-stay visa.
- Residency rights are governed by French immigration laws, which differ for EU and non-EU citizens. Non-EU citizens should verify visa requirements for long stays beyond the typical 90-day tourist allowance.
Summary
Foreigners can freely buy property on Réunion Island, with access to the same rights and protections as French nationals. The process is straightforward but involves legal steps similar to those on the French mainland. Working with local professionals, understanding tax implications, and making sure financial readiness are key steps to a successful property purchase on this picturesque island.
Frequently Asked Questions
Which language people speak on Réunion Island?
The main languages spoken on Réunion Island are French and Réunion Creole. French is the official language used in government, schools, media, and formal settings, as Réunion is a French overseas department. However, Réunion Creole, a French-based Creole language, is widely spoken in everyday conversations among locals and is an important part of the island’s cultural identity.
How is the weather in Réunion Island?
Réunion Island has a tropical climate with warm temperatures year-round, divided into a hot, rainy season from November to April and a cooler, dry season from May to October. Coastal temperatures stay between 18°C and 33°C (64°F to 91°F), while higher altitudes are cooler. The island’s eastern side is wetter due to trade winds, while the western side is sunnier and drier, making it ideal for beaches. Cyclones are possible during the rainy season, but the dry season is ideal for outdoor activities like hiking.
Is real estate expensive on Réunion Island?
Yes, real estate in Réunion Island can be relatively expensive, especially in popular areas. Coastal regions, particularly around cities like Saint-Denis, Saint-Gilles, and Saint-Pierre, often have higher property prices due to their desirability and limited space. Beachfront properties and homes in areas with scenic views and new developments tend to be priced at a premium.
That said, prices change widely depending on location, property type, and proximity to the coast. Rural and inland areas are generally more affordable, with prices decreasing as you move away from the main urban centers and tourist hotspots.
Can you get citizenship in Réunion Island by buying a property?
No, buying property in Réunion Island does not grant citizenship. Réunion is an overseas department of France, so French nationality and citizenship rules apply. Simply purchasing property does not provide any direct path to citizenship or residency rights in France or its overseas territories.
For non-EU nationals, obtaining French citizenship typically requires living in France (or its territories like Réunion) for several years under a legal residence permit and meeting other criteria, such as language proficiency and integration into French society. Some residency permits may be available to foreign investors, but these permits are separate from citizenship and come with their requirements and limitations.
