Financial Preparation

• Determine your total investment budget (property + transaction costs + renovation + reserves)
• Establish a currency exchange strategy (MRU is not widely traded internationally)
• Research EUR/USD to MRU exchange rates through regional financial institutions
• Set up international wire transfer capabilities with specialized providers
• Consider opening a Euro-denominated account as an intermediary step
• Evaluate tax implications in both Mauritania and your home country
• Plan for cash reserves (12-24 months) to manage operational expenses

Market Research

• Identify target cities based on investment goals and risk tolerance
• Research neighborhood-specific trends and development plans
• Connect with diaspora communities for local insights
• Track infrastructure development projects affecting property values
• Analyze tenant demographics and expected rental demand
• Study government development plans and zoning changes
• Plan an exploratory market visit to evaluate areas firsthand
• Consider investment alignment with resource development projects

Professional Network Development

• Connect with legal advisors specializing in Mauritanian property law
• Identify reputable real estate agents with experience assisting foreigners
• Research property management companies in your target market
• Establish contact with translation services for documentation
• Find a Mauritanian tax advisor familiar with international investor concerns
• Connect with building contractors for renovation/construction assessment
• Develop relationships with other foreign investors with local experience
• Establish contacts at relevant government departments

Expert Tip: The Mauritanian property market experiences seasonal variations influenced by both climate and cultural factors. The most active period for property transactions is typically October-December after the rainy season ends and before the peak heat of summer. During Ramadan and major religious holidays, business activity slows significantly. Consider timing your property viewing trip during the October-December window for maximum market activity and more moderate weather conditions.

Recent Regulatory Change: The 2022 revisions to the Investment Code have streamlined the process for establishing Mauritanian SARLs with foreign ownership, reducing the minimum capital requirement from 5 million MRU to 1 million MRU (approximately $27,000) for companies with majority foreign ownership in qualifying sectors. Additionally, the timeline for company registration has been reduced to 7-10 business days from the previous 3-4 weeks when using the Investment Promotion Agency’s facilitation services.

Banking Setup

• Local Bank Account Options:
  • Mauritanian commercial banks: Attijari Bank, Société Générale Mauritanie, Banque Al Wava
  • Islamic banking options: Banque Islamique de Mauritanie, Banque Al Baraka
  • Regional banks with local presence: Ecobank, Bank of Africa
  • Account types: Foreign currency accounts (USD/EUR) and local currency (MRU) accounts
• Typical Requirements:
  • Passport and secondary identification
  • Local address documentation or company registration
  • Reference letters from international banks
  • Source of funds documentation
  • Initial deposit (varies by institution)
  • In-person appointment (mandatory for most banks)
• Alternative Approach: Many foreign investors rely on hybrid arrangements using international accounts for holding funds and local accounts for operational expenses. Some major transactions are conducted in USD/EUR through international transfers with notarized documents rather than local banking channels.

Financing Options

Financing options for foreign investors are limited, with cash purchases being the norm:

1. Local Mortgage Financing:
   • Availability: Very limited for foreign nationals without long-term residency
   • Down Payment Requirements: 40-60% for eligible foreign buyers
   • Interest Rates: 8-12% for conventional loans
   • Islamic Financing: Available through Islamic banks using Ijara or Murabaha structures
   • Terms: Typically 5-10 years maximum
2. Developer Financing:
   • Limited availability from major developers for new projects
   • Typically requires 30-50% down payment
   • Short-term payment plans rather than true financing
   • Higher effective interest rates than formal banking
3. International Financing:
   • Home country equity lines or investment loans
   • International investment funds specializing in frontier markets
   • Cross-collateralized loans using assets in home country

Currency Management

The Mauritanian Ouguiya (MRU) is a controlled currency with specific considerations:

• Exchange Rate Considerations:
  • MRU is not freely traded on international markets
  • Official exchange rates vs. market rates can differ significantly
  • Currency has shown relative stability against EUR/USD in recent years
  • Foreign exchange controls limit the amount that can be converted at once
• Currency Services:
  • Major international banks with African presence provide better rates than local exchanges
  • Banking channels typically offer more favorable rates than exchange houses for large amounts
  • Documentation of all currency exchanges is essential for repatriation purposes
• Income Repatriation:
  • Registered investments have guaranteed repatriation rights under investment code
  • Proper documentation of initial capital entry is critical for later repatriation
  • Central Bank approval may be required for larger transfers
  • Tax clearance certificates required before funds transfer

Currency management requires careful planning, as exchange rate fluctuations and transfer limitations can significantly impact overall returns. Many investors maintain dual-currency strategies, keeping operational funds in local currency while holding reserve and investment capital in hard currencies.

Property Search Resources

• Online Property Platforms:
  • Expat.com Mauritania – Listings targeted at foreign nationals
  • Agence Immo Nouakchott – Local agency with online listings
  • Facebook Real Estate Groups – Increasingly popular informal listing platform
• Local Real Estate Agencies:
  • Agence Mauritanienne de l’Immobilier – Nouakchott-focused agency
  • Nouadhibou Property Services – Specialized in port city opportunities
  • Note: Most agencies operate with limited online presence and formal structures
• Direct Networking:
  • Chamber of Commerce introductions
  • Expatriate community connections
  • Industry-specific business associations
  • Local business partners and contacts
• Property Finders:
  • Personal representatives conducting targeted searches
  • Local fixers with property market connections
  • Legal representatives with real estate experience
  • Typically charge 3-5% of purchase price

Property Viewing Trip Planning

For overseas investors, an efficient property viewing trip is essential:

1. Pre-Trip Research:
   • Identify 10-15 potential properties before arrival
   • Establish local contacts and intermediaries
   • Research neighborhoods thoroughly online and through contacts
   • Arrange meetings with legal advisors and banking representatives
   • Secure necessary visas and travel documentation
2. Trip Logistics:
   • Plan 7-10 days minimum for property evaluation
   • Book accommodation in central locations with reliable transportation
   • Arrange for translator if you don’t speak French or Arabic
   • Schedule viewings with buffer time for delays and discoveries
   • Secure reliable local transportation arrangements
3. During Viewings:
   • Document everything with photos, videos, and notes
   • Ask about utility connections and reliability
   • Inquire about neighborhood security considerations
   • Check actual property boundaries (often different from documents)
   • Note proximity to essentials and infrastructure quality
4. Consider using a local guide who can:
   • Navigate unfamiliar areas safely
   • Translate conversations and documentation
   • Provide cultural context for negotiations
   • Help evaluate property claims and condition accurately
   • Connect with local officials when needed

Property Evaluation Criteria

Assess potential investments using these key criteria:

• Location Factors:
  • Proximity to employment centers and commercial districts
  • Access to reliable water and electricity supply
  • Transportation connections and road quality
  • Distance to essential services (healthcare, markets, schools)
  • Neighborhood security situation and access controls
  • Flood risks and drainage systems (critical in coastal areas)
• Building Quality:
  • Construction materials and methods (critical in harsh climate)
  • Age and maintenance history of the structure
  • Cooling systems and insulation quality
  • Water storage capacity and filtration
  • Backup power systems (generators, inverters)
  • Foundation quality and structural integrity
• Rental Potential:
  • Tenant demographics in target market (expatriate vs. local)
  • Proximity to major employers (mining companies, NGOs, embassies)
  • Historical occupancy rates in the area
  • Rental price trends and comparables
  • Potential for value-add improvements
  • Expat vs. local tenant amenity requirements
• Legal Considerations:
  • Clear title documentation and registration status
  • Consistency between physical boundaries and documentation
  • Absence of competing traditional claims
  • Compliance with zoning and land use regulations
  • Proper documentation of previous transactions
  • Tax compliance history for the property

Expert Tip: Water and electricity infrastructure reliability varies significantly between neighborhoods in Mauritanian cities. Properties with backup water tanks (minimum 2,000 liters), solar panels, and inverter systems command premium rents from expatriate tenants and better-off locals. When evaluating properties, check the width and condition of access roads, as many areas flood during the rainy season. Properties on slightly elevated ground with good drainage systems are worth the premium, especially in coastal areas like Nouakchott where rising sea levels are increasingly affecting low-lying neighborhoods.

Legal Due Diligence

• ✓
  Title Verification: Confirm ownership through both the Land Registry and municipal records
• ✓
  Boundary Verification: Physical inspection with surveyor to confirm documented boundaries
• ✓
  Traditional Rights Check: Local authority consultation regarding potential historical claims
• ✓
  Ownership History: Documentation of previous transfers and transactions
• ✓
  Encumbrances Check: Verify no outstanding liens, mortgages, or claims
• ✓
  Land Use Verification: Confirm zoning and approved uses match intended purpose
• ✓
  Tax Status Check: Confirm all property taxes and fees are current
• ✓
  Foreign Ownership Eligibility: Verify property is eligible for foreign ownership

Physical Due Diligence

• ✓
  Structural Inspection: Assessment by qualified engineer or construction professional
• ✓
  Utility Systems Evaluation: Testing of water, electrical, and sanitation systems
• ✓
  Environmental Assessment: Check for flooding risks, erosion, and soil stability
• ✓
  Access Verification: Confirm road access rights and physical conditions
• ✓
  Construction Quality: Assessment of materials, workmanship, and adaptations to climate
• ✓
  Security Features: Evaluation of perimeter protection, access controls, and safety systems
• ✓
  Renovation Assessment: Detailed evaluation if improvements planned

Financial Due Diligence

• ✓
  Comparative Market Analysis: Verify price aligns with comparable properties
• ✓
  Rental Market Research: Survey potential rental rates through multiple agencies
• ✓
  Tax Calculation: Calculate acquisition and ongoing tax obligations
• ✓
  Operating Expense Assessment: Document all ownership costs including maintenance, security, and utilities
• ✓
  ROI Calculation: Develop detailed cash flow projections and return analysis
• ✓
  Currency Risk Assessment: Evaluate impact of potential exchange rate fluctuations

Expert Tip: The dual system of property rights in Mauritania creates a unique due diligence challenge. Even properties with formal title registration may have competing customary claims that don’t appear in official records. Engage both a formal legal advisor and a local community representative to investigate any potential traditional claims to the property. Additionally, commission property inspections during both dry and rainy seasons if possible, as seasonal conditions can reveal structural issues and drainage problems invisible during certain times of year.

Offer and Negotiation

1. Initial Offer: Typically made verbally through intermediary
2. Negotiation: Often extended process involving multiple parties and sessions
3. Preliminary Agreement: Non-binding agreement outlining terms
4. Deposit Payment: Initial good-faith payment (typically 5-10%)

Price negotiation in Mauritania often involves significant back-and-forth and can be time-consuming. Initial asking prices typically include considerable margin for negotiation, and patience is essential. Social elements of the negotiation process are important cultural factors, and rushed negotiations may result in unfavorable terms. Using a trusted local intermediary familiar with local customs can be invaluable for foreign buyers.

Documentation Process

1. Engage Notary: Appointed to oversee transaction legality
2. Title Verification:
   • Land Registry search
   • Municipal records verification
   • Tax clearance certification
3. Purchase Agreement:
   • Draft agreement prepared by notary
   • Review by legal representatives
   • Translation if required
4. Foreign Investment Approval:
   • Documentation for investment registration
   • Approval from relevant ministries if required
5. Final Contract:
   • Notarization of purchase agreement
   • Official signatures with witnesses
   • Payment coordination
6. Registration:
   • Filing with Land Registry
   • Municipal registration
   • Tax authority notification
7. Post-Purchase:
   • Utility transfer documentation
   • Property insurance arrangement
   • Local tax registration

The documentation process can take 4-12 weeks depending on property complexity, location, and foreign investor status. Municipal registration times vary significantly between regions, with Nouakchott and Nouadhibou generally having more established processes than smaller cities. Foreign ownership approval may add additional steps in certain categories of property.

Transaction Costs

Budget for these typical transaction expenses:

• Registration Fees:
  • Property transfer tax: 2-5% of declared value
  • Land Registry fee: 1-2% of property value
  • Stamp duties: 0.5-1% of transaction value
• Professional Fees:
  • Notary fees: 1-3% of property value
  • Legal representation: $1,000-3,000
  • Translation services: $200-500 if required
• Agent/Intermediary Fees:
  • Real estate agent: 3-5% (if involved)
  • Finders fee: 2-3% (if applicable)
• Technical Assessments:
  • Property inspection: $300-700
  • Surveyor fees: $250-500
• Administrative Costs:
  • Document processing: $100-300
  • Foreign investment registration: $200-500

Total transaction costs for foreign investors typically range from 8-15% of the purchase price, with higher percentages applying to lower-value properties due to fixed fee components. These costs should be factored into your overall investment calculations, along with potential renovation expenses which can be significant for older properties.

Expert Tip: For foreign buyers unable to remain in Mauritania throughout the transaction process, establishing a Power of Attorney (Procuration) for a trusted representative is essential. This should be prepared by a notary, then apostilled in your home country and translated into French or Arabic by a certified translator. Include specific transaction limitations and reporting requirements in the document to maintain control. Maintain regular communication with both your representative and the notary overseeing the transaction to ensure proper execution of all steps.

Administrative Tasks

• ✓
  Property Transfer Tax: File and pay within 30 days of transaction (handled by notary)
• ✓
  Title Registration: Ensure property is registered in your name at Land Registry
• ✓
  Utility Transfers: Register water, electricity, and telecommunications accounts
• ✓
  Municipal Registration: Register with local municipality for property tax
• ✓
  Property Insurance: Arrange appropriate coverage (not legally required but advisable)
• ✓
  Foreign Investment Registration: Register with Investment Promotion Agency if qualifying
• ✓
  Investment Certificate: Apply for official recognition of foreign investment status

Property Improvements & Maintenance

Address these common property enhancement needs in Mauritania:

• Security Enhancements:
  • Perimeter reinforcement or wall construction
  • Security gate installation or upgrade
  • Security lighting systems
  • Alarm system or guard arrangements
• Utility Upgrades:
  • Water storage tank installation (2,000+ liter capacity recommended)
  • Water filtration and purification systems
  • Backup power systems (generator or solar with battery)
  • Electrical system stabilizers and surge protection
• Climate Adaptations:
  • Improved insulation for temperature control
  • Enhanced cooling systems (split A/C units preferred)
  • Window treatments for heat and dust protection
  • Drainage improvements for rainy season
• Maintenance Arrangements:
  • Regular structural maintenance schedule (especially important in coastal areas)
  • Preventative plumbing and electrical checks
  • Dust management systems during Harmattan season
  • Pest control protocols (particularly important in urban areas)

Most properties require some level of adaptation to meet international tenant expectations or personal comfort standards. Budget 10-25% of property value for initial improvements, with coastal properties typically requiring higher investment due to salt air corrosion and moisture issues.

Record Keeping

Maintain comprehensive records for tax and legal purposes:

• Property Documents:
  • Purchase contracts and notarial acts
  • Land Registry title documents
  • Property boundary documentation
  • Building permits and construction approvals
  • All correspondence with authorities
• Financial Records:
  • All property-related expenses with receipts
  • Currency exchange documentation
  • Tax payment receipts
  • Insurance policies and payments
  • Rental income and tenant deposits
  • Maintenance and improvement costs
• Tax Documentation:
  • Property transfer tax documentation
  • Annual property tax filings
  • Income tax declarations (Mauritanian and home country)
  • Investment registration certificates
• Tenant Information:
  • Rental agreements and extensions
  • Tenant identification documentation
  • Security deposit records
  • Condition reports and inventories
  • Correspondence regarding maintenance

Mauritanian tax authorities require records to be kept for at least 5 years. Digital record-keeping with secure backups is strongly recommended, with paper originals of critical documents stored securely. Maintain copies both in Mauritania and your home country for security.

Expert Tip: Consider establishing a formal property management file with your local representative containing copies of all critical documents, maintenance schedules, and emergency contact information. Regular property photos documenting condition are invaluable for remote management and insurance purposes. For currency handling, consider using services like Western Union Business Solutions or similar specialized services that can manage regular transfers for property expenses, as traditional banking channels can be inconsistent for smaller, frequent transfers.

Mauritanian Tax Obligations

• Property Transfer Tax:
  • 2-5% of property value paid at acquisition
  • Payable within 30 days of transaction
  • Typically handled by notary as part of closing process
  • Higher rates may apply to luxury properties
• Annual Property Tax:
  • Ranges from 3-10% of assessed rental value
  • Varies by municipality and property type
  • Lower rates for residential than commercial
  • Due annually with payment windows varying by region
• Rental Income Tax:
  • Standard income tax rates apply (10-30% progressive)
  • Allowable deductions include maintenance, property tax, insurance
  • Foreign owners may face withholding requirements
  • Filed annually with tax authorities
• Capital Gains Tax:
  • 15% flat rate on property gains for individuals
  • Corporate rate of 25% if held through company
  • Limited exemptions for long-term holdings (7+ years)
  • Due within 60 days of transaction completion
• Value Added Tax (VAT):
  • 16% on most commercial property transactions
  • Applicable to services related to property (agents, management)
  • Residential rentals generally exempt
• Municipal Fees:
  • Varies by location but typically 0.5-2% of property value annually
  • Covers local services and infrastructure

Home Country Tax Obligations

Mauritania has limited tax treaties with North American countries. Consult with tax professionals familiar with cross-border investment, as the interaction between tax systems is complex and requires expertise in both jurisdictions.

Tax Planning Strategies

• Entity Structure: Evaluate whether personal ownership, Mauritanian SARL, or other structures optimize tax position
• Investment Registration: Register with the Investment Promotion Agency for potential incentives
• Expense Documentation: Maintain meticulous records of all allowable expenses to maximize deductions
• Strategic Timing: Consider transaction timing to optimize capital gains position
• Reinvestment Provisions: Explore capital gains deferral through qualified reinvestment
• Treaty Planning: Structure ownership to take advantage of any applicable treaty provisions
• Foreign Exchange Documentation: Maintain records of currency exchange rates for tax basis calculations
• Home Country Credits: Ensure proper documentation for foreign tax credit claims

Tax rules in Mauritania have evolved significantly in recent years with ongoing modernization efforts. Regular consultations with Mauritanian tax professionals are essential to ensure continued compliance and optimal structuring. Consider engaging both local Mauritanian advisors and home country tax experts specializing in foreign investment.

Expert Tip: Foreign investors should consider applying for the special registration status under Mauritania’s Investment Code, which can provide tax advantages including reduced property tax rates and partial exemptions on rental income for qualifying investments. Applications must be submitted to the Ministry of Economy and Finance through the Investment Promotion Agency. The process typically takes 30-60 days but can provide significant tax benefits, particularly for larger investments or those in priority development zones.

Selecting a Property Manager

Evaluate potential property managers using these criteria:

• Experience with Foreign Investors:
  • Track record with international clients
  • Understanding of foreign investor concerns
  • International communication capabilities
  • Multi-lingual staff (ideally including English)
• Professional Qualifications:
  • Formal business registration
  • Professional certifications if available
  • Banking and financial management protocols
  • Insurance coverage and security bonds
• Market Knowledge:
  • Experience in your property’s location
  • Understanding of target tenant demographics
  • Network of maintenance contractors
  • Relationships with local authorities
• Communication Capabilities:
  • Regular reporting systems
  • Digital documentation and sharing
  • Response time guarantees
  • After-hours emergency protocols
• Service Scope:
  • Tenant vetting processes
  • Rent collection and banking procedures
  • Maintenance management systems
  • Security arrangements and oversight

Management Agreement Essentials

Ensure your property management contract includes these key elements:

• Scope of Services: Detailed description of exactly what is included and excluded
• Fee Structure: Clear explanation of all management fees, commissions, and additional charges
• Term and Termination: Contract duration, renewal terms, and termination conditions
• Reporting Requirements: Frequency, format, and content of financial and condition reports
• Maintenance Authority: Spending limits for repairs without prior approval
• Tenant Selection Criteria: Parameters for approving potential tenants
• Rent Collection Procedures: Methods, timing, and handling of arrears
• Security Protocols: Property monitoring and access management
• Utility Management: Responsibility for utility payments and service continuity
• Banking Arrangements: Account management and fund transfer procedures

Request references from current clients, particularly other overseas investors, before signing with a property management company. Verify their track record through independent sources where possible, as the property management sector in Mauritania is still developing professional standards.

Expert Tip: Consider implementing a tiered approval system for property management expenditures with different authorization levels based on amount. For example, maintenance under $100 might be automatic, $100-500 might require email approval, and over $500 might require detailed quotes and formal authorization. This balances responsive property management with appropriate financial controls. Additionally, establish a quarterly video inspection protocol where your property manager conducts a walkthrough while on a video call with you to maintain direct visual oversight of your property’s condition.

Exit Options

Sale Process

When selling your Mauritanian property:

1. Pre-Sale Preparation:
   • Property condition enhancement
   • Documentation organization and verification
   • Resolution of any outstanding legal issues
   • Tax clearance certification
   • Professional photography and presentation materials
2. Marketing Strategy:
   • Determine target buyer demographic
   • Engage local agents and international connections
   • Online listing on appropriate platforms
   • Network with expatriate and business communities
   • Explore institutional buyers if appropriate
3. Price Positioning:
   • Realistic valuation based on current market
   • Build in negotiation margin (20-30% typical)
   • Consider currency designation strategy
   • Evaluate furnished vs. unfurnished offering
4. Negotiation Process:
   • Establish clear minimum acceptable price
   • Determine payment terms flexibility
   • Consider installment possibilities if appropriate
   • Establish clear timeline expectations
5. Transaction Execution:
   • Engage legal representation for documentation
   • Secure notary services for transfer
   • Negotiate deposit and payment security
   • Pre-arrange funds repatriation process
   • Prepare property transfer documentation
6. Post-Sale Requirements:
   • Capital gains tax filings and payments
   • Currency conversion and repatriation
   • Tax reporting in home country
   • Formal completion of property transfer

The selling process in Mauritania typically takes 3-9 months for standard properties, with premium properties or specialized commercial assets potentially requiring longer marketing periods. Foreign sellers should anticipate additional time for repatriation of proceeds and tax clearance processes.

Market Exit Timing Considerations

Several factors should influence your exit timing decision:

• Economic Development Cycles: Mauritania’s property market follows infrastructure and resource development cycles; monitor major projects in your property’s vicinity
• Currency Exchange Trends: Track MRU against your home currency; a strengthening MRU can significantly enhance returns when converting back
• Political Stability Periods: Transaction activity typically increases during periods of clear political stability; consider timing around election cycles
• Infrastructure Completion: Major infrastructure improvements often trigger value increases upon completion; consider timing to capture post-completion premium
• Expatriate Population Trends: For properties targeting this market, monitor employment cycles of major international employers
• Resource Sector Activities: Mining and energy development phases influence demand in certain regions; monitor project timelines
• Regional Integration Developments: Progress in West African economic integration affects cross-border investment flows
• Seasonal Factors: Transaction activity typically peaks October-February with reduced activity during Ramadan and summer months

The relatively young nature of Mauritania’s formal real estate market means long-term cycles are still being established. Investors should focus on specific value drivers relevant to their property type and location rather than trying to time the broader market. Development announcements, infrastructure projects, and resource discoveries can create localized value increases that may present optimal exit windows.

Expert Tip: For properties in Nouakchott and major cities, consider developing parallel exit strategies targeting both local buyers and international investors. Local buyers typically prefer different property features and have different financing capabilities than international purchasers. Marketing materials should be prepared in both Arabic and French, with English materials for international audiences. Additionally, explore potential institutional buyers such as mining companies, international organizations, and diplomatic missions who may pay premium prices for well-maintained properties meeting international standards, particularly in secure compounds or prime neighborhoods.