Real estate in Mauritius: investment and residence
Mauritius offers a unique real estate market combining exceptional quality of life, attractive rental yields and residential advantages. Thanks to government real estate schemes overseen by the Economic Development Board (EDB) and the Non-Citizens (Property Restriction) Act, foreign investors can acquire a residential property and simultaneously obtain a residence permit for themselves and their family.
The Mauritian real estate market is experiencing sustained growth, driven by the influx of expatriates, tourism development and infrastructure modernisation. With 0% tax on capital gains and 0% inheritance tax, real estate investment in Mauritius is both wealth-building and tax-optimised. For enhanced wealth protection, some investors opt for asset protection via a trust or the setting up of a Mauritian foundation.
Real estate schemes for foreigners
PDS -- Property Development Scheme
The PDS is the government's flagship scheme for foreign real estate investment. Introduced in 2015 to replace the former IRS and RES, it offers a unified and modernised framework, governed by the Investment Promotion (Property Development Scheme) Regulations:
- Property types -- Individual villas, apartments, penthouses, duplexes and townhouses in high-quality residential complexes
- Quality standards -- Developers must obtain EDB approval and comply with strict construction, environmental and landscaping standards
- Residence threshold -- Purchasing a property worth at least USD 375,000 automatically entitles the buyer and their family to a residence permit
- No resale restriction -- You can resell your property at any time, including to another foreigner, with no minimum holding period
- Renting allowed -- Option to put the property up for long-term or seasonal rental
- Social contribution -- The PDS developer must pay a contribution to a Social Fund for surrounding communities
Key advantage of the PDS: purchasing a PDS property worth USD 375,000+ not only grants a residence right tied to the property, but also constitutes a direct route to the 20-year Permanent Residence Permit, offering maximum residential security regardless of continued property ownership.
Smart City Scheme
The Smart City scheme allows the purchase of properties in integrated urban complexes combining residential, commercial, office and leisure spaces. These projects aim to create new smart and sustainable cities. The same residence permit conditions apply (USD 375,000+). The main Smart City projects include Moka Smart City (ENL), Mon Trésor Smart City (Omnicane) and Cap Tamarin Smart City.
Former structures (IRS/RES)
Properties under the former IRS (Integrated Resort Scheme, launched in 2002) and RES (Real Estate Scheme, launched in 2007) schemes remain eligible for the residence permit upon resale. These premium schemes include renowned complexes such as Anahita (East coast), Le Domaine de Bel Ombre (South), Villas Valriche (South-West) and Azuri Ocean & Golf Village (North-East).
The most sought-after real estate areas
| Area | Characteristics | Indicative price (USD) | Buyer profile |
|---|---|---|---|
| Grand Baie / North | Tourism, beaches, nightlife, shops, restaurants | 375,000 - 3,000,000 | Couples, active retirees, rental investors |
| Tamarin / West | Surfing, sunsets, relaxed atmosphere, nature | 400,000 - 2,500,000 | Families, sports enthusiasts, long-term expatriates |
| Black River | Nature, mountains, golf, premium PDS schemes | 500,000 - 5,000,000+ | Premium investors, affluent families |
| Bel Ombre / South | Luxury, tranquillity, historic estates, high-end IRS | 600,000 - 10,000,000+ | UHNWI, prestige buyers |
| Moka / Central Plateau | Smart City, proximity to offices and schools, cooler climate | 375,000 - 1,500,000 | Professionals, families with children |
| East (Anahita, Flacq) | Turquoise lagoon, golf, high-end IRS complexes | 500,000 - 8,000,000+ | Premium investors, golf enthusiasts |
Purchase process
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Research and selection
Defining your criteria (budget, location, property type, objective: main residence, secondary residence or rental investment). Visiting PDS schemes and available properties. Comparative analysis of offers and developers. Selecting the property and negotiating the price.
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Reservation and due diligence
Signing the reservation contract with payment of a deposit of 10-20%. Legal verification of the property: title deed, easements, building permit, developer's EDB approval. Obtaining bank financing if necessary.
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Deed of sale and payment
Signing the deed of sale before a Mauritian notary. Payment of the balance of the purchase price. Payment of Registration Duty (5%) and notary fees (1-2%). Registration of the property with the Registrar General (Conservatoire des hypothèques).
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Residence permit
Application for a residence permit with the EDB upon presentation of the deed of sale (USD 375,000+). Submission of identity documents and due diligence. Obtaining the permit within 2-4 weeks for the buyer and their dependants.
Real estate fees and taxation
The Mauritian real estate tax regime is one of the most advantageous in the world, with no capital gains tax and no inheritance tax:
| Item | Rate/Amount | Comment |
|---|---|---|
| Registration Duty (purchase) | 5% of the purchase price | Paid by the buyer upon registration |
| Notary fees | 1 - 2% of the purchase price | Notary's fees for drafting the deed |
| Agency fees | 3 - 5% | Generally borne by the seller |
| Annual property tax | Modest (a few hundred USD) | Varies according to municipality and property value |
| Tax on rental income | 15% of net income | After deduction of expenses (maintenance, insurance, management) |
| Tax on capital gains from resale | 0% | No capital gains tax in Mauritius |
| Inheritance tax | 0% | Transfer of the property completely tax-free |
| VAT on residential purchase | 0% | No VAT on residential acquisitions |
Comparison with France: a property acquired for USD 500,000 and resold for USD 700,000 after 5 years generates no capital gains tax in Mauritius (0%). In France, the same USD 200,000 capital gain would be subject to real estate capital gains tax of 19% plus social security contributions of 17.2%, i.e. approximately EUR 72,000 in tax (before allowance for holding period).
Rental real estate: a profitable investment
Rental investment in Mauritius offers attractive returns in an exceptional tax environment. The three main models are:
Long-term rental
Gross yield of 3-5% per year. Stable demand from expatriates and professionals. Annual leases, simplified management. Popular areas: Grand Baie, Tamarin, Moka.
Seasonal / tourist rental
Gross yield of 5-8% in high season (October-April). More active management but higher income. Strong tourist demand (1.4 million visitors/year).
Rental pool (developer management)
Guaranteed yield of 3-4% from the developer. Delegated rental management, no operational concerns. Ideal option for non-resident investors.
The absence of capital gains tax on resale makes the investment particularly attractive in the long term. The historical appreciation of PDS/IRS properties is between 3 and 7% per year in USD, offering a total return (rental + capital gain) competitive with European real estate markets, within an incomparably more advantageous tax framework.
Local bank financing
Mauritian banks (MCB, SBM, AfrAsia, HSBC, Absa) offer mortgage loans to non-residents and foreign residents. Financing can reach up to 70% of the property value, over terms of 15 to 25 years. Interest rates vary between 5% and 8% depending on the loan currency (MUR, USD, EUR). Loan interest is deductible from taxable rental income.
Legal aspects of real estate purchase
Real estate purchase in Mauritius by a foreigner is governed by the Non-Citizens (Property Restriction) Act and the PDS/Smart City regulations. Key legal points:
- Title deed -- The Mauritian land system, inherited from French law, is based on registration with the Registrar General (Conservatoire des hypothèques). The title is guaranteed by the State
- Mandatory notary -- Every real estate transaction must be carried out before a Mauritian notary, who verifies the title, easements and absence of encumbrances
- No nationality restriction -- Any foreigner can buy under the PDS, Smart City and IRS/RES schemes, regardless of nationality
- Inheritance -- In the absence of a will, Mauritian law (Civil Code, inherited from French law) applies with forced heirship rules. It is recommended to draft a will in Mauritius
- Co-ownership -- Purchase in co-ownership is governed by the Cadastral Survey Act and the co-ownership regulations specific to the project
Warning: foreigners cannot purchase real estate outside the approved schemes (PDS, Smart City, IRS/RES) except in certain specific cases (acquisition through a Mauritian company with authorisation from the Prime Minister's Office). Always verify that the property is part of an approved scheme before committing.
Our real estate support
- Property search -- Personalised selection of PDS and Smart City schemes according to your criteria (budget, location, objective)
- Due diligence -- Legal and financial verification of the property and developer, analysis of the EDB approval
- Negotiation -- Obtaining the best purchase terms, negotiating the price and payment terms
- Financing -- Introduction to local banks and support with the mortgage loan application
- Deed of sale -- Coordination with the notary and authorities for signing and registration
- Residence permit -- Application for a permit through real estate purchase with the EDB
- Rental management -- Letting and management of your property, optimising rental yield