Can any foreigner buy property in Mauritius?

Yes, but only within approved government schemes such as the Property Development Scheme (PDS), Smart City Scheme, or in qualifying G+2 apartment buildings. Foreigners cannot purchase open-market land or standalone houses outside these frameworks.

What is the minimum investment to get residency in Mauritius through property?

You must purchase a property worth at least USD 375,000 within an approved scheme such as PDS or Smart City. Once the purchase is complete, you and your immediate family qualify for a Mauritian residence permit valid for the duration of ownership.

Is there capital gains tax on property in Mauritius?

No. Mauritius does not levy capital gains tax on the sale of property, which is one of the key financial advantages for international investors compared to European or North American markets.

What rental yields can I realistically expect?

Gross rental yields typically range from 4 to 6 percent for long-term expat rentals and 6 to 10 percent for well-managed short-term holiday lets in prime coastal locations. Actual returns depend on location, property quality, and management.

Can I repatriate rental income and sale proceeds from Mauritius?

Yes. Mauritius imposes no restrictions on the repatriation of rental income, dividends, or capital from property sales, making it straightforward for foreign investors to move funds back to their home country.

Do I need to be in Mauritius to manage my investment property?

No. Many PDS and Smart City developments include on-site property management services. You can also appoint a local management company to handle rentals, maintenance, and tenant relations remotely.

What is the difference between PDS and Smart City schemes?

PDS developments are primarily residential resort communities offering villas and apartments with shared amenities. Smart Cities are larger, mixed-use urban projects combining residential units with offices, retail, and technology infrastructure. Both allow foreign ownership and confer residency rights on qualifying purchases.

Investment in Mauritius Properties: Comple…

Investment in Mauritius Properties: What Every Buyer Needs to Know

Investment in Mauritius properties offers foreign nationals a rare combination of legal freehold ownership, competitive rental yields, residency rights, and a stable, low-tax economy anchored by one of Africa's most transparent legal systems. Whether you are seeking a holiday home, a rental income asset, or a permanent relocation base, Mauritius has built a structured framework that makes property ownership genuinely accessible to international buyers.

Why Is Mauritius Attracting Property Investors Right Now?

Mauritius sits at a strategic crossroads between Africa, Asia, and Europe, giving it strong appeal as both a lifestyle and investment destination. Several factors are driving increased interest from foreign buyers:

Political and economic stability. Mauritius consistently ranks among Africa's top countries for ease of doing business and governance transparency.
Favourable tax environment. There is no capital gains tax, no inheritance tax, and a flat income tax rate of 15 percent, making net returns more attractive than in many European markets.
Residency by investment. Purchasing a qualifying property worth USD 375,000 or more grants the buyer and their immediate family a Mauritian residence permit, valid for the duration of property ownership.
Strong rental demand. A growing expat community, a booming tourism sector, and a shortage of high-quality rental stock in key areas keep occupancy rates and rental yields healthy.
Currency and repatriation freedom. Mauritius has no restrictions on repatriating rental income or capital gains, which matters enormously for international investors.

How Can Foreign Nationals Legally Buy Property in Mauritius?

Foreign buyers cannot purchase just any property on the open market. The government has created specific investment schemes that channel foreign capital into regulated, high-quality developments while protecting local land ownership.

The Integrated Resort Scheme and Real Estate Scheme

The Integrated Resort Scheme (IRS) and Real Estate Scheme (RES) were the original frameworks allowing foreigners to buy luxury villas and apartments within approved resort-style developments. Properties acquired under these schemes qualify for the residency permit when the purchase price meets the USD 375,000 threshold.

The Property Development Scheme

The Property Development Scheme (PDS) replaced the IRS and RES in 2015 and remains the primary route for foreign investment in Mauritius properties today. PDS developments must include a mix of residential units, green spaces, and community facilities. Buyers benefit from the same residency rights as under the previous schemes.

The Smart City Scheme

Smart Cities are large-scale, mixed-use urban developments combining residential, commercial, and technological infrastructure. Foreign buyers can purchase residential units within Smart City projects and qualify for residency permits under the same conditions.

Ground Plus Two Regulation

Foreigners may also purchase apartments in buildings of at least two floors above ground level (known as Ground Plus Two or G+2) outside of formal schemes, provided the unit price is at least MUR 6 million (approximately USD 135,000). These purchases do not automatically confer residency rights but offer a more accessible entry point.

Where Are the Best Locations for Property Investment in Mauritius?

Grand Baie and the North Coast

Grand Baie is the island's most cosmopolitan hub, with restaurants, marinas, shopping, and a vibrant expat social scene. Property values here are among the highest on the island, but rental demand is consistently strong year-round, making it a reliable income-generating location.

Tamarin and the West Coast

The west coast, centred on Tamarin and Black River, has become the preferred address for families and surfers. It combines a relaxed village atmosphere with easy access to beaches, hiking trails, and international schools. New PDS developments here have seen strong capital appreciation over the past five years.

Beau Champ and the East Coast

The east coast is home to some of Mauritius's most exclusive resort communities, including the area around Beau Champ. Quieter and more private than the north, it appeals to buyers seeking seclusion and world-class golf or spa facilities within their development.

Moka and the Central Plateau

For buyers prioritising lifestyle over beach access, the Moka region offers cooler temperatures, proximity to international schools, and several Smart City developments. It is increasingly popular with families relocating for work or semi-retirement.

What Returns Can Property Investors Expect?

Rental yields in Mauritius vary by location, property type, and management quality. As a general guide:

Short-term holiday rentals in prime coastal locations can generate gross yields of 6 to 10 percent annually, depending on occupancy management.
Long-term residential rentals targeting the expat community typically yield 4 to 6 percent gross.
Capital appreciation has averaged 3 to 6 percent per year in established PDS and Smart City developments over the past decade, with some coastal locations outperforming this range.

These figures are indicative. Buyers should conduct thorough due diligence and consult a licensed local agent. You can browse current listings and get a sense of realistic price ranges at PropertyFinder.mu.

What Are the Costs and Taxes Involved?

Buyers should budget for the following transaction costs:

Registration duty: 5 percent of the purchase price for foreign buyers acquiring property under PDS or Smart City schemes.
Notary fees: Typically 1 to 2 percent of the purchase price.
Agency fees: Usually 2 percent plus VAT, often shared between buyer and seller depending on the agreement.
Annual land tax: Mauritius levies a modest annual tax on property, calculated on the assessed value of the land.

There is no capital gains tax on the sale of property in Mauritius, which significantly improves net investment returns compared to many other jurisdictions.

How Do You Start the Purchase Process?

Identify your scheme and budget. Decide whether you want a PDS villa, a Smart City apartment, or a G+2 unit based on your residency goals and financial capacity.
Engage a registered notary. All property transactions in Mauritius must be conducted through a notary. Your notary handles title searches, contract preparation, and registration.
Apply for Economic Development Board (EDB) approval. Foreign buyers must obtain approval from the EDB before completing a purchase. Your developer or notary typically manages this process.
Sign a preliminary agreement. A Contrat de Reservation or preliminary sale agreement locks in the price and terms while approvals are processed.
Complete the deed of sale. Once all approvals are in place, the final deed is signed before the notary and the title is transferred.

For a curated selection of investment-grade properties across all schemes and locations, visit PropertyFinder.mu.

Investment in Mauritius Properties: Complete Guide