Invest Hotel Scheme in Mauritius
Understand the Invest Hotel Scheme in Mauritius, including who can buy, how leaseback works, what foreign buyers must verify, and how taxes and resale apply.
Updated August 2026
The Invest Hotel Scheme lets buyers acquire a hotel room, suite, apartment or villa in Mauritius within a regulated hotel structure. The rules differ from standard residential property ownership, especially on leaseback, personal use and resale. Within the broader range of property investment schemes open to foreign buyers in Mauritius, the IHS stands apart because ownership is tied to a hotel-led operating model.
Many buyers assume an IHS unit works like a normal holiday apartment. It does not. Your ownership is real, but your use, rental control and cashflow mechanics are governed by the leaseback agreement and the hotel’s operating rules.
This article explains what IHS is, who can buy, how leaseback works, what foreign buyers need to check, and how taxes and resale apply.
What the Invest Hotel Scheme is
The Invest Hotel Scheme allows developers to sell individual hotel units to private buyers while keeping the property operating as a hotel. Core principles include:
the hotel development area must be at least 1 hectare;
buyers must lease the unit back to the IHS company;
owner use is limited to 45 days in any 12-month period;
up to 60% of the hotel’s units can be sold, subject to EDB approval.
Leaseback and owner use under IHS
Every IHS purchase comes with a non-negotiable condition: you must lease your unit back under the mandatory IHS leaseback structure, typically to the IHS company or the entity designated in the project documents.
You cannot independently rent the unit because rentals and hotel operations are handled under the leaseback structure. The IHS company manages, operates and markets the unit. Personal use must remain within the 45-day annual cap and the booking rules set out in the leaseback agreement.
For buyers comparing IHS leaseback with more conventional rental strategies, our article on rental investment in Mauritius explains the main differences between long-term and short-term rental approaches.
The leaseback agreement should also set out booking procedures, peak-period restrictions, blackout dates and practical use conditions. Ask for those rules in writing before signing.
When you buy an IHS unit, you buy within a co-ownership structure and should review the règlement de copropriété with your notary.
Who can buy a hotel unit
IHS is open to a broad range of buyers. Eligible purchasers include:
citizens and non-citizens of Mauritius;
companies incorporated or registered under the Companies Act;
sociétés;
partnerships;
qualifying trusts.
What can you buy under IHS
The regulations define a unit as a room, apartment, villa, suite or other similar property forming part of a hotel.
Depending on the project, units may range from hotel rooms and suites to apartments or villas, each subject to project-specific leaseback and usage conditions.
For stand-alone villas linked to a hotel to be constructed, the IHS regulations set a minimum purchase price of USD 500,000.
What to check before you reserve an IHS unit
Before reserving or paying, confirm with the developer and your notary:
the project stage, including whether it holds a letter of approval or IHS certificate;
the permits already issued;
the protections included in the deed and payment mechanism where the property is off-plan;
the co-ownership documents;
the leaseback agreement.
If the project is still at letter-of-approval stage, ask your notary what document you are signing and what happens if certification or permits are delayed.
How to assess an IHS unit
Before committing, work through five questions:
What unit are you buying and what rights are attached to it?
What does the leaseback agreement say about personal use, booking rules and revenue mechanics?
Has the IHS certificate been issued and which permits are in place?
If the unit is off-plan, is the payment schedule aligned with the applicable VEFA framework?
What are the total acquisition costs and recurring hotel or service charges?
The fifth point has changed since the original publication of this article. The broader 10% registration duty regime introduced by the Finance Act 2025 is no longer the current rule.
Buying off-plan under IHS
If you buy off-plan, the payment schedule and protections depend on the VEFA contract structure stated in the notarised deed.
Before paying, ask your notary to confirm the legal basis of the contract, payment milestones, release conditions and the guarantees or remedies available if delivery is delayed.
Foreign buyer payment rules
Specific currency and financing rules apply to relevant first sales under IHS following amendments effective from 13 December 2024.
The 85% MUR rule
For a first sale covered by those amendments, the buyer transfers the relevant funds from abroad in hard convertible foreign currency. The notary then ensures that 85% of the purchase price is paid to the promoter in Mauritian rupees and the remaining 15% may be paid in Mauritian rupees or hard convertible foreign currency.
The EDB confirms that these amendments apply only to first sales under the relevant schemes. They do not apply to resales.
Source of funds and financing
For acquisitions covered by the amended rules, where the property price is below USD 750,000, the acquisition is generally financed from the non-citizen’s own funds transferred from abroad.
Where the price exceeds USD 750,000, the first USD 750,000 or equivalent must generally come from the buyer’s own funds transferred from abroad. The remaining amount may be financed through a bank loan, subject to the applicable conditions.
These payment and financing requirements are separate from registration duty and land transfer tax.
Duties and taxes under IHS
The tax position changed during 2026.
The Finance Act 2025 had introduced a broader 10% registration duty for certain transfers to non-citizens involving residential property under an EDB Property Scheme, including IHS. A broader 10% seller-side land transfer tax treatment had also been introduced for specified transactions from 1 July 2026.
The Finance Act 2026 subsequently repealed those broader provisions.
Under the current general framework:
registration duty is generally 5% on the buyer side;
land transfer tax is generally 5% on the seller side;
subject to exemptions and specific statutory provisions.
The 1 July 2026 date therefore remains relevant to the history of the Finance Act 2025 measures, but it should no longer be presented as the start of a continuing general 10% tax regime for IHS transactions.
Always ask your notary for a transaction-specific summary showing the duty payable on acquisition, the seller-side tax treatment and the other completion costs applicable to the deed.
Reselling your IHS unit
Resale is permitted under IHS.
The owner intending to sell or transfer the property must give written notice to the EDB within 30 days before the sale, with a copy to the IHS company and the syndic.
The incoming purchaser must submit the required acquisition application. Current EDB IHS guidelines state that the application is accompanied by a non-refundable processing fee of MUR 25,000.
The resale process can take longer than a standard apartment sale because the incoming buyer must meet the scheme requirements and complete the applicable approval process.
Frequently asked questions
What is the Invest Hotel Scheme and how does it work in Mauritius?
It is a regulated framework allowing hotel units to be sold to private buyers while remaining within an operating hotel, with mandatory leaseback and limited owner use.
Can foreigners buy a hotel unit in Mauritius under IHS?
Yes, subject to the scheme rules and acquisition process.
Is the leaseback mandatory?
Yes. The IHS company must enter into a lease agreement with each unit owner to manage, operate and market the unit.
How many days per year can I use my IHS unit?
Owner use is limited to 45 days in any 12-month period.
Can I manage my own rentals?
No. Rentals and hotel operations are handled through the IHS leaseback structure.
What is the 85% MUR rule for foreign buyers under IHS?
For relevant first sales, 85% of the purchase price is paid to the promoter in Mauritian rupees and the remaining 15% may be paid in Mauritian rupees or hard convertible foreign currency. The amendments do not apply to resales.
What duties and taxes apply in 2026?
Under the current general framework, registration duty is generally 5% on the buyer side and land transfer tax 5% on the seller side, subject to exemptions and specific statutory provisions.
The broader 10% regime introduced by the Finance Act 2025 was repealed by the Finance Act 2026.
Is resale allowed?
Yes. Resale is permitted, subject to the EDB notice and acquisition procedure applicable to the incoming buyer.
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Sources
Information in this article is provided for informational purposes only and reflects the legal and regulatory position reviewed in August 2026. IHS acquisition rules, payment and financing requirements, registration duty, land transfer tax, leaseback conditions, resale procedures and regulatory interpretations may change or depend on the circumstances of an individual transaction. Buyers and sellers should obtain transaction-specific confirmation from their notary, legal adviser, tax adviser, bank, the Economic Development Board and other relevant Mauritian authorities before making an investment decision.