PDS Mauritius for Foreign Buyers

Updated August 2026

PDS in Mauritius is one of the main regulated routes through which foreign buyers can invest in residential property on the island. Administered through Economic Development Board regulations, the Property Development Scheme forms part of the broader set of EDB property schemes governing real estate acquisition by non-citizens.

If you are still comparing acquisition routes, it helps to place PDS within the broader landscape of property investment schemes in Mauritius for foreign buyers.

In practical terms, purchasing under PDS means acquiring a residential unit within an approved project while also entering a managed environment with estate governance, shared services and ongoing charges that influence the total cost of ownership and day-to-day use of the property.

The regulatory framework also includes specific payment rules for relevant first sales introduced in December 2024. The tax position changed again in 2026, when the Finance Act 2026 repealed the broader 10% registration duty and land transfer tax regime introduced by the Finance Act 2025.

What Foreign Buyers Buy Under PDS

The PDS Ownership Model

For foreign buyers seeking regulated property ownership in Mauritius, PDS provides residential units within approved and professionally managed developments.

The appeal often lies in the structure itself. PDS developments typically combine private residences with common areas, estate management, security and other facilities or services defined by the individual project.

The buyer should therefore review more than the deed and sale agreement. Development rules, co-ownership arrangements where applicable, maintenance obligations, rental conditions and recurring charges can all affect how the property is used and what it costs to own.

How Buying Under PDS Works

A PDS property purchase usually follows a structured process.

The main stages generally include:

reservation and any initial payment required under the transaction;
preparation of the buyer's KYC and source-of-funds documentation;
completion of the relevant EDB acquisition process;
finalisation of the sale documentation and payment schedule;
preparation of the deed by the notary;
registration and transcription of the transfer.

The legal, banking and notarial stages should be coordinated from the beginning, particularly where the purchase is made from overseas or involves several payment instalments.

PDS Residence Permit and the USD 375,000 Threshold

Investment Threshold and Residence Eligibility

Residence eligibility remains one of the main reasons some foreign buyers choose PDS.

A non-citizen acquiring a qualifying residential property under PDS for at least USD 375,000, or the equivalent in another freely convertible currency, may qualify for a residence permit subject to the applicable conditions.

The residence permit remains linked to ownership of the qualifying property.

The acquisition itself and the residence application should nevertheless be treated as related but separate procedures. The buyer must complete the property acquisition correctly and satisfy the immigration requirements applicable at the time of the application.

Residence Permit Practical Considerations

Where residence is part of the buyer's objective, the transaction should be planned accordingly from the outset.

A clear source-of-funds trail, correctly executed payments and complete acquisition documentation can help avoid unnecessary delays during the property and residence processes.

Buyers should also confirm how the residence position affects accompanying dependants and what happens if the PDS property is later sold.

PDS Payment Rules Since December 2024

The 85% MUR Payment Rule

Amendments effective from 13 December 2024 introduced specific payment and financing requirements for relevant first sales under PDS and the other schemes covered by those regulations.

For a PDS transaction falling within those rules, the purchase funds are transferred to Mauritius 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;
the remaining 15% may be paid in Mauritian rupees or hard convertible foreign currency.

The EDB has clarified that these amendments apply to first sales under the relevant schemes. They do not apply to resales.

Transitional treatment also exists for certain transactions where the deed was signed before the amendments took effect. The buyer should therefore have the payment structure confirmed by the notary based on the transaction documents and dates.

Payment Planning for Foreign Buyers

These requirements make payment planning important, especially for off-plan purchases involving several instalments.

Foreign buyers should allow for:

international bank-processing times;
currency conversion;
the timing of construction-stage payments;
documentary evidence of funds transferred from abroad;
any financing arrangements permitted under the applicable regulations.

Where the purchase price exceeds USD 750,000 under the amended framework, the first USD 750,000 must generally come from the purchaser's own funds transferred from abroad. A loan from a Mauritian bank may be used for the balance, subject to the applicable conditions.

Payment requirements remain separate from registration duty and other transaction taxes.

PDS Duties and Taxes After the Finance Act 2026

Registration Duty and Land Transfer Tax

The tax position for PDS transactions changed during 2026.

The Finance Act 2025 had introduced a broader 10% registration duty for certain transfers of residential property to non-citizens under EDB Property Schemes from 1 July 2026. It also introduced a broader 10% seller-side land transfer tax treatment for specified transactions.

PDS fell within that framework.

The Finance Act 2026 subsequently repealed those broader provisions. The special buyer-side provision in section 3(1G) of the Registration Duty Act and the corresponding 10% rate were removed. The broader seller-side provision was also repealed.

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 other specific statutory provisions applicable to the transaction.

The Registrar-General's Department currently confirms this general 5% buyer and 5% seller framework.

The change should therefore not be described simply as a reduction from 10% to 5%. The broader special regime introduced in 2025 was itself repealed.

Budgeting for PDS Duties and Taxes

For a foreign PDS buyer, the practical approach is now to build the acquisition budget around the current general framework while asking the notary to verify any exemption or special treatment applicable to the specific deed.

The 1 July 2026 date remains relevant when explaining the historical Finance Act 2025 regime, but it should no longer be presented as the start of a continuing general 10% tax treatment for PDS acquisitions.

Buyers should therefore confirm:

the registration duty applicable to the deed;
the value on which duty will be calculated;
notarial and other completion costs;
whether any transaction-specific provision affects the calculation.

Seller-side land transfer tax should be treated separately from the buyer's acquisition costs.

The narrower additional 10% seller-side duty introduced by Finance Act 2026 concerns certain transfers of residential property situated on State land or Pas Géométriques under the relevant G+2 apartment route. It is not a general additional duty on PDS transactions.

Renting Out a PDS Property

Short-Term and Long-Term Rental Considerations

Many foreign buyers view rental income as part of their investment strategy, and PDS properties may be let subject to the applicable scheme regulations and project rules.

Two levels should be checked before relying on rental income:

national regulatory requirements, including any licensing or tax obligations applicable to the chosen rental model;
development-level rules governing how the property may be let and managed.

Under the PDS regulations, letting is generally carried out through the PDS company or a property-management provider designated by it.

If rental income is part of your strategy, our article on how rental investment works in Mauritius looks at income, costs and the differences between long-term and short-term letting.

What to Confirm Before You Buy for Rental Income

Rental flexibility varies between developments.

Before signing, buyers should confirm:

whether the proposed rental model is allowed;
who manages the letting;
management and service fees;
any restrictions on short-term occupation;
applicable Tourism Authority requirements;
how rental income is distributed and taxed.

Project-specific rules should always be reviewed rather than assumed from another PDS development.

Reselling a PDS Property

Ownership and Resale Conditions

A PDS owner may resell the residential property, but the resale continues to follow the applicable PDS framework.

Current EDB guidelines require an owner intending to sell or transfer a PDS property to give written notice to the Chief Executive Officer of the EDB within the prescribed period before the sale, with a copy to the PDS company.

The property may be transferred to eligible categories of purchasers, including Mauritian citizens and non-citizens, subject to the applicable acquisition process.

Exit Planning for Foreign Owners

The broader 10% Finance Act 2025 regime should no longer be used as the basis for modelling a future PDS resale.

Under the current general framework, the starting point is generally 5% land transfer tax on the seller side, subject to exemptions and transaction-specific provisions.

A future non-citizen buyer should also be able to satisfy the legal and regulatory requirements applicable at the time of resale.

For the seller, the main issues are therefore buyer eligibility, the applicable seller-side costs, EDB procedures and the net proceeds after completion.

How PDS Compares with Other Mauritius Property Schemes

PDS is only one of the acquisition routes available to international buyers.

Depending on the buyer's objectives, alternatives may include the Smart City Scheme, qualifying G+2 developments and the Invest Hotel Scheme.

Each framework differs in terms of property type, use, management structure, payment rules, residence considerations and resale conditions.

Frequently Asked Questions

Does the 85% MUR payment rule apply when buying PDS property in Mauritius?

Yes, for relevant first sales subject to the amended PDS regulations. Under those rules, 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 the amendments do not apply to resales.

What registration duty applies to a PDS purchase in 2026?

Under the current general framework, registration duty is generally 5% on the buyer side, subject to exemptions and specific statutory provisions.

The broader 10% regime introduced by the Finance Act 2025 for specified non-citizen transactions was repealed by the Finance Act 2026.

How long does it take to buy a PDS property in Mauritius?

The timeline depends on whether the property is completed or off-plan, the buyer's documentation, the regulatory process, banking requirements and deed preparation.

Buyers should therefore establish the expected transaction timeline with the developer, notary and relevant advisers rather than rely on a fixed completion period.

Is PDS included within the EDB Property Scheme concept used in legislation?

Yes. PDS falls within the EDB property-scheme framework relevant to foreign residential acquisitions.

Can I rent out my PDS property in Mauritius?

Rental is possible subject to the PDS regulations, development rules and any other regulatory requirements applicable to the type of letting.

Can I sell my PDS property to a Mauritian citizen?

Yes. Current EDB guidelines allow PDS property to be transferred to eligible purchasers including Mauritian citizens and non-citizens, subject to the applicable resale procedure.

What is the PDS residence threshold?

A qualifying PDS acquisition of at least USD 375,000, or its equivalent in another freely convertible currency, can support residence-permit eligibility subject to the applicable conditions.

Considering PDS in Mauritius

PDS remains one of the principal regulated routes through which international buyers can acquire residential property in Mauritius.

The 2026 tax changes do not alter that underlying acquisition route. What has changed is the fiscal position that should be used when calculating the cost of buying and eventually reselling the property.

The broader 10% regime introduced by the Finance Act 2025 has been repealed. The general starting point is again 5% registration duty for the buyer and 5% land transfer tax for the seller, subject to exemptions and specific statutory provisions.

Separately, the December 2024 payment rules remain relevant to first-sale PDS transactions covered by those regulations.

Foreign buyers should therefore keep acquisition eligibility, payment rules, residence conditions and transaction taxes clearly separated when evaluating a PDS purchase.

Allys develops residential properties across sought-after locations in Mauritius.

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Sources

The information contained in this article is provided for general informational purposes and reflects the legal and regulatory position reviewed in August 2026. PDS acquisition rules, residence conditions, payment and financing requirements, registration duty, land transfer tax, rental requirements, 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 a property or investment decision. Allys and its representatives accept no responsibility for errors, omissions or subsequent regulatory changes.