Foreign Buyer Guide to Property Investment Schemes in Mauritius

Mauritius has strategically positioned itself as one of the Indian Ocean’s most attractive destinations for international property investment. Unlike many jurisdictions that restrict foreign ownership, Mauritius welcomes international investors through multiple government-approved property schemes that grant non-citizens full ownership rights – typically freehold in PDS, Smart City, and many G+2 projects, with certain developments offered on long-term state leasehold – coupled with the significant advantage of residency eligibility (valid as long as the property is held), making Mauritius an attractive destination for expatriate relocation and international real estate portfolios.

All property schemes operate under Economic Development Board (EDB) oversight, ensuring regulatory compliance, transparent pricing, secure title registration, and investor protection throughout the acquisition process.

Whether you're an expatriate seeking a luxury retirement villa, a digital nomad looking for a modern urban apartment or an overseas investor pursuing strategic real estate opportunities, understanding the nuances of each scheme is essential to making an informed decision. This guide breaks down the five main property acquisition pathways available to foreign buyers, helping you identify which framework aligns with your lifestyle goals, investment strategy, and residency aspirations

Property Development Scheme (PDS) Luxury Living in Integrated Communities

The Property Development Scheme (PDS) remains the most sought-after option for international property buyers and expatriates seeking a premium residential lifestyle in Mauritius. Launched to consolidate the former Integrated Resort Scheme (IRS) and Real Estate Scheme (RES), the PDS has become the most sought-after property framework among foreign buyers seeking luxury residential estates in Mauritius.

Exclusive Amenities and Lifestyle Benefits 

PDS developments go beyond traditional real estate: these integrated lifestyle estates combine luxury residences with resort-grade amenities, creating self-contained communities where comfort meets convenience. Residents typically enjoy access to:

- Private beach clubs and waterfront facilities

- Championship golf courses

- Spa and wellness centres

- Fine dining restaurants and boutique retail

- 24/7 security and estate management services

These estates are located in Mauritius’s most desirable regions, thoughtfully designed to balance privacy, comfort, and access to the island’s best amenities.

G+2 Ownership Requirements and Residence Rights

To qualify for PDS ownership, foreign buyers must invest a minimum of USD 375,000 in an approved residential unit. This investment automatically grants eligibility for:

- Residence permit for the buyer, their spouse, and dependent children (valid as long as the property is held)

- Full freehold ownership with the right to sell, lease, or bequeath the property

- Freedom to repatriate capital and rental income without restriction, with no capital gains tax or foreign exchange controls** **

Is PDS Right for Your Lifestyle Goals? 

The PDS framework is ideal for buyers seeking a permanent or semi-permanent base in Mauritius, whether for retirement, remote work, or as a family vacation home. The emphasis on community amenities and estate services makes it particularly appealing to retirees and professionals who value convenience, security, and lifestyle infrastructure.

PDS developments span Mauritius’s most coveted locations – from the West Coast surf villages of Tamarin and Black River to the cosmopolitan North Coast hub of Grand Baie and the tranquil East Coast – where estates blend architectural elegance with natural beauty.

Smart City Scheme: Integrated Urban Living for the Future

For non-residents and expat professionals drawn to modern, mixed-use urban ecosystems, the Smart City Scheme offers a compelling alternative to traditional residential estates. Introduced to promote sustainable urbanisation and economic diversification, Smart Cities are large-scale developments that integrate residential, commercial, educational, and leisure components within a single, master-planned framework.

Modern Infrastructure for Connected Living 

Smart City developments represent the future of urban living in Mauritius: purpose-built ecosystems where residential spaces blend seamlessly with business infrastructure, international schools, and sustainable technology. These developments often feature:

- Business parks and co-working spaces

- International schools and medical facilities

- Shopping centres, cinemas, and cultural venues

- Green spaces, cycling paths, and smart infrastructure (fibre optic networks, renewable energy systems)

The vision is to create self-sufficient urban ecosystems that attract entrepreneurs, digital nomads, families, and forward-thinking businesses establishing a presence in Mauritius.

Investment and Ownership Structure

Like PDS, the Smart City Scheme requires a minimum investment of USD 375,000 for residential units. Properties may be offered as freehold or long-term leasehold, depending on the specific project structure.

Foreign buyers who meet the investment threshold are eligible for:

- Residence permit linked to property ownership (valid as long as the property is held) for themselves and their families.

- Access to integrated business and lifestyle facilities within the city

- Flexibility to live, work, and invest within the same ecosystem

Smart City: Ideal for Professionals and Families 

This scheme is particularly well suited for professionals, entrepreneurs, and families who value proximity to services, business infrastructure, and a cosmopolitan environment. It’s also an excellent choice for investors seeking rental income opportunities, as Smart City apartments appeal to both expatriates and local professionals.

Notable Smart City projects are emerging in regions like Moka (central plateau) and Savannah (South), offering urban alternatives to the island's more resort-oriented developments. These mixed-use communities attract digital nomads, remote workers, and international entrepreneurs establishing their base in the Indian Ocean region.

G+2 Apartments: Modern Apartment Living with Effortless Convenience

The G+2 apartment scheme provides international buyers with a straightforward route to freehold apartment ownership and residency eligibility in Mauritius. "G+2" refers to the architectural classification: buildings with a ground floor plus at least two additional levels.

Low-Maintenance Coastal Living with Maximum Flexibility 

For buyers who prioritize convenience and coastal access without the responsibilities of villa maintenance, G+2 apartments deliver the perfect balance: modern, turnkey apartments in prime locations with full ownership rights and residency benefits. Key advantages include:

• Urban and coastal locations: Many G+2 developments are situated in vibrant areas like Grand Baie, Flic en Flac, and Tamarin

• Turnkey convenience: Fully furnished units with shared facilities (pools, gyms, parking)

• Security and management: Professional property management and 24/7 security

• Affordability and flexibility: Often more accessible than villas, ideal for part-time residents or rental investors

G+2 Ownership: Investment Requirements and Residence Rights

Ownership is governed under the Non-Citizens (Property Restriction) Act, allowing foreigners to acquire full ownership of apartments within approved apartment developments, whether on freehold or long-leasehold land depending on the site. A minimum investment of USD 375,000 qualifies the buyer, spouse, and dependents for a residence permit (valid as long as the property is held).

Who Should Consider G+2?

This scheme is perfect for professionals, retirees, and investors who want a modern, manageable property in Mauritius without the upkeep demands of a villa or estate home. It’s also an excellent choice for buyers seeking rental income, as G+2 apartments are highly sought after by expatriates and tourists (short term rental).

Invest Hotel Scheme (IHS): Passive Income Through Hotel Ownership

The Invest Hotel Scheme (IHS) is a structured way to acquire a hotel unit in Mauritius within an approved hotel development. Instead of buying a standalone residential property, an IHS buyer acquires a defined unit such as a room, suite, apartment, or villa that forms part of a hotel and remains operated as tourist accommodation.

How IHS works

The unit is subject to a mandatory leaseback to the IHS company or hotel operator. The operator manages reservations, guest services, and hotel operations. Owners receive income according to the project’s revenue sharing model as set out in the leaseback agreement.

Key characteristics to state accurately

• - Unit ownership within a hotel structure, not timeshare and not a shared use fractional occupation model

• - Mandatory leaseback to the IHS company or hotel operator

• - Owner use capped at 45 days in any 12 month period, with booking rules defined in the leaseback agreement

• - Title structure is project specific. Confirm whether the unit is freehold or long leasehold as stated in the deed and project documents

• - Income depends on hotel performance and the pool or revenue formula, not a fixed percentage

IHS investment: returns and limitations

IHS is primarily designed for buyers seeking exposure to the hotel sector without managing rentals directly. Because the unit remains part of hotel operations, income and owner experience depend on the operator’s performance and the contract terms. IHS purchases do not qualify for a residence permit through property acquisition.

Who should consider IHS

IHS suits buyers who prioritise hotel managed income and accept limited personal use, mandatory leaseback, and contract governed revenue mechanics. If a buyer wants unrestricted personal use, independent rental control, or residence permit eligibility through property ownership, other structures may be a better fit.

Property Investment Schemes: Side-by-Side Comparison 

SchemeOwnership TypeMinimum InvestmentResidency PermitIdeal ForPDS

Freehold

USD 375,000

Yes. Valid as long as property is held.

Lifestyle & retirement in luxury estates

Smart City

Freehold/Leasehold

USD 375,000

Yes. Valid as long as property is held.

Urban living, long-term residents & investors

G+2

Freehold

USD 375,000

Yes. Valid as long as property is held.

Modern, lock-and-leave coastal living

IHS

Mandatory leaseback and hotel management

Variable, depending on project and unit type (confirm in the deed and IHS documentation)

Possible depending on unit value and applicable permit rules (confirm case by case)

Investors seeking hotel-managed passive income

Frequently Asked Questions

Can foreign nationals purchase property in Mauritius without relocating?
Yes. International buyers can acquire property under the approved schemes PDS, Smart City, IHS, and G+2 apartments without any obligation to move to the island. An investment of USD 375,000 in an eligible property qualifies you for a residence permit if you decide to activate that option.

What are the main differences between the PDS and Smart City schemes?
The PDS is designed around luxury villas located in secured residential estates offering resort-style amenities such as golf courses and beach clubs. Smart City projects follow a mixed-use urban model that combines apartments and houses with business parks, retail areas, schools, and modern infrastructure within one coherent development.

What taxes apply to foreign property owners in Mauritius?
There is no capital gains tax and no inheritance tax on property held as part of the approved programmes. Owners remain liable for annual municipal rates and land taxes, which vary according to location and property category.

Can foreign owners rent out their property?
Yes. Properties purchased under PDS, Smart City, and G+2 schemes may be placed on the rental market. For short-term tourist rentals including stays advertised on Airbnb or Booking, owners must obtain a tourism licence or Tourist Accommodation Certificate from the relevant authorities before operating.

Can non-citizens obtain mortgage financing in Mauritius?
Certain Mauritian banks offer mortgage products to foreign buyers, usually requiring 30 to 40 percent down payment and proof of funds. Developers also provide structured payment schedules during construction for approved projects.

How long does the acquisition process take?
The timeline from property selection to title registration typically ranges from three to six months, covering Economic Development Board approval, notarial deed preparation, and compliance verification.

Which authority validates price and eligibility before deed signature?
Every purchase by a non-citizen is subject to prior Economic Development Board approval, which confirms that the property belongs to the approved schemes and that the price complies with programme rules.

Must payments transit through the Mauritian banking system?
Yes. All funds for purchases under approved programmes must be transferred in foreign currency via Mauritian banks to allow registration of the notarial deed.

Can a foreign owner resell to another international buyer?
Yes. Resale is permitted to any eligible foreign purchaser, subject to the same Economic Development Board approval upon registration.

How does the Invest Hotel Scheme operate?
Under the IHS, management by the hotel operator is mandatory. Owners receive a share of the rental pool income based on occupancy rates and overall hotel performance, and this scheme functions differently from residential investment programmes.

Why Mauritius Stands Out for International Property Buyers 

Mauritius’s property investment landscape offers exceptional flexibility, transparency, and value for international buyers. Here are the critical points to remember:

1. A minimum real estate investment of USD 375,000 under PDS, Smart City, or G+2 qualifies overseas buyers for a Mauritius residence permit (valid as long as the property is held, except under IHS).

2. Ownership is typically freehold across most schemes, though some Smart City and G+2 developments are built on long-leasehold land depending on site ownership.

3. EDB oversight ensures all developments meet regulatory standards and protect investor interests

**4. **No capital gains tax, no inheritance tax, and full repatriation rights for capital and income

5. Secure property title registration under Mauritian law, backed by a stable legal framework, transparent acquisition process, and one of Africa's highest-ranked ease-of-doing-business environments 

Whether you’re planning to retire, relocate, or diversify your investment portfolio, Mauritius offers a property scheme tailored to your needs, backed by one of Africa’s most investor-friendly regulatory frameworks.

Acquisition Process and Compliance

Foreign buyers follow a structured, transparent acquisition process. Buyers select a property within an approved scheme, provide KYC and source-of-funds documentation, and sign a notarial sale deed once EDB approval is obtained. All funds are transferred through Mauritius's reputable banking system in foreign currency, ensuring full compliance with international anti-money laundering standards. The residence permit application follows registration and remains valid for as long as ownership continues.

Explore Your Options with Expert Guidance

Navigating Mauritius’s property schemes requires local expertise and up-to-date market knowledge. From identifying approved developments to understanding residency application procedures, working with experienced professionals ensures a seamless acquisition process.

Ready to explore property investment opportunities in Mauritius?Contact us today to discuss which scheme aligns with your lifestyle and financial goals and take the first step toward owning your piece of paradise in the Indian Ocean.

E & OE
Information reflects prevailing EDB regulations and market conditions. Residency, tax, and acquisition rules are subject to regulatory updates. Professional legal and financial advice is recommended before completing any investment or relocation decision.

Sources :

• RPPI (Bank of Mauritius)

• Mauritius Revenue Authority (MRA)

• EDB Mauritius (guidelines Smart City, PDS, G+2)

• Mauritius Tourism Authority

• Laws of Mauritius (Non-Citizens (Property Restriction) Act; EDB Invest Hotel Scheme Regulations)