Why Foreign Investors Choose Mauritius for Property Investment

Investing in Mauritius property offers foreigners and non-resident buyers a unique combination : clear legal frameworks for foreign ownership, residence permits from USD 375,000, no capital gains tax, and full capital repatriation.

Foreigners can purchase property in Mauritius through four approved schemes: PDS estates, Smart City developments, G+2 apartments, and IHS hotel units. Each scheme provides residence eligibility from USD 375,000 and delivers different advantages depending on investment goals, location preferences, and budget.

However, from 1 July 2026, transaction costs increase significantly. Registration duty and land transfer tax rise from 5% to 10% each for non-citizens under approved schemes. This applies to deeds registered from 1 July 2026, adding 20% to total acquisition costs. Understanding these changes, regional differences, and scheme options is essential for making informed decisions.

This analysis examines why international buyers choose Mauritius property investment, which schemes and regions offer the best returns, what costs to expect, and how to navigate the regulatory framework successfully.

How Foreigners Can Own Property in Mauritius: Approved Schemes and Legal Framework 

While most tropical destinations make foreign property ownership complicated or impossible, Mauritius stands apart: a transparent, statute-based framework that gives international buyers clear pathways to freehold ownership.

SchemeProperty TypeMin InvestmentResidenceKey FeaturesPDS

Villas  in managed estates

USD 375,000

Yes

Freehold ownership, primarily coastal estates

Smart City

Villas, Apartments

USD 375,000

Yes

Mixed-use developments with integrated infrastructure

G+2

Apartments (2+ floors above ground)

Varies (USD 375k for residence)

Yes

Most accessible entry point for foreign buyers

IHS

Hotel-branded units

Varies

Yes

Personal use limited (45 days/year), mandatory lease-back

All schemes provide freehold ownership and require EDB (Economic Development Board) approval, full KYC documentation, and compliance with source-of-funds requirements. Foreign buyers looking to purchase property in Mauritius must work through licensed agents and notaries to ensure regulatory compliance.

Residence Eligibility

A minimum investment of USD 375,000 in an approved property scheme qualifies buyers for a Mauritius residence permit through this residence-by-investment pathway, valid for as long as the property is held. This provides legal residence status without requiring separate investor visa applications.

Tax Advantages for Foreign Property Buyers in Mauritius 

Few investment destinations combine tax efficiency, capital mobility, and treaty access in a single package. Mauritius delivers on all three fronts.

No Capital Gains Tax

Mauritius levies no capital gains tax on property transactions, meaning foreign ownership comes with tax-free capital appreciation. This applies to both sale profits and capital appreciation, making it particularly attractive for long-term investors seeking tax-free wealth preservation through investment property and portfolio diversification. Transactions deemed trading activity may be taxed as income, but standard buy-and-hold property ownership faces no capital gains liability.

Extensive Double Tax Treaty Network

Mauritius maintains an extensive double taxation treaty network, reducing withholding tax friction for international investors structuring cross-border wealth management. This positions the island as a tax-efficient jurisdiction for buyers seeking to structure investments across multiple jurisdictions.

Rental Income Taxation

Rental income is subject to ordinary income tax in Mauritius. Tax residency status determines scope: residents face taxation on worldwide income, whilst non-residents pay tax only on Mauritius-source income. Engaging a local tax adviser ensures proper structuring and treaty benefits.

Full Capital Repatriation and Currency Stability

Foreign buyers benefit from full capital repatriation. Proceeds from property sales, rental income, and investment returns can be transferred abroad without restrictions. Mauritius imposes no exchange controls on foreign property investors. 

Property transactions for non-citizens are typically priced in hard currency (USD or EUR), reducing exposure to local currency fluctuations. All transactions must comply with standard banking and anti-money laundering regulations through licensed banks, and EDB approvals must be in place before funds transfer.

Strong Rule of Law and Investor Protections

Foreign property acquisitions follow a predictable statutory framework, providing clarity and certainty from initial EDB application through to final deed registration.

The process involves:

• EDB application and authorisation

• Full KYC and source-of-funds documentation

• Notarial conveyancing

• Deed registration with the Registrar-General

This structured compliance pathway provides greater certainty than discretionary regimes common in other jurisdictions. Property rights are protected under Mauritian law, with transparent title registration and enforceability through the legal system. This predictability distinguishes Mauritius from destinations where foreign property rights depend on political goodwill or administrative discretion.

Quality of Life in Mauritius: What Drives Demand from International Buyers 

Tax efficiency attracts investors. What sustains demand and drives consistent rental yields is the quality of life Mauritius delivers.

Established Infrastructure

The north and west coasts offer comprehensive amenities: international schools, quality medical facilities, major shopping centres, and diverse dining and entertainment options.

Modern developments provide resort-style facilities: gyms, pools, landscaped grounds, 24/7 security, and property management services. This infrastructure supports both permanent residence and rental operations.

Tourism Supporting Rental Demand

Mauritius welcomed over 1 million tourist arrivals by Q3 2025, consistent with the ongoing recovery trajectory recorded by Statistics Mauritius. This consistent tourism base underpins strong rental demand, particularly for short-term holiday lets in coastal areas.

Properties in the north and west benefit most from this tourism tailwind, achieving higher occupancy rates and rental yields than inland or southern locations.

Political Stability and Safety

Mauritius ranks as one of Africa’s most stable democracies, with transparent governance, low corruption, and respect for property rights. This political and economic stability provides confidence for long-term investment horizons.

Where to Invest in Mauritius: Comparing Regions for Foreign Buyers 

Mauritius is a small island with remarkably distinct property markets. The right region can mean the difference between 3% and 8% rental yields.

North Coast: Tourism Hub with Strong Liquidity and Yields

Grand Baie, Pereybere, Mont Choisy, Pointe aux Canonniers, Trou aux Biches, Bain Boeuf, and Cap Malheureux form one of the most liquid property market in Mauritius for foreign buyers. G+2 apartments for sale in Grand Baie and Pereybere offer the largest inventory accessible to foreign buyers.

Key advantages for international investors:

• Largest inventory of G+2 apartments accessible to foreign buyers and overseas investors

• Strongest short-term rental ecosystem (tourism hub)

• Comprehensive infrastructure: international schools, medical facilities, shopping, dining

• Proven resale liquidity (easiest region to sell property)

• Reliable rental yields (6 to 8% gross for well-managed holiday lets)

The north attracts buyers prioritising Mauritius property investment for rental income, lifestyle amenities, and strong exit liquidity. Property prices command premiums, but rental demand and resale certainty justify the investment for many international buyers.

West Coast: Lifestyle Appeal with Strong Liquidity and Yields 

Tamarin and Black River on the west coast appeal to international buyers seeking outdoor lifestyle combined with practical infrastructure. Buying property in Tamarin attracts investors valuing surf culture, drier climate, and growing expat community.

What attracts foreign buyers to the west: 

• Active outdoor culture (surfing, kitesurfing, hiking)

• Growing expat and professional community

• Quality schools, shopping, and medical facilities emerging

• Strong medium and long-term rental demand (families, working expats)

• Sea and mountain views within single developments

Real estate investment in western Mauritius appeals to international buyers seeking lifestyle quality and stable rental returns (5 to 6% annually) without the density and tourist saturation of Grand Baie.

East Coast: Private Estates and Beachfront Tranquility 

Belle Mare, Roches Noires, Beau Champ (Anahita), Poste Lafayette, Palmar, Pointe d’Esny, and Blue Bay attract international buyers prioritising tranquillity and space over convenience. PDS estates in Belle Mare and Beau Champ offer high-quality developments with large plots.

Why overseas investors choose the east:

• High-quality PDS and Smart City estates with large plots

• Stunning beaches and protected lagoons

• Privacy and low-density living

• Resort-style amenities within estate communities

The east serves a niche market: overseas buyers seeking a second home, holiday home, retirement property, or remote work base. Rental yields remain lower (around 2% to 3%), and resale liquidity is limited compared to the north and west. Buyers accept longer travel times to services in exchange for peaceful coastal settings.

South Coast: Emerging Value in Unspoiled Mauritius

Bel Ombre, Baie du Cap, and Savannah Smart City (inland) offer the most restricted options for international buyers.

When international buyers select the south: 

• Low-density PDS estates with large plots and nature integration

• Authenticity and undeveloped landscapes

• Long-term capital appreciation potential as infrastructure improves

However, foreign-accessible properties remain scarce. There are no G+2 apartment clusters in the far south. Most options fall under PDS estates or Savannah Smart City. The south primarily serves Mauritian buyers, with international purchases concentrated among those seeking space, privacy, and acceptance of limited services.

Central Plateau: Smart City Living for Business Proximity 

Moka, Ebène and their surroundings attract international buyers who prefer modern Smart City living and year-round comfort over coastal tourism hubs. Purchases here focus on Smart City apartments, duplexes and townhouses in integrated, service-oriented neighbourhoods, offering both lifestyle convenience and stable rental prospects linked to the Ebène business district.

Why overseas investors choose the Central Plateau:

• Smart City developments with full foreign ownership eligibility

• Milder climate and greener surroundings at higher elevation

• Proximity to Ebène Cybercity and major business centres

• Strong demand for long-term rentals from professionals and families

• Easy access to private hospitals, shopping centres and schools

The central plateau appeals to buyers prioritising convenience, business proximity, and consistent rental income over beachfront lifestyle.

What Foreign Buyers Pay: Transaction Costs and Taxes from 2026 

Purchase Taxes (Effective 1 July 2026)

From 1 July 2026, transaction costs for foreign buyers increase significantly. Understanding the new duty structure is essential for budgeting:

Buyer pays: 10% registration duty
Seller pays: 10% land transfer tax

This applies to purchases under PDS, Smart City, IHS, and G+2 schemes. For a USD 500,000 property (approximately MUR 22.5M), the buyer’s registration duty totals USD 50,000 (MUR 2.25M).

Important: Check whether developers include the seller’s 10% land transfer tax in list prices. Some may absorb this cost; others may pass it to buyers through higher pricing.

Additional Transaction Costs

Beyond registration duty, budget for:

• Notary fees: Approximately 1% to 1.5% of purchase price

• Legal fees: 1% for representation

• EDB application fees: Nominal administrative costs

• Bank charges: For international transfers and currency conversion

Total closing costs for international buyers now generally range 12% to 15% of purchase price, significantly higher than pre-2026 levels.

Ongoing Costs

Property tax: Minimal in most developments (often bundled into service charges)
Service charges: MUR 3,000 to 8,000 monthly for managed developments
Insurance: Approximately 0.3% to 0.6% of property value annually
Maintenance reserves: Budget 1% to 2% annually

Rental Income and Tax

Rental income faces ordinary income tax rates. Non-resident owners pay tax only on Mauritius-source rental income. Residents face taxation on worldwide income but benefit from Mauritius’ favourable treaty network.

Engaging a local tax adviser ensures proper structuring of rental returns and compliance with reporting requirements.

IHS Specific Considerations

IHS properties offer a fundamentally different ownership model from freehold apartments or villas, with specific trade-offs that buyers should understand before committing.

Personal use is typically limited to 45 days per year, with the unit remaining in the hotel's rental pool when not occupied by the owner. Owners must lease the unit back to the hotel operator under a management agreement. The hotel manages bookings, maintenance, housekeeping, and guest services. Owners receive a share of rental income after operator fees.

This model suits buyers seeking hotel services (concierge, dining, spa access) and minimal management responsibility. However, personal use restrictions and operator dependencies make IHS fundamentally different from freehold coastal homes. Buyers must confirm specific usage rules, income-sharing terms, and operator track records before committing.

What Foreign Buyers Gain and What to Consider 

Advantages

Legal clarity on foreign ownership: Well-defined schemes (PDS, Smart City, IHS, G+2) with transparent regulations and EDB oversight.

Residence eligibility from USD 375,000: Property investment doubles as residence pathway, avoiding separate visa applications.

No capital gains tax: Tax-efficient asset protection and wealth preservation for long-term investors.

Full capital repatriation: No exchange controls; proceeds freely transferable abroad.

Extensive treaty network: Reduces withholding tax friction for international investors.

Strong rental demand: Tourism base (1M+ annual arrivals) supports consistent occupancy in coastal areas.

Quality lifestyle and infrastructure: International schools, medical facilities, shopping, and dining on north and west coasts.

Political and economic stability: Transparent governance, low corruption, respect for property rights.

Practical Considerations

Higher transaction costs from 1 July 2026: Combined 20% duty burden (10% buyer, 10% seller) significantly increases entry costs for non-citizens.

G+2 concentrated in north and west: Fewer coastal apartment options in east and south; scheme choice constrains location flexibility.

IHS limits personal use: Not equivalent to freehold ownership; usage caps and operator dependencies reduce flexibility.

Compliance requirements are real: EDB approvals, full KYC, source-of-funds documentation, and permitted-use rules must be followed meticulously.

Limited bare land availability: Foreign buyers generally cannot purchase bare land outside specific Smart City windows (most now closed).

East and south offer limited liquidity: Resale markets remain thin outside north and west coasts.

Matching Your Investment Goals to the Right Scheme and Region 

Before buying property in Mauritius as a foreigner, clarify your primary investment goal. The table below matches common investor priorities to the most suitable schemes and locations.

Investment GoalRecommended SchemeRecommended Region****Key ConsiderationsResidency with strong resale liquidity

G+2, PDS or Smart City at USD 375,000+

North or West coast

Strongest liquidity, rental demand, and exit options

Lowest entry price

G+2 apartments

North or West coast

Some qualify for residence at USD 375,000; others available at lower thresholds without residence eligibility

Hassle-free ownership with hotel services

IHS

Varies by development

Personal use capped at 45 to 180 days annually; mandatory lease-back to hotel operator

Privacy and large-plot living

PDS estates or Smart City fringe

East, South or Savannah

Limited amenities and longer travel times to services

Strong short-term rental income

G+2 apartments or managed developments

North or West coast

Holiday lets achieve 6% to 8% gross yields with proper management

Stable long-term tenants

Smart City apartments

Central Plateau near Ebène

Professionals and working tenants provide consistent year-long occupancy

Each pathway involves trade-offs between entry cost, personal use flexibility, rental potential, and resale liquidity. Clarifying priorities early helps narrow the search to schemes and regions that align with your goals.

FAQ

**Can a foreigner buy land in Mauritius?
**No. Non-citizens cannot purchase bare land. Foreign buyers must acquire Mauritius real estate through approved schemes: PDS estates, Smart City developments, G+2 apartments, or IHS hotel units.

**Can I get a residence permit by buying property in Mauritius?
**Yes, if the investment meets the USD 375,000 minimum threshold. Lower-priced G+2 apartments can still be purchased subject to EDB approval but do not qualify for residence permits.

What taxes do foreigners pay when buying property in Mauritius?
On deeds registered on or after 1 July 2026, buyers pay 10% registration duty and sellers pay 10% land transfer tax on non-citizen scheme purchases.

Is there capital gains tax on property in Mauritius?
No. Mauritius levies no capital gains tax on property sales. Profits from selling your property are tax-free for foreign investors.

Can I repatriate money from selling property in Mauritius?
Yes. Mauritius operates with full capital mobility. Standard banking and anti-money laundering rules apply through licensed banks.

What documents do foreigners need to buy property in Mauritius?
EDB approval with full KYC documentation, source-of-funds evidence, passport copies, proof of address, and standard conveyancing paperwork through a notary.

Can I rent my property out?
Yes, in most schemes. Check homeowners’ association rules and local by-laws. IHS units operate under hotel management agreements with rental pooling.

Where is the best place to invest in property in Mauritius for resale?
North and west coasts offer the strongest liquidity for both G+2 apartments and estate properties.

What is the minimum investment to buy property in Mauritius?
Historically MUR 6M minimum per apartment, with USD 375,000 threshold for residence eligibility. Confirm current thresholds at letter-of-intent stage.

What professionals do foreign buyers need when buying property in Mauritius?
A notary (mandatory for deed registration), licensed real estate agent (for property search and negotiation), and ideally a tax adviser for structuring and treaty planning.

Making the Investment Decision

What makes Mauritius property investment attractive to foreign buyers? The island delivers a rare combination: rule-based access to freehold residential property through approved schemes, residence eligibility from USD 375,000, no capital gains tax, no exchange controls, an extensive double tax treaty network, and lifestyle quality underpinned by real rental demand.

The north and west coasts offer the strongest fundamentals for investment buyers: proven liquidity, reliable rental yields, comprehensive infrastructure, and established resale markets. The east and south serve niche buyers prioritising privacy, space, and long-term appreciation over immediate income and exit options.

From 1 July 2026, higher transaction taxes raise entry costs significantly. Buyers must approach the market with greater discipline: scrutinise project quality, verify delivery timelines, assess realistic rental yields, and ensure pricing reflects the new duty environment.

Success in property investment in Mauritius requires working with experienced local professionals (notaries, agents, tax advisers), understanding scheme differences, matching location to investment goals, and maintaining realistic expectations about returns and liquidity. For foreign investors and non-residents who approach the market thoughtfully, Mauritius continues offering advantages that few competing residence-by-investment destinations can match.

**Considering property investment in Mauritius?**Our team can guide you through available schemes, regional options, residence pathways, and investment strategies that align with your goals and the current regulatory landscape.Book a Consultation | View Available Properties | Speak to an Advisor

E&OE – The information in this article is provided for guidance purposes only and does not constitute legal, tax, or financial advice. Data and regulations may change; consult licensed professionals before making any decisions.

Sources : 

• Economic Development Board (EDB), 

• Statistics Mauritius