Published on and written by Cyril Jarnias
Buying an apartment in Mauritius in 2026 is no longer a simple “tropical fantasy.” The market has become more regulated, more selective, and the authorities have clearly tightened tax and legal scrutiny, while continuing to attract foreign investors, among whom the French remain the largest group. The result: great opportunities still exist, but improvisation is no longer an option.
This guide, designed for a French buyer, covers the legal, tax, financial, and practical framework for purchasing an apartment in Mauritius in 2026. It includes residence, taxation, and resale aspects to avoid unpleasant surprises and build a clear strategy.
Understanding the New Legal Framework for Foreigners
Before discussing apartment visits or price negotiations, you need to grasp a simple reality: in Mauritius, a foreigner can no longer buy just anything, anywhere.
Foreigners Can Only Buy Within Approved Schemes
Since the amendments introduced by the Finance Act 2025 to the Immigration Act 2022 and the Non-Citizen (Property Restriction) Act, the rule is strict: a non-citizen can only acquire property within programs expressly approved by the Economic Development Board (EDB).
The main schemes open to foreigners are:
| Scheme | Type of property accessible to foreigners | Status in 2026 |
|---|---|---|
| PDS (Property Development Scheme) | Villas, apartments, penthouses, integrated residences | Reference scheme for new projects |
| Smart City Scheme (SCS) | Apartments, offices, retail, integrated residences within a “smart city” | Active, tightly regulated |
| IRS (Integrated Resort Scheme) | Luxury villas and residences with hotel services | No new projects, resale only |
| RES (Real Estate Scheme) | Small high-end residential complexes | No new projects, resale only |
| Invest Hotel Scheme (IHS) | Suites, apartments within hotels, with a rental component | Active, very specific |
| Ground + 2 (G+2) | Apartments in buildings of at least 3 levels | Active, flagship scheme for apartments |
In the past, a foreigner could still, under certain conditions, buy outside these schemes, for example above a certain value threshold. This possibility has been completely eliminated. Buying “off-plan” is now reserved for acquiring land for professional activity, with specific authorizations.
Focus on G+2 Apartments: The Most Common Entry Point
For a French buyer specifically targeting an apartment, the “Ground + 2” scheme is often the most direct option. These are apartments in buildings comprising at least a ground floor and two additional floors (i.e., at least three levels).
The main conditions are as follows:
The minimum purchase price for a building approved by the EDB under the G+2 scheme is 6,000,000 MUR.
The G+2 is flexible on some aspects (notably currency payment rules), but does not automatically grant a residence permit—this is a crucial point for a French buyer who plans to live in Mauritius rather than simply invest.
Residence and Right to Stay: What a Purchase Does (or Doesn’t) Grant
One of the major attractions of buying real estate in Mauritius is the possibility of obtaining a residence permit. But here too, the rule has been tightened and clarified.
For foreigners, including French nationals, access to a Residence Permit via real estate is based on two major conditions:
– The property must be located in a project approved by the EDB (PDS, Smart City, certain IRS/RES resales, IHS, compliant G+2).
– The amount invested must be at least 375,000 USD.
In this case, the residence permit:
Covers the investor, their spouse, and dependent children (up to age 24 depending on sources). Remains valid as long as the property is owned. Expires upon resale of the property, unless another residence title takes over.
Note the specific case of the G+2 apartment: the purchase itself does not automatically confer residence. The price must reach or exceed 375,000 USD to benefit from the “residential package.” Below this threshold, you can buy, but you will need to apply for another type of permit (retiree permit, occupation permit, etc.) to live on the island.
What Has Changed for French Buyers
Recent legislation has also eliminated mechanisms considered too flexible, particularly the possibility for a minister to retroactively approve a non-compliant acquisition. In practice, this means that in 2026, everything must be compliant from the start: eligible scheme, EDB approval, acquisition structure.
Another strong restriction: foreigners can no longer buy apartments in buildings constructed on state land or on Pas Géométriques (reserved coastal strips). Here again, the notary and agent must be able to prove that the property is indeed freehold within an authorized framework.
Taxation: A Window to Seize Before the Massive Duty Increase
The 2025–2026 budget has profoundly reshaped the taxation of real estate transactions carried out by non-citizens. For a French buyer considering a purchase in 2026, these changes are strategic.
Registration Duties and Land Transfer Tax Double
Currently, until the end of June 2026, the structure is as follows:
– Registration duties (buyer): 5%.
– Land Transfer Tax (seller): 5%.
From July 1, 2026, both rates will increase to 10% each for all acquisitions by non-citizens under EDB schemes (PDS, IRS, RES, Smart City, IHS, G+2). This means that on an apartment purchased after this date, the “round-trip” tax burden rises significantly.
| Item | Before July 1, 2026 | From July 1, 2026 |
|---|---|---|
| Registration duties (buyer) | 5% of the price | 10% of the price |
| Land Transfer Tax (seller) | 5% of the price | 10% of the price (or 30% of the capital gain for a non-citizen, if higher) |
| Total tax cost (transaction to a foreigner) | ~10% of the price | ~20% of the price |
Very important: it is not the date of signing the preliminary contract or reservation that counts, but the date of registration of the deed. A deed signed at the notary and registered from July 1, 2026 will be taxed at the new rate, even if the preliminary contract dates from before.
For a French buyer, finalizing the acquisition before this deadline can represent a difference of several tens of thousands of euros.
Other Transaction Costs to Include
Beyond the two major taxes, you need to budget for: additional taxes for specific services.
Summary of the main costs to anticipate: fees, commissions, administrative and bank charges
Degressive scale from 0.6% to 1.25% of the price, including 15% VAT. Specific flat fees possible for PDS, Smart City, or G+2 programs.
Regulated commission of 4% + 15% VAT (i.e., 4.6% of the price). Generally borne by the seller, to be verified in the contract.
Example: residence permit application processing fee of approximately 25,000 MUR.
Include currency conversion spreads, international transfer costs, and loan processing fees.
In total, for a French buyer, the one-shot acquisition costs are around 7–10% of the apartment’s price under the current regime, and can rise to 12% or more with the new taxation from July 2026.
A Very Favorable Tax Environment Over the Long Term
While entry-level taxation is tightening, Mauritius retains a key advantage: its overall very favorable tax regime for holding and reselling property.
A French national can buy an apartment in Mauritius, but must comply with certain legal and tax conditions specific to foreigners.
– There is no wealth tax on real estate (IFI) locally.
– There is no annual property tax or dwelling tax.
– There is no capital gains tax on real estate resale (except for professional property dealers).
– There are no inheritance taxes on real estate located in Mauritius for Mauritian residents.
The basic income tax rate is 15% for individuals and corporations, although for individuals, a progressive scale up to 20% applies to certain types of income, particularly rental income.
For rental income generated by an apartment in Mauritius, the principle of the France-Mauritius tax treaty is clear: property income is taxable where the property is located. France grants a tax credit corresponding to the tax already paid in Mauritius, thus avoiding double taxation.
French Specifics: Tax Treaty and Tax Residency
For a French investor, buying in Mauritius also depends on the bilateral dimension between the two countries.
The France–Mauritius Tax Treaty
The tax treaty signed in 1980, amended in 2011 and revised in 2021, governs tax relations between France and Mauritius. It aims to:
– Avoid double taxation.
– Organize information exchange between tax administrations.
– Define which country can tax which income or assets.
For real estate, several articles are essential:
According to the article, rents received for a property located in Mauritius are taxable only in that state. Similarly, capital gains realized on the sale of that property follow the same rule: taxation belongs exclusively to the country where the building is located. Finally, regarding wealth, elements of Mauritian real estate assets are taxable only in Mauritius.
Consequence for a French tax resident who owns an apartment in Mauritius: they do not pay IFI on this property (because it is located outside France) and the rents are taxed in Mauritius, with a tax credit mechanism in France if necessary.
Tax Residency: Stay French or Become Mauritian?
To fully benefit from certain advantages, particularly the sustained exemption from wealth tax and overall optimization, some choose to become Mauritian tax residents.
You are generally considered tax resident in Mauritius if:
– You live there for more than 183 days per year.
– And/or your main center of economic interests is located there.
Two main situations arise for a French national:
– Remaining a French tax resident: worldwide income is declared in France, with the tax treaty applied to Mauritian income and capital gains.
– Becoming a Mauritian tax resident: taxation is then primarily governed by Mauritian law, with a generally lower tax rate, no IFI, no property tax, etc.
But this shift is monitored: the French administration, aided by the Mauritius Revenue Authority, is attentive to the reality of physical presence and center of interests. Without real economic substance in Mauritius (offices, effective management, etc.), the risk of French tax reclassification exists.
Market 2026: A More Selective Cycle, But Still Promising
In 2026, Mauritius no longer experiences the euphoria of double-digit price increases seen in previous years. The market is structuring, normalizing, and becoming more demanding.
– Experts anticipate more moderate price growth, between 8% and 12% on average, with strong disparities.
– “Exceptional” properties (rare location, views, architectural signature, high-end services) continue to perform well.
– Poorly located, badly designed, or overpriced properties suffer more, with longer selling times.
In this context:
International demand for Mauritian real estate remains strong, driven by solid macroeconomic fundamentals. The shortage of quality land is intensifying, particularly on the north and west coasts. The Bank of Mauritius considers the risk of a violent price correction low, despite a gradual tightening of taxation by the authorities.
For a French investor, this means that in 2026, careful selection is essential: quality of location, developer reliability, bioclimatic design of the apartment, condominium management, and integration into a supportive environment (Smart City, well-managed PDS, etc.) become decisive factors.
Step by Step: The Apartment Buying Process
The process of acquiring an apartment in Mauritius is highly structured and almost always follows the same steps.
1. Clarify Your Project and Budget
Before contacting an agency, it is useful to ask several simple questions:
– Main objective: primary residence, semi-residence, retirement, rental investment, or mixed?
– Need for a residence permit: yes/no, and under which scheme (investor, retiree, professional)?
– Total budget: apartment price + 7–12% fees + possible renovation + furnishings.
– Holding horizon: medium-term resale or long-term inheritance.
This clarification will determine the choice of scheme (PDS vs G+2 vs Smart City) and the size of the investment (above or below 375,000 USD).
2. Select the Right Scheme and Area
For an apartment, two main schemes dominate: G+2 and projects under PDS or Smart City.
Regional logic can be summarized as follows:
| Area | Profile | Interest for a French buyer |
|---|---|---|
| North & West | Coastal, very touristy, mature infrastructure | Best resale liquidity, strong seasonal and long-term rental demand |
| Central | Urban/suburban, close to offices and schools | Stable rental yields, more affordable entry prices |
| East & South | More natural, preserved landscapes | More patrimonial investment, bet on long-term scarcity |
3. Choose the Agency and Investigate the Developer
The choice of intermediary and developer is crucial, especially for off-plan purchases (VEFA).
Some reflexes to adopt:
– Verify that the developer and project are duly registered with the EDB.
– Study the developer’s track record: past achievements, perceived quality, adherence to deadlines.
– Look for feedback: press articles, online reviews, testimonials from existing owners.
– Ask to see delivered projects, preferably in the same segment (coastal apartments, urban residences, etc.).
For a French buyer, it is recommended to choose an agency well-established locally and accustomed to foreign clients, especially French, to facilitate procedures and minimize misunderstandings.
4. Visits and Technical Due Diligence
On site (or via virtual tour), it is not just about being seduced by the view or the model decoration. Technical checks are essential, especially in a country where humidity, heat, and termites can cause serious damage.
Key points to check or have checked by a professional:
– Structure and foundations (no structural cracks, no subsidence).
– Roof, waterproofing, absence of signs of infiltration (ceilings, walls, window frames).
– Electrical installation and panel (compliance, absence of obsolete or dangerous components).
– Plumbing (no visible leaks, good water pressure, water heater in working order).
– Ventilation and air conditioning (systems properly sized, maintained).
– Sound insulation (especially in condominiums).
– Condition of common areas (stairs, elevators, parking lots, pool, garden).
In Mauritius, authorities have extensive building inspection powers, including the ability to prohibit occupancy if safety and ventilation standards are not met. Hence the importance of ensuring the building is compliant and has been formally accepted.
5. Offer to Purchase and Reservation Contract
Once the apartment is chosen, the buyer submits a written offer. If the seller (or developer) accepts, the process moves to a reservation contract or preliminary sale agreement, generally drawn up by a Mauritian notary.
A deposit of approximately 10% is paid into the notary’s escrow account. The reservation contract sets the price, schedule, and conditions precedent (financing, EDB approval). It also specifies the property description, plans, materials, and the payment schedule.
At this stage, any negotiation on sensitive points (delivery conditions, late penalties, quality of finishes, possibility of withholding part of the price until outstanding issues are resolved) must be finalized, as the Mauritian contract is binding.
6. Central Role of the Notary
In Mauritius, the notary is indispensable and acts as a true “public officer”:
– They legally secure the transaction (verification of title, charges, project compliance).
– They collect and remit registration duties, the Land Transfer Tax, and various taxes.
– They hold funds in an escrow account and only release them once all conditions are met.
– They register the deed with the Registrar-General’s Department, the step that officially establishes ownership.
The notary is expected to be impartial and acts to guarantee the validity of the deed for both parties. In practice, a French buyer may choose to be assisted by their own advisor (lawyer or trusted notary) to review documents and protect their specific interests.
7. EDB Authorization
For a non-citizen, each acquisition under an approved scheme must be validated by the EDB. The file typically includes:
List of documents needed to finalize the purchase of a property
Copy of the valid passport(s) of the buyer(s).
Preliminary contract or sale agreement signed by the parties.
Site plan of the property indicating its exact location.
Certificate or letter from the bank confirming the availability of funds.
Certifications from the notary confirming that the property is eligible (e.g., compliant G+2 apartment).
Proof of source of funds in accordance with anti-money laundering rules.
The EDB acknowledges receipt and processes the file. Without this authorization, the sale cannot be finalized.
8. Signing the Deed of Sale and Registration
Once:
– EDB authorization has been obtained.
– Financing is in place.
– The notary’s verifications are complete.
The parties sign the deed of sale (“Title Deed”) at the notary’s office, or by proxy. The balance of the price, registration duties, notary fees, and other costs are settled at this time.
The notary then has a legal deadline (15 days) to register the deed. Upon registration, ownership is officially transferred and enforceable against third parties.
9. Applying for a Residence Permit, if Applicable
If the purchase price reaches or exceeds 375,000 USD and the program is eligible, the investor and their family can apply for the residence permit linked to real estate investment.
The procedure is also handled through the EDB, with a separate file, but specialized agencies and certain developers typically assist their clients with these steps.
The permit remains valid as long as the apartment is owned, which must be considered in any resale strategy.
Financing and Managing Currency Risk
For many French buyers, even with a substantial down payment, using credit is an attractive lever, especially since Mauritian banks readily lend to non-residents within approved schemes.
Local Financing: What Mauritian Banks Offer
Major local banks (MCB, SBM, AfrAsia, Absa, Bank One, etc.) finance foreigners, subject to conditions:
– Loan-to-value (LTV) ratio generally between 60% and 70%, sometimes up to 80% for certain profiles or residents.
– Required down payment of 20% to 40% of the price.
– Loan term often limited to 15–20 years for non-residents, longer for residents.
– Loans available in MUR, but also in EUR or USD with some banks.
– Average interest rates in 2025: around 5.75% to 7.25% in MUR, slightly lower for loans in strong currencies.
– Standard processing fees: approximately 1% of the amount borrowed.
Note a specific rule for off-plan sales (VEFA) under IRS, RES, PDS, SCS, and IHS schemes:
For properties over 750,000 USD, the first 750,000 USD must be paid from equity in MUR. Only the portion exceeding this amount can be financed by a local loan. This rule does not apply to resales or G+2 apartments.
The “85% in Mauritian Rupees” Rule
Since December 2024, Mauritian authorities have imposed a requirement to settle in MUR (Mauritian rupee) for first sales in several schemes:
– For IRS, RES, PDS, IHS, Smart City projects (first sale): at least 85% of the price must be paid in MUR.
– The remaining 15% can be paid in a strong currency (EUR, USD, GBP…) or in MUR.
– Funds must nevertheless be transferred from abroad in foreign currency, then converted locally, often by the notary, at the interbank rate.
This rule does not apply:
– To resales.
– To G+2 apartments.
In practice, for a French buyer buying off-plan in a PDS or Smart City project, the notary or bank handles the conversion of 85% of the funds into MUR. The operation is transparent, with no specific currency exchange tax, but naturally exposes the buyer to fluctuations in the EUR/MUR exchange rate.
Currency Risk: Absolutely Not to Be Overlooked
In a few years, the Mauritian rupee has depreciated by more than 30% against the dollar (from approximately 35 MUR per 1 USD in 2019 to over 46 MUR in early 2025). Annual variations of 5–10%, or even more, are not uncommon.
For a French buyer who:
– Agrees on an apartment price in USD or EUR.
– Must fund an escrow account in MUR.
– And spreads payments over several months (VEFA, drawdowns, etc.).
The currency risk is not theoretical. It can represent a difference of several tens of thousands of euros between the planned budget and the final cost.
Several tools can help manage this risk:
– Currency forward contracts: lock in a conversion rate EUR/MUR today for a future date (signing of deed, drawdown), through your bank or a currency specialist.
– Multi-currency accounts: to decide when to convert based on market movements.
– Specialized platforms: certain providers (like Wise, OFX, etc.) offer better rates than standard bank rates, reducing the overall cost.
A prudent buyer starts thinking about currency risk as soon as their offer is accepted, not just the day before signing.
Rental, Yield, and Resale: Think About the Exit from the Start
An apartment in Mauritius, especially in a sought-after area, can generate a dual return: enjoyment (primary or secondary residence) and rental yield.
Rental Income: Taxation and Ground Reality
Rents are received in MUR and, in practice:
Rents received in Mauritius are subject to a progressive scale (0%, 10%, 20%) or a rate of approximately 15% after deductions. For a Mauritian tax resident, worldwide income is declared locally at 15%. For a French tax resident, these rents are taxed in Mauritius and give rise to a tax credit in France equal to the tax paid there.
Yield depends heavily on:
– The area (touristy coast vs urban center vs east/south).
– The strategy (short-term seasonal rental, furnished long-term rental, 12-month lease).
– The quality of the product (services, pool, security, parking, residence management).
Generally, the center of the island offers more consistent profitability on long-term rentals, while the north and west coasts can allow higher gross income, but with more active management (high and low seasons, tenant turnover, higher management costs).
Resale: Anticipating Taxation and Liquidity
On the resale side, several parameters to consider from the time of purchase:
As of July 2026, a non-citizen reselling a property will have to pay a Land Transfer Tax equal to the higher of 10% of the sale price and 30% of the capital gain. In addition, agency fees of approximately 4.6% inclusive of VAT, and currency fluctuations between the euro, dollar, and rupee can alter the capital gain in foreign currency.
The north and west regions, already very popular with foreigners, concentrate the majority of transactions and offer the best resale liquidity. Well-managed programs in recognized complexes, with well-maintained common areas and serious condominium governance, sell more easily and with less discount.
Operational Tips for a French Buyer in 2026
In summary, for a French buyer of an apartment in Mauritius in 2026, a few guidelines stand out.
Clarify your objective (rental investment, secondary residence, or tax expatriation). Target an approved property (G+2, PDS, Smart City). Anticipate the July 2026 tax increase by negotiating registration deadlines. Mitigate currency risk through thoughtful conversions or forward contracts. Conduct a rigorous technical inspection (standards, VEFA guarantees). Surround yourself with reliable partners: a local agency, an educational notary, a lawyer, a banker experienced with non-residents.
By accepting to work within this more demanding framework, a French buyer can still, in 2026, purchase an apartment in Mauritius under very attractive conditions: favorable taxation on holding and resale, possibility of residence from 375,000 USD, high quality of life, a legal environment based on a mix of French and English law, and a real estate market that, despite tightening rules, continues to show interesting appreciation prospects.
The key word is no longer haste, but preparation. Those who take the time to build a solid file, choose the right project, and lock in the tax, regulatory, and currency aspects can turn a simple apartment purchase in Mauritius into a real life project—or a strong international asset.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
