Foreign Ownership in Mauritius: Regulations

Published on May 2, 2026 and written by Cyril Jarnias

Mauritius has become a sought-after destination for foreign investors seeking real estate opportunities. With its idyllic beaches, pleasant climate, and favorable tax regime, the island increasingly attracts expatriates looking to purchase property. However, navigating local regulations can be complex. This article will guide you through the essential aspects of real estate investment in Mauritius for non-residents.

Legal Framework: Opening Doors to Foreign Investors

Mauritian legislation has evolved significantly in recent years to facilitate the acquisition of real estate by foreigners. For over fifteen years, non-residents have been able to purchase properties in Mauritius, and regulations have gradually relaxed to include the purchase of apartments in condominiums.

Real estate investment programs for foreigners include:

• Integrated Resort Scheme (IRS)
• Real Estate Scheme (RES)
• Property Development Scheme (PDS)
• Invest Hotel Scheme (IHS)
• Smart City Scheme (SCS)
• Ground +2 Apartment Scheme (G+2)

These programs offer different investment options, each with its own specific features and benefits. For example, the PDS allows foreigners to purchase luxury villas, while the G+2 Scheme permits the purchase of apartments in buildings with at least two floors.

Eligibility conditions for expatriates:

• For the IRS, RES, and PDS programs, the minimum investment is set at USD 375,000 or MUR 6 million.
• For the G+2 Scheme, the investment threshold is USD 135,000.
• The purchase must be for a residential property.

It is important to note that Mauritian civil law is very close to French civil law, with a Civil Code of Napoleonic origin. This legal similarity can make it easier for French-speaking investors to understand the procedures.

Acquisition Process: Navigating Administrative Procedures

Purchasing real estate in Mauritius as a foreigner requires following a well-defined process. Here are the key steps to follow:

1. Obtaining Prior Authorization

Before any transaction, it is imperative to obtain a letter of intent from the Economic Development Board (EDB) of Mauritius, followed by a purchase authorization. This step is crucial and ensures the investment complies with current regulations.

2. Property Selection and Verification

Once authorization is obtained, you can choose the property you wish to invest in. It is recommended to engage local professionals to conduct thorough due diligence on the property and the developer.

3. Signing the Contract and Payment

The sales contract is typically signed in the presence of a Mauritian notary. Payment must be made in foreign currency via bank transfer. As of December 13, 2024, new provisions apply:

• The purchase price can be denominated in Mauritian rupees (MUR).
• Payment of the purchase price and taxes (registration fees) must be made in “hard currency” (USD, EUR, GBP, etc.) from abroad.
• The South African rand (ZAR) is not considered a “hard currency.”

4. Property Registration

The deed of sale must be registered with the Registrar General (equivalent to the land registry) to ensure legal security and enforceability of the transaction. Notarial deeds are generally drafted in French.

5. Payment of Taxes and Fees

Registration fees are calculated based on the counter-value of the purchase price in USD (or other hard currency), using the selling rate of the State Bank of Mauritius (SBM) on the date of final signing. An indicative amount will be communicated to the buyer, who must pay it in hard currency into the specified account.

Rights and Benefits: The Advantages of Investing in Mauritius

Investing in real estate in Mauritius offers numerous advantages to foreigners, going beyond simply owning a property.

Residence Permit

One of the main attractions of real estate investment in Mauritius is the possibility of obtaining a residence permit. This permit is generally granted to investors who purchase a property valued at over USD 375,000 under the IRS, RES, or PDS programs. The residence permit allows the investor, their spouse, and children under 24 to reside in Mauritius.

Tax Advantages

Mauritius offers a particularly advantageous tax regime for foreign investors:

• Income tax rate capped at 15%
• No capital gains tax
• No inheritance tax
• Competitive VAT of 15%

Additionally, Mauritius has signed double taxation avoidance agreements with over 30 countries, including France. The Franco-Mauritian double taxation agreement is particularly favorable for French investors. It notably stipulates that:

• Income derived from real estate located in Mauritius is taxable in Mauritius.
• Wealth consisting of real estate located in Mauritius is taxable in Mauritius.

This means that a French tax resident owning real estate in Mauritius will not be taxed in France on the value of that property, nor on the income derived from it (e.g., rent), nor on the capital gain upon resale.

Freedom to Do Business

Foreign investors also benefit from great freedom to establish their business in Mauritius:

• Possibility to own 100% of their Mauritian company
• No restrictions on repatriation of profits, dividends, and capital
• Investment protection guaranteed by the Mauritian government

Practical Tips: Optimizing Your Real Estate Investment

To make the most of your real estate investment in Mauritius, here are some essential tips:

1. Engage Local Professionals

It is crucial to surround yourself with experts who know the Mauritian market well:

• A lawyer specializing in real estate law to verify the legal aspects of the transaction
• A licensed real estate agent to guide you in choosing the property
• A notary for drafting and authenticating the deeds
• A tax advisor to optimize your investment

These professionals will help you navigate administrative complexities and avoid potential pitfalls.

2. Conduct Thorough Due Diligence

Before finalizing your purchase, make sure to:

• Verify the legality of the real estate project and the developer’s permits
• Carefully examine the property title and history
• Thoroughly inspect the property for any hidden defects
• Study the rental or resale potential of the property

3. Plan Your Financing

Although payment must be made in hard currency, it is important to carefully plan your financing:

• Compare mortgage loan offers, including those from Mauritian banks that offer loans to non-residents
• Account for exchange rate fluctuations that can affect the total cost of your investment
• Budget for ancillary costs (taxes, notary fees, etc.)

4. Consider Property Management

If you plan to rent out your property, consider:

• Hiring a local property management agency to handle maintenance and tenants
• Researching regulations regarding short-term and long-term rentals
• Evaluating the rental yield potential in different areas of the island

5. Stay Informed of Regulatory Changes

The legal and tax framework in Mauritius evolves regularly. It is essential to:

• Follow updates to investment programs (PDS, IRS, RES, etc.)
• Keep up to date with changes to tax treaties
• Regularly consult official websites such as that of the Economic Development Board (EDB) of Mauritius

Conclusion: A Paradise for Savvy Investors

Mauritius offers an attractive framework for foreign real estate investors, combining a favorable tax regime, a simplified acquisition process, and the possibility of obtaining a residence permit. However, as with any international investment, it is crucial to do thorough research and surround yourself with competent professionals to navigate the specifics of the local market.

With careful planning and a deep understanding of current regulations, real estate investment in Mauritius can prove to be an exceptional opportunity, offering both a idyllic lifestyle and promising financial prospects.