Published on and written by Cyril Jarnias
Between soaring prices, announced tax tightening, and a thriving tourism sector, real estate in Mauritius is entering a new phase. After several years of euphoria marked by spectacular increases, 2026 is shaping up to be a year of “controlled cooling” rather than a crash. For a French investor, this is paradoxically a key moment: the market is becoming more transparent, yields remain attractive, and taxation, even if slightly tightened, is still far gentler than in France.
Good to know:
This guide offers a clear, data-driven overview for French nationals looking to invest in real estate in Mauritius in 2026. It covers the best areas, acquisition schemes, taxation, and strategies tailored to this new market phase.
A market that is changing pace but not breaking
After the health crisis, Mauritius experienced an unprecedented surge in its residential real estate. The official price index (RPPI), set at 100 in 2019, exceeded 237.9 at the end of 2024. In five years, prices more than doubled, with a cumulative increase of over 140%. In 2024 alone, the annual increase approached 30% in the fourth quarter, and statistics indicate a rise of about 24% year-over-year.
21000000000
In 2023, the real estate sector captured approximately 21 billion rupees out of a record total of 37 billion in foreign investment.
In 2024, despite tensions in construction costs and the erosion of purchasing power for local households, real estate still posted average growth of 7%. But all signs indicate that the peak of overheating has passed. Projections from international institutions place Mauritian economic growth around 3.4% to 4% by 2026, far from the rebounds near 9% in 2022. The economy remains solid, but it is normalizing. Real estate is following the same trajectory.
Example:
Analysts forecast a normalization of the real estate market in 2026, with moderate increases of 8% to 12% for the most sought-after properties, 5% to 7% per year in established coastal areas, and price stagnation in some inland regions such as Moka or Beau Plan.
For a French investor, this means the market is becoming less speculative, more selective, and the intrinsic quality of the property (location, concept, construction quality, management) will matter far more than simply buying “in Mauritius.”
Why Mauritius remains a premium choice for French investors
Despite this change of pace, Mauritius retains fundamentals that place it at the top of destinations for French investors.
The country stands out for a rare combination: political and institutional stability, one of the freest economies in the world, modern infrastructure, a civil law legal system (very close to French law), and a remarkably competitive tax framework.
Attention:
Ranked the 19th freest economy in the world and 1st in Sub-Saharan Africa according to the 2024 Index of Economic Freedom, Mauritius is among the top twenty countries for ease of doing business. The island has a sophisticated, transparent, and well-regulated international financial center, a robust network of double taxation treaties and investment protection agreements, providing a reassuring institutional foundation for a French investor.
To this, we add a key element: the massive gap in cost of living and real estate prices compared to France. Overall, France is about 2.1 times more expensive than Mauritius. Housing costs on average 2.3 times more in France. Renting a one-bedroom apartment in the city center is nearly half the price in Mauritius compared to France, and buying per square meter in a Mauritian city center is about 51% cheaper than in mainland France.
This cost differential, combined with a highly attractive lifestyle (climate, beaches, relative safety, international schools, decent medical services), explains why the island attracts so many retirees, remote-working executives, business owners, and French families. On the foreign buyer side, the French clearly dominate: they represent about 42% of international acquisitions, far ahead of South Africans (22%) and British (7%).
Mauritian real estate market analysis
Taxation that remains ultra-competitive for a French resident
For a French investor, the Mauritian advantage is not limited to the purchase price. Above all, it is taxation that makes the difference.
Income tax and rental income
Mauritius operates on a simple principle: the basic income tax rate is 15%, for both individuals and companies. Since 2023, a progressive scale has nuanced this single rate, with a 10% bracket for net income up to about 650,000 rupees, then a return to 15%, and even up to 20% on the highest brackets, but it remains well below French progressivity.
Rents from a property located in Mauritius are taxed in Mauritius, and only there, in accordance with the Franco-Mauritian tax treaty. In practice, a French owner of a rented apartment on the island pays around 15% tax on their local rental income, whereas the same income could reach up to 45% (plus social contributions) in France.
Tip:
Thanks to the tax treaty between the two countries, taxes paid in Mauritius are taken into account to avoid double taxation. Income must still be declared in France, but it benefits from mechanisms to eliminate or reduce the additional burden.
Capital gains on real estate
Another strategic advantage: there is no capital gains tax on real estate in Mauritius for individuals. The effective taxation rate on real estate capital gains is 0%. When reselling a villa or apartment, the entire capital gain escapes Mauritian tax. In France, a real estate capital gain can reach over 30% (tax + social contributions) before deductions for holding period.
This means that a French investor who rebalances their portfolio by selling a property in France to buy in Mauritius can, in the long term, significantly optimize their overall taxation: no IFI (French wealth tax on real estate) on the Mauritian asset, no capital gains tax in Mauritius, rental income capped at 15% locally.
IFI, inheritance tax, and local property taxes
For French nationals subject to the French Real Estate Wealth Tax (IFI), Mauritius offers a powerful lever. Real estate assets located on the island are not included in the IFI tax base, in application of the tax treaty which expressly excludes Mauritian properties from the taxable base in France. In Mauritius, there is no wealth tax, no recurring property tax (no land tax or housing tax in the French sense, except for certain specific municipal fees).
Inheritance in Mauritius
Key points on inheritance taxation for a French tax resident in France
No inheritance tax in the direct line
In Mauritius, there is no inheritance tax in the direct line, which lightens the transfer to descendants.
French taxation on worldwide assets
A French tax resident remains subject to French inheritance tax on their worldwide assets, except for exceptions related to a change of residence.
Consult a Franco-Mauritian tax specialist
It is recommended to consult an expert to explore residential configurations that could mitigate this tax constraint.
A protective tax treaty
The tax treaty between France and Mauritius, initially signed in 1980 and later modernized, governs almost all flows: rental income, salaries, dividends, interest, capital gains on securities. The central idea is to avoid double taxation and provide legal certainty to investors.
For a French investor who structures their ownership intelligently (directly, through a Mauritian company, or via a trust/foundation vehicle), Mauritius allows significantly reducing their overall tax burden, while operating within a recognized and secure legal framework.
2026: the pivotal year for registration duties for foreigners
The main change on the horizon for 2026 concerns transaction taxation on purchases made by non-citizens under schemes approved by the Economic Development Board (EDB).
Currently, registration duties and land transfer tax (transfer taxes) each amount to 5% for foreigners under the PDS, IRS, RES, Smart City, Invest Hotel Scheme, and Ground +2 programs. The 2025–2026 budget plans to double these rates: as of July 1, 2026, for any deed registered from that date, these duties will increase to 10% each.
10%
The non-citizen seller will have to bear a transfer tax equal to the higher of 10% of the sale price or 30% of the realized capital gain
For French investors, these developments reinforce two messages. First, there is a real window of opportunity before the July 2026 shift to secure a purchase with registration duties still at 5%. Second, in the medium term, the increase in transaction costs will mechanically filter speculative demand and strengthen the premium awarded to well-positioned properties. Without completely deterring foreign buyers, these measures encourage a more long-term approach.
Where to invest: understanding the major Mauritian zones
The Mauritian market is highly segmented. It is not about “Mauritius” as an undifferentiated whole, but rather a mosaic of micro-markets, each with its own profile of yield, risk, and capital appreciation.
The North: Grand Baie and the “Mauritian Riviera”
The north remains the heart of the premium market. Grand Baie, along with Pereybère, Trou aux Biches, Pointe aux Canonniers, Mont Choisy, Bain Boeuf, and Cap Malheureux, concentrates the highest liquidity in the country, a mix of European investors, expatriate families, and high-spending tourists.
Prices per square meter are among the highest on the island. In 2022, the average square meter in Grand Baie was around 185,000 rupees; in 2024, it reached 210,000 rupees, a 13.5% increase in two years. Transactions in the area represent about 12.5 billion rupees over the period studied, with prestigious villas frequently trading between 1.5 and 5 million euros, sometimes more for ultra-luxury waterfront products.
In these areas, the square meter regularly exceeds 200,000 rupees, and high-end apartments easily surpass 5,500 €/m². This price level reflects the strength of demand and the scarcity of buildable coastal land.
The West: Tamarin, Rivière Noire, Flic en Flac
The west is the other pillar of the international market. Tamarin and Rivière Noire (Black River) combine spectacular landscapes, a drier climate, a water sports culture, recognized schools, and numerous amenities. Significant development of Smart Cities and very high-end villas can be found there.
178000
Average price per square meter in Tamarin in 2024, in rupees
Flic en Flac, more oriented toward mixed tourism (local and international) and seasonal rentals, is also seeing growing demand. The west attracts a long-term clientele: families, active retirees, investors seeking a combination of capital appreciation and solid rental income.
The East and South: niche segments and upscaling
The east and south remain more confidential, but the movement is underway. The east is home to some of the most expensive listings (e.g., average apartment prices around 29.5 million rupees and villas that can exceed 74 million rupees in certain golf and marina developments like Anahita or Beau Champ).
220 000
The price per square meter in Le Morne increased from 200,000 to 220,000 rupees between 2022 and 2024, a rise of 10%.
Central regions: Moka, Ébène, Quatre Bornes, Beau Plan
In the center, it is not about beaches, but about cities and “Smart Cities”: Moka, Ébène, Quatre Bornes, or Beau Plan. These areas serve as economic, educational, and administrative hubs. Demand is driven by executives, students, expatriates on assignment, and Mauritian families.
Prices per m² are significantly lower than on the coast, and rental yields are often higher, especially on long-term leases. In Quatre Bornes, for example, well-located apartments can generate more than 6% gross yield, above the national average (which hovers around 3% to 3.5% across all segments).
For a French investor seeking a more balanced yield/risk combination, with a lower entry ticket and less dependence on tourism, these central regions present an interesting alternative.
Comparison of key zones
| Zone | Average Price 2022 (Rs/m²) | Average Price 2024 (Rs/m²) | Change 2022–2024 | Transaction Volume (Billion Rs) |
|---|---|---|---|---|
| Grand Baie | 185,000 | 210,000 | +13.5% | 12.5 |
| Tamarin | 160,000 | 178,000 | +11.25% | 8.1 |
| Rivière Noire | 150,000 | 165,000 | +10% | 6.7 |
| Beau Champ | 170,000 | 185,000 | +8.8% | 4.2 |
| Le Morne | 200,000 | 220,000 | +10% | 3.5 |
This table illustrates the dynamics well: premium coastal areas continue to progress at a sustained pace, with already very high price levels, while some inland regions are stabilizing.
What yields can you realistically expect in 2026?
The rental yield figures in Mauritius must be approached with nuance, as they vary greatly depending on the product, rental type (short-term or long-term), and zone.
Across the entire market, all ranges combined, the average gross yield stands around 3% to 3.5% in 2025, pulled down by ultra-luxury properties that are poorly or sub-optimally managed for rental. But this overall average is misleading: for products suited to rental demand, the figures are much more attractive.
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Gross yield can reach up to 10% in tourist areas of Mauritius through seasonal rentals with an occupancy rate of 70% to 75%.
On long-term leases with expatriate tenants, executives, or families, gross yields typically range between 4% and 6% depending on the area, with better visibility and lower management costs. In Quatre Bornes, some central buildings exceed 6% gross yield, and riskier configurations on the outskirts even claim nearly 18% gross on paper (but with potentially higher vacancy and significant management fees).
Good to know:
In the high-end segment, prestigious villas offer gross yields of 6% to 8% if professionally managed with concierge services and premium positioning. Integrated programs with hotel services and rental pools are a good compromise to avoid operational constraints.
It is important to keep in mind that net yields are on average 1.5 to 2 points lower than gross yields, after deducting management, maintenance, condo fees, insurance, and local income tax (starting at 10–15%). A well-managed 7% gross often translates to a 5% net, which remains very competitive in a relatively moderate interest rate environment.
The main acquisition schemes open to French nationals
Mauritius has built much of its real estate success on schemes dedicated to non-citizens, approved by the EDB. For a French investor, the key is to choose the right legal framework for their project.
Property Development Scheme (PDS)
The PDS is now the main program for acquiring high-end villas and residences in secure complexes, often accompanied by services (concierge, clubhouse, golf, wellness center). It is the successor to the former IRS and RES, which were consolidated under this new more unified label.
To qualify for a residence permit through investment, the minimum threshold is set at approximately 375,000 US dollars. Above this threshold, the buyer, their spouse, and dependent children obtain a residence permit valid as long as the property is held. In practice, many PDS projects are positioned around $500,000 and above for properties suited to an international clientele.
This scheme is particularly suitable for French nationals who desire a luxury residence, a secure environment, the possibility of living there full-time or part-time, while generating rental income during their absence.
Integrated Resort Scheme (IRS) and Real Estate Scheme (RES)
These former schemes, now absorbed by the PDS for new projects, continue to exist for older developments. The IRS generally concerns large tourist complexes integrating golf, hotels, marinas, shops, with a high price level (often above $500,000). The RES targeted smaller-scale programs.
For a French investor, the appeal of these schemes is similar to that of the PDS: access to a high-end residence, the possibility of obtaining a residence permit above $375,000, and integration into highly structured, sometimes almost hotel-like environments.
Smart City Scheme
Smart Cities are integrated projects mixing housing, offices, shops, schools, leisure, and “green” technologies. The minimum investment for certain products like apartments can start around 6 million rupees (about $130–150,000) under the Ground +2 formula. However, not all Smart City products grant access to an automatic residence permit.
Good to know:
This scheme is aimed at investors betting on the rise of urban hubs like Moka, Beau Plan, Cap Tamarin, or Mon Trésor, seeking a balance between use and yield. These projects incorporate eco-friendly and ‘smart home’ trends, highly demanded by international clientele.
Ground +2 (G+2)
The Ground +2 scheme allows foreigners to buy apartments as freehold properties in buildings of at least two floors, for a minimum amount generally around 6 million rupees. This formula is interesting for more modest tickets, especially for buy-to-let investments or smaller second homes.
It does not automatically grant a permanent residence permit, but can generate a temporary right of stay above certain thresholds. For a French national looking to build a rental property portfolio in Mauritius without necessarily living there year-round, G+2 offers a more accessible entry point.
Other possibilities and special cases
Foreign investors can also purchase through companies, trusts, or wealth management structures, subject to required approvals. Additionally, a recent category allows certain foreign residents (holders of a residence or occupation permit) to acquire a single property outside the schemes with a minimum ticket of $500,000 and an additional tax of 10%, but this route does not allow renting or speculation: it is for personal residence only.
Purchase process, financing, and legal security
For a French national, the Mauritian legal environment is relatively familiar. Real estate law is largely based on a Napoleonic-style Civil Code, the language of notarial deeds is French, and the structure of transactions resembles what is practiced in mainland France.
Attention:
The purchase proceeds in several stages: signing a reservation contract with a deposit of 10% to 25%, then submitting the complete file to the competent authorities (EDB or Prime Minister’s Office) including the promise of sale, identity documents, source of funds, plot plan, and valuation.
Once the authorization is granted, the final deed of sale is signed before a Mauritian notary, who ensures compliance, registers it with the Registrar General, and records it in the land registry. In case of an off-plan purchase (VEFA), the developer must provide a completion guarantee issued by a local bank, securing the delivery of the property according to contractual specifications.
30 to 40
Mauritian banks typically require a personal contribution of 30% to 40% of the total amount to finance non-residents.
A French national can also seek financing in France, secured against a property held in mainland France or via a lombard loan on a financial portfolio. This structure avoids currency risk, but not all French banks are willing to finance an asset located outside the European Union. The “cash” option remains the simplest administratively, especially for profiles with high liquidity capacity.
The structuring role of tourism and the Mauritian economy
One cannot understand the real estate prospects of Mauritius without looking at tourism and macroeconomics. On both fronts, the island remains well-oriented despite a volatile global context.
In 2024, the country welcomed approximately 1.38 million visitors, a level slightly below the 2019 peak but strongly recovering post-Covid. In 2025, arrivals reached 1.436 million, exceeding the government target, with December up 5% year-on-year. Early 2026, the trend remains positive: over 125,000 visitors in January, up +7.7% compared to January 2025.
1.48 million
Number of tourists expected in 2026 according to projections.
Simultaneously, Mauritius is betting on a tourism development plan 2025–2029 focused on sustainability: green certifications, public-private partnerships, investment in renewable energy and “smart tourism” technologies. This orientation reinforces the appeal of real estate projects that already integrate solar panels, green building standards, home automation systems, and efficient water and waste management.
8.9
GDP growth reached 8.9% in 2022 after a spectacular rebound.
In this context, high-end residential real estate appears as a natural extension of the tourism dynamic and the service economy. As long as Mauritius remains attractive for travelers, retirees, remote workers, and mobile executives, demand for quality housing, both for rent and for purchase, should remain strong.
2026: a phase of quality sorting, not an end of cycle
Ultimately, what should a French person considering investing in Mauritius in 2026 take away?
The first point is that the “everything rises very fast” cycle is coming to an end. Authorities have become aware of the growing gap between price increases and local incomes, alerted by the central bank which mentions an accessibility risk rather than a systemic risk. The increases in registration and transfer duties from July 2026, the end of certain tax advantages for Smart Cities, and the tightening of supervision rules all fit into this desire to cool things down.
Good to know:
The cooling is a soft landing thanks to still-strong foreign demand, growing land scarcity (limited conversion of sugar cane land, pressure on the coastline, strict environmental regulations), and solid macroeconomic fundamentals. The supply/demand balance remains tight in most segments, preventing a generalized price drop.
The third point is that the market is becoming more demanding. Poorly located, overpriced, poorly built, or unsustainable properties will have a harder time being resold or rented. Conversely, well-located assets (north and west in particular), technically flawless, with a clear concept (eco-friendly, “smart,” remote-work oriented, hotel services, etc.) should continue to grow in value, but at a more normalized pace.
Tip:
For a French investor, this new phase can represent an opportunity by moving away from pure speculative reflexes and favoring a wealth-building approach: buying a property that makes sense, both for personal use (retirement, second home, remote work) and for balanced rental income, in a tax and legal environment that remains very favorable.
In summary, investing in real estate in Mauritius in 2026 is not a bet on a new market “coup,” but a medium-to-long-term strategy in a stable, well-managed country resolutely focused on services and premium tourism. Provided you choose the right zone, the right legal scheme, and a solid project, the combination of rental yield, potential capital appreciation, and tax optimization remains hard to beat for a French investor.
A wealth project or a question? Contact us now to speak with a wealth management expert.
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.
