Real Estate: Mauritius vs. Neighboring Countries – A Buyer’s Comparison

Published on October 22, 2025 and written by Cyril Jarnias

In a world where real estate investment has become an essential strategy for diversifying assets, Mauritius stands out as a prime destination, often compared to its Indian Ocean neighbors.

Between attractive tax benefits, idyllic living conditions, and Mauritius’s developed infrastructure, it’s essential to understand what makes it captivating compared to opportunities offered by neighboring countries.

This article explores in detail the specifics of the Mauritian real estate market against its regional competitors, highlighting the key differences and offering an informed perspective for those looking to invest wisely in these paradise regions.

Mauritius and Its Neighbors: A Real Estate Comparison

Destination	Average Price per m² (Residential)	Available Property Types	Access for Non-Residents	Potential Return	Quality of Life, Infrastructure, and Access
Mauritius	€2,500 to €8,000 (depending on location and project, premium villas up to €10k/m²)	Apartments, single-family homes, RES/IRS/PDS villas, building plots	Specific programs for foreigners (RES, IRS, PDS), purchase possible with minimum investment; full ownership possible in some cases	Dynamic market but high prices; decent rental returns in tourist or high-end sectors	Very good quality of life; modern infrastructure (recognized private healthcare), international schools; direct air connectivity to Europe/Africa/Asia
Seychelles	€2,500 to €3,500 on average for an apartment in Anse Royale; single-family homes more expensive depending on location	Rare apartments outside hotel projects or high-end residences, mainly villas on Mahé/Praslin/La Digue; limited plots	Strong restrictions: acquisition through state-approved programs or via local companies; complex and selective process	Limited opportunities due to land scarcity and high-end tourist demand	Exceptional natural beauty but limited infrastructure compared to Mauritius/Réunion; less frequent air access
Madagascar	About three times cheaper than mainland France (prices vary widely by city/neighborhood)	Spacious villas in main city Antananarivo, simple/modest urban apartments; numerous plots	Non-residents cannot buy directly: must go through a local company or long-term leasehold	High theoretical yield (>12%), especially in office/commercial or urban residential rental	Insufficient infrastructure in many places outside the capital; attractive natural setting but security/networks need improvement
Réunion	Average around €3,000–€4,000/m² depending on urban/coastal area	Creole single-family homes/recent subdivisions/urban apartments/beach villas popular with French investors	Non-EU residents can buy without major restrictions	Moderate market stability: steady growth without speculative surge	Excellent French tropical quality of life: efficient hospitals/French-language schooling/European infrastructure/international airport

Main Differences Between Real Estate Markets

Price per Square Meter

Prices are generally highest in Mauritius and Seychelles for premium residential. Madagascar shows the lowest rates but with a marked gap in infrastructure.

Types of Offerings

Mauritius offers the widest range thanks to IRS/RES/PDS schemes. Seychelles favors exclusive luxury. Réunion remains classic in its residential offerings while Madagascar stands out with its affordable large spaces.

Regulations for Non-Residents

Mauritius facilitates purchase under conditions. Seychelles imposes strict restrictions except for targeted exceptions. In Madagascar, direct purchase is prohibited for foreigners, while in Réunion there are almost no barriers for European nationals.

Expected Return

Madagascar promises the best gross return due to low initial cost but exposes more to political/safety risks. Mauritius attracts a stable international clientele despite sustained prices, resulting in moderate yield except for strategic rental/touristic positioning.

Overall Attractiveness

Mauritius combines attractive taxation/modern infrastructure/administrative ease that appeal to both expatriates and long-term investors.
Seychelles targets an ultra-premium segment seeking rarity/luxury/preserved environment.
Madagascar mainly attracts based on cost/space/potential return—but requires increased vigilance.
Réunion guarantees stability/European jurisdiction/efficient public services/French-speaking tropical environment.

Visual Summary

Mauritius stands out as the ideal compromise between legal accessibility/administrative ease/diversified offerings/secure investment, while each neighbor responds more to a specific niche: Seychellois ultra-luxury vs. Malagasy gross return vs. secure Réunion family setting.

Tax Advantages of Mauritius Compared to Its Neighbors

Country	Tax Rate on Property Income	Capital Gains Tax	Main Tax Incentives for Foreign Investors	Bilateral Tax Treaties	Overall Annual Tax Burden (Real Estate Investor)
Mauritius	Flat 15%	None	Residence permit via investment, partial exemption, no wealth tax or real estate wealth tax, no inheritance tax; access to certain labeled IRS/RES/SCS/PDS projects to obtain residence	Extensive network (over 40 countries); avoids double taxation and facilitates fund repatriation	Low: single rate, no tax on capital gains and real estate transfer
South Africa	Progressive up to 45%	Up to 18%	Few specific incentives for foreigners; worldwide taxation	Yes, but less favorable	High: high taxation of rental income and capital gains
Seychelles	Approx. 15-33% depending on status	Up to 27%, various possible indirect taxes	Resident status by investment but high cost		Medium to high: rental taxation higher than Mauritius
Madagascar	Variable depending on resident/non-resident status	Taxable capital gain	Limited incentives; complex administrative procedures	Less developed	Variable: charges often unpredictable

Tax Rates in Mauritius

• Single flat tax of 15% applied to income from properties held by residents and non-residents alike.
• No tax on capital gains when reselling the property.
• Complete absence of classic annual property tax or additional local tax.

Specific Tax Incentives

• Possibility to obtain a residence permit with an investment in a labeled IRS/RES/SCS/PDS project meeting the regulatory minimum threshold.
• No inheritance tax or real estate wealth tax.
• Complete absence or strong reduction of taxes when legally repatriating funds from either rents or upon sale.

Bilateral Tax Treaties

Mauritius has signed over forty treaties aimed at avoiding double taxation. This allows:

• Avoiding a foreign investor paying tax twice (in their country and on the island).
• Facilitating secure transfer of received rents as well as proceeds from a sale to the main residential country.

Synthetic Comparison with Regional Neighbors

Key takeaway:

Mauritius combines a low single rate, complete absence of taxation on capital gains, and a broad international treaty network. The overall result is generally a lower annual tax burden for a foreign real estate investor compared to neighboring jurisdictions where high progressive taxation, systematic capital gains taxation, and fewer treaty benefits accumulate.

Savings are particularly significant at the level of:

• Net rental income after taxes
• Complete or near-complete absence of levies in case of resale
• Administrative ease linked to clear tax status

For any international investor seeking legal/fiscal stability and wealth optimization in the Indian Ocean, the Mauritian advantage therefore remains marked.

Taxation: Mauritius in Comparison with Neighboring Countries

Country	Income Tax (Individuals)	Corporate Tax	Real Estate Capital Gains Tax	Specific Real Estate Taxes
Mauritius	15% (progressive up to 20% beyond a certain threshold)	15% standard, 5% solidarity levy > Rs 24M profits/year	No tax except special conditions (10% in case of quick resale or under certain schemes)	No property tax or residence tax; VAT refundable for some new purchases; registration duties generally at 5%
South Africa	Progressive up to ~45%	Approx. 27%	Yes, between 7.5% and more depending on duration and amount	Progressive transfer duties, annual property tax, other local taxes
Seychelles	Progressive up to ~30-33%	Around 25-33%	Yes, variable rates	High registration duties (~6%), annual property tax
Madagascar	Progressive up to ~20-23%	Approx. 20-23%	Yes	Registration duties (2 to 6%), local property tax

Main Tax Advantages in Mauritius:

• Single or low rate for income and corporate taxes.
• Near-total absence of real estate capital gains taxation outside particular situations.
• No annual taxes like property/residence tax.
• Several treaties against double taxation with dozens of major partner countries.
• Attractive schemes for non-residents: investor permit allowing tax residence under simple conditions.

Detailed Comparison of Tax Incentives

Mauritius

• Stable and predictable tax regime: linear tax from the first euro earned then slight progressivity beyond Rs24M/year
• Total or partial exemption possible through treaty mechanisms if foreign tax residence
• Special programs (IRS/PDS/RES/Smart City Scheme…) open to foreigners with full rights attached to the property
• Partial VAT refund possible when buying new from approved developer before mid-2025

South Africa

• Heavy taxation at top of scale + extended capital gains taxation
• Significant local taxes that can heavily impact gross profitability

Seychelles

• High overall taxation for residents and non-residents alike
• Substantial fees during real estate transfers
• Few or no effective bilateral agreements against double taxation

Madagascar

• Moderate taxation but less transparent administration
• Less structured and secure for international investment
• Relatively high weight of local ancillary fees

Tax Impact on Real Estate Appeal

The near-total absence of recurring taxes along with moderate taxation are two major assets that place Mauritius well ahead of its regional neighbors. Investors benefit from:

• Better long-term financial visibility,
• Reduced fees both during acquisition and holding,
• Increased security thanks to international agreements.

In comparison:

• South Africa offers a vast market but is fiscally dissuasive in case of high appreciation,
• Seychelles remains expensive both to buy and hold,
• Madagascar is accessible but less secure legally/fiscally.

Summary – Impact on Final Choice

Mauritian taxation constitutes a decisive argument in an international wealth strategy: it allows legal optimization while benefiting from a stable framework. This differential explains why many investors primarily choose the island over neighboring markets despite sometimes a higher average ticket.