Mauritius attracts foreign investors.
If your project is part of a larger installation, the Homepage dedicated to expatriation in Mauritius assistance in linking property purchase, visas, and logistics. In the premium segment, Knight Frank's Mauritius study highlights sustained demand from foreign buyers and an average annual price increase of 10.6% since 2019 in this segment.knightfrank.com)
In practice, the island combines a regulated framework, transparent taxation, and specific purchasing schemes. This three-pronged approach is what makes all the difference compared to a classic "open" residential market.
Why is Mauritius so attractive to property buyers?
The first advantage is the market structure. The EDB presents Mauritius as an investment hub organized around approved schemes, with a regulated entry point for non-citizens rather than a completely free market. (edbmauritius.org)
This approach reassures investors who want to buy to live in, rent out, or secure residency status. It also implies stricter documentation requirements than elsewhere: prior authorization, source of funds, project compliance, and intended use of the property must be verified before signing. (dha.govmu.org)
Which programs allow foreigners to purchase property?
The general framework remains that of the Non-Citizens (Property Restriction) Act : authorization from the Prime Minister's Office is required to purchase property, hold certain interests or lease for more than 20 years, with specific exceptions. The official framework of the PRA It also details the required documents, including a site plan, a property valuation, and the source of funding. (dha.govmu.org)
On the ground, the EDB information center summarizes the most frequently used pathways for foreigners: PDS, IRS/RES, Smart City, G+2, TOS, and residential acquisition starting at USD 500,000. The EDB has also shifted some applications to PAMS since 2025. (edbmauritius.org)
Comparative table of the main schemes for foreigners
| Program | Access for a foreigner | Practical guide | Quick read |
|---|---|---|---|
| PDS | Yes, in an approved project. | The EDB describes a program of high-end residences, with at least six units and management services. | Often the most transparent option for a heritage residential purchase. (edbmauritius.org) |
| IRS / RES | Yes, through approved projects. | The immigration page maintains a threshold of USD 500,000 for residency via PDS, IRS or RES. | Suitable for high-end properties within an already structured framework.dha.govmu.org) |
| G+2 | Yes, with prior authorization. | The minimum price shown is MUR 6 million for an apartment in a building with at least two stories above ground. | Interesting for a more standardized apartment that's easier to rent.migration.govmu.org) |
| Smart City / TOS | Yes, but through structured projects. | The TOS oversees mixed developments around metro/rail stations, and some applications now go through PAMS. | Suitable for an investor seeking a new, connected, and mixed-use neighborhood. (edbmauritius.org) |
| Residential purchase starting from USD 500,000 | Yes, but the status needs to be verified. | The EDB still displays it on its public pages, even though the 2025-2026 budget announced the future elimination of the system introduced in 2023. | Never sign without legal validation of the applicable version. (edbmauritius.org) |
Key point: Two official thresholds coexist on public websites. The EDB still lists residency eligibility starting at USD 375,000 for a PDS villa, while the immigration website uses USD 500,000 for PDS/IRS/RES. Furthermore, the 2025-2026 budget announced the future elimination of the acquisition scheme for properties exceeding USD 500,000, introduced in 2023. Therefore, it is essential to verify the version applicable to the specific project before signing any documents. (edbmauritius.org)
What rental yields can be expected?
The gross yield is calculated simply: annual rent / purchase price × 100. In Mauritius, the rental yield barometer The report places the gross average at 3.22 % in Q1 2026, compared to 3.07 % in Q3 2025. A market guide cited by Global Property Guide also suggests, as an indication, 3 to 5 % for long-term rentals and 5 to 9 % for short-term rentals, before costs. (globalpropertyguide.com)
In practice, this means that a Mauritian purchase is often considered along two lines: moderate rental income and long-term wealth accumulation. This is a cautious inference based on observed yield levels, not a performance guarantee. (globalpropertyguide.com)
The real difference lies in the micro-location, the quality of the property, the demand from expatriate tenants, property management, and the ability to minimize vacancy rates. A well-located property can significantly outperform the national average, but then you have to consider net yield, not just gross yield.
What taxes should be anticipated?
The first step is to determine your tax residence. The MRA uses the criterion of 183 days in the tax year, or 270 days over the two preceding years; a resident is taxed on their worldwide income, while a non-resident is only taxed on income from Mauritian sources. The MRA's individual scale It also specifies that, since July 1, 2025, personal income tax is 0 % up to Rs 500,000, 10 % on the next bracket, and 20 % beyond that. (mra.mu)
For a rental investment held directly, rental income falls under the rules of income tax, along with expenses permitted by law when the structure and use of the property allow it. If you purchase through a company, the rules change again: the tax authorities apply a standard rate of 15% for most ordinary corporate activities, subject to special regimes. (mra.mu)
Reselling requires particular attention. MRA press release on capital gains It is worth noting that Mauritian legislation does not include capital gains tax on shares and securities, but gains from buying and selling can be considered taxable income. In real estate, this means that a property flipping project should not be treated as a simple capital gain. (mra.mu)
Finally, VAT is 15% on taxable supplies, which may affect certain project-related services. It is therefore necessary to distinguish between the price of the goods, transaction costs, fees, and any applicable operating taxes.mra.mu)
Precautions to take before buying
Regarding logistics and budget, the practical guides to expatriation in Mauritius are a good addition, especially if your purchase is part of a larger move. Then, keep four simple points in mind:
- Verify the exact scheme, as authorization and thresholds vary depending on whether it's PDS, IRS/RES, G+2, or off-scheme acquisition. (dha.govmu.org)
- Verify the consistency between the displayed price, the residency threshold, and the payment currency, especially after the regulatory changes of 2024-2025. (edbmauritius.org)
- Ask for a net return projection, not just a gross one, because management fees, vacancy rates, and maintenance reduce actual income. (globalpropertyguide.com)
- Check the documentation before signing, as the PRA requires a site plan, an assessment, and an indication of the source of funds. (dha.govmu.org)
The right approach is simple: first the plan, then the return, and only then the compromise. In Mauritius, a well-planned purchase is often better than a hasty one.
FAQ about real estate investment in Mauritius
How to invest in real estate in Mauritius and what programs should be supported for foreigners?
The safest method is to start with your actual use: primary residence, rental, or investment property with the intention of remaining a primary residence. For foreigners, the most common schemes remain the PDS, IRS/RES, G+2, Smart City/TOS, and, depending on the circumstances, residential acquisitions exceeding USD 500,000. The official framework often requires prior authorization and document review. In practice, therefore, you must choose the scheme before choosing the property, not the other way around. (dha.govmu.org)
What rental yields can be expected when investing in real estate in Mauritius?
Yields vary considerably depending on the sector and property type. The average gross yield observed in Mauritius is 3.22 % in Q1 2026, according to Global Property Guide, with 3.07 % in Q3 2025. This remains a national average: a good location, good management, and strong rental demand can achieve better results, but the net yield after expenses must be considered. For short-term rentals, some market benchmarks are higher, but operations are more demanding. (globalpropertyguide.com)
What are the tax regimes applicable to foreign investors in real estate in Mauritius?
It all depends on your tax residency and the holding structure. The MRA uses the 183-day rule, or 270 days over two tax years, to determine residency; a resident is taxed on their worldwide income, a non-resident only on their Mauritian income. Since July 1, 2025, personal income tax follows a progressive scale of 0 %, 10 %, and then 20 %. VAT is 15 % on taxable supplies, and ordinary companies are generally taxed at 15 %. (mra.mu)
How to obtain Mauritian residency through a real estate investment in Mauritius?
Two official benchmarks exist, and they must be verified on a case-by-case basis. The EDB indicates that a PDS villa purchased for over USD 375,000 may qualify for a residence permit, while the immigration website uses USD 500,000 for PDS, IRS, and RES. The permit is generally linked to property ownership, according to the public websites consulted. As the thresholds and regulations have changed, it is essential to verify the applicable version just before signing. (edbmauritius.org)
What are the main precautions and risks to be aware of before buying a property in Mauritius?
The main risk is not only financial, but also regulatory. It is essential to verify the required authorization, the scheme's compliance, the source of funds, the intended use, and the stability of the regulations governing the purchase. The 2025-2026 budget, in fact, announced the future elimination of a provision still displayed on some official websites. Finally, it's important to remember that gross yield doesn't tell the whole story: net yield, vacancy rates, and the exit strategy are often crucial. (dha.govmu.org)
And now ?
If you want to transform this framework into a concrete project, start by the full presentation of the support in Mauritius to secure the plan, the net budget and the residence before moving on to the property selection.
