Investment Returns on Property in Mauritius (2025 Guide)

What investment returns can you realistically expect from property in Mauritius?

Mauritius consistently delivers gross rental yields of 4–7% depending on location and property type, with luxury beachfront villas in Grand Baie or Tamarin often sitting at the higher end. Capital appreciation has averaged 3–5% per year over the past decade, and crucially, Mauritius levies no capital gains tax and no inheritance tax — meaning more of your return stays in your pocket.

Which locations produce the strongest yields?

Grand Baie and the North Coast

Grand Baie remains the island's most liquid rental market. Short-term holiday lets through platforms such as Airbnb regularly achieve occupancy rates above 70%, pushing gross yields toward 6–7% for well-managed villas and apartments. The established expat community also supports a robust long-term rental market at premium price points.

Tamarin and the West Coast

The west coast has undergone significant infrastructure investment, and areas like Tamarin and Black River attract both lifestyle buyers and rental investors. Yields here typically range from 5–6.5%, with strong demand from families and corporate relocatees seeking longer leases of 12–24 months.

Grand Gaube and the North-East

Quieter and less developed, Grand Gaube and Roches Noires offer lower entry prices and emerging capital growth potential. Early-stage investors accepting slightly lower initial yields of 4–5% are positioning for above-average appreciation as infrastructure catches up.

Moka and the Central Plateau

Moka's smart-city developments appeal to professionals working in the financial services and tech sectors. Long-term rentals dominate, delivering stable yields of around 4.5–5.5% with minimal vacancy risk and lower management overhead than holiday lets.

How does the PDS scheme affect investment returns?

Foreign nationals can purchase property in Mauritius through the Property Development Scheme (PDS), which replaced the former IRS and RES frameworks. A minimum purchase price of USD 375,000 qualifies the buyer — and their dependants — for Mauritian residency, a significant non-financial return that many investors factor into their decision. PDS properties are purpose-built within integrated resorts and often include managed rental pools, giving overseas investors a hands-off income stream with professional oversight.

What are the tax advantages for property investors?

• No capital gains tax on the sale of property.
• No inheritance tax, making Mauritius attractive for estate planning.
• Flat income tax rate of 15% on rental income, with deductions available for allowable expenses.
• A wide network of double taxation agreements (DTAs) — including with France, the UK, India, and South Africa — can reduce withholding obligations on repatriated income.
• No restrictions on repatriation of rental income or sale proceeds for foreign investors.

What are the key costs that reduce net returns?

Investors should budget for the following to calculate realistic net yields:

• Property management fees: typically 10–15% of rental income for short-term lets, 5–8% for long-term.
• Registration duty: 5% of purchase price for buyers (some PDS schemes vary — confirm with your notary).
• Notary and legal fees: approximately 1–2% of purchase price.
• Maintenance and service charges: resort properties carry annual levies of USD 3,000–10,000+ depending on facilities.

After accounting for these costs, net yields of 3.5–5% are achievable for well-located, well-managed properties — competitive with many European markets, and delivered in a politically stable, low-crime jurisdiction with a strong rule of law.

Is now a good time to invest?

Post-pandemic tourism recovery has been robust, with Mauritius recording record visitor arrivals in 2023 and 2024. Demand from South African, French, and Indian buyers remains strong, supply of PDS-eligible land is finite, and the government continues to refine residency-by-investment pathways. These structural factors support both rental demand and long-term price growth. Waiting rarely rewards investors in a market with constrained supply and rising international interest.

Get in touch

Ready to explore investment opportunities in Mauritius? Contact the PropertyFinder Mauritius team via our contact page to arrange viewings or get personalised advice on maximising your returns. You can also browse our full range of available properties at property for sale in Mauritius and find the opportunity that fits your investment goals.