New Rules for Investing in Property in Mauritius as a Foreigner

Mauritius has long been one of the most compelling destinations for foreign property investment — a stable economy, a favourable tax environment, no capital gains tax, and a lifestyle that blends Indian Ocean beauty with world-class infrastructure. But the rules governing how non-citizens can buy property here have evolved considerably in recent years, and staying informed is essential before you commit to a purchase.

Whether you're a British retiree dreaming of a villa overlooking the turquoise lagoon at Grand Baie, or a European investor seeking a solid asset in a growing market, here's what you need to know about the current framework for foreign property ownership in Mauritius.

The Schemes That Allow Foreigners to Buy

Foreigners cannot simply purchase any property on the island — ownership is permitted only through specific government-approved investment schemes. The two primary routes are the **Property Development Scheme (PDS)** and the **Smart City Scheme (SCS)**.

The **PDS** replaced the older IRS and RES schemes and consolidates luxury residential development under a single framework. It covers high-end villas, apartments, and penthouses developed on plots of at least one arpent (approximately 0.42 hectares). These properties are built by approved developers and must meet strict quality and amenity standards — think private beach access, golf courses, spas, and concierge services.

The **Smart City Scheme** focuses on integrated, mixed-use developments that combine residential, commercial, and leisure spaces. Projects like Moka Smart City and Beau Plan have transformed how people live and work in Mauritius, attracting both families and entrepreneurs who want more than a holiday home.

A third option, the **Ground +2 Apartment Scheme (G+2)**, now allows foreigners to purchase apartments in buildings of at least two upper floors — significantly expanding access to more affordable property at a minimum purchase price of **MUR 6 million** (approximately £105,000). This has opened the market to a broader range of buyers beyond the ultra-high-net-worth segment.

The Residency Perk: A Key Change Worth Knowing

One of the most attractive — and often misunderstood — aspects of investing in Mauritian property is the pathway to **residency**. Foreigners who purchase a qualifying property under the PDS or Smart City Scheme for a minimum of **USD 375,000** automatically become eligible to apply for a **Permanent Residence Permit (PRP)**.

This is a significant benefit: the PRP grants the right to live, work, and retire in Mauritius indefinitely, and can be extended to a spouse and dependants. For British expats navigating post-Brexit mobility restrictions, this offers a compelling and legally straightforward route to establishing a new home base within a Commonwealth nation.

Recent Regulatory Updates to Be Aware Of

The Mauritian government has been actively refining its investment landscape to attract quality foreign investment while maintaining market integrity. Key updates include:

- **Stricter due diligence requirements**: The Economic Development Board (EDB) now applies enhanced Anti-Money Laundering (AML) checks on all foreign property purchases. Buyers should be prepared to provide comprehensive documentation on the source of funds. - **Revised minimum investment thresholds**: The USD 375,000 minimum for residency eligibility has been firmly cemented, replacing earlier thresholds and removing ambiguity around currency fluctuation clauses. - **Digital application processes**: The EDB has moved much of its approval process online, streamlining timeframes for scheme authorisations — a welcome improvement for buyers managing transactions from abroad. - **Notarised deed requirements**: All property transactions must be executed before a Mauritian notary, and foreign buyers are strongly advised to engage a local lawyer familiar with EDB regulations alongside their notary.

What About Taxes and Fees?

Mauritius remains exceptionally tax-friendly. There is **no capital gains tax**, **no inheritance tax**, and **no wealth tax**. Rental income is subject to income tax at a flat rate of **15%**, which remains low by international standards. Buyers should budget for registration duties of approximately **5%** of the purchase price, along with notary fees.

For those purchasing through a company structure, Mauritius's extensive network of **Double Taxation Avoidance Agreements (DTAAs)** — including with the UK — can provide further efficiencies, though specialist tax advice is essential.

Choosing the Right Location

Beyond the legal framework, location remains everything. The **north coast** — particularly Grand Baie and Pereybere — attracts buyers who want vibrant dining, water sports, and easy access to Sir Seewoosagur Ramgoolam International Airport. The **west coast**, from Tamarin to Black River, draws surfers, families, and those seeking a more laid-back pace. The **east coast**, with its calm lagoons and prestigious resort communities, remains a favourite among ultra-luxury buyers.

Each region offers a distinct lifestyle, and understanding which suits your vision is just as important as understanding the legal mechanics of purchase.

Ready to Explore Your Options?

Navigating foreign property investment in Mauritius is entirely achievable — but the details matter. Working with the right partners from the outset will save you time, money, and stress.

**Browse our curated selection of approved properties at PropertyFinder Mauritius** — from beachfront villas in the north to smart city apartments in the highlands. Our team is here to guide you through every step, from your first search to the day you receive your keys.