What are the acquisition rules for foreigners?

The acquisition of a real estate property in Mauritius by a foreign national is governed by three legal schemes: the PDS (Property Development Scheme), the RES (Real Estate Scheme) and the IRS (Integrated Resort Scheme).

Through these three schemes, the Mauritian government aim to attract foreigners' investors in various economic sectors including the real estate. They have access to luxury real estate properties, made up of high-end infrastructures and equipment. However, each scheme corresponds to particular conditions and specificities.

The Property Development Scheme (PDS) description

The Property Development Scheme (PDS), replacing the RES and IRS, allows the construction of a set of real estate projects for sale to non-citizens, citizens and the Mauritian diaspora.

PDS includes the following elements:

  • The development of luxury residential units on freehold land of at least 0.4220 hectares (1 acre).
  • The development of at least 6 high-end residential properties.
  • High quality public spaces leading to more social interactions.
  • Commercial facilities and high-quality leisure and equipment to improve residential units.
  • Daily management services for residents, including security, maintenance, gardening, solid waste disposal and domestic services.
  • A social Contribution in terms of social infrastructures, community development and other settings for the benefit of the community.

A non-citizen is eligible for a residence permit following the purchase a property within the PDS Scheme, when he or she has invested more than US$375,000 or the equivalent in freely convertible foreign currency.

PDS is different from IRS and RES as it does not pay attention to the distinction between ''small'' and ''big'' landowners and harmonizes the registration tax at a single rate of 5% instead of USD 70,000 for the registration of a deed under IRS and USD 25,000 under RES.

What are the possibilities as foreigners to buy a waterfront villa?

Only the Mauritian citizens are allowed to buy on waterfront lands which are leased to the state. The properties sold in RES and IRS/PDS are on freehold land.

Can a Mauritian buy an RES? If so, what is his or her interest?

Yes, the advantage is the possibility to resell your property to a foreigner, including the currency of his choice.

What are the different residence permits?

The permanent residency permit allows a non-citizen to work and live in Mauritius for 10 years. The following categories are eligible for the permanent residency permit.

Owner of the occupation permit:

Investor: The global turnover should exceed MUR 45 million for the 3 years period preceding the demand.

Professional: the monthly basic salary is at least of MUR 150,000 during 3 consecutive years preceding immediately the demand.

Independent: the demander's revenue is at least of MUR 3 million per year during 3 consecutive years preceding immediately the demand.

Foreign Investor:

A foreign citizen who invested a minimum of USD 375,000 in an eligible activity is also eligible for the 10 years resident permit.

Food-industry, audio-visual, cinema and communication, banking sector, construction, education, products related to green and ecological energies, financial services, fishing and marine resources, port activities, information technologies, infrastructures, insurances, leisure, manufacturing, marinas development, tourism and storage.

Retired non-citizen:

A retired non-citizen who has held a resident permit for 3 years and has transferred a total of at least USD 54,000 on his account in a local bank during the 3 years preceding immediately the demand.

Which sales contracts are used? And what are their advantages?

The sale of real estate in the future state of completion in Mauritius as in France, based on plans and descriptive and graphic documents, is obligatorily received by a notary and is subject to very strict specific regulations planned by articles 1601 and following of the Mauritian Civil Code. Here are the essential steps of the VEFA:

  • The reservation contract and the payment of the security deposit
  • The deed of sale at the notary and the staggered payment of the price.
  • The acceptance of works and the delivery of the property,
  • The guarantees of completion, reimbursements and guarantees related to the construction.
Which are the guarantees for the purchaser?

Texts from the Mauritian Civil Code plan that the promoter must obligatorily provide either a completion guarantee, or a reimbursement guarantee by a financial establishment of the amounts already paid by the purchaser. The completion guarantees of the building results from the existence of conditions specific to the operation or better from the intervention of a bank committing itself to finish the operation in case of failure of the promoter. The decennial guarantee benefits the purchaser as from the reception of the building and concerns the important defects affecting the solidity of the building. A damage to work insurance allows the immediate assumption of responsibility for the cost of repairs, without any search for liability.

Another advantage of the VEFA is the Financial Guarantee of Completion (FGC). Indeed, the promoter must take out an FGC which gives the certainty to the buyers that in case of default on his part, the completion of the real estate project is guaranteed by a financial or banking institution. The buyer is thus reassured that his property will be completed and delivered in accordance with the sales contract.

What is the registration tax?

It corresponds to the recording rights. It is a tax that is returned to the Mauritian government to record the deed of sale payable only once at the time of purchase and resale.

Mauritius has a system of acts under which the notary has the legal obligation to write the property deed et to assure that the property is free of all charges and that all documents are in good standing. The purchaser is free to choose the notary of his choice.

Taxes and applicable rights (Mauritian buyers and foreigners):

Recording Rights payable by the purchaser 5% of the transaction's value
Real Estate Transfer Rights payable by the seller 5% of the transaction's value
Notary Fees Scalable up to 2% (max) of the
transaction's value
Is there a minimal time to wait before reselling?


Are there taxes on the added value?


What are the laws regarding succession?

In case of decease, the property will revert directly to the direct heirs and the spouse automatically has the right of use.

Moreover, there are no succession rights in Mauritius, however, if the heirs are French fiscal residents, they will have to pay the succession rights valid in their residency country.

What are the tax benefits?

No inheritance tax, no dividend tax. No wealth taxes. There is no housing tax, nor property tax.

Moreover, income is taxed at 15%* (up to a certain threshold). Buying the property through a company incorporated in Mauritius allows to deduct its expenses from the rental income for the calculation of the taxation.