Buying Property in Mauritius for Foreigners in 2026

The rules changed. Twice, actually, and both times in the wrong direction for foreign buyers.

First, the off-scheme purchase route – which allowed non-citizens holding a residence permit to buy one property outside the approved frameworks – was permanently removed. Second, the transaction taxes on foreign purchases are doubling from July 2026. If you are thinking about Mauritius property in 2026, you need to know what the new landscape looks like.

What foreigners can and cannot buy, how the approved schemes actually differ, what the Finance Act 2025 changed, and how the purchase process works from offer to registration – all covered below. For the broader investment context, see the investing in Mauritius guide. For areas, rental yields, and what to look for in a property, see the real estate guide. For the tax implications of living here, see the tax guide and the expat tax guide. Retirees should also look at the PDS Senior Living scheme, which has different rules and a 5-year tax holiday.

Approved schemes only – no exceptions

Foreign nationals can only acquire residential property in Mauritius through government-approved frameworks. This was always the general rule, but a December 2023 regulation had created a narrow exception: non-citizens holding a residence permit could buy one property outside the approved schemes, provided it was valued at USD 500,000 or more and had sign-off from the Prime Minister’s Office.

The Finance Act 2025 permanently closed that route. As of July 2025, the approved frameworks are the only legal path for foreign residential property ownership. They are:

• Property Development Scheme (PDS) – the main current scheme for new developments
• Integrated Resort Scheme (IRS) – legacy scheme, resale market only
• Real Estate Scheme (RES) – legacy scheme, resale market only
• Smart City Scheme (SCS) – mixed-use urban developments
• Invest Hotel Scheme (IHS) – hotel units with rental income
• Ground+2 (R+2) apartments – buildings of at least two floors above ground, priced at MUR 6 million or above

Foreigners can also buy commercial buildings and serviced land within approved schemes, subject to conditions.

What you cannot buy: any residential property outside the above, agricultural land, beachfront property (without special government dispensation), property on State land or the Pas Géométriques, or G+2 apartments situated on State land – a restriction added specifically by the Finance Act 2025.

The schemes in detail

Property Development Scheme (PDS)

The PDS is the standard route for most foreign buyers and covers the widest range of property types – villas, townhouses, apartments, penthouses. A developer gets EDB approval for a mixed residential project, sells units to both Mauritians and non-citizens, and must include a social contribution component benefiting local communities. Properties are freehold.

There is no legal minimum purchase price under the PDS, but in practice the major developers – ENL, Medine, Rogers, Alteo – don’t build cheap. Budget Rs 9,000,000 to Rs 30,000,000+ (~USD 200,000 to USD 650,000+) for a villa, with beachfront and premium properties going well above that.

The threshold that matters for residency is USD 375,000. Invest that or more and you qualify for a permanent residence permit covering yourself, your spouse, and dependants under 24, valid for as long as you hold the property. Below USD 375,000 you own the property but have no automatic right to live in Mauritius on the back of it.

Serviced land is also available within PDS projects – plots of up to 0.5276 hectares (1.25 arpents) for a minimum of USD 350,000. The catch: you must construct a residence within five years, and the residence permit is only granted once construction is completed, not at the time of purchase.

Fractional ownership works: if two or more co-investors each put in USD 375,000 or more, each independently qualifies for permanent residence. This has been the case since 2022 and opens up a co-investment structure for buyers who want to share a property.

IRS and RES – resale market

The Integrated Resort Scheme (IRS) was the original luxury programme, designed for resort-style developments of 10 hectares or more – golf courses, marinas, beach clubs. The Real Estate Scheme (RES) was a smaller-scale alternative. No new projects are being launched under either scheme, but the resale market is active and properties within existing IRS and RES developments can be bought and sold.

IRS properties tend to be at the premium end – large villas in gated resort communities with full amenity packages. If you are looking at a resale, check when it was built, the condition of shared infrastructure, and what the annual management fees actually look like now versus when the development launched. Fees have a habit of drifting upward. Some IRS developments quote management costs that looked reasonable in 2008 and are eye-watering now.

The same USD 375,000 threshold applies for permanent residence as under PDS.

Smart City Scheme

Smart Cities are large mixed-use developments designed to combine residential, commercial, retail, and leisure in one integrated zone. The concept is reasonable – live and work in the same development without having to drive across the island. The main examples are Moka Smart City (ENL, the most mature), Cap Tamarin on the west coast, and Mon Trésor near the airport.

The residency threshold is USD 375,000, the same as PDS. But the Finance Act 2025 made a notable change to the fiscal framework for new Smart City projects that affects how you should evaluate them.

For projects where a letter of comfort was issued before 5 June 2025, all existing incentives are grandfathered – including 8-year income tax holidays and exemptions from registration duty and land transfer tax for developers. Those developments retain their original structure.

For projects with letters of comfort issued on or after 5 June 2025, the following have been removed: VAT exemption on infrastructure, the 8-year income tax holiday, customs duty exemptions on construction materials and equipment, and exemptions from registration fees and land transfer tax. New Smart City developers must also pay a Smart City Fee equivalent to the subdivision fee under the Morcellement Act, and must meet new sustainability standards.

This matters for buyers because developer incentives affect pricing and project economics. A Smart City development with grandfathered incentives may offer better value or more amenity budget than a newer one built under the tighter framework. Ask specifically which letter of comfort date applies to any development you’re looking at, and get it in writing.

Invest Hotel Scheme (IHS)

The IHS lets foreigners buy a unit within a hotel and receive rental income from the hotel’s operations, while retaining personal use rights of up to 45 days in any 12-month period. The minimum USD 375,000 investment qualifies for permanent residence.

It’s suited to investors who want a Mauritius foothold with passive income and occasional use, rather than a primary or secondary residence. The rental returns depend heavily on the hotel’s occupancy and management quality – do your due diligence on the operator, not just the property itself.

Ground+2 (R+2) apartments

The entry-level route. Foreigners can buy apartments in buildings of at least two storeys above ground floor, with a minimum price of MUR 6 million (approximately USD 130,000 – 140,000 at current rates). No EDB scheme approval is required for the development itself.

Two things to note. First, this does not qualify for permanent residence on its own unless the investment reaches USD 375,000. Second, the Finance Act 2025 added a restriction: R+2 apartments on State land or the Pas Géométriques are no longer available to foreign buyers.

R+2 purchases are primarily an investment play – rental income from expat professionals, students, or short-term visitors. Demand is solid in Grand Baie, Pereybere, and Moka. Quality varies considerably between buildings, so inspect thoroughly before signing anything.

The transaction tax increase – what it means in practice

This is the most financially notable change for buyers in 2026 and has a clear deadline.

Until 30 June 2026, non-citizens pay 5% registration duty on purchase and 5% land transfer tax on future resale. From 1 July 2026, both rates double to 10%. The new rates apply to deeds registered on or after that date – not the date the agreement is signed. A reservation agreement or promise of sale signed before July 2026 does not lock in the current rates if the final deed is registered after the deadline.

The numbers:

One additional detail: if a deed covers both the property and movable items (furniture, fittings) and the movable value is not specified separately, the 10% rate applies to the total. Make sure your deed breaks out the furniture and fixture value explicitly.

There is some uncertainty about whether the July 2026 rate will be confirmed or modified in the next budget cycle. Monitor the 2026 – 2027 budget closely if your timeline is flexible.

What was proposed but not implemented

Two things were discussed but did not make it into the Finance Act 2025:

Capital gains tax – mentioned in the Budget Speech but not enacted. Mauritius still has no CGT. Gains from selling property are not taxed.

The “30% of profit” land transfer tax – the Budget Speech proposed that on resale, land transfer tax would be the higher of 10% of the sale price or 30% of the capital gain. This punitive structure was dropped. The flat 10% rate applies instead.

Both of these would have fundamentally changed the investment calculus. That neither was implemented is a meaningful positive signal. Whether they resurface in a future budget is anyone’s guess, but for now the market dodged a bullet.

Payment rules for foreign buyers

The December 2024 amendments introduced specific requirements for how non-citizens must pay for properties under approved schemes:

• 85% of the purchase price must be paid in Mauritian Rupees, converted from foreign currency transferred to Mauritius through an authorised local bank
• 15% can be paid in foreign currency (USD, EUR, or other hard convertible currency) or in Rupees
• All funds must originate from abroad
• For properties above USD 750,000: the first USD 750,000 must be transferred from overseas in hard currency; a local bank loan can be used for the remainder, repayable in hard currency

Local financing is available: Mauritian banks will lend up to 70% of a property’s value to foreign buyers with income generated abroad. The terms vary by bank and by your income profile, but the option exists and is used regularly by buyers who don’t want to deploy the full purchase price upfront.

The buying process, step by step

1. Select a property within an approved scheme

Confirm the scheme type (PDS, SCS, IRS, RES, IHS, or R+2), check EDB approval status, and verify the letter of comfort date for Smart City developments. And a word about agents: they are paid by the developer or seller. They are not working for you, regardless of how helpful they seem. Keep that in mind when they tell you a property is “selling fast.”

2. Sign a Reservation Agreement and pay a deposit

The Contrat de Réservation Préliminaire locks in the property and terms. A deposit is paid into a notary’s escrow account – not directly to the developer. Keep it there until the deed is signed.

3. EDB authorisation

Your notary submits an application to the EDB with your passport copies, KYC documentation, and proof of funds. Processing typically takes a few weeks. The EDB application fee is MUR 25,000 (non-refundable).

4. Sign the Deed of Sale (Acte de Vente)

Signed before a Mauritian notary. Notary fees run approximately 1 – 2% of the property value. Use a notary you’ve chosen independently, not one recommended by the developer.

5. Transfer funds and complete payment

Funds are transferred from abroad through an authorised bank, following the 85%/15% split. The notary manages distribution to the developer.

6. Deed registration

The notary registers the deed with the Registrar-General within 8 days of signing. Registration duty (5% until 30 June 2026; 10% from 1 July 2026) is paid at this stage. This is the date that determines which rate applies.

Use the Mauritius tax calculator to estimate your own tax liability.

7. Residency application (if applicable)

If you’ve invested USD 375,000 or more, your notary or a licensed immigration consultant submits the permanent residence permit application to the EDB. You’ll need your passport, proof of investment, and police clearance from your country of origin. Processing typically takes 3 – 6 months.

Full cost summary

What stays in your favour

Despite the tighter framework, the fundamentals that make Mauritius attractive for property investment haven’t changed:

• No capital gains tax
• No inheritance or wealth tax
• No annual property tax on ownership
• No withholding tax on dividends from Mauritian companies
• Free repatriation of capital and profits on sale
• Political stability and a functioning legal system
• Clear, EDB-regulated purchase framework with notarised title
• Permanent residence for investments of USD 375,000 or more

The transaction costs are going up. The CGT and punitive resale tax were not introduced. The absence of recurring ownership taxes and capital gains tax continues to make Mauritius competitive against most jurisdictions foreign buyers are comparing it to.

Where to go from here

• Start with the Real Estate for Foreigners pillar page for the full legal framework.
• Compare routes in the IRS, PDS and Smart City schemes guide.
• Pressure test your plan with the rent versus buy analysis.
• When you are ready to shortlist options, use the contact page.

Disclaimer: This article is for general informational purposes only and does not constitute legal or financial advice. Property regulations and tax rates are subject to change. Prospective buyers should consult a qualified Mauritian notary, legal advisor, or tax professional before making any investment decisions. All information is current as of February 2026, based on the Finance Act 2025 and official EDB guidance.