Mauritius Property Schemes for Foreigners: IRS, PDS, RES, Smart City and IHS Explained

You cannot just buy a house in Mauritius. Not as a foreigner. Under the current legal framework – updated by Finance Act 2025 – all foreign residential purchases must go through government-approved schemes administered by the Economic Development Board (EDB). It sounds restrictive, and it is. But the schemes are well-established, and once you understand which one fits your situation, the process is surprisingly clear.

Why schemes exist

The schemes were introduced to attract foreign investment while controlling how and where foreigners can own property. In return for meeting minimum investment thresholds, buyers gain legal title to property and, in several schemes, automatic eligibility for a residence permit. The schemes also come with quality standards: developments must be approved by the EDB, which sets requirements around design, infrastructure and management.

The authorised schemes

PDS – Property Development Scheme

The PDS is the main active scheme for new residential developments. It replaced the IRS and RES in 2015 and applies to most new gated residential projects. Key points:

• Minimum purchase price: $375,000 USD (~Rs22 million at current rates)
• Residency benefit: buyers and their immediate family become eligible for a Residence Permit automatically on purchase
• Property types: villas, apartments and townhouses within approved residential estates
• Management: most PDS developments are fully managed with security, maintenance and common facilities included in body corporate fees
• Location: across the island – north, west and east coast concentrations

PDS is typically the right entry point for individual buyers looking for a private residence. It offers the broadest range of properties and locations.

IRS – Integrated Resort Scheme

The IRS is the original premium scheme, introduced in 2002. While no new IRS developments are being approved, existing IRS projects continue to sell properties on the secondary market.

• Minimum purchase price: $375,000 USD
• Residency benefit: same as PDS – automatic on purchase
• Property types: luxury villas and apartments within resort-style estates, often with golf courses, beach clubs and hotel services
• Secondary market: well-established resale market exists in mature IRS developments

IRS properties tend to command premium prices on the secondary market due to their resort infrastructure and established status. For buyers who want a lifestyle purchase with full amenities, IRS can be compelling.

RES – Real Estate Scheme

Introduced in 2007, the RES targeted smaller developments for the local property market with some foreign participation. Like IRS, no new RES projects are being created – the scheme has been superseded by PDS.

• Minimum purchase price: $200,000 USD (legacy rate for existing RES projects)
• Residency benefit: only on purchase price of $375,000 USD or above
• Secondary market: available in existing developments

SCS – Smart City Scheme

Smart Cities are large-scale, mixed-use urban developments combining residential, commercial, office, educational and leisure space within a single masterplanned precinct. The scheme was designed to create modern business hubs and attract knowledge-economy companies.

• Examples: Moka Smart City (the most established), Cap Tamarin, Côte d’Or, Roches Noires
• Residential component: apartments and villas within the residential zones of Smart City developments
• Investment and business access: Smart Cities include incentives for companies registering within the precinct – reduced rates, streamlined licencing
• Finance Act 2025 – transitional provisions: Smart City incentives are being phased with transitional arrangements. Developments registered under the scheme retain their benefits; new registrations face revised criteria. Buyers should confirm the status of any specific Smart City project with their notary before committing

Smart Cities are particularly relevant for buyers who are also setting up a business in Mauritius – the live-work model is central to the scheme’s design.

IHS – Integrated Hotel Scheme

The IHS applies to hotel-branded residences – apartments and villas within operating hotel properties, sold to foreign buyers as branded residences with hotel management services.

• Property types: suites, apartments and villas managed by five-star hotel operators
• Rental pool: most IHS properties can be placed in the hotel’s rental pool when not in personal use, generating income
• Management: the hotel operator handles all maintenance, letting and services
• Minimum investment: set by individual developments; typically above $375,000 USD

IHS suits buyers looking for a lower-management investment property that doubles as a holiday residence.

G+2 Programme

Outside the resort schemes, foreigners can purchase apartments in buildings of two floors or more (ground plus two), provided the apartment price exceeds Rs6 million (~£100,000). This is the most accessible entry point for foreign buyers and does not carry the $375,000 USD minimum.

• Minimum price: Rs6 million per apartment (~£100,000)
• No residency benefit: unlike PDS/IRS, no automatic residence permit
• Location: available across the island wherever compliant buildings exist
• Target buyer: investors seeking a lower-cost entry into the Mauritius market without the resort premium

Finance Act 2025: what changed

Transaction taxes increasing from July 2026

This is the most financially significant change. From July 1, 2026, registration fees and property transfer tax on foreign purchases will double:

• Registration fees: 5% → 10% of purchase price
• Property transfer tax on resale to non-citizens: 5% → 10%

On a Rs25 million property, this means acquisition costs increase by approximately Rs1.25 million (~£21,000). Transactions registered before July 1, 2026 are subject to the current 5% rate, regardless of when a reservation contract was signed.

Free-market purchasing abolished

A provision introduced in December 2023 allowed foreigners with a residence permit to buy residential property outside the schemes, provided the purchase price exceeded $500,000 USD. Finance Act 2025 has abolished this provision. The scheme-only rule is now absolute.

No capital gains tax

Despite being mentioned in the Budget Speech, no capital gains tax was introduced. Mauritius remains free of capital gains tax, wealth tax and property tax – a significant advantage for investors holding property long term.

Residence Permit changes for retirees

For those combining a property purchase with a retirement residence permit, the new requirements are:

• Initial remittance: $2,000 USD within 60 days of permit approval
• Annual income requirement: $24,000 USD ($2,000/month)
• Permit validity: 10 years
• No minimum residency period required

See our retirement residence permit guide for the full picture.

Which scheme is right for you?

The purchase process

All scheme purchases follow the same broad sequence: EDB pre-approval application ($1,000 USD fee), reservation contract with developer, notarial deed, registration and permit application. For a full walkthrough see our property buying guide.

Given the July 2026 tax increase, buyers who are ready to proceed should aim to complete registration before that date to benefit from the current 5% rates.

Useful reading

• Start with the Real Estate for Foreigners pillar page to compare all acquisition channels.
• Review the rental income guide if yield is part of your objective.
• Use the regional buying analysis to shortlist locations.
• For case-specific guidance, use the contact page.