Rental Income from Mauritius Property: What Foreign Investors Need to Know

Can you earn decent rental income from a Mauritius property? Yes. But the yields are lower than the brochures suggest, and the costs are higher than most first-time investors expect.

Mauritius combines strong demand from high-income short-term visitors, a growing expat population looking for long-term rentals and a legal framework that allows foreign ownership through approved schemes. The case for residential rental income is credible – but the numbers require realistic expectations.

Who can rent out property in Mauritius?

Any foreign investor who purchased through an approved scheme – PDS (Property Development Scheme), IRS (Integrated Resort Scheme), RES (Real Estate Scheme), Smart City or G+2 – is entitled to rent out the property. There are no restrictions on renting to tourists, expats or Mauritians. Short-term, long-term and serviced apartment models are all permitted.

Rental market overview

The Mauritius rental market splits into two distinct segments:

Short-term / holiday rentals

Airbnb and similar platforms are well-established, particularly in the north (Grand-Baie, Trou aux Biches, Pereybere) and the west (Tamarin, Flic en Flac). High-season occupancy rates – July to September and December – can be strong for well-positioned villas, but the market is competitive and management-intensive. A two-bedroom villa in Grand-Baie in good condition can achieve Rs80,000 to Rs130,000 per month during peak season, with lower-season rates of Rs45,000 to Rs70,000. Annual average income depends heavily on the property, its presentation and the management operation behind it.

Long-term expat rentals

The steadier, lower-maintenance segment. Mauritius’s growing expat community – largely professional, often on company relocation packages – generates consistent demand for 12-month+ leases. Properties near Grand-Baie, Moka and the west coast command the strongest long-term rents. A furnished two-bedroom apartment in a north-coast location typically lets for Rs35,000 to Rs55,000 per month. Villas with pools range from Rs70,000 to Rs150,000+ depending on size and location.

Gross rental yields

On properties bought through PDS or IRS schemes (entry price around Rs22 million), gross yields tend to fall in the 3-5% range for long-term rentals and potentially 5-8% gross for well-managed short-term operations. Net yields, after management fees, maintenance, insurance and tax, are typically 1-2 percentage points lower.

These are not yields that justify the investment on income alone – Mauritius property makes more sense as a combination of capital appreciation, lifestyle access and tax residency than as a pure income play. Investors expecting 8%+ net returns consistently will likely be disappointed.

Tax on rental income

Mauritius has a simple, low-tax environment that applies to rental income as follows:

Income tax

Rental income earned by individuals in Mauritius is subject to personal income tax. Progressive rates have applied since July 2023. Since 1 July 2025, the Finance Act 2025 simplified the bands to three: 0% on the first Rs 500,000, 10% on the next Rs 500,000, and 20% above Rs 1,000,000. Non-residents receiving rental income from Mauritius property are also taxable here on that source income. Tax is filed annually with the Mauritius Revenue Authority (MRA). Expenses – management fees, repairs and maintenance, insurance, depreciation – are deductible against rental income.

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

No capital gains tax

Mauritius does not levy capital gains tax. When you sell the property, the appreciation is not taxed – a significant advantage for long-term investors.

No annual property tax

There is no land tax or annual property holding tax in Mauritius. Recurring costs are limited to condominium/management fees and utility connections.

Double taxation treaties

Mauritius has tax treaties with over 40 countries. If you are resident in a treaty country, the rental income taxed in Mauritius may be creditable against your home-country tax liability. Verify the position with a qualified tax adviser in your country of residence before committing.

Management costs

Self-management from abroad is impractical. Most foreign investors use either a dedicated property management company or the in-house rental programme offered by the PDS/IRS resort development.

Resort rental pool programmes

Many IRS and PDS developments offer a managed rental pool: the developer’s management company handles lettings, maintenance and guest services, and splits revenue with the owner. Typical arrangements return 40-60% of gross rental revenue to the owner after the management company’s fees. This is convenient and low-hassle, but yields less than a well-run independent short-term operation. The trade-off is simplicity vs income optimisation.

Independent property managers

Several property management companies operate across the island for owners who prefer to retain more control. Fees typically run at 15-25% of gross rental income for short-term management (marketing, check-in/out, housekeeping coordination) and Rs5,000-Rs10,000 per month for a basic long-term management retainer. Confirm what is and is not included before signing.

Ongoing ownership costs

• Condominium/estate fees: Rs5,000-Rs20,000/month depending on the development
• Maintenance and repairs: Budget 1-2% of property value annually
• Insurance: Rs30,000-Rs80,000/year for a villa with contents
• Utilities (if owner-paid): Rs3,000-Rs10,000/month when vacant

Legal and compliance requirements

Short-term rental operators (properties let for less than 90 days) are required to register with the Mauritius Tourism Authority (MTA) and collect a tourist tax (currently Rs100 per person per night) from guests. The MTA registration process involves a site inspection and a modest annual fee. Failure to register creates exposure to fines.

Long-term leases (12 months or more) are straightforward. A written lease agreement in French or English is standard practice. The landlord is responsible for ensuring the property meets habitable standards; the tenant typically pays utilities and minor maintenance.

Practical considerations

The investors who do best with Mauritius rental property tend to share a few characteristics: they have a realistic holding horizon of 7-10 years or more, they use professional on-island management rather than trying to manage remotely, and they view the property as a hybrid – part investment, part personal retreat. Properties that are used by the owner for part of the year and rented for the rest operate in a grey zone that requires careful accounting to separate personal use from rental income periods for tax purposes.

For a broader view of property ownership structures and schemes available to foreign buyers, see our guide to PDS, IRS and Smart City schemes.