For foreign buyers purchasing property in Mauritius, the 85% MUR payment rule is more than a practical currency issue. Under certain approved schemes, it forms part of the transaction structure itself.
Under current Economic Development Board guidance, non-citizens acquiring residential property under certain approved schemes must comply with a payment structure requiring most of the purchase price to be paid in Mauritian rupees. The requirement does not change the desire to buy in Mauritius, but it does affect how funds are transferred, converted, documented and released.
For buyers considering an approved residential project, this point should be reviewed early, alongside eligibility, residence implications, notarial timing and financing. For a broader view of the acquisition framework, see our article on buying property in Mauritius as a foreign investor.
What the rule requires
According to current EDB guidance, the 85% MUR payment requirement applies to non-citizens acquiring residential property under specified regulated schemes in Mauritius.
In practical terms, the funds must originate abroad in a hard convertible currency. Of the purchase price, 85% must be paid to the promoter in Mauritian rupees. The remaining 15% may be paid either in Mauritian rupees or in a hard convertible foreign currency, such as USD or EUR.
This creates a distinction between the origin of funds and the currency ultimately paid to the promoter. The foreign buyer still brings funds from abroad, but a substantial part of the settlement is converted locally into MUR before being paid onward.
Which purchases are affected
Current EDB guidance sets out this payment requirement for acquisitions under the IRS, RES, PDS and Smart City Scheme frameworks. These are structured acquisition routes that allow non-citizens to buy certain types of residential property in Mauritius, subject to the relevant eligibility, approval and transaction conditions.
This article focuses on IRS, RES, PDS and Smart City transactions because the current scheme-specific EDB guidance for those acquisition routes expressly sets out the 85% payment requirement. Publicly available EDB materials concerning IHS are not fully aligned, and buyers considering an IHS acquisition should obtain transaction-specific confirmation from the EDB and their notary.
It is important not to read the 85% payment requirement too broadly. It is a currency and payment requirement attached to specific regulated schemes. It does not replace the wider non-citizen acquisition framework, the need for EDB approval where applicable, the notarial process or the buyer’s due diligence.
The 85% payment requirement described in current EDB guidance for IRS, RES, PDS and Smart City purchases does not apply to ordinary G+2 acquisitions. However, G+2 purchases remain subject to their own eligibility, approval, title, payment and financing requirements. Buyers should confirm the applicable position with their notary, bank and professional adviser before committing.
Why it matters before signing
For many international buyers, the property price is discussed in USD, EUR or another foreign currency. The 85% MUR payment requirement reflected in current EDB guidance means that the buyer must also consider the exchange process between the chosen foreign currency and Mauritian rupees.
This can affect several practical points:
the timing of the foreign transfer;
the exchange rate applied at conversion;
bank charges and processing time;
how the reservation agreement or deed reflects payment terms;
whether the buyer’s own funds and any financing are structured correctly;
the coordination between the buyer’s bank, local bank, notary and promoter.
The rule does not necessarily make the acquisition more complex, but it does make preparation more important. A buyer who waits until completion to discuss currency flow may face avoidable delays or uncertainty.
The role of the notary
The notary has a central role in the practical operation of the rule.
Under current EDB guidance for IRS, RES and PDS transactions, the purchase price or consideration is transferred to the notary’s account in USD, EUR or another hard convertible foreign currency. The notary then ensures that 85% of the consideration is transferred to the relevant promoter or scheme company in Mauritian rupees, while the remaining 15% may be transferred in foreign currency or in MUR.
This notarial handling is important because it creates a controlled route for the transaction funds. It also helps align the currency requirement with the formal deed registration process and the payment of applicable registration duty.
For the buyer, the key point is simple: funds should not be managed casually or outside the agreed transaction channel. The notary, bank and promoter should all be aligned before the payment schedule begins.
Financing under current EDB guidance and the USD 750,000 threshold
Current EDB guidance also addresses local financing for higher-value acquisitions under IRS, RES, PDS and Smart City transactions.
According to current EDB guidance, where the property price exceeds USD 750,000, the first USD 750,000 (or its equivalent in a hard convertible foreign currency) must be transferred to Mauritius and paid to the promoter in Mauritian rupees. A loan for the remaining amount may then be contracted with a bank in Mauritius, with repayment made in a hard convertible foreign currency.
This threshold reflects the position in current EDB guidance for IRS, RES, PDS and Smart City transactions. Buyers should nevertheless obtain scheme-specific confirmation, as some older published regulations and current public IHS documentation refer to a USD 500,000 threshold.
This point is particularly relevant for buyers combining personal funds and a Mauritian bank loan. The question is not only how much can be financed, but also how the first portion of the purchase price is brought into Mauritius, converted and paid.
Before signing, a buyer should therefore obtain clear confirmation from the bank and notary on the expected flow of funds, especially if the purchase is off-plan or staged through a VEFA-style payment schedule.
What buyers should clarify early
Where applicable under current EDB guidance, the 85% MUR payment requirement is best treated as part of transaction planning, not as an afterthought.
Before committing to a property, foreign buyers should clarify:
whether the selected property falls within IRS, RES, PDS or the Smart City Scheme and is subject to the payment requirement described in current EDB guidance;
which currency is used for the commercial price presentation;
which exchange rate mechanism will apply when funds are converted;
whether the deposit, reservation amount and later instalments follow the same logic;
how the notary will receive, convert and release the funds;
whether a Mauritian bank loan is involved;
whether the acquisition timeline allows enough time for international transfers and compliance checks.
These questions are especially important when the buyer is purchasing from abroad. A premium acquisition often involves more than choosing the right villa, apartment or estate. It also requires a clean transaction structure from the first offer to completion.
A narrow rule with wider transaction impact
The 85% MUR payment requirement described in current EDB guidance does not determine whether a property is desirable, whether a location is suitable or whether an acquisition supports a long-term residence plan. Those questions remain personal, strategic and property-specific.
Its impact is more technical, but still important. It changes how the buyer should think about currency, liquidity, bank coordination and signing timelines. For international buyers used to working in EUR, USD, GBP or another foreign currency, this is a point to integrate early into the acquisition process.
When applicable and handled properly, the requirement becomes a manageable transaction step. Overlooked, it can create friction at the moment when the buyer needs clarity most.
Planning a property purchase in Mauritius?
A well-prepared acquisition begins before the deed is signed. For foreign buyers, this means selecting the right property, confirming the correct acquisition route and structuring the payment flow with the notary and bank from the outset.
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Sources
This article is provided for general guidance only. Payment rules, acquisition conditions, financing requirements and regulatory interpretations may change. Foreign buyers should verify the applicable position with their notary, bank, legal adviser, tax adviser and the relevant Mauritian authorities before making a purchase decision.
