Mauritius property schemes compared for foreign buyers

Mauritius property schemes compared for foreign buyers reveal significant differences in property type, ownership structure, residence eligibility and personal use. PDS, the Smart City Scheme, G+2 and the Invest Hotel Scheme all allow non-citizens to access qualifying real estate, but they do not create the same ownership experience.

For the wider acquisition framework, our article on buying property in Mauritius as a foreign investor explains the authorised routes and approval process. Here, the focus is narrower: how PDS, Smart City, G+2 and IHS compare in practice.

This comparison is intended for buyers deciding between the main current structures rather than legacy IRS or RES stock. Those older schemes can still be relevant on resale, but they are not the focus here. The practical question is which of today’s commonly encountered routes best matches the buyer’s intended use, residence plans and preferred property format.

The four routes at a glance

The important point is that purchase eligibility and residence eligibility are not the same thing. Under G+2, for example, MUR 6 million is the minimum acquisition price, while USD 375,000 is the separate threshold for a property-based residence permit.

PDS is centred on residential ownership

The Property Development Scheme is the clearest residential model of the four. Approved PDS projects can include villas, apartments and penthouses, generally supported by shared amenities and management services.

This structure often suits buyers who want a second home or longer-term residence within a professionally organised development. The property remains part of an approved scheme, but the owner is not entering a hotel operation and is not subject to the leaseback and personal-use framework that applies under IHS.

PDS does not have the MUR 6 million minimum purchase price that applies to G+2 apartments. Residence is a separate question. Where the qualifying acquisition reaches the applicable USD 375,000 threshold and the other conditions are met, the owner may obtain a residence permit linked to continued ownership.

Smart City adds the wider neighbourhood

The Smart City Scheme also allows foreign buyers to acquire qualifying residential property, but within a broader mixed-use development model.

A Smart City may combine homes with offices, retail, healthcare, education, leisure facilities and public spaces. The buyer is therefore choosing a property within a wider master-planned environment.

As with PDS, the USD 375,000 figure is relevant to residence eligibility rather than being a universal minimum price for every built residential unit. Individual developments set their own pricing within the approved framework.

Smart City can suit buyers who value convenience, connectivity and an integrated daily environment. Large projects are often delivered in phases, so buyers should assess what already exists and what remains planned.

G+2 opens a separate apartment market

G+2 is different because it is not a development scheme in the same sense as PDS or Smart City.

It allows a non-citizen to acquire an apartment used, or available for use, as a residence in a condominium development with at least two floors above ground floor. The purchase price must be at least MUR 6 million, or the equivalent in a hard convertible foreign currency, and the required approval applies.

This route widens the apartment market because the building does not need to sit within a PDS or Smart City project. It may suit a buyer seeking an urban or coastal condominium without the wider infrastructure of a scheme-based development.

The MUR 6 million threshold only establishes the minimum acquisition level. To access the property-based residence route, the qualifying apartment must meet the separate USD 375,000 threshold.

This distinction is one of the reasons checking property eligibility before buying in Mauritius should happen before a reservation or preliminary commitment is signed.

IHS is a hospitality ownership model

The Invest Hotel Scheme is the most distinct of the four routes because the property remains part of an approved hotel operation.

A non-citizen may acquire an approved hotel room or qualifying hotel unit. Under the IHS model, the buyer enters into a lease agreement under which the property is leased back to the seller or hotel operator.

Under current EDB guidance, the owner or a person acting on the owner’s behalf may occupy the unit for up to 180 days in any twelve-month period. An owner holding a Premium Visa may occupy the unit throughout the duration of that visa.

IHS may suit a buyer seeking a professionally operated hospitality asset and who accepts the leaseback structure. It is less suited to someone looking for a conventional second home with unrestricted private occupation.

Where the IHS unit is acquired for at least USD 375,000, residence eligibility may also arise. The residence permit does not remove the personal-use restrictions attached to the hotel structure.

Residence should not drive the comparison alone

The repeated USD 375,000 threshold can make the four routes look more alike than they really are.

At that level, a buyer could still be comparing a private PDS villa, a Smart City apartment, a conventional G+2 condominium or an IHS hotel unit. Each can create a very different day-to-day relationship with the property.

The more useful sequence is to establish intended use first, then assess residence. A buyer seeking unrestricted private occupation should not choose IHS simply because it can support residence without first considering the scheme’s leaseback and occupation rules. Someone focused on apartments may find G+2 more relevant than a villa-led PDS project even when both meet the same residence objective.

Residence should be treated as one selection criterion alongside location, property format, management, rental plans and resale conditions.

Payment mechanics are not identical

Payment rules also separate the routes.

For first sales to non-citizens under IRS, RES, IHS, PDS and Smart City regulations, amendments effective from 13 December 2024 introduced an 85/15 payment framework. The notary ensures that 85% of the purchase price is paid to the promoter in Mauritian rupees, while the remaining 15% may be paid in MUR or an eligible hard convertible foreign currency.

The EDB FAQ confirms that these amendments do not apply to resales or G+2 apartments. Although overseas funds remain the general funding basis, certain resident non-citizens may use funds already held or generated in Mauritius, including qualifying local income, investment proceeds, rental income or proceeds from a previous property sale.

Where the property price exceeds USD 750,000 and local bank financing is used, the first USD 750,000 must generally be funded from the buyer’s own funds before a Mauritian bank loan is used for the balance, subject to the specific rules applicable to resident non-citizens.

Our article on the 85% MUR rule for foreign buyers examines those mechanics in detail without overloading the scheme comparison.

Tax should be checked separately from the scheme choice

Tax is another area where older comparisons can create confusion.

The Finance Act 2026 repealed the broader 10% registration-duty and land-transfer-tax measures introduced in 2025 for certain non-citizen property transactions. The standard rates are therefore generally 5% for buyer-side registration duty and 5% for seller-side land transfer tax, subject to exemptions and specific statutory provisions.

A narrower rule remains relevant to G+2. An additional 10% seller-side duty can apply where residential property situated on State land or Pas Géométriques is transferred to a non-citizen under the relevant framework, subject to the statutory conditions and transitional exception.

Which route suits which buyer

The four routes become easier to compare when the intended use is clear:

• PDS suits buyers seeking a conventional residential property within a structured development, particularly where villas, amenities and estate management are priorities.

• Smart City suits buyers who want residential ownership within a broader mixed-use environment where services and connectivity form part of the appeal.

• G+2 suits buyers focused on apartment ownership and wanting access to qualifying condominiums outside the main residential schemes.

• IHS suits buyers intentionally seeking hotel-linked ownership with professional operation, leaseback and regulated personal occupation.

Two similar-looking properties can follow different legal routes and therefore involve different approval, payment and use conditions. Marketing should never replace verification of the property itself.

What to confirm before choosing a route

Before signing or transferring funds, the buyer should establish:

• the exact acquisition route applying to the property;

• whether the development or unit has the required approval;

• any minimum purchase price attached to the route;

• whether the acquisition meets the intended residence threshold;

• the title and land tenure;

• the payment and currency rules;

• any rental, leaseback, personal-use or management restrictions;

• the current duties and other transaction costs.

This is particularly important for off-plan purchases or where residence forms part of the buyer’s plan. The legal route, purchase mechanism and residence outcome should be confirmed separately.

Choosing the right Mauritius property framework

PDS, Smart City, G+2 and IHS all give foreign buyers recognised access to Mauritius real estate, but they answer different needs.

PDS is primarily residential. Smart City adds a wider mixed-use environment. G+2 opens a separate route into qualifying apartments. IHS links ownership to hotel operation, leaseback and regulated personal use.

The strongest choice is therefore not the scheme with the most benefits on paper. It is the route whose property format, use conditions, residence implications and transaction structure match the buyer’s actual plans.

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Sources

• Economic Development Board Mauritius - Amendments to IRS, RES, IHS, PDS and SCS Regulations

• Economic Development Board Mauritius – Invest Hotel Scheme Guidelines

• Economic Development Board Mauritius – FAQ on Amendments to Property Regulations

This article is provided for general guidance only and does not constitute legal, tax, immigration or investment advice. Property eligibility, residence conditions, payment requirements, personal-use restrictions, duties and acquisition procedures may change or depend on the specific property, project, land tenure and transaction structure. Foreign buyers should confirm the current position with the Economic Development Board, their Mauritian notary and appropriately qualified legal, tax and immigration advisers before committing to a purchase.