Property schemes in Mauritius for foreign buyers
Property schemes in Mauritius for foreign buyers are not interchangeable routes to the same result. Each framework determines what may be purchased, how approval is obtained, how the property may be used and whether the acquisition can support residence.
Mauritius remains accessible to international buyers, but its residential market is structured rather than fully open. Before comparing villas, apartments or hotel-linked units, buyers should identify the legal route attached to the property. Our broader article on buying property in Mauritius as a foreign investor explains how this eligibility question fits within the wider acquisition process.
The main options are PDS, Smart City, IHS, qualifying legacy IRS and RES properties, and the separate G+2 apartment route. Certain resident non-citizens may also use a USD 500,000 route outside these schemes.
Property Development Scheme
The Property Development Scheme, or PDS, is one of the principal current residential frameworks used for developments marketed to non-citizens. Approved projects may include villas, apartments and penthouses with shared amenities and managed services.
PDS can suit buyers seeking residential use within a managed development. Units may be completed or sold off-plan through a vente en l’état futur d’achèvement (VEFA), which is the contractual purchase mechanism rather than the acquisition scheme itself.
The USD 375,000 figure is principally relevant to residence-permit eligibility, not a universal minimum purchase price for every PDS unit. Where a qualifying acquisition meets this threshold, the buyer may apply for a residence permit linked to continued ownership.
Project approval does not replace property-level review. Buyers should still examine title, construction status, management arrangements, rental terms and service charges.
Smart City Scheme
The Smart City Scheme supports larger mixed-use developments combining residential property with facilities such as offices, retail, education, healthcare and leisure.
Current EDB guidance states that there is no general minimum purchase price for a built-up residential unit under the scheme. The USD 375,000 threshold becomes relevant where a non-citizen wishes to apply for a residence permit through the acquisition.
Because Smart City projects may be large and phased, buyers should confirm the approved developer, relevant project phase, shared obligations and contractual protections before committing.
Invest Hotel Scheme
The Invest Hotel Scheme, or IHS, is a hospitality-based route rather than a conventional residential purchase. Approved hotel developers or operators may sell rooms, suites, apartments or villas forming part of a hotel, generally within a leaseback or rental-pool structure.
The ownership experience therefore differs from a PDS villa or private apartment. Under current EDB guidance, the unit must be leased back to the IHS company, while the owner or a person acting on the owner’s behalf may occupy it for up to 180 days in any twelve-month period. A unit owner holding a Premium Visa may occupy the property throughout the duration of that visa. The project’s approved terms and leaseback agreement should nevertheless be checked.
Important points include income allocation, operating costs, personal-use arrangements, refurbishment obligations and resale conditions. An approved acquisition meeting the USD 375,000 threshold may support residence eligibility, but the asset remains part of a hotel operation.
Legacy IRS and RES properties
The Integrated Resort Scheme and Real Estate Scheme preceded PDS. Although newer development has moved to later frameworks, qualifying properties within existing IRS and RES projects may still be acquired and resold.
Their operating history can help buyers assess actual service charges, maintenance standards, rental arrangements and resale activity.
On resale, buyers should confirm that the property remains within the approved project, that the transfer is permitted and that the required EDB process is followed. A qualifying IRS or RES acquisition meeting the USD 375,000 threshold may support a residence permit.
G+2 apartments
G+2 is often grouped with property schemes, but it is a separate apartment-acquisition route under the Non-Citizens (Property Restriction) Act.
It allows a non-citizen to acquire an apartment used, or available for use, as a residence in a building containing at least two floors above ground level. The price must be at least MUR 6 million, or its equivalent in hard convertible currency, and prior approval is required.
A G+2 apartment does not need to form part of a PDS, Smart City or resort development. The MUR 6 million acquisition threshold and USD 375,000 residence threshold serve different purposes. An apartment may be legally purchasable from MUR 6 million while supporting a property-linked residence permit only if the higher threshold and other conditions are met.
The EDB’s published FAQ states that the December 2024 payment amendments do not apply to G+2 apartment sales.
The 2026–2027 Budget announced changes affecting G+2 sales to foreigners involving apartments on State land or Pas Géométriques, including restrictions concerning new leases and protection for specified existing situations.
Separately, the Finance Act 2026 introduced a 10% additional duty payable by the transferor where residential property situated on State land or Pas Géométriques is transferred to a non-citizen through the qualifying G+2 route. The additional duty does not apply where a qualifying presale agreement was executed before 19 June 2026 and was drawn up and signed before a notary.
The USD 500,000 resident route
Certain main holders of Mauritian residence, occupation or permanent residence permits may apply to acquire one residential property outside the standard schemes, subject to ministerial approval.
The purchase price must be at least USD 500,000. The property may be a house, villa, apartment, bare land or serviced land within the statutory limits, but it cannot be situated on State land or Pas Géométriques, and agricultural bare land is excluded. A standalone house or land parcel cannot exceed 1.25 arpent.
Eligibility is limited to the main permit holder. Only one property may be acquired through this route, it must be used as the buyer’s personal residence, the acquisition creates no new residence or occupation right, and disposal requires further authorisation.
This is therefore a specialist option for someone who already holds the required Mauritian status.
Residence eligibility is a separate question
The right to buy and the right to reside should always be analysed separately. Several routes allow a purchase below USD 375,000, while a property-linked residence permit becomes available only where the qualifying acquisition meets the applicable threshold.
Conversely, the USD 500,000 resident route creates no new permit because the buyer must already hold eligible status. IHS may support residence eligibility at the threshold, but its hotel model and restricted occupation remain central. G+2 can also support residence at the higher threshold despite its basic MUR 6 million purchase threshold.
A property-linked residence permit is not citizenship or tax residence, which depends on separate tests.
Payment rules, taxes and timing
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 transfers 85% of the purchase price 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 states that these amendments do not apply to resales or G+2 apartments. It also confirms that 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. Deeds signed before 13 December 2024 are not brought within the currency rule merely because later VEFA instalments fall due after that date.
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.
Following the Finance Act 2026, the special 10% registration-duty and land-transfer-tax framework introduced for certain non-citizen property transactions has been repealed. Standard rates therefore generally apply again, subject to exemptions and transaction-specific provisions. The separate 10% additional seller-side duty for qualifying G+2 transfers on State land or Pas Géométriques applies as described above.
Choosing the right route
The appropriate route depends on the intended use. PDS is primarily residential, Smart City combines residential ownership with a wider mixed-use environment, IHS is tied to hotel operation, IRS and RES provide established resort stock, and G+2 offers a more conventional apartment route. The USD 500,000 option is relevant only to eligible existing permit holders.
Before committing, buyers should confirm the precise statutory or EDB route, whether the transaction is a first sale or resale, title and approval history, use and rental restrictions, residence eligibility, payment requirements and applicable acquisition costs.
For wider context on location, stock profile and long-term positioning, our overview of the Mauritius property market for foreign investors complements this legal comparison.
Clarifying the right scheme before buying
The legal route should be identified before the property decision becomes firm. The strongest acquisition is one where the ownership model, residence implications, financial structure and intended use remain aligned over the long term.
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Sources
Economic Development Board Mauritius – Guidelines for Buyers under IRS, RES and PDS
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. Mauritius property-acquisition routes, residence conditions, payment rules, duties and approvals may change or depend on the specific property and deed. Foreign buyers should verify the current position with a Mauritian notary, legal and tax advisers, their bank and the Economic Development Board before making a purchase decision.
