Property Investment Schemes in Mauritius for Foreign Buyers

Mauritius has strategically positioned itself as one of the Indian Ocean’s most attractive destinations for international property investment. Unlike many jurisdictions that restrict foreign ownership, Mauritius welcomes international investors through multiple government-approved property schemes that grant non-citizens full ownership rights – typically freehold in PDS, Smart City, and many G+2 projects, with certain developments offered on long-term state leasehold – coupled with the significant advantage of residency eligibility (valid as long as the property is held), making Mauritius an attractive destination for expatriate relocation and international real estate portfolios.

This guide breaks down the four main property acquisition pathways available to foreign buyers, helping you identify which framework aligns with your lifestyle goals, investment strategy, and residency objectives.

Property Development Scheme (PDS) for Luxury Living in Integrated Communities

The Property Development Scheme (PDS) is one of the most established routes for foreign buyers seeking luxury residential property in Mauritius. Introduced to consolidate the former Integrated Resort Scheme (IRS) and Real Estate Scheme (RES), it is designed around high-end residential estates with integrated lifestyle amenities.

If you want a more detailed breakdown of ownership rules, payment mechanics and taxes, see our full guide to PDS in Mauritius.

Exclusive Amenities and Lifestyle Benefits 

PDS developments go beyond traditional real estate: these integrated lifestyle estates combine luxury residences with resort-grade amenities, creating self-contained communities where comfort meets convenience. Residents typically enjoy access to:

- Private beach clubs and waterfront facilities

- Championship golf courses

- Spa and wellness centres

- Fine dining restaurants and boutique retail

- 24/7 security and estate management services

These estates are located in Mauritius’s most desirable regions, thoughtfully designed to balance privacy, comfort, and access to the island’s best amenities.

PDS Ownership Requirements and Residence Rights

To qualify for PDS ownership, foreign buyers must invest a minimum of USD 375,000 in an approved residential unit. This investment automatically grants eligibility for:

- Residence permit for the buyer, their spouse, and dependent children (valid as long as the property is held)

- Full freehold ownership with the right to sell, lease, or bequeath the property

- Freedom to repatriate capital and rental income without restriction, with no capital gains tax or foreign exchange controls** **

Is PDS Right for Your Lifestyle Goals? 

The PDS framework is ideal for buyers seeking a permanent or semi-permanent base in Mauritius, whether for retirement, remote work, or as a family vacation home. The emphasis on community amenities and estate services makes it particularly appealing to retirees and professionals who value convenience, security, and lifestyle infrastructure.

PDS developments span Mauritius’s most coveted locations – from the West Coast surf villages of Tamarin and Black River to the cosmopolitan North Coast hub of Grand Baie and the tranquil East Coast – where estates blend architectural elegance with natural beauty.

Smart City Scheme for Integrated Urban Living

For non-residents and expat professionals drawn to modern, mixed-use urban ecosystems, the Smart City Scheme offers a compelling alternative to traditional residential estates. Introduced to promote sustainable urbanisation and economic diversification, Smart Cities are large-scale developments that integrate residential, commercial, educational, and leisure components within a single, master-planned framework.

For a closer look at eligibility, purchase structure and the latest rule changes, read our guide to buying property in a Smart City in Mauritius.

Modern Infrastructure for Connected Living 

Smart City developments represent the future of urban living in Mauritius: purpose-built ecosystems where residential spaces blend seamlessly with business infrastructure, international schools, and sustainable technology. These developments often feature:

- Business parks and co-working spaces

- International schools and medical facilities

- Shopping centres, cinemas, and cultural venues

- Green spaces, cycling paths, and smart infrastructure (fibre optic networks, renewable energy systems)

Investment and Ownership Structure

Like PDS, the Smart City Scheme requires a minimum investment of USD 375,000 for residential units. Properties may be offered as freehold or long-term leasehold, depending on the specific project structure.

Foreign buyers who meet the investment threshold are eligible for:

- Residence permit linked to property ownership (valid as long as the property is held) for themselves and their families.

- Access to integrated business and lifestyle facilities within the city

- Flexibility to live, work, and invest within the same ecosystem

Smart City for Professionals and Families 

This scheme is particularly well suited for professionals, entrepreneurs, and families who value proximity to services, business infrastructure, and a cosmopolitan environment. It’s also an excellent choice for investors seeking rental income opportunities, as Smart City apartments appeal to both expatriates and local professionals.

G+2 Apartments for Modern Apartment Living

The G+2 apartment scheme provides international buyers with a straightforward route to freehold apartment ownership and residency eligibility in Mauritius. "G+2" refers to the architectural classification: buildings with a ground floor plus at least two additional levels.

If this route is the one you are considering, our detailed guide to G+2 apartments in Mauritius explains the qualifying rules, tax treatment and residence threshold in full.

Low-Maintenance Coastal Living with Maximum Flexibility 

For buyers who prioritize convenience and coastal access without the responsibilities of villa maintenance, G+2 apartments deliver the perfect balance: modern, turnkey apartments in prime locations with full ownership rights and residency benefits. Key advantages include:

• Urban and coastal locations: Many G+2 developments are situated in vibrant areas like Grand Baie, Flic en Flac, and Tamarin

• Turnkey convenience: Fully furnished units with shared facilities (pools, gyms, parking)

• Security and management: Professional property management and 24/7 security

• Affordability and flexibility: Often more accessible than villas, ideal for part-time residents or rental investors

G+2 Ownership Requirements and Residence Rights

Ownership is governed under the Non-Citizens (Property Restriction) Act, allowing foreigners to acquire full ownership of apartments within approved apartment developments, whether on freehold or long-leasehold land depending on the site. A minimum investment of USD 375,000 qualifies the buyer, spouse, and dependents for a residence permit (valid as long as the property is held).

Who Should Consider G+2

This scheme is perfect for professionals, retirees, and investors who want a modern, manageable property in Mauritius without the upkeep demands of a villa or estate home. It is also an attractive option for buyers seeking rental income, particularly in locations with strong demand from expatriates and medium- to long-term tenants. Short-term tourist letting should only be considered where the project rules and Tourism Authority requirements allow it.

Invest Hotel Scheme (IHS) for Hotel-Managed Income

The Invest Hotel Scheme (IHS) is a structured way to acquire a hotel unit in Mauritius within an approved hotel development. Instead of buying a standalone residential property, an IHS buyer acquires a defined unit such as a room, suite, apartment, or villa that forms part of a hotel and remains operated as tourist accommodation.

How IHS works

The unit is subject to a mandatory leaseback to the IHS company or hotel operator. The operator manages reservations, guest services, and hotel operations. Owners receive income according to the project’s revenue sharing model as set out in the leaseback agreement.

Key characteristics to state accurately

• - Unit ownership within a hotel structure, not timeshare and not a shared use fractional occupation model

• - Mandatory leaseback to the IHS company or hotel operator

• - Owner use capped at 45 days in any 12 month period, with booking rules defined in the leaseback agreement

• - Title structure is project specific. Confirm whether the unit is freehold or long leasehold as stated in the deed and project documents

• - Income depends on hotel performance and the pool or revenue formula, not a fixed percentage

IHS investment Returns and Limitations

IHS is primarily designed for buyers seeking exposure to the hotel sector without managing rentals directly. Because the unit remains part of hotel operations, income and owner experience depend on the operator’s performance and the contract terms. The residence permit position for an IHS purchase should be confirmed against the current EDB framework and the specific project documentation before purchase.

Who should consider IHS

IHS suits buyers who prioritise hotel managed income and accept limited personal use, mandatory leaseback, and contract governed revenue mechanics. If a buyer wants unrestricted personal use, independent rental control, or residence permit eligibility through property ownership, other structures may be a better fit.

How the Main Property Investment Schemes in Mauritius Compare 

Frequently Asked Questions

Can foreign nationals purchase property in Mauritius without relocating?

Yes. Foreign buyers can purchase property in Mauritius through approved schemes such as PDS, Smart City, G+2 and IHS without being required to relocate. Certain qualifying acquisitions may also support residence permit eligibility.

What are the main differences between the PDS and Smart City schemes?

PDS developments focus on luxury residential estates with resort-style amenities, while Smart City projects follow a mixed-use model that combines homes with offices, schools, retail and services. The right choice depends on whether you prefer estate living or a more integrated urban environment.

What taxes apply to foreign property owners in Mauritius?

Tax exposure depends on the ownership structure, the type of property and how it is used. Buyers should review acquisition costs, holding costs and any tax implications with a qualified adviser before proceeding.

Can foreign owners rent out their property?

Yes. Properties acquired under approved schemes may generally be rented out, subject to project rules and Mauritian regulations. For short-term tourist accommodation, the relevant licensing and Tourism Authority requirements should be checked before operating.

Can non-citizens obtain mortgage financing in Mauritius?

Yes, some Mauritian banks offer mortgage financing to eligible foreign buyers. Terms vary by bank and project, and buyers are usually expected to provide a substantial down payment and proof of funds.

How long does the acquisition process take?

The acquisition process typically takes around three to six months, depending on the project, due diligence, regulatory approvals and deed preparation.

Can a foreign owner resell to another international buyer?

Yes. A foreign owner may generally resell to another eligible international buyer, subject to the applicable approval process at the time of transfer.

How does the Invest Hotel Scheme operate?

Under the Invest Hotel Scheme, the buyer acquires a unit within an approved hotel development. The property is then operated under a mandatory leaseback structure, with income and personal use governed by the project documents.

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Sources

·         EDB Mauritius – PDS Guidelines

·         EDB Mauritius – Smart City Scheme Guidelines

·         EDB Mauritius – Acquisition of Property by Non-Citizens

·         EDB Mauritius – G+2 Apartment Acquisition Guidelines

·         EDB Mauritius – Invest Hotel Scheme Guidelines

·         Tourism Authority Mauritius – Renting of Tourist Accommodation

Information reflects prevailing EDB regulations and market conditions. Residency, tax, and acquisition rules are subject to regulatory updates. Professional legal and financial advice is recommended before completing any investment or relocation decision.