Investing in Mauritius

What's new for investors in Mauritius?

As of 2023, the Mauritian economy exhibits a robust recovery from the challenges imposed by the pandemic. This resurgence has propelled economic diversification, the management of greenhouse gas emissions, and inflation control to the forefront of the national agenda.

Mauritius remains an attractive destination for foreign investment, attributed to its investment-friendly atmosphere and dedication to international trade. The country's economic resilience, primarily fueled by the tourism sector, not only reinforces its economic standing but also underscores a commitment to sustainable development. Simultaneously, efforts are being made to enhance transparency through reforms aimed at simplifying business procedures. This collective momentum positions Mauritius as a compelling player in the global economic landscape.

The Mauritian authorities want to offer a competitive and attractive investment climate, and a light, simple and attractive tax platform while favoring quality investments. This can only be achieved by diversifying the investment opportunities but also by facilitating the process through the Economic Development Board (EDB).

To achieve these objectives, Mauritius has put in place a number of measures aimed at a sustainable recovery, such as the removal of the minimum turnover requirement and the extension of the validity period of the Occupation Permit.

In addition, the minimum investment requirement has been lowered from USD 100,000 to USD 50,000 for non-citizens wishing to start a business or invest in an existing company in Mauritius, and the minimum investment in real estate has been lowered to USD 375,000 to obtain a permanent residence permit. Let's not forget the possibility of obtaining a Residence Permit through the purchase of real estate and the long-awaited possibility for non-residents holding the Occupation Permit to host their parents as dependents. Finally, spouses of Occupation Permit holders no longer need to apply for a specific permit to work in Mauritius.

Read also Work permit for Mauritius 

The role of the Economic Development Board in Mauritius

The Economic Development Board (EDB) is the government agency responsible for promoting investment in Mauritius. To support the development of the country as an international business center, the EDB has in-depth knowledge of the various economic sectors of the country and provides a personalized service to guide foreign investors and help them finalize their investment project:

• Advice on investment opportunities in Mauritius;
• Information on promising sectors;
• Organization of visits and meetings at the client's request;
• Identification of local partners for potential investors.

The EDB is also responsible for the management of applications for residency permits in Mauritius as well as the finalization of real estate investment projects under the Property Development Scheme (PDS).

Its main objective is to ensure greater coherence and efficiency in policy implementation and to define the direction of economic development to achieve high-income status through sustainable and inclusive growth while ensuring economic independence. To this end, it has also set up facilitation offices abroad.

Read also Labor market in Mauritius

Economic sectors in Mauritius

According to various surveys and indicators, Mauritius stands out as one of the freest and most business-friendly countries in Africa. In the 2023 Economic Freedom Index published by the Heritage Foundation, Mauritius secured the top spot in the sub-Saharan African region among 47 countries and ranked 30th worldwide. Additionally, Mauritius maintained its position as the leading country in sub-Saharan Africa for the second consecutive year in the Global Innovation Index 2023 report, where it secured the 52nd position out of 132 countries globally. These rankings affirm Mauritius' commitment to economic freedom, business-friendliness, and innovation on both regional and global scales.

Existing and promising sectors

Key sectors propelling the growth of the Mauritian economy include textiles, tourism, financial and business services, information and communication technologies, seafood processing, real estate development, energy, and education and training.

Additionally, Mauritius boasts an extensive Exclusive Economic Zone (EEZ) covering 2.3 million square kilometers, a substantial portion of which remains uncontested.

Emerging and developing sectors

The Mauritian government is actively fostering the growth of the ocean economy by promoting investments in emerging sectors like aquaculture, marine services, marine biotechnology, and oil and gas exploration. Simultaneously, efforts are underway to modernize traditional sectors, including coastal tourism, fishing, seafood processing, and port activities. Strategic initiatives are being developed to invigorate industries such as pharmaceuticals, biotechnology, renewable energies, and information and communication technologies. The overarching goal is to drive economic diversification and innovation while ensuring sustainability across various economic fronts. Find data on the main sectors of activity on the EDB website.

Becoming an investor in Mauritius

Mauritius is known for its mature and favorable trade and investment policy. In order to widen the openness of the Mauritian market to foreign investors and expertise and to maintain the economic stability of the country, it offers many facilities to foreigners to develop and grow their ideas by becoming investors. Among the advantages of investing in Mauritius, as we mentioned above, is the possibility of obtaining an Occupation Permit for 10 years through professional investment and a Residence Permit through real estate investment.

Foreign investors in Mauritius can avail themselves of various tax incentives and investment credits:

• Interest earned by Collective Investment Funds or Open-Ended Funds established in Mauritius will see an increase in exemption from 80% to 95%;
• Manufacturing companies have the opportunity to benefit from an annual investment credit of 15% for3 consecutive years. This credit applies to expenditures on new plant and machinery, encouraging investment in the manufacturing sector;
• PCC and VCC will be treated as independent entities for tax recovery purposes. This provides a favorable tax treatment for these entities, enhancing their attractiveness for foreign investors.

Read also The tax system in Mauritius

Who is considered an "investor" in Mauritius?

The Immigration Act of 2022 stipulates that in Mauritius, an investor is defined as an individual or entity that actively contributes to the country's economic development. This classification includes foreign individuals who are registered with the Economic Development Board (EDB) and associations managed by non-citizens, provided they have registered with the EDB as well.

The 2 main types of investors are:

Professional investors

Many choose to open a business or invest in businesses in Mauritius because of its strategic location at the crossroads of Europe, Asia and Africa, its proximity to Reunion Island, the cost-effectiveness of setting up a business and domiciling a head office, and the availability of a skilled bilingual workforce.

Professional investors benefit from a legal, fiscal and economic framework conducive to profitability. Indeed, the country enjoys a positive ranking in several categories. Mauritius is ranked as one of the freest and most business-friendly countries in Africa; as a country with a high human development index (66th out of 189 countries in 2020); and as a country with a high economic freedom index (first out of 47 countries in the sub-Saharan Africa region and 30th in the world - Heritage Foundation 2023).

In addition, the country has signed a China–Mauritius Free Trade Agreement effective January 1, 2021, and another preferential trade agreement with India that came into effect in April 2021. Find below the various programs and initiatives that are offered to foreign investors wishing to open their business in Mauritius or invest in an existing business.

Real estate investors

They choose Mauritius for several reasons, including the absence of property tax, inheritance tax and capital gains tax. Add to that personal and rental income taxed at a flat rate of 15% and a stable political and economic framework, and you have a real estate purchase with a high rental yield (between 4% and 10%).

If you are considering buying property in Mauritius as a foreigner, here are some important updates:

• You can now buy a residential property worth at least USD 500,000 outside existing schemes if you are a foreign resident. However, you will have to pay an additional 10% registration tax;
• Foreign retirees and their families can obtain a residency permit by purchasing a property in a PDS project focusing on the elderly, provided the purchase price exceeds USD 200,000;
• Foreigners can acquire property in a smart city by purchasing a property with a minimum value of USD 375,000.

Find below the different programs and initiatives that are offered to foreign investors wishing to acquire real estate on the island.

Professional investors in Mauritius

The "Normal" investor makes an initial transfer of USD 50,000 or its equivalent in freely convertible currency to the bank account of the company to which the application will be made.

The Existing Net Asset Value investor has a net asset value of at least USD 50,000 or its equivalent in freely convertible foreign currency, in the case of existing and inherited businesses, and a cumulative turnover of at least Rs 12 million over the 3 years preceding the application.

The High Technology Machinery and Equipment Investor makes an initial investment of USD 50,000 or its equivalent in freely convertible currency, including a minimum transfer of at least USD 25,000 to the company's bank account under which the application will be made and an investment equivalent to the residual value in high technology machinery and equipment, subject to the criteria determined by the CEO.

The Innovative Start-up Investor has 2 options: make no minimum investment and submit an innovative project to the EDB or register with an incubator accredited with the Mauritius Research and Innovation Council.

The Premium Investor Certificate is issued by the EDB, and is intended for companies investing at least Rs 500 million and for companies involved in the manufacturing of pharmaceutical products and medical devices. More than a certificate, it allows one to benefit from specific incentives on the recommendation of a technical committee and after approval of the Minister. This scheme aims to boost the emergence of pioneering industries, innovative sectors and newcomers.

Read also Banking and Finance in Mauritius

Land investors in Mauritius

Various real estate programs in Mauritius cater to expats and have been established to attract foreign investors. Mauritians also have the opportunity to participate in these programs. The programs include VEFA (Vente en État Futur d'Achèvement), Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Smart City Scheme (SCS), Ground+2 (G+2), Invest-Hotel Scheme (IHS), and the Property Development Scheme (PDS), which is detailed below. Expats can engage in real estate investment in Mauritius through these schemes, some of which offer eligibility for a 10-year renewable residence permit or permanent residence permit, requiring a minimum investment of USD 375,000.

Who can buy a property in Mauritius?

The following entities are allowed to purchase VEFA, IRS, RES, PDS, SCS, G+2, and IHS in Mauritius:

• Foreign nationals;
• Mauritian nationals;
• Companies incorporated or registered under the Companies Act 2001;
• Civil companies governed by the Mauritius Civil Code, with articles of association filed with the Mauritius Registrar of Companies;
• Limited partnerships governed by the Limited Partnership Act;
• Trusts with at least one Qualified Trustee licensed by the Mauritius Financial Services Commission;
• Foundations governed by the Foundation Act.

Important:

All new IRS and RES residential projects open to foreign investors in Mauritius are grouped under the Property Development Scheme (PDS). Consequently, any property marketed under the PDS / IRS and RES names is subject to the following purchase formalities, even if the IRS and RES names are still in use.

The EDB has created a complete guide on the purchase of real estate in IRS / RES and PDS in Mauritius.

The VEFA (Sale in Future State of Completion)

VEFA, also known as "off-plan purchase", is governed by articles 1601 following the Mauritian Civil Code, based on the Napoleonic Code, and requires a notarial deed. All IRS, RES, and PDS can be acquired under VEFA. This type of program involves the purchase of a property that has not yet been built, is under construction, or for which the developer guarantees delivery after completion.

To provide an idea of the outcome, the developer furnishes the purchaser with plans and diagrams of the upcoming real estate project. The developer is also responsible for obtaining the building permit, securing the relevant insurance, overseeing the works, etc. The Economic Development Board (EDB) of Mauritius is planning to introduce new laws or regulations defining the conditions and responsibilities associated with VEFA, as well as the duties of the syndic in the real estate context.

Who might be interested?

The VEFA is aimed at both Mauritians and expats, who benefit from several advantages when investing in real estate in Mauritius, such as:

• Participating in the design of their property (interior layout);
• Paying for their purchase in installments;
• Applying for a Resident Permit for themselves and their immediate family for any purchase of USD 375,000 or more.

Formalities to be completed:

• Signature of the reservation contract;
• Security deposit;
• Notarial deed;
• Final contract of sale, drawn up by a notary;
• Delivery of the property;
• Completion guarantees.

Good to know:

For Mauritian citizens, a special provision has been introduced under the Home-ownership scheme for properties acquired under the VEFA regime. Buyers can benefit from a refund, calculated based on the amount paid under the VEFA agreement. This opportunity is available until June 30, 2025. The program also covers loan amounts paid up to June 30, 2025.

Signature of the reservation contract and deposit

The buyer and the developer sign a contract confirming the reservation of the property to come. In the absence of a reservation contract, the developer can proceed directly to the final sales contract.

What the reservation contract must contain

The document must clearly mention :

• The type of property;
• Its description;
• The sale price and, if applicable, the conditions for its revision;
• The date of conclusion of the final contract;
• The deadline for the implementation of the work;
• The legal conditions of renunciation of the purchase by the buyer, with the recovery of the deposit;
• The suspensive condition of financing if the buyer wishes to resort to a real estate loan.

The security deposit

Following the signature of the reservation contract, the buyer deposits a sum representing 2 to 25% of the property's value on an escrow account opened in the buyer's name at a notary's office or in a financial institution. Be careful; this deposit must be paid only when both parties have signed the reservation contract.

In the event of non-realization of the real estate project, the promoter must obligatorily return this deposit to the purchaser. If the buyer decides not to buy, he/she must respect certain conditions to get his/her deposit back.

When the buyer signs the preliminary reservation contract in order to reserve his property under the VEFA, he is required to pay a deposit into a special account opened through the notary. Until the conclusion of the sales contract, this sum remains untouchable unless the VEFA does not materialize.

The notarized deed

The deed of sale in the future state of completion is established by a notary. The Mauritian Civil Code provides for the content of the document as follows:

• Accurate description of the property in VEFA;
• Date of completion of the construction;
• Delivery date expressed in months, with late penalties in the event of overrun;
• Financial guarantees of completion of the works and/or reimbursement and construction insurance;
• Mention of administrative authorizations (building permit, etc.);
• Price of the property;
• Schedule of payments;
• The final sales contract drawn up by a notary.

One month before the signing, the notary issues the contract, equivalent to a title deed. It indicates the rights and obligations of the buyer towards the seller - the precise and final description of the property.

Delivery of the property

This is when the developer hands over the keys to the buyer. This stage marks the activation of the mandatory two-year and ten-year guarantees:

• Guarantee of perfect completion (article 1642-1 and 1648 al. 2);
• Guarantee of proper functioning of the separable equipment elements (article 1646-1 and article 1792 of the Civil Code on biennial guarantees);
• Decennial guarantee (articles 1646-1 and 1792 of the Civil Code).

Although the buyer can be entirely happy with the result, he can also claim the guarantee of perfect completion during the year following the reception of the property if he notices defects, for example.

If the purchaser has reservations upon acceptance of the work, he is entitled to ask the developer to remedy it and to resume the work within a period agreed upon.

Completion guarantees

To protect the purchaser, in the case of a property that will be inhabited, the developer is obliged to provide him with:

• A completion guarantee or financial completion guarantee (Garantie Financière d'Achèvement - GFA) - a bank guarantee through which a financial institution undertakes to advance the sums required for the completion of the work in the event of default by the developer. The financial guarantee of completion allows the building to be completed without canceling the sale;

or

• A reimbursement guarantee - it allows the reimbursement by a financial organization of the sums already paid by the purchaser in case of non-completion. The activation of this guarantee cancels the sale.

The guarantees of a VEFA construction

By choosing the VEFA, the buyer enjoys several guarantees:

• Functioning of the equipment, optional guarantee, valid for two years. It covers all equipment that can be separated from the construction (shutters, taps, etc.);
• The ten-year warranty or "warranty against hidden defects." Thanks to this guarantee, the buyer has ten years from the date of delivery of the property to report and repair any defects that affect the solidity of the building (foundations, roof, etc.);
• Damage insurance contracted by the developer for immediate coverage by the insurer of work related to the ten-year warranty. It is valid for the entire duration of the guarantee.

Staggered payments for a VEFA property:

• 25% of the sale price upon signature of the sales contract;
• 10% on completion of the foundation work;
• 35% upon completion of the roof;
• 25% upon completion of the work;
• 5% on delivery.

The Integrated Resort Scheme (IRS)

Introduced in 2001 by the Mauritian government and regulated by the EDB, the Integrated Resort Scheme (IRS) primarily benefits large sugar companies. It offers properties situated in settings richly equipped for leisure, entertainment, and well-being, such as golf courses, marinas, beach clubs, pavilions, and wellness centers surrounding the residences.

Through this program, non-residents can acquire villas, townhouses, penthouses, duplex apartments, and serviced plots of land (maximum size 1.25 A or 5,276 m2 ). They and their dependents can obtain a residence permit by investing a minimum of USD 375,000.

Owners are entitled to rent out the property, become tax residents in Mauritius, and freely repatriate funds or income from the sale or rental of the property. Non-citizens holding a residence permit under the IRS are also exempted from requiring an occupation or work permit to invest and work in Mauritius.

Harmonization of Integrated Resort Scheme (IRS) fees

A procedural fee of Rs 25,000 per application for the acquisition of a G+2 apartment by a non-citizen and for a residence permit application applies.

Who might be interested in the IRS ?

The IRS is designed to attract high-income foreigners, offering them the opportunity to invest in luxury villas.

Formalities

Formalities to be completed by non-citizens, citizens, companies, or trusts wishing to acquire property under the IRS scheme include:

• Signing a reservation contract with the seller;
• The developer submitting the IRS acquisition form to the EDB in Mauritius;
• The buyer and seller will draw up the sales contract upon receipt of the EDB's approval letter. The sales contract must be signed before a local notary.

The Real Estate Scheme

The Real Estate Scheme (RES), launched in 2007, encourages owners of small plots of land to build financially accessible and less restrictive projects. All RES projects must comprise a minimum of 6 high-end residential units, be developed on freehold land of between 1 and 24 arpents (less than 10 hectares), and offer the possibility of purchasing smaller properties.

If an IRS property is sold for a minimum of USD 375,000, the RES is not subject to a minimum sale amount. However, the buyer is not automatically eligible for the Resident Permit unless they invest at least USD 375,000. Owners can rent out the property, become tax residents in Mauritius, and freely repatriate funds or income from the sale or rental of the property.

Non-citizens with a residence permit under the RES are exempt from requiring an occupation or work permit to invest and work in Mauritius.

Harmonization of Real Estate Scheme (RES) procedural fees

The harmonization of RES procedural fees includes the introduction of a procedural fee of Rs 25,000 per application for the acquisition of a G+2 apartment by a non-citizen and for a residence permit application.

Who may be interested?

The RES targets foreigners with a limited budget who wish to live in Mauritius for a maximum of 6 months but still have a land base.

Formalities to be completed

Non-citizens, citizens, companies or trusts wishing to acquire a property under the RES scheme must comply with the following steps:

• Sign a reservation contract with the seller (the property developer or owner);
• The developer submits the RES acquisition form to the EDB of Mauritius;
• Upon receipt of the approval letter from the EDB, both the buyer and the seller must draw up the sales contract, and the deed must be signed before a local notary.

Smart City Scheme (SCS)

The Smart City Scheme (SCS) was designed by the government to promote Mauritius as an international business center and encourage sustainable development. As a result, each smart city:

• Is built on a land area of over 21.105 hectares;
• Provides residential properties, commercial facilities and recreational amenities;
• Is optimized for energy efficiency;
• Is accessible to retirees who can acquire life rights;
• Equipped with affordable housing units for middle-income earners;
• Open to Mauritian citizens and persons registered with the Mauritian Diaspora Scheme (at least 25% of residential properties);
• Allows Smart City companies and developers to sell land for residential and non-residential purposes;
• Has a company dedicated to smart management of common areas.

Benefits of investing in a Smart City program as an individual:

• Allows foreigners to apply for Resident Permit for any investment equal to or greater than USD 375,000 in real estate;
• Allows foreigners to purchase office space in Mauritius;
• Offers a wide range of tax and non-tax benefits to purchasers.

Exemptions upon investing in the development and/or components of a Smart City in Mauritius for companies:

• Income tax for a period of 8 years;
• VAT on capital goods;
• Customs duties on the import or purchase of dutiable goods;
• Real estate transfer tax and registration tax on land transfer;
• Land conversion tax on the area allocated to the development of non-residential components;
• Subdivision tax.

Who may be interested?

• A foreigner who wishes to buy a townhouse, a villa, an apartment, a penthouse or a duplex in Mauritius;
• A foreigner wishing to have the Resident Permit through real estate investment (minimum amount of USD 375,000) and who wishes to be able to rent and resell without any fees;
• Companies looking for a favorable and sustainable tax environment.

Sale of serviced land within a Smart City Project

The deadline for non-citizen residents holding a residence permit, a permanent residence permit, or a residence permit and wishing to acquire a serviced plot of land not exceeding 2,100 m² in a Smart City has been extended to June 30, 2026.

Under the new Smart City Scheme (SCS), foreign nationals and their family members will be granted a Mauritian residence permit upon the acquisition of a property with a minimum sale price of USD 375,000.

The harmonization of Smart City Scheme (SCS) fees is also part of the updated regulations.

The Ground+2 (G+2)

Located in a condominium and in a building with at least 2 floors, the G+2 apartment refers to a property that is at least 2 floors above the first floor.

A residence permit is granted to a non-citizen upon acquisition of a residential property in a building of at least 2 floors above the first floor for an amount not less than USD 375,000 or its equivalent in any other freely convertible foreign or Mauritian currency.

The residence permit is valid as long as the non-citizen remains the owner of the residential property under the G+2 scheme.

Who can be interested?

The G+2 apartment can be sold off-plan, during or after its construction, but also, and more importantly, outside of the residential schemes mentioned above. Indeed, foreigners are now allowed to buy apartments in developments outside the approved residential programs. The EDB also reminds that holders of a permanent residence permit and professionals earning more than USD 3,000 per month are allowed to buy a G+2 apartment as their personal residence.

Formalities

To be eligible for the G+2 program, the purchaser must meet the following requirements:

• The apartment must be used according to the terms indicated on the purchase authorization;
• The owner is not allowed to transfer or assign the apartment without the authorization of the EDB;
• The owner is not allowed to practice real estate speculation for 6 months;
• This type of property is subject to property taxes and duties calculated based on its current market value;
• Any resale (with no minimum price) or transfer must be requested in writing to the EDB 30 days before the sale or transfer;
• A new procedural fee of Rs 25,000 per application will be introduced for foreigners acquiring G+2 apartments.

The Invest-Hotel Scheme (IHS)

The IHS program, created in 2010, allows hotels to sell their rooms, suites or villas that are part of the hotel to buyers before, during or after the construction of the hotel.

According to the EDB, the Invest Hotel Scheme (IHS) provides the opportunity for foreign investors and individuals to own exclusive hotel units located in Mauritius.

A non-citizen can acquire a room (or hotel unit) in new and existing hotels that are approved under the IHS. The said room is marketed under a co-ownership regulation governed by the Mauritian Civil Code. In the case of an off-plan sale, the sale is made under the VEFA system, governed by the Mauritian Civil Code.

The owner has privileged access to all the amenities of these highly equipped luxury hotels, including ancillary services such as dining, full-service spas, fitness centers, and swimming pools integrated into these resorts.

The unit owner or anyone on their behalf can enjoy the unit for up to 45 days in a 12-month period and can also earn income through the sale-leaseback model.

If the unit or room is acquired for a minimum of USD 375,000, the owner would become eligible for a residency permit.

Who may be interested?

• A non-citizen of Mauritius;
• A Mauritian citizen;
• A company registered as a foreign company under the Companies Act 2001;
• A company incorporated under the Companies Act 2001;
• A company, the memorandum of association of which is filed with the Registrar of Companies;
• A trust, where the trust services are provided by a qualified trustee licensed by the Financial Services Commission.

Good to know:

A GBL company within the meaning of the Financial Services Act 2007 holding a business license is not authorized to acquire a property under the IHS program.

Formalities

For the acquisition of a detached villa, the investment amount must not be less than USD 375,000 (excluding taxes) or its equivalent in any freely convertible currency.

For other units, no minimum investment is required.

Where a unit or any other part of the hotel is purchased from a non-Mauritian citizen, or in the case of a company with a non-Mauritian shareholder, or if it is a trust whose beneficiary is a non-Mauritian citizen, or if the business partner is a non-Mauritian, the payment must be made in either Mauritian rupees, USD, Euros, Pounds Sterling, or any other convertible currency.

In the case of payments made in a currency other than USD, the EDB will use the selling exchange rate prevailing at the date of application to calculate the USD equivalent and ensure that the price exceeds USD 375,000 in the case of individual villas.

In the case of the acquisition of a unit or any other part of a hotel by a non-Mauritian citizen, the investment must be financed by the buyer from funds located outside Mauritius and transferred through a reputable bank listed in the Bank of Mauritius' approved Banking Almanac.

A non-Mauritian citizen can take out a bank loan in Mauritian rupees, provided that the first USD 500,000 (EUR 370,000) is paid in a convertible foreign currency and the loan repayment is made in a convertible foreign currency.

In the case of a purchase by a foreign citizen, the following documents must be provided:

• Authenticated copies of the first 5 pages of his/her passport;
• Authenticated birth certificate;
• Certificate of good character dated within 3 months;
• A letter from the bank certifying the buyer's KYC (Know Your Client) exercise.

Property Development Scheme (PDS)

Upon purchase of a property under the PDS scheme, you will be eligible for a resident permit if you have invested USD 375,000 or more or the equivalent in another freely convertible currency.

The IRS and RES real estate programs are being replaced by the PDS to allow new luxury real estate developments to be sold to foreign nationals.

All units can be acquired by foreigners wishing to invest in Mauritius in an environment-friendly setting where the ecological aspect is paramount.

Launched in 2015, this program is oriented around flexibility, localized social and economic contribution, and respect for the environment. A project meets the PDS standards when it has a minimum of 6 residential properties of high standing. As for the surface area of a plot of land for the construction of a villa, it is 5,275 m².

The Property Development Scheme (PDS) is designed for :

• The development of luxury residential units on a lot size of at least 1 acre;
• The development of at least 6 luxury residential properties (villa, house, apartment, penthouse, duplex, building plot, etc);
• Providing quality public spaces to promote social interaction and a sense of community;
• Providing quality recreational and commercial facilities to enhance the environment surrounding these residential units;
• Providing management services for residents, including maintenance, custodial services, gardening, and waste disposal;
• Social contribution in terms of facilities and through community development and other facilities.

The projects developed under this program are built on land of all sizes, up to 20 hectares. They are luxury residential properties, sold exclusively on a VEFA basis but with no minimum purchase price, meeting high international standards. Owners enjoy open spaces, high-level leisure and recreation facilities and daily management services.

By investing more than USD 375,000 in a PDS project, the non-citizen, his/her spouse and children under 24 years of age are granted a residence permit as long as the purchaser holds the residential property. Finally, a non-resident holding a residence permit under the PDS is exempt from an occupation or work permit to invest and work in Mauritius.

Extension of land purchase opportunities for non-citizen residents in Mauritius

The opportunity for non-citizen residents holding a residence permit, a permanent residence permit, or a residence permit to acquire serviced land of less than 2,100 m² within PDS projects has been extended until June 30, 2026. This decision, part of the 2023–2024 budget speech, includes the extension of the possibility of acquiring serviced land within Property Development Scheme (PDS) projects until the same date. These initiatives aim to stimulate property investment and strengthen Mauritius' position as an attractive destination for non-citizen residents looking to invest in real estate.

Benefits of the PDS scheme in Mauritius

Upon purchase of a villa under the PDS scheme, you will be eligible for a residence permit if you have invested more than USD 375,000 or the equivalent in another freely convertible currency. This residency permit is valid as long as you retain ownership of the property. It allows you to benefit from the particularly favorable tax policy if you stay more than 183 days per year in Mauritius while being vouchable for your immediate family members (spouse and children up to the age of 24).

Registration fees under the PDS are harmonized at a single rate of 5%. The conversion tax is not applicable on 9-hole golf courses. You have the option of renting your property through a reputable real estate agency, which will find tenants and manage your property in your absence for the whole year or part of it.

Whether you are an individual or a business, the PDS allows you to benefit from the flat and advantageous 15% tax rate for businesses and individuals, as well as a registration fee of only 5% on real estate transactions. There is no capital gains tax on the sale of the property and no withholding tax on interest and dividends.

You will benefit from duty exemptions on equipment and the free repatriation of profits, dividends and capital. For French buyers, this investment is not included in the calculation of the wealth tax (ISF), and there is no generalized social contribution (CSG), property tax or housing tax.

Who can be interested?

The following are eligible to purchase a residential property through the PDS scheme:

• An individual, Mauritian citizen, non-citizen or member of the Mauritian diaspora;
• A company incorporated or registered under the Companies Act;
• A company whose memorandum of association is filed with the Corporate and Business Registration Department;
• A limited partnership within the meaning of the Limited Partnerships Act;
• A trust, where guardianship services are provided by a qualified trustee;
• A foundation under the Foundations Act;
• An expat holding an Occupation Permit or Resident Permit in Mauritius, in search of a luxury villa with services and amenities or a luxury apartment with services and amenities or a penthouse with services and amenities or other similar properties that are or can be used as a serviced residence.

Formalities

There are 3 cases: the purchase of a PDS property by an individual; the purchase of a PDS property by a company; and the purchase of a commercial PDS property by a company.

Purchase of a PDS property by an individual

The application to purchase a PDS property must be submitted to the EDB by a company that specializes in the PDS program. This company will carry out the Know Your Client (KYC) exercise and open an Escrow Account in your name. The application must be made online through the Property Acquisition and Management System. A non-refundable fee of Rs 20,000, payable by check, is applied to each application.

As an individual buyer, the following documents are required:

• A certified/notarized copy of the first 5 pages of your passport;
• A certified/notarized copy of your birth certificate;
• A letter from your bank certifying that the KYC exercise has been completed.

If you wish to apply for permanent residency in Mauritius, you will also need to produce the following documents:

• A completed resident permit application form;
• An extract of your criminal record dated less than 6 months prior to the application;
• A certified/notarized copy of your birth certificate;
• A medical certificate dated less than 6 months prior to the application, certifying that you are free of any illness;
• An extract of your marriage certificate and the birth certificate of your children, if you are accompanied by family members, as well as their passports;
• A medical certificate for each of your dependents;
• An extract from your spouse's criminal record;
• 2 passport-size photos for the applicant and his/her spouse.

Purchase of a PDS property by a company

In the case of a company wishing to purchase a property under the PDS program, an application must be made to the EDB for authorization. The following documents must be submitted:

• The company's certificate of registration, showing that it has been registered as a foreign company under the Companies Act of 2001, or a certificate of incorporation;
• The company's registration card;
• The register of shareholders;
• A resolution of the Board of Directors, issued by the Secretary or Director for the appointment of a foreign national (shareholder, executive director or general manager) to occupy the residential property and stay in the country as a resident;
• All the above-mentioned documents in the case of foreign nationals applying for a resident permit accompanied by their dependents.

Purchase of a commercial PDS property by a company

Foreign nationals who are not registered with the EDB can acquire commercial space in a building to develop their business, including a shopping mall, office building or warehouse, or even under the PDS or Smart City Scheme. For this, an application must be made to the EDB for a permit.

Documents to be submitted:

• A completed application form signed by the company director;
• The company's Certificate of Incorporation and register of shareholders;
• A business plan containing details of the shareholders, project, time frame and financing of the project;
• A site plan issued by a sworn surveyor indicating the precise location and size of the property;
• An appraisal report of the property issued by a surveyor or appraiser;
• A bill of sale drawn up before a notary public in Mauritius between the seller and the buyer;
• Proof of funds from a bank (for the acquisition of the property and the implementation of the project);
• An Outline Planning Permission issued by the local authorities if construction works are planned;
• A letter of power of attorney in the case of a third-party application;
• A letter of intent issued by the Tourism Authority in the case of tourism activities, such as hotel or restaurant development, yacht operation, tour operators, etc.

Payment schedule for a real estate purchase under an PDS project

The reservation contract must be made by a notary and once the application to the EDB has been approved, the deed of sale can be signed and registered.

When the acquisition of a PDS property is done on plan or in the construction phase, the contract is governed by the provisions of a sale in future state of completion (VEFA) or a forward sale, as the case may be, in accordance with the provisions of articles 1601-1 to 1601-45 of the Mauritius Civil Code.

The payment schedule of a property in PDS is similar to that in VEFA:

• 25% of the sale price at the signature of the sale contract;
• 10% upon completion of the foundation works;
• 35% upon completion of the roof;
• 25% upon completion of the work;
• 5% upon delivery.

Good to know:

Owners of real estate in IRS/RES/PDS can rent out their property, become tax residents in Mauritius and are not subject to any restrictions on repatriation of funds or income from the sale or rental of the property. Non-citizens holding a residence permit under the IRS/RES/PDS are exempt from the Occupation Permit or Work Permit to invest and work in Mauritius.