Mauritius Property Regulations: What Non-Citizens Need to Know in 2025
Mauritius has long been an attractive destination for property investment, offering exceptional real estate opportunities under schemes such as IRS, RES, PDS, IHS, and SCS. However, effective December 13, 2024, new regulations significantly impacting non-citizens wishing to acquire property have come into effect. If you are a foreign investor or considering purchasing property in Mauritius, it is essential to understand these changes and their potential implications on your investment strategy.
Understanding the Different Property Schemes in Mauritius
Mauritius offers several investment schemes tailored to non-citizen buyers:
- Integrated Resort Scheme (IRS): Designed for high-end luxury resorts and residential properties, IRS projects allow non-citizens to purchase freehold property, often within gated communities offering premium amenities such as golf courses and marinas.
- Real Estate Scheme (RES): Aimed at smaller residential developments compared to IRS, RES projects provide non-citizens with freehold ownership of properties in integrated developments, but with fewer restrictions on the size of the project.
- Property Development Scheme (PDS): Replacing both IRS and RES, the PDS scheme promotes environmentally sustainable developments while allowing non-citizens to purchase high-end properties with enhanced social and infrastructure benefits.
- Invest Hotel Scheme (IHS): Enables non-citizens to invest in hotel rooms, villas, or suites within hotel resorts, with the opportunity to earn rental income while benefiting from hotel services.
- Smart City Scheme (SCS): Encourages mixed-use developments with residential, commercial, and leisure components, allowing non-citizens to invest in innovative and sustainable urban environments.
Key Changes in the Regulations
The amendments introduce two significant shifts for non-citizen buyers:
New Currency Requirements
- 85% of the purchase price must be paid in Mauritian Rupees (MUR).
- The remaining 15% can be paid in USD, EUR, or another hard convertible foreign currency.
- Funds must still be transferred from abroad in a foreign currency, but conversions will occur locally.
Revised Loan Financing Rules for Properties Above USD 750,000
- Buyers must pay the first USD 750,000 from their own funds.
- Only the remaining amount can be financed through a local bank loan.
- Loan repayments must be made in foreign currency, not MUR.
Who Is Affected?
These amendments apply only to first-time sales under IRS, RES, PDS, IHS, and SCS projects. Resales and Ground+2 apartments are not impacted. Additionally, buyers who signed purchase agreements before December 13, 2024, are not subject to these changes unless new tranche payments are due.
How Do These Changes Affect Foreign Buyers?
- Higher Cash Requirement – For properties over USD 750,000, buyers must have at least USD 750,000 in liquid funds before securing a loan.
- Exchange Rate Considerations – With 85% of transactions now in MUR, fluctuations in exchange rates may impact total investment costs.
- More Oversight on Payments – Notaries and banks will play a crucial role in ensuring compliance with these new rules, leading to longer verification processes.
- Flexibility for Resident Buyers – Non-citizens already residing in Mauritius with an Occupation or Residence Permit can use local income, rental revenue, or previous investment returns for property purchases.
How Should Investors Adapt?
For those looking to invest in Mauritius property, it is essential to plan ahead:
- Secure foreign currency transfers early to mitigate exchange rate risks.
- Reassess financing strategies to ensure you meet the initial cash requirement.
- Consider resale properties or Ground+2 apartments for more flexible payment terms.
Strategic Considerations for Investors
These regulatory amendments reinforce Mauritius as a structured and stable real estate investment destination. However, foreign investors should carefully assess their financial strategies, particularly regarding currency exchange risks and funding options. Consulting with real estate professionals and financial advisors is highly recommended to navigate these changes effectively.
At Harcourts Offshore, we specialize in assisting non-citizens with property investments in Mauritius. Whether you're considering a new development purchase or exploring financing options, our expert team is here to guide you through every step of the process.
For more details or personalized advice, contact us today!
