Mauritius has established itself as a premier destination for property investment in the Indian Ocean, offering both residents and non-residents access to a sophisticated real estate market backed by robust legal frameworks and attractive investment schemes. The property market grew 27.19% year-on-year in Q3 2024, with foreign buyers investing an average of MUR 30.6 million (USD 645,111) per property, highlighting the market's strength and appeal.
This comprehensive guide provides everything prospective buyers need to know about purchasing property in Mauritius, from understanding the legal framework to navigating financing options and investment schemes. Whether you're a Mauritian resident seeking your first home or an international investor exploring opportunities through the Property Development Scheme (PDS), this resource covers all essential aspects of the property acquisition process.
Legal Framework Governing Property Transactions
The Mauritian property market operates under a hybrid legal system combining French Napoleonic Code with British Common Law, creating a comprehensive framework that ensures security and transparency in real estate transactions. All property transfers require mandatory notarial involvement, with notaries acting as Ministerial Officers delegated by the State to create authentic deeds that provide conclusive proof of ownership and enforceability.
The Notaries Act 2008 establishes specific obligations for notaries in property transactions. They must verify the seller's legal title and authority to transfer property, ensure no mortgages or charges exist on the property, advise parties on legal implications and tax consequences, and manage escrow functions for reservation deposits. Anti-money laundering amendments in 2020 now require all purchase payments to be made either by bank cheque in the notary's name or via bank transfer to the notary's account, eliminating cash transactions entirely.
Property Ownership Structures
The Civil Code Mauricien (CCM), based on the French Napoleonic Code maintained under British rule, provides the foundation for property law. It covers property ownership, sales contracts, and succession rights, complemented by English-inspired procedural acts like the Sales of Immoveable Property Act 1868 and the Non-Citizens Property Restriction Act.
Property can be held under various structures including:
- Traditional ownership - Full freehold ownership with complete rights
- Division Spatiale - New concept introduced in 2018 for flexible ownership organization
- Copropriété regime - Condominium structures for shared ownership
Step-by-Step Property Purchase Process
For Mauritian Residents
The property purchase journey for Mauritian residents begins with property selection and financial assessment. After choosing a suitable property and securing financing, buyers typically engage a qualified real estate agent who charges 2% commission plus 15% VAT. The process then moves to a legally binding Promise of Sale (Promesse de Vente) with a 10% deposit held in escrow.
The notarial process involves document verification, authentic deed preparation, and final signing with funds transfer. The notary verifies the property title, checks for mortgages or charges, and ensures all legal requirements are met. Following the deed signing, the property is registered at the Registrar General's Office, with the official ownership transfer recorded and a new title deed issued to the buyer. The entire process typically takes 2-4 months from property selection to final registration.
Required Documentation for Residents
- National identity card
- Birth certificate
- Marriage certificate (if applicable)
- Three months of bank statements for salaried employees or twelve months for self-employed individuals
- Recent salary slips
- Income tax returns
- Employment certificates or business registration numbers
For Non-Residents
Non-residents primarily purchase through approved investment schemes, with the Property Development Scheme (PDS) being the current main framework. Properties valued at USD 375,000 or above automatically qualify purchasers for a residence permit, making Mauritius an attractive destination for investors seeking both property ownership and residency rights.
The process begins with selecting property from approved developments and submitting applications through the Economic Development Board's Property Acquisition Management System (PAMS). Applications require complete documentation and a non-refundable processing fee of MUR 25,000. The EDB typically processes applications within 3-4 months, issuing a Letter of Approval upon successful review.
Banking and Financing Options
Mauritius offers competitive mortgage financing through major banks, with the current Bank of Mauritius Key Repo Rate at 4.50% influencing lending rates across the market. MCB leads with rates from 5.05%, whilst other major banks like SBM, Absa, Bank One, and AfrAsia provide various options tailored to both residents and non-residents.
For Mauritian Residents
Banks offer up to 100% financing with competitive rates ranging from 3.75% to 6.5% for MUR loans. The maximum debt-to-income ratio stands at 40% of income, increasing to 50% for high earners above Rs 200,000 monthly.
For Non-Residents
Non-residents face different requirements, with maximum loan-to-value ratios of 70% requiring a minimum 30% down payment. Banks offer financing in MUR, USD, or EUR, with foreign currency loans potentially offering lower rates. Age restrictions typically limit eligibility to 65 years, and stricter income assessments apply.
Investment Schemes and Pathways to Residency
Mauritius offers three main property investment schemes for non-residents, each providing unique benefits and pathways to residency:
Property Development Scheme (PDS)
Introduced in 2015, the PDS has largely replaced earlier IRS and RES frameworks as the primary vehicle for foreign property investment. It provides the most flexibility with land sizes from 1 to 50 arpents, harmonised 5% registration duties, and emphasis on social contribution and environmental sustainability.
Integrated Resort Scheme (IRS)
Targets high-net-worth individuals with luxury resort developments exceeding 10 hectares. With minimum investments of USD 375,000 qualifying for residence permits, IRS properties average USD 1.6 million and include amenities like golf courses, marinas, and spas.
Real Estate Scheme (RES)
Offers smaller-scale developments between 4,000m² and 10 hectares, targeting more affordable price points whilst maintaining luxury standards. Though no minimum purchase price exists, the USD 375,000 threshold still applies for residence permits.
Due Diligence and Professional Guidance
Comprehensive due diligence forms the cornerstone of safe property acquisition in Mauritius. Critical verification items include confirming the property qualifies under approved schemes for foreign ownership, checking for mortgages or legal charges, verifying all building permits and occupation certificates are current, and ensuring environmental clearances are obtained for applicable developments.
Hidden Costs to Consider
- Notary fees on a sliding scale from 2% to 0.5% plus 15% VAT
- Attorney fees ranging from MUR 50,000-200,000 for due diligence
- Surveyor fees of MUR 15,000-50,000
- Property inspection costs of MUR 10,000-25,000
- EDB processing fees of MUR 25,000 for foreign buyers
Recent Regulatory Changes
Recent foreign exchange regulations introduce important changes for property purchases. Effective December 13, 2024, 85% of the purchase price must be paid in Mauritian rupees, with only 15% payable in foreign currency. For high-value properties above $750,000, the first $750,000 must be transferred to Mauritius and paid in rupees, with the balance potentially foreign financed.
Conclusion
The Mauritian property market offers compelling opportunities for both residents and international investors, backed by robust legal frameworks and attractive investment incentives. Success requires understanding the comprehensive regulatory environment, engaging qualified professionals throughout the process, and conducting thorough due diligence on all aspects of the transaction.
With property values showing strong growth, favourable tax treatment, and the possibility of obtaining residence permits and eventual citizenship, Mauritius continues to stand out as a premier destination for property investment in the Indian Ocean region. Professional guidance remains essential throughout the process to ensure compliance with all legal requirements and successful property acquisition.
