Why Mauritius Remains a Premier Destination for Apartment Investment
The Mauritian property market continues to attract international investors, with apartment sales to foreigners increasing by 15% in 2024 according to the Bank of Mauritius quarterly report. With stable political conditions, attractive tax incentives, and residence permit opportunities, the island offers compelling advantages for property investment. Are you considering expanding your portfolio with a tropical asset that combines lifestyle and financial returns? Whether you’re seeking rental income or a second home, now is an ideal time to explore options to buy an apartment in Mauritius.
Prime Locations: Where to Find Your Ideal Property
Mauritius offers exceptional investment opportunities across its most coveted coastal destinations. Each premium location presents unique advantages that savvy international investors are increasingly recognizing for their long-term value potential.
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Grand Bay remains the island’s most dynamic hub, combining vibrant nightlife with luxury residential developments. The area attracts high-end tenants year-round, ensuring consistent rental yields for apartment owners. Meanwhile, the west coast gems of Tamarin and Flic en Flac offer pristine beaches and world-class amenities, making them perfect for both personal enjoyment and investment returns.
Port-Louis, the bustling capital, provides a different investment angle with its growing business district and waterfront developments. These urban apartments appeal to professionals and executives, creating a steady rental market that complements the tourism-driven coastal properties.
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Our extensive portfolio spans these prime locations, giving international buyers access to carefully selected properties that maximize both lifestyle benefits and investment returns. We understand that choosing the right location isn’t just about today’s market—it’s about positioning yourself for Mauritius’ continued growth as a premium destination for discerning residents and visitors alike.
Understanding Property Investment Schemes: PDS vs G+2 Options
Mauritius offers two distinct property investment schemes for international buyers seeking apartments: the Property Development Scheme (PDS) and the G+2 option. Each scheme comes with specific investment thresholds, ownership rights, and residency benefits that significantly impact your property acquisition strategy.
The PDS scheme requires a minimum investment of USD 375,000 for apartments, granting full ownership rights and automatic eligibility for a residence permit. This scheme targets luxury developments in prime locations across the island, offering comprehensive ownership benefits including the right to rent your property freely.
In contrast, the G+2 scheme caters to mid-market apartments with a lower entry point of USD 200,000. However, this option comes with specific restrictions on building height (ground plus two floors) and different residency permit conditions that require careful consideration.
Key differences between these investment schemes include:
- Investment threshold: PDS requires USD 375,000 minimum vs G+2 at USD 200,000
- Ownership rights: PDS offers unrestricted ownership while G+2 has specific development limitations
- Residency permits: PDS provides automatic eligibility vs conditional approval for G+2
- Rental potential: PDS allows unrestricted rental income generation with higher yield expectations
- Resale flexibility: PDS properties generally offer greater market liquidity and buyer appeal
Understanding these distinctions helps you select the most suitable investment path based on your budget, residency goals, and long-term property objectives in Mauritius.
Investment Costs and Potential Returns Analysis
Premium apartments in Mauritius present attractive investment opportunities with acquisition costs varying significantly by location and scheme. PDS properties typically range from USD 375,000 to USD 1.2 million for two to three-bedroom units in prime coastal areas like Grand Baie and Flic en Flac.
Beyond the purchase price, investors should budget for additional costs including legal fees (approximately 1-2% of property value), notary fees, and registration duties. Transfer taxes remain reasonable at 5% for properties under USD 500,000, with rates increasing progressively for higher-value acquisitions.
Rental yields in premium locations deliver compelling returns, with annual yields typically ranging from 4% to 7% depending on property type and location. Beachfront apartments in established resort areas command premium rental rates, particularly during peak tourist seasons from May to December.
Capital appreciation potential remains strong, with prime locations experiencing steady growth driven by limited supply and increasing international demand. Properties in emerging areas like Rivière Noire and exclusive developments often present higher growth potential for patient investors seeking long-term value creation.
Tax Benefits and Residency Advantages for International Buyers
Mauritius offers compelling tax incentives that make property investment particularly attractive for international buyers. The island operates a territorial tax system, meaning residents only pay tax on income generated within Mauritius, while foreign-sourced income remains tax-free.
Foreign investors can obtain residence permits through property ownership under two main schemes. The Property Development Scheme (PDS) requires a minimum investment of USD 375,000, while the Invest Hotel Scheme allows residency through qualifying hotel apartment purchases. Both pathways lead to permanent residence status after three years of continuous residence.
Mauritian tax residents benefit from competitive rates, with personal income tax capped at 15% and no capital gains tax on property sales. The absence of inheritance tax and wealth tax further enhances the appeal for high-net-worth individuals seeking tax optimization.
Our specialized expertise in navigating these residence permit applications ensures international buyers understand every advantage available. We guide clients through the complete process, from identifying qualifying properties to securing residency documentation, maximizing both investment returns and personal tax benefits.
The Complete Acquisition Process: From Search to Ownership
Purchasing property in Mauritius as a foreign investor involves a structured process that typically spans three to six months from initial search to final ownership. The complexity of international transactions requires careful navigation of local regulations, financing arrangements, and legal requirements that differ significantly from other markets.
The journey begins with property selection and preliminary negotiations, followed by the crucial due diligence phase. During this period, buyers must secure financing pre-approval, conduct thorough property inspections, and verify all legal documentation. International buyers particularly benefit from working with specialists who understand both local requirements and the expectations of foreign investors.
Legal procedures include drafting and signing the preliminary agreement, which secures the property while final arrangements are completed. The notarial process follows, where ownership is officially transferred through the registrar of lands. Concurrent to this, buyers can initiate their residence permit application, as property ownership often qualifies for various residency schemes.
Professional guidance proves invaluable throughout this process, ensuring compliance with all regulations while maximizing investment benefits. Experienced advisors help streamline documentation, coordinate with local authorities, and anticipate potential delays, making the acquisition process significantly smoother for international buyers.
Your Property Investment Questions Answered
What are the best locations to buy an apartment in Mauritius as a foreigner?
Grand Baie, Tamarin, and Flic en Flac offer premium beachfront properties with strong rental demand. Port Louis provides urban convenience, while Black River features luxury developments with golf course access and marina proximity.
How much does it cost to purchase an apartment in Mauritius and what are the rental yields?
Luxury apartments range from $300,000 to $1.5 million depending on location and amenities. Rental yields typically achieve 4-6% annually, with beachfront properties commanding higher rates during peak season.
Can international buyers get residency permits when purchasing property in Mauritius?
Yes, purchasing property under PDS or RES schemes grants permanent residence permits for buyers and their families. Investment thresholds start at $375,000 for qualifying developments with government approval.
What is the difference between PDS and G+2 schemes for buying apartments in Mauritius?
PDS allows foreign ownership with residence permits starting at $500,000. G+2 permits apartment purchases from $375,000 but requires government authorization and offers similar residency benefits to qualifying buyers.
Are there any tax advantages for foreign investors buying apartments in Mauritius?
Mauritius offers no capital gains tax on property sales, 15% flat income tax rate, and favorable double taxation treaties. Property transfer duties are competitive at 5% for most transactions.
