Mauritius: New rules for foreign property investors

With effect from 13 December 2024, Mauritius has introduced significant changes to the property acquisition procedures for non-citizens. These adjustments concern the IRS, RES, PDS, SCS and IHS regimes, with the aim of strengthening the local economy and ensuring better regulation of financial flows.

From now on, foreign buyers must comply with a specific payment breakdown:

• 85% of the purchase price must be paid in Mauritian rupees (MUR), after conversion of foreign currency transferred from abroad.
• 15% may be paid in either MUR or foreign currency, depending on the buyer’s preference.

This measure is intended to promote the use of local currency in property transactions.

The notary is becoming a central player in this process:

• He receives all the funds in foreign currency in an escrow account.
• He converts 85% into MUR for transfer to the developer.
• He ensures that the notarial deed is registered within 8 days, with payment of the registration fees in foreign currency.

For properties costing more than USD 750,000 :

• A minimum of USD 750,000 must be transferred to Mauritius and converted into MUR.
• The balance can be financed by a local loan in MUR, with repayments made in foreign currency.

These new rules apply only to acquisitions initiated after 13 December 2024 under the IRS, RES, PDS, SCS and IHS schemes. Secondary market transactions or purchases under the G+2 regime are not affected by these changes.

These changes reflect the Mauritian authorities’ desire to strengthen economic stability and provide a better framework for foreign investment. It is essential for potential investors to familiarise themselves with these new provisions and to consult qualified professionals to ensure a compliant and secure transaction.