PDS, IRS, RES, Smart City: Which Scheme to Choose?

Investing in property in Mauritius attracts more foreign buyers every year, drawn by the climate, the holding-phase tax regime and the island's quality of life. But before signing a reservation agreement, one central question arises: PDS, IRS, RES, Smart City — which property scheme should you choose to carry out your project under the best possible conditions? These four frameworks, introduced by the Mauritian authorities to regulate access to property ownership for non-citizens, each answer to a different logic in terms of budget, location and objectives.

Between the historic prestige of the IRS, now available only on resale, the residual stock of the RES, the adaptability of the PDS and the urban ambition of the Smart City Scheme, finding your way around is not always straightforward — all the more so since each scheme also determines whether you can obtain a residence permit. The context has changed, too: since 1 July 2026, registration duty payable by a foreign buyer has risen from 5% to 10%, and buying outside an approved scheme is no longer possible. This article offers a clear, up-to-date analysis of these four schemes, with a detailed comparison table, concrete examples drawn from well-known estates such as Anahita and Tamarina, and reliable figures to help you secure your property investment in Mauritius in 2026.

Why these property schemes exist in Mauritius

Historically, land ownership in Mauritius was reserved for Mauritian citizens, with foreign access to the local property market tightly controlled under the Non-Citizens (Property Restriction) Act. Driven by a desire to attract foreign capital and stimulate its economy, the country gradually opened its residential market to non-residents, under specific conditions. This shift served a twofold objective: diversifying the Mauritian economy beyond its traditional sectors, and offering foreign investors a secure framework in which to settle on the island for the long term.

The legal framework set up by the Economic Development Board

It is against this background that a genuine legal framework for property was established, overseen by the Economic Development Board (EDB). This public body plays a central role in regulating the various property investment schemes aimed at foreign buyers. The EDB defines eligibility criteria, approves authorised developments and ensures that transactions comply with Mauritian law. Its involvement guarantees:

• legal certainty for international buyers;
• transparency in the acquisition process;
• consistency between property development and national economic policy.

Since the Finance Act 2025, this approval is no longer merely reassuring — it is unavoidable: the provision that allowed a non-citizen holding a residence permit to buy property worth more than USD 500,000 outside the EDB schemes has been abolished. Only the IRS, RES, PDS, SCS, IHS and Ground+2 frameworks now give a foreign buyer access to residential property.

A property investment tied to a residence permit

The other major feature of these schemes lies in the direct link established between buying property and obtaining a residence permit. Unlike many other destinations, Mauritius explicitly connects certain qualifying property investments to residence rights for the buyer and their family. The benchmark threshold, USD 375,000, has remained unchanged despite the tax reforms of 2025 and 2026. The permit stays valid for as long as the property is owned, carries no minimum-stay obligation, and allows the holder to live and work in Mauritius without a separate occupation permit. Be careful, however, not to confuse this permit with tax residence, which requires physical presence in the country for more than 183 days a year.

The IRS in Mauritius: the historic luxury programme

Launched in 2002, the Integrated Resort Scheme marked a decisive turning point for property investment in Mauritius. It was the very first scheme to open up freehold ownership to foreign buyers, who until then had been excluded from the local residential market. The ambition was clear: to attract a demanding international clientele by offering exceptional properties set within genuine resort estates worthy of the world's leading hotel complexes.

Purchase conditions and minimum budget

The IRS programme is aimed at a wealthy clientele seeking prestige and tranquillity. Buyers invest in properties located within large estates of at least ten hectares, where each villa enjoys carefully designed landscaping and high-end infrastructure. The minimum price per unit is set at USD 375,000, a threshold that coincides with the residence permit requirement. Distinctive features of these residences include:

• Generous floor areas and bespoke finishes
• Access to resort-style facilities: golf course, spa, private marina
• Enhanced security and concierge services
• A preserved natural setting, often on the seafront

One essential point to remember in 2026: no new project has been approved under the IRS since 2015. The scheme survives only through estates already delivered and their resale market.

Landmark IRS developments

Several estates perfectly embody the spirit of the IRS scheme. Anahita, on the east coast, appeals with its Ernie Els–designed golf course and its villas overlooking the lagoon. Tamarina, in the west, offers an equally refined golfing setting between mountains and ocean. These developments illustrate the programme's ability to combine residential luxury with island living.

Another major advantage: buying an IRS villa above the USD 375,000 threshold entitles the purchaser, along with their spouse and dependent children under 24, to a residence permit, reinforcing the lasting appeal of this exceptional status. The 10% land transfer tax now applicable to resales to non-citizens does, however, need to be factored in.

The RES in Mauritius: accessible high-end property on its way out

A scheme replaced by the PDS

The Real Estate Scheme (RES), introduced in 2007 for developments of under ten hectares, long represented an attractive alternative within the Mauritian property landscape, particularly because it set no minimum sale price — unlike the IRS, which was reserved for larger and more expensive developments. This flexibility allowed foreign investors with more modest budgets to access high-standard villas or apartments within small residential projects. However, since 2015 the Mauritian authorities have merged the RES and the IRS to create the Property Development Scheme (PDS), a single, harmonised framework. As a result, no new RES development is marketed in Mauritius today, and the scheme now belongs to the country's regulatory past.

What remains of existing RES developments

While the RES is no longer being developed, properties created under it still circulate on the resale market. One nuance is worth restating: the absence of a minimum price never meant an automatic residence permit. Below USD 375,000, a foreign owner may occupy the property but does not obtain permanent residence rights. Foreign investors interested in this type of property should therefore exercise particular caution before committing, since the rules have evolved since these projects were first created.

• Check the property's legal status and its compliance with the permits issued at the time
• Confirm that the price reaches USD 375,000 if a residence permit is part of the plan
• Anticipate the 10% land transfer tax applicable since 1 July 2026 to resales to non-citizens
• Call on a notary or local legal specialist experienced in RES resales

These precautions help secure an investment in a scheme that has become marginal but is still present on the Mauritian property market.

The PDS: today's benchmark for investing in Mauritius

How the Property Development Scheme works and its conditions

Since 2015, the Property Development Scheme (PDS) has established itself as the reference legal framework for any foreign investor wishing to acquire property in Mauritius. It replaces and unifies the former IRS and RES schemes, without any development size constraint, simplifying administrative procedures while retaining the advantages that made those earlier formulas successful. Since 2017, a PDS programme must also include a social dimension benefiting the surrounding community and meet environmental criteria. The PDS allows freehold purchase of an apartment, villa or penthouse held in co-ownership, within secure residential estates offering high-end amenities: swimming pools, landscaped grounds, 24/7 security and sometimes access to a golf course or beach.

The scheme suits both private buyers looking for a second home and investors seeking rental income. Properties eligible under the PDS include:

• Apartments in secure residential developments
• Individual villas with private gardens
• Penthouses with panoramic views
• Co-owned properties within integrated estates

The USD 375,000 threshold and the residence permit

Contrary to a widespread belief, PDS regulations do not impose a minimum sale price. It is the residence permit that is conditional: to qualify, the buyer must meet a minimum investment threshold of USD 375,000. This amount grants a permit valid for the buyer, their spouse and their dependent children for as long as the property is owned — a major advantage for families wishing to settle on the island long term. Budget around MUR 20,000 in EDB processing fees for a PDS application, plus a non-refundable USD 50 fee introduced on 1 December 2025 for all occupation and residence permit applications.

Certain areas concentrate the bulk of PDS developments thanks to their appeal and economic dynamism: Grand Baie, prized for its nightlife and shops; Tamarin and Rivière Noire, appreciated for their surf spots and unspoilt natural setting; and Pointe aux Canonniers, known for its beaches and upmarket seafront residences. Also worth noting for buyers over 50 is a useful variant: PDS Senior Living, dedicated to senior residences, applies a reduced entry threshold of around USD 200,000.

The Smart City Scheme: investing in the future of Mauritius

A mixed-use concept: live, work, play

Introduced in 2015, the Smart City Scheme embodies an innovative urban vision for Mauritius, designed to address the economic, social and environmental challenges of the 21st century. Unlike conventional property programmes, it encourages the creation of genuinely integrated urban ecosystems, where residents, businesses and visitors operate within a single environment designed for efficiency and sustainability. These smart cities rest on several essential components:

• High-end residential spaces suited to foreign investors as well as local families
• Vibrant commercial zones supporting local retail
• Modern offices aimed at technology and international companies
• Leisure, sports and cultural facilities for a balanced living environment

Landmark developments already illustrate this ambition: Moka, a genuine business and lifestyle hub; Beau Plan, developed around a reinvented industrial heritage; and Cap Tamarin, which combines upmarket residences with a preserved coastal setting. Foreign buyers can acquire an apartment, a villa or serviced land within the Smart City perimeter.

Investment conditions and example developments

From a regulatory standpoint, the investment conditions in Mauritius under the Smart City Scheme remain close to those of the PDS, with access to a residence permit from USD 375,000. The tax argument that historically set this scheme apart has, however, weakened considerably: the advantages granted to new Smart City certificates issued after 5 June 2025 have been removed, whether the eight-year tax holiday, VAT exemption on infrastructure, customs duty exemptions or land conversion and morcellement tax waivers. Only projects whose permits had already been issued and whose construction had started before that date retain part of these benefits. In 2026, each Smart City programme therefore has to be assessed individually, by checking the date its certificate was issued.

For the most ambitious investors, it is worth noting that an investment of USD 5 million or more can open the way to Mauritian naturalisation — a threshold distinct from the USD 375,000 required to obtain a simple residence permit linked to a property purchase.

PDS, IRS, RES, Smart City: the full comparison table

The Mauritian property market offers four main schemes allowing foreign nationals to invest in real estate: PDS, IRS, RES and Smart City. Each answers to distinct criteria of budget, location and residence permit eligibility, bearing in mind that one and the same threshold of USD 375,000 governs residence rights in every case. The table below summarises the key characteristics to guide your choice.

Budget, property type and residence permit by scheme

In all four cases, registration duty payable by a non-citizen buyer stands at 10% for any deed registered on or after 1 July 2026, against 5% previously.

VEFA and Ground+2: complementary alternatives

Sale in a future state of completion, known as VEFA (off-plan purchase), is the most widespread contractual formula in Mauritius for buying off plan. The buyer pays in successive instalments as construction progresses, which provides legal security for new developments falling under the PDS, IRS, RES or Smart City schemes, with a financial completion guarantee and mandatory developer insurance: two years on non-structural elements, ten years on structural elements.

The Ground + 2 scheme offers an alternative for budgets below the USD 375,000 threshold:

• Possible purchase of an apartment in any building with at least two floors above ground level, anywhere in Mauritius
• Minimum price of MUR 6 million per apartment, roughly USD 130,000 depending on the exchange rate
• No automatic residence permit, which becomes available only if the investment reaches USD 375,000
• A preferred solution for buy-to-let investment without plans to settle permanently, with the option of holding several units

Which scheme to choose according to your investor profile

The ideal property scheme depends above all on your budget, your life goals and your investment horizon. A foreign investor in Mauritius who wants to settle permanently will not have the same needs as a retiree looking for a sunny second home, or an expatriate simply seeking a return on a rental investment.

Families looking for a primary residence

For a family wishing to live in Mauritius year-round, buying a primary residence through the PDS or Smart City programmes is often the most suitable solution. These schemes grant a residence permit linked to the investment while offering a modern, secure living environment well served by schools, shops and infrastructure. An entrepreneur planning to relocate with their family will therefore favour a property within a Smart City, combining quality of life with proximity to economic activity hubs — while taking care to check the tax status of the specific programme.

Buy-to-let investors and retirees seeking a second home

Conversely, for a second home, the choice will lean more towards high-end properties in sought-after areas, with hotel services and integrated rental management: IRS on resale or new-build PDS. Retirees seeking peace and quiet will opt for a seafront villa or, depending on budget, a PDS Senior Living residence, while expatriates looking for a profitable rental investment will favour a property in a tourist area with strong demand — the G+2 route offering the lowest entry ticket here.

To summarise, here are the recommendations by profile:

• Family planning to settle: PDS or Smart City programme, primary residence
• Retiree seeking tranquillity: IRS on resale or PDS Senior Living, second home with services
• Entrepreneur with a professional project: Smart City, primary residence
• Expatriate buy-to-let investor: G+2 for accessibility, PDS for standing and residence rights

Investing in Mauritius therefore calls for a tailored approach, aligned with your financial situation and your life ambitions.

Additional costs and taxation when buying property in Mauritius

Beyond the purchase price, any property purchase in Mauritius involves a series of additional costs that should be factored into your overall budget. Since the July 2026 reform, these entry costs represent roughly 12% to 15% of the price for a foreign buyer, against 7% to 10% previously — so they deserve careful attention from any investor looking to secure their property investment.

Registration duty, notary fees and property taxes

When buying a property in Mauritius, the purchaser must pay registration duty calculated on the sale price or the value of the property, raised to 10% for non-citizens since 1 July 2026, as well as notary fees covering the drafting of the transfer deed. Municipal taxes, generally moderate, are also payable annually depending on the municipality where the property is located — noting that there is no annual property tax on residential property and no wealth tax. It is also advisable to budget for legal due diligence costs and, where applicable, agency fees.

• Registration duty: 10% for a non-citizen buyer
• Notary fees for the authenticated deed: a sliding scale of roughly 0.5% to 2%
• Annual municipal taxes and EDB processing fees (around MUR 20,000 under the PDS)
• Due diligence and legal verification costs
• Any estate agency fees: 4% plus 15% VAT, most often payable by the seller

Taxation of rental income and capital gains

A non-resident receiving rental income from a property located in Mauritius is subject to Mauritian income tax at the benchmark rate of 15%, attractive by European standards. This tax applies after deducting expenses linked to the management and upkeep of the property, with a Fair Share contribution of 15% applying above MUR 12 million of income. Another major advantage: Mauritius applies no capital gains tax on property resale for individuals, the tax raised in the 2025-2026 Budget having ultimately not been introduced in the Finance Act 2025. A 10% land transfer tax does apply, however, where the resale is made to a non-citizen buyer.

Key steps and points to watch before investing

The purchase process step by step

Buying property in Mauritius follows a structured process, governed by law and overseen by legal professionals. Before any financial commitment, a few checks are essential to secure your property investment.

• Due diligence: verification of the title deed, administrative permits and the development's compliance with the schemes in force (IRS, RES, PDS, etc.), with confirmation of the programme's EDB approval.
• Signing a preliminary reservation agreement: this document sets out the conditions, the price and the payment schedule, accompanied by a deposit paid into the notary's escrow account.
• EDB authorisation: filing the acquisition application and obtaining approval before any final signature.
• Transfer of funds: payments are made in instalments, particularly in the case of an off-plan (VEFA) purchase, as construction progresses and in line with the 85% rupees / 15% foreign currency split.
• Signing the final deed before the notary: this step formalises the transfer of ownership, triggers registration duty and completes the transaction.

Pitfalls to avoid with a developer

Buying an apartment off plan carries specific risks, particularly when the property has not yet been built. It is essential to check the developer's financial soundness, experience and reputation before signing anything: track record of completed projects, financial completion guarantees, and the legal robustness of the structure. An unreliable developer can delay delivery, or even jeopardise the entire operation. That delay risk takes on a new dimension in 2026, since the registration duty rate depends on the date the deed is registered, not the date of the reservation agreement.

On the financial side, the rule in force in Mauritius since 13 December 2024 requires payments to be split 85% in Mauritian rupees (MUR) paid to the developer after the funds have been transferred from abroad, and 15% in foreign currency or rupees. This split should be clarified from the moment the reservation agreement is signed, to avoid any unpleasant surprises during successive transfers, anticipate exchange rate risk and fully secure your purchase.

Conclusion: making the right property scheme choice in Mauritius

Summary of decision criteria

Choosing the right property scheme in Mauritius depends first and foremost on your investor profile and your objectives. Each framework answers to a different logic:

• IRS: the historic luxury scheme, valued for its prestigious estates, but closed to new projects since 2015 and available only on resale.
• RES: a scheme now on its way out, replaced by the PDS, whose residual stock grants residence rights only above USD 375,000.
• PDS: today's benchmark, with a residence permit from USD 375,000, offering flexibility and legal certainty to foreign buyers.
• Smart City: a forward-looking vision blending living, working and sustainability, whose tax advantages now depend on the date of the programme's certificate.

These distinctions make it possible to target the scheme best suited to your budget, your life project and your investment horizon.

Working with a local professional

Beyond the theory, the success of a property project in Mauritius rests on solid support. An experienced local professional can guide you towards the most relevant scheme, calculate the real acquisition cost at the new 10% rate, secure your transaction and anticipate the administrative steps specific to the Mauritian market. This expertise is often what makes the difference between a stress-free investment and avoidable complications.

The Mauritian property market continues to evolve, driven by steady growth and sustained international demand. By surrounding yourself with the right partners, you give yourself every chance of building a lasting and profitable project in Mauritius.

Frequently asked questions

What is the minimum amount required to obtain a residence permit through property investment in Mauritius?

To obtain a residence permit linked to a property purchase, you must invest a minimum of USD 375,000 — a threshold common to every scheme: PDS, Smart City, IRS, RES and G+2. Set by the Mauritian authorities, it applies per property acquired and allows the investor and their immediate family to reside legally in the country for as long as they retain ownership, with no minimum-stay obligation.

What is the difference between the PDS and the IRS in Mauritius?

The Property Development Scheme (PDS) replaced the Integrated Resort Scheme (IRS) in 2015. The IRS was older and reserved for large estates of at least ten hectares with resort-style infrastructure. The PDS removes that size constraint, allows projects inland as well as on the coast, and simplifies administrative procedures while retaining the right to a residence permit, with a more varied and often more accessible range of properties than the IRS.

Is the RES still available to new investors?

The Real Estate Scheme (RES) has not been offered for new developments since the PDS was introduced in 2015. This Mauritian property scheme, once appreciated for its lack of a minimum price, survives only on the resale market. Investors must therefore turn to the PDS, the Smart City Scheme or the G+2 framework for any new purchase, since buying outside an approved scheme has not been possible since the Finance Act 2025.

Can you obtain Mauritian citizenship by investing in a Smart City?

The Smart City Scheme grants a residence permit from USD 375,000 of investment, but not naturalisation directly. Access to Mauritian citizenship remains subject to far stricter conditions, notably an investment of at least USD 5,000,000 under specific programmes dedicated to citizenship by investment.

What additional costs should you budget for when buying property in Mauritius?

Any property purchase in Mauritius involves additional costs such as registration duty, raised to 10% for non-citizens since 1 July 2026, notary fees, EDB processing fees and annual municipal taxes. These costs now represent roughly 12% to 15% of the price and should be built into your overall budget from the negotiation stage to avoid any financial surprises.

Does G+2 give access to a residence permit?

Ground + 2 (G+2) buildings, intended for foreign buyers outside the PDS, IRS or Smart City schemes, do not confer an automatic residence permit. Purchase is possible from MUR 6 million in a building with at least two floors above ground level, but the residence permit becomes available only if the acquisition price reaches USD 375,000.

Conclusion: making the right property scheme choice in Mauritius

Answering the question "PDS, IRS, RES, Smart City — which property scheme should I choose?" depends above all on your profile, your budget and your ambitions in Mauritius. The PDS stands today as the most accessible and widespread option, with a residence permit available from USD 375,000, while the Smart City Scheme appeals to investors focused on the future and on sustainable urban ecosystems, subject to checking the tax regime applicable to the programme in question. The IRS remains a safe bet for luxury wealth assets but only on resale, while the RES, on its way out, now concerns only a handful of historic developments.

Before making any commitment, it remains essential to verify the property's eligibility, factor in the registration duty raised to 10% since July 2026, and surround yourself with professionals recognised by the EDB. Feel free to consult our dedicated guides on Mauritian taxation, the purchase process and residence permits to build a solid property project that fully complies with current regulations.