Regulations for foreigners in Mauritius | Updates to PDS, IRS, RES, SCS, IHS

According to the Economic Development Board, the Mauritian Cabinet approved significant amendments, on 6 December 2024, to the regulations governing the IRS (Integrated Resort Scheme), RES (Real Estate Scheme), IHS (Invest Hotel Scheme), PDS (Property Development Scheme), and SCS (Smart City Scheme). These changes, effective from 13 December 2024, introduce mandatory payment requirements for non-citizens purchasing residential properties under these schemes.

Key changes in payment requirements

New payment mandates

85% of Purchase price in Mauritian Rupees: Non-citizens must transfer funds from abroad in a hard convertible currency (USD, EUR, or equivalent) and pay 85% of the property’s purchase price in Mauritian rupees to the promoter.
15% of Purchase Price: The remaining 15% can be settled in either foreign currency or Mauritian rupees.

This new structure aligns property transactions with Mauritius’ economic goals while ensuring flexibility for buyers.

Previous practice

Previously, buyers were able to pay the entire purchase price in foreign currency or Mauritius rupees, provided funds were transferred from overseas. If buyers opted for local financing, they had to transfer at least USD 500,000 from abroad.

Role of notaries

Under the amended regulations, notaries play a pivotal role in facilitating compliance:

Funds allocation:
- Transfer 85% of the purchase price in Mauritian rupees to the promoter.
- Transfer the remaining 15% in foreign currency or Mauritian rupees.
Registration duties: Ensure timely registration of the notarial deed with the Registrar-General within 8 days, and process registration duties in foreign currency, as per existing practice.

Local loan financing for property acquisition

For properties exceeding USD 750,000:

The first USD 750,000 (or its equivalent in a hard convertible currency) must be transferred to Mauritius and paid in Mauritian rupees.
Buyers may finance the remaining amount through a local loan in Mauritian rupees, with loan repayments made in foreign currency.

These amendments aim to promote transparency and align with Mauritius’ evolving regulatory landscape. If discrepancies arise, the official regulations will take precedence.

For further assistance or inquiries about purchasing properties in Mauritius under these schemes, contact Villa Vie.