Buying on a plan in Mauritius based on a State Sales Contract Future Completion (VEFA). Inspired by French law and reinforced by Mauritian law, this system encapsulates the acquisition of new villas and apartments on a plan, before or during their construction. What is VEFA? What guarantees does this contract offer? Why invest on plan in Mauritius is secure?
Whether you are an investor or an individual, this guide details VEFA guarantees and the real estate purchase process in Mauritius to realize a serene investment.
What is the purchase plan (VEFA) in Mauritius?
VEFA: an international mechanism adapted to foreigners
The Future State Sale of Completion (VEFA) is a legal contract of French origin and today adopted in several countries such as Belgium or Luxembourg. In Mauritius, the scheme was redesigned to facilitate access by non-Mauritians to new real estate and secure foreign investment. It includes additional guarantees which make it possibleone of the safest executives in the world for a plan purchase.
VEFA principle in Mauritius
Unlike a conventional acquisition, the VEFA allows you to purchase property before or during construction. The sale is made on the basis of detailed plans and a payment schedule linked to the progress of work. The buyer becomes owner of the land as soon as the deed of sale is signed, then the buildings, as the construction proceeds.
The VEFA also allows foreign purchasers to access new residential real estate in full ownership, through various acquisition schemes offered in Mauritius such as: PDS (Property Development Scheme). The PDS development scheme facilitates the acquisition of luxury villas or apartments in Mauritius, often in prestigious areas such as the Domaine de Palmyre, on the west coast.
Legal guarantees for the purchase of real estate in Mauritius
Dedicated real estate programmes
In Mauritius, non-Mauritians can only invest through schemes approved by theEDB (Economic Development Board) such as PDS (Property Development Scheme). This system, which replaced the old IRS and RES schemes, ensures a regulatory framework, high-end services and rigorous construction standards.
Validation byEconomic Development Board (EDB)
EDB reviews and approves foreign buyers and promoters' files. This public authority verifies the conformity of the project, the solvency of the buyer, the eligibility of the real estate programme, and constitutes additional protection for the purchaser. Absent in France, this validation stage is a specificity of the VEFA in Mauritius that further secures the investment plan.
Strong financial guarantees
The funds are gradually paid by the buyer to the escrow account of a notarial study and released as construction phases are under the control of the quality inspector (Quantity Surveyor). This phased system is coupled with a fundamental financial guarantee:
- the Financial guarantee for completion (GFA) is mandatory since 2015. It requires the promoter to deliver the property on time and according to contractual specifications. If the promoter fails, this guarantee allows the buyer to be reimbursed or to see the project completed by a third party.
These measures, coupled with strict notarial monitoring, make the Mauritian VEFA a very secure investment for foreigners.
Profitable taxation
With a 5% registration fee (current rate that can be revalued on 1 July 2026), compared with 10-15% in other countries andno taxes on property (IFI), Mauritius is one of the most attractive tax destinations. In addition, owners benefit from capital gains tax exemption on resale (against 30 years in France for non-residents). Taxation of a plan purchase in Mauritius is therefore very advantageous.
Planning Guide to Mauritius in 6 Key Steps
Step 1: Choosing the real estate program
To buy on a plan in Mauritius, foreign investors must choose a real estate program approved by theEconomic Development Board (EDB). Since the reform of the real estate schemes, the Property Development Scheme (PDS) has become one of the legal frameworks for new projects, replacing the old IRS and RES schemes. This program enables the acquisition of real estate, while ensuring a secure legal framework for international investors.
The selection of the real estate programme must also take into account criteria such as:
- Localization: Projects located near infrastructure (airport, hospitals, schools) and iconic natural sites offer better potential for enhancement.
- the reputation of the promoter: it is essential to check its history, the timeliness of delivery and the quality of constructions.
- values: for committed investors, some promoters propose eco-responsible projects and aligned with the values of sustainable development. Local economic development also boosts surrounding villages.
Step 2: Preliminary booking contract and security deposit
The preliminary reservation contract (CRP) is very important. It formalizes the reciprocal commitments between the buyer and the promoter, and fixes the offer: characteristics of the property, detailed plans, final selling price, payment schedule, delivery times, suspensive clauses (obtaining the building permit by the promoter, agreement in principle of the EDB for foreign buyers). It's kind of a pre-contract of VEFA.
A deposit of 10% of the total price is paid to an escrow account at this stage.
Step 3: EDB verification and approval
This administrative step is specific to Mauritius and constitutes an additional guarantee for foreign investors. The Mauritian authority for the supervision of foreign investment, LEDB, examines the file:
- checking that the selected real estate program is well approved (PDS, IRS or RES);
- monitoring the creditworthiness of the buyer via official documents;
- validating the overall conformity of the operation.
Approval can be conditional and often takes 2-3 months. This step can be initiated in parallel with the preparation of the final contract.
Step 4: signing of the final contract (VEFA) at the notary
The VEFA contract specifies the schedule of progressive payments, technical specifications, penalties for delay and guarantees. The notary verifies the securities, blocks the funds in an escrow account and informs the buyer of his rights, in particular on remedies for non-compliance.
Step 5: Phased payments and guarantees
The VEFA in Mauritius follows a precise payment schedule linked to the actual progress of the work. This progressivity of payments is a major financial protection for the buyer. For example, the synthesised schedule of the programme Jiva Santosha :
- 25% of the total price at the date of signature of the deed of sale;
- 40% more when foundations are completed;
- 15% of the amount to be put out of water and out of air of the villa;
- 20 % remaining on final delivery of the property.
Mandatory technical monitoring by Quantity Surveyor (progress reports, site visits) and the Financial Guarantee for Completion also protect the buyer.
Step 6: Delivery, Authentication and Registration
Upon delivery, the Mauritian notary shall arrange for the signature of the authentic deed of sale, the final payment, the verification of the conformity of the goods delivered and the registration of the goods with the Registrar General. In the event of non-compliance, reservations may be made and corrections required prior to final acceptance.
What to learn from the plan purchase in Mauritius
The purchase on a plan in Mauritius makes it possible to acquire new goods at launch price. The process begins with a preliminary reservation contract (CRP) prior to signing the VEFA contract. The CRP secures the offer and deposit and the VEFA contract sets out specifications, payment schedules and guarantees. Payments are then made as construction progresses. The property is gradually transferred to the buyer according to the progress of the work. Finally, the delivery of the keys occurs upon receipt of the property, after verification of the conformity of the delivery report, by the notary.
Throughout the plan purchase process, the VEFA legal framework enhances investment security: approved projects (PDS), validation by the EDB, escrow accounts and financial guarantee of completion.
Buy aToday in VEFA is a 100% secure investment.
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