The PDS Mauritius is a real estate development scheme initiated by the Mauritian government. Its objective is to stimulate economic growth on the island. By promoting the development of the luxury real estate sector, the Property Development Scheme helps diversify the island's economy beyond traditional tourism. It makes high-end real estate accessible to foreigners Owned and offers them interesting tax and administrative benefits. Eligibility, benefits, safety and cost-effectiveness, understand all the essential aspects of the PDS in just 7 minutes of reading.
Definition and specificities of the SDP in Mauritius
The Property Development Scheme or PDS is a mechanism established by the Mauritian government in 2015 to govern real estate development. This scheme is part of a desire to boost the real estate market residential and luxury and diversify the levers of the local economy.
The PDS is the result of restructuring of previous schemes Integrated Resort Scheme (IRS) and Real Estate Scheme (RES). By taking over and harmonising the main lines of these two schemes, the PDS opens up opportunities for project promoters and simplifies the acquisition of property for foreigners.
PDS projects meet a strict legal framework with specific rules issued by theEconomic Development Board (EDB).
To qualify for the SDP, a real estate project must meet certain conditions, for example:
- Location: the project must be located in an area dedicated to the PDS, approved by the Mauritian government.
- The area: The project must cover an area between 1 acre (4,200 m2/arpent) and 50 acre, and include at least six residential units.
- Community impact: the project must include spaces and infrastructure that benefit local communities and improve the quality of life of residents (commercial spaces, spa, gym, golf course, etc.).
Unlike IRS and RES, which focused on economic development, the PDS integrates social considerations. The SDP generates positive impacts on local economies through job creation and increased foreign direct investment. At the social level, it promotes the development of community infrastructure and the harmonious integration of projects into the local and cultural fabric of the island. Through these projects, the government wants to facilitate sustainable development and community integration, but also reassure foreign buyers with a clear and transparent legal framework.
Conditions for purchasing Mauritian property for foreign purchasers
Thanks to the PDS, it is possible for a foreigner tobuy property in full ownership in Mauritius : luxury villa, high-end apartment, penthouses with ocean views... As in villas Jiva Santosha, located in the Domaine de Palmyre, PDS properties can also incorporate elements of ecological and bioclimatic architecture.
The Property Development Scheme Address:
- foreign nationals;
- Mauritians and members of the Mauritian diaspora;
- legal entities such as companies registered under the Companies Act or Registrar of Companies, foundations (Foundation Act), trusts...
A key feature of the PDS is its commitment to integrating Mauritian citizens into this economic development movement.
Unlike the previous IRS scheme, which required a minimum investment for any purchase, the PDS does not impose a minimum amount. On the other hand, since December 2024, the regulations provide that 85 per cent of the amount of the transaction will be settled in Mauritian rupees from funds necessarily repatriated from abroad into convertible currencies and converted locally. The remaining 15% can be settled either in foreign currency (hard currency), also in MUR, at the choice of the purchaser.
Tax and administrative benefits of the Property Development Scheme
The Property Development Scheme (PDS) in Mauritius offers a multitude of advantages for foreign buyers, making this tropical paradise a top destination for real estate investment. Understanding these benefits makes it possible to fully grasp the opportunity that the PDS represents for international investors.
Residence permit
One of the main attractions of the PDS is the possibility of obtaining a Mauritian residence permit. By investing a minimum amount of USD 375,000 in a residential property under PDS, a foreign purchaser becomes eligible for this permit. This provision is extended to his spouse and dependent children under 24 years of age. This document allows the investor and his/her family to live in Mauritius as long as he/she retains ownership of the property.
A favourable tax framework
Mauritius is known for its attractive tax system and the PDS is no exception. Investors benefit from particularly advantageous taxation:
- No capital gains tax: there is no tax on real estate capital gains, which makes it possible to make profits without additional taxation in case of resale.
- Tax rate: Mauritius applies a single 15 per cent corporate tax rate and a legal scale for income taxes (tax scale in force: income tax revised by 0 to 20 per cent), including those generated by the rental of real property (tax scale applicable since June 2025)..
- Tax exemptions: Foreign residents may benefit from interesting tax exemptions, including the absence of inheritance rights (subject to acquisition structure and tax residence on Mauritius). No property tax or housing tax.
- Transfer rights: transfer rights for the acquisition of a property under the SDP are set at 5% of the value of the property. This rate will increase to 10% from the 1and July 2026 (to be confirmed according to the next budget 2026/2027).
- Non-double taxation agreements: Mauritius has signed non-double taxation agreements with 46 countries, including France, Belgium and Monaco. As a result, investors can benefit from additional tax benefits and avoid double taxation on their income.
- IFI exemption: for French investors, real estate located in Mauritius is exempt from theTax on Fortune Immobilier (IFI) (according to societal conditions and provisions), which constitutes a significant additional benefit.
- Allocation of Mauritian tax resident status: by residing at least 183 days a year in Mauritius, a foreign purchaser will be able to obtain the status of Mauritian tax resident (in a fiscal year of 1 January 2002).and July to 30 June).
Legal and financial security provided by the Mauritian development scheme
Investing in Mauritius also benefits from a secure and stable environment. The country enjoys a recognised political and economic stability, with sustained economic growth and a sound legal system.
In particular, Property Development Scheme (PDS) provides a secure and transparent framework for foreign investors. Several mechanisms provide legal and financial certainty for real estate projects under the SDP, including:
- the Financial Guarantee of Completion (GFA): promoters are required to provide a GFA with insurance or a bank, which ensures the complete completion of the construction project, in accordance with approved plans. This guarantee protects purchasers in the event of default by the promoter.
- State Sales Future Completion (VEFA): This contract allows buyers to pay as work progresses. Payments are staggered at different stages of construction. after verification of a Quality Surveyor Expert. This provision provides financial security for investors while allowing the project to move forward as planned.
These devices are guarantees of confidence for buyers. They secure the investments under the PDS and guarantee the realization of real estate projects according to the standards established with protection of a Mauritian Civil Code based on the Napoleonic Civil Code at more than 90%.
Profitability of real estate acquired under the PDS scheme
Real estate in Mauritius continues to show strong growth in terms of value. PDS projects usually have strategic locations close to the sea or in areas where development is strongly framed. These locations thus maximize the potential for real estate asset development.
Mauritius is a popular tourist destination. It attracts thousands of travellers every year, creating a favourable market for rental real estate investments. Luxury villas, especially those on the island's west coast, benefit from high demand. This dynamic not only generates rental income, but also enhances its long-term investment.
The island's advantageous fiscal framework further enhances this attractiveness. Thanks to the non-double taxation agreement with France, investors can optimise their taxation. The rental income generated will be taxed only in Mauritius.
In addition, real estate is seen as a safe haven, offering protection against economic fluctuations. On the one hand, the sector provides financial stability, on the other hand, real estate located in popular and expanding areas promises to gain value over time. Investing in Mauritius under the PDS scheme not only ensures property security, but also a good return on investment.
The Property Development Scheme (PDS) is a great opportunity for foreigners wishing acquire a residential and luxury property in Mauritius. It offers advantageous tax conditions and a secure legal framework for investing in complete serenity. You want to develop your real estate assets and enjoy the benefits that the Property Development Scheme Mauritius? Contact our team of experts Today to discover our PDS properties and realize your secure investment project.