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In a move designed to boost the local economy, the Economic Development Board (EDB) of Mauritius has introduced new regulations requiring a significant portion of property transactions to be conducted in Mauritian rupees for non-citizens buying into designated schemes. This policy shift comes into effect for new off-plan property purchases and is expected to reshape the way foreign investors approach property acquisitions on the island.
The new directive affects several schemes for non-citizens, including IRS, RES, IHS, PDS, and SCS. The primary goal is to strengthen the role of the Mauritian rupee in property deals, thereby fostering financial stability and improving the circulation of capital within the local economy.
A key change under this framework mandates that 85% of the property’s purchase price must be paid in Mauritian rupees. Buyers can transfer funds from overseas in a convertible currency, which is then exchanged locally. The remaining 15% can be settled either in rupees or foreign currencies like USD or EUR. This replaces the previous system that permitted full payment in foreign currency, reflecting a strategic effort to enhance the national currency and bolster the country’s foreign reserves.
Notaries will play a critical role in ensuring compliance with these rules, from verifying payment methods to managing registration fees and finalising sales documentation. In addition, there has been an increase in the threshold for buyers wanting to secure a local mortgage with the minimum price increasing from USD 500,000 to USD 750,000, which can either be repaid in foreign currency or Mauritian rupees.
These reforms are part of a broader strategy to create a more transparent and resilient property market while addressing the country’s economic challenges. However, they may lead some foreign buyers to reevaluate their investment strategies.
Official EDB announcement can be found here
