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The 2026/2027 Budget announced a review of duties and taxes applicable to EDB property schemes, signalling change ahead. While the full picture will emerge when the Finance Bill is presented and later enacted in the coming weeks, the Property Development Scheme remains the principal gateway for foreign buyers today, and understanding its current rules is essential before that landscape shifts.
The Framework in Plain Terms
The Property Development Scheme (PDS) is a government-approved framework, administered by the Economic Development Board (EDB), under which foreign nationals may acquire freehold residential property in Mauritius. It replaced the older IRS and RES schemes for new developments and remains the dominant route for non-citizens seeking a legitimate, regulated path to property ownership on the island. Developers must secure EDB approval before units can be offered to foreign buyers, and at least 25% of units in any PDS project must be sold to Mauritians or members of the Mauritian diaspora.
Freehold Ownership and Key Benefits
A PDS purchase confers full freehold title. Buyers may rent out the property, become tax resident in Mauritius, and repatriate sale proceeds and rental income without restriction.
The USD 375,000 Threshold: Residency, Not Citizenship
Buying a PDS property above USD 375,000 entitles the purchaser, their spouse, and dependent children to a residence permit for as long as they own the property, with no minimum-stay obligation and the right to live and work without a separate occupation permit. This is residency by investment, not citizenship: PDS ownership does not confer a Mauritian passport or citizenship rights.
The 2026 Duty Change
On 1st July 2026, registration duty on non-citizen purchases under all EDB property schemes (PDS, IRS, RES, Smart City and Ground+2) rose from 5% to 10%, with land transfer tax on resales to non-citizens rising equally. The rate applies to deeds registered on or after that date.
What the Budget Says
The 2026/2027 Budget Annex confirms, under Section 8.4, that "the duties and taxes applicable on the transfer of residential properties under the EDB property schemes will be reviewed." No further detail has been published. The Finance Bill, once tabled, will define the scope and direction of this review. Until then, the framework described above governs every PDS transaction.
