Mauritius: The Safe Haven of the Indian Ocean
4 mins read

Mauritius: The Safe Haven of the Indian Ocean

Horace J. Haight0Tagged ,

As we move through the first half of 2026, Mauritius has solidified its position as Africa’s most stable and attractive investment hub. For high-net-worth individuals (HNWIs) from Europe, South Africa, and the UAE, the island is no longer seen as just a “vacation spot.” It is a strategic “Plan B”- a jurisdiction offering political stability, a robust legal framework based on the Napoleonic Code and British Common Law, and a lifestyle that few other global hubs can match.

However, 2026 is a pivotal year for investors. With the implementation of the 2025–2026 National Budget measures, the rules of the game are shifting. At SmartVillas Mauritius, we believe that understanding these regulatory nuances is the key to a successful acquisition.

1. The July 2026 Threshold: A New Tax Landscape

For the last decade, transaction duties for foreigners were remarkably low. However, as of July 1, 2026, the Mauritian government is implementing a strategic shift:

  • Duty Increase: Registration duties and land transfer taxes for non-citizens acquiring property under EDB schemes (PDS, IRS, RES, Smart City) will rise from 5% to 10%.
  • Resale Tax: A flat 10% land transfer tax will also apply to non-citizens reselling their units after this date.
  • The “First-Mover” Window: For investors currently looking at our portfolio, the period between now and June 30, 2026, represents a significant “transactional saving” opportunity.

2. Navigating the EDB Schemes: Which One Fits?

The Economic Development Board (EDB) has streamlined foreign ownership through several specific frameworks. In 2026, these are the primary vehicles for luxury investment:

The Property Development Scheme (PDS)

Replacing the older IRS and RES models, the PDS is now the most common framework. It focuses on high-quality social and environmental integration.

  • Benefit: It allows for the development of a mix of residences (villas, penthouses) and requires the developer to provide high-end leisure and maintenance services.

The Smart City Scheme

Smart Cities are not just residential estates; they are “live-work-play” ecosystems. Investing here (in regions like Moka or Cap Tamarin) often provides higher capital appreciation due to the integrated infrastructure – hospitals, international schools, and office parks all within walking distance.

G+2 Apartments

Foreigners can also acquire apartments in blocks that are at least two floors above ground (Ground + 2). This is often a more “entry-level” luxury investment, requiring a minimum of MUR 6 million (approx. USD 135,000), though it does not automatically grant residency at that level.

3. The USD 375,000 Rule: Your Key to Permanent Residency

The single biggest draw for 2026 investors remains the Permanent Residence Permit.

  • The Requirement: Any non-citizen who purchases a residential property under an approved EDB scheme for a minimum of USD 375,000 is eligible for a residence permit.
  • The Scope: This permit covers the investor, their spouse, dependent children (up to age 24), and even dependent parents.
  • The Longevity: Unlike other “Golden Visas” that require constant renewal, the Mauritian permit remains valid for as long as you own the property. In 2026, this is widely considered one of the most secure residency-by-investment programs in the world.

4. Why 2026 is the Year of “Quality over Speculation”

The new government measures are intentionally designed to move the market away from short-term speculation and toward long-term residency.

  • Fiscal Stability: Even with the new 10% transfer tax, Mauritius remains a tax-friendly jurisdiction: there is still no capital gains tax, no inheritance tax, and no property tax.
  • Rental Yields: With the rise of the “Workation” trend (see Article #11), luxury villas in prime locations like Grand Baie are seeing consistent rental yields of 5% to 7%, significantly outperforming traditional European markets.

Conclusion: Partnering with Local Expertise

Investing in a foreign country is a significant decision. At SmartVillas Mauritius, our role goes beyond the “rental.” We act as your on-island eyes and ears, connecting you with the most reputable developers, legal experts, and tax advisors.

Whether you are looking for a beachfront villa in the North-East or a mountain-view estate in Le Morne, the 2026 window is a unique moment to secure your future in paradise before the tax environment matures.

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