Why investors are eyeing Mauritius and what UK buyers should know before investing

Mauritius has long been known for its beaches and tourism industry, but it is increasingly attracting attention as a destination for international property investment. Political stability, strong legal protections and an attractive fiscal framework have helped position the island as a long-term base for global investors.

We spoke with Abhimanu (Mahen) Kundasamy, CEO of the Economic Development Board of Mauritius, about why the island is attracting growing international interest and what UK buyers should know before investing.

What are the key strengths of the Mauritius property market today compared with more established offshore destinations like Dubai or Portugal?

Mauritius combines political stability, legal certainty and an attractive fiscal framework within a well-regulated environment. Its hybrid legal system, inspired by both French civil law and British common law, offers strong protection of property rights.

Unlike some markets driven primarily by short-term cycles, Mauritius positions itself as a long-term lifestyle and wealth preservation destination. Investors benefit from a 15% flat income tax regime, no capital gains tax, no inheritance tax in direct line, no property tax, and free repatriation of capital.

In addition, government-approved property schemes provide structured access to residency from USD 375,000 and exemption from the need of a work permit to invest or work in Mauritius.

Mauritius offers not just an asset, but a secure international base between Europe, Africa and Asia.

How does Mauritius’ legal and property ownership framework protect foreign investors, and what should UK buyers know before investing?

Foreign ownership is clearly regulated under Government schemes such as IRS, RES, PDS and Smart Cities. These frameworks ensure transparency, compliance and quality standards.

All property transactions have to go through a notary who is delegated power from the State and is defined by law as a “judicial officer”. The notary has to draw the authentic deed that provide conclusive proof of ownership and enforceability. A notary should verify the legal title of the vendor over the property and authority to transfer property, ensure no mortgages or charges exist on the property, advise parties on legal implications and tax consequences, and manage escrow accounts for reservation deposits. Anti-money laundering rules in place require all purchase payments to be made either by bank cheque in the notary’s name or via bank transfer to the notary’s account, eliminating cash transactions entirely. The notary is responsible to register the deed with the Registrar General.

Mauritius allows 100% foreign ownership in approved developments and guarantees constitutional protection of property rights. There are no exchange controls, profits and capital can be freely repatriated.

UK buyers can consider investing in approved schemes and align their investment with residency and long-term planning. The system is designed to be secure, structured, transparent and investor-friendly.

Where are investors currently seeing the strongest returns — capital growth, rental yields or long-term value creation — and which segments are most promising (e.g. luxury residential, resorts, mixed-use)?

Mauritius is fundamentally a long-term value and capital preservation market. Coastal areas and smart city projects continue to show steady capital appreciation, supported by sustained international demand.

Luxury villas, branded residences and mixed-use developments perform strongly, particularly where lifestyle, services and infrastructure are integrated. Rental yields are attractive in high-demand tourism zones, supported by over 1.4 million annual visitors.

However, the strongest performance typically combines moderate capital growth, stable rental income and residency benefits within a stable macroeconomic environment.

Beyond hospitality, Mauritius is equally a premier platform for international business, offering preferential access to markets representing nearly 80% of the world’s population through an extensive network of trade agreements and strategic partnerships.

What major infrastructure, transport or tourism developments are underway that might impact property demand and prices over the next 3–5 years?

Mauritius is promoting the development of smart cities that seamlessly integrate residential, business and commercial hubs, and innovation spaces. Beyond these developments, the dynamic ecosystems offer the perfect balance for business growth and island lifestyle providing the ultimate destination for global entrepreneurs and expatriates. The smart cities are reshaping urban planning and provide with facilities for new economic growth poles and a sustainable live-work- play environment.

Government has embarked on digital transformation programmes, infrastructure modernization, and a transition to a green economy.  Infrastructure upgrades include major road networks, expansion of airport and port with new cruise jetty and container terminal, water infrastructure upgrade and construction of dam. The integration of artificial intelligence across the economy and the public services is already underway such as the Digital Health Transformation Programme (e-Health). Mauritius intends to reach a target of 60% from renewable energy mix by 2035.

Tourism remains strong, contributing nearly 9% of GDP, with continued investment in high-end hospitality. These structural drivers support sustained medium-term real estate demand.

What financing options exist for international investors looking at property in Mauritius? Are local or international banks active in this space?

Mauritius has a well-capitalised and internationally compliant banking sector, with strong capital adequacy ratios adhering to global standards. Both local and international banks provide mortgage facilities to non-citizens, typically financing up to 50–70% subject to profile and due diligence.

Financing can be structured in major currencies including USD, EUR and GBP. The absence of exchange controls, moderate interest rates and a stable financial ecosystem make property acquisition straightforward for international investors.

What advice would you give a UK investor taking their first step into the Mauritius property market — common pitfalls, key due-diligence steps and the smartest entry strategies?

Mauritius represents a long-term strategic investment combining asset diversification, residency options and quality of life.  More importantly, understand the broader value proposition: Mauritius is a stable democracy, ranked among the safest countries in Africa, with strong UK ties, competitive taxation and a growing economy with GDP per capita above USD 12,500.

Investors who take a structured and informed approach tend to achieve both financial and lifestyle returns.