How can we bolster the local economy while preserving the island’s international appeal? Recently, the Economic Development Board (EDB) introduced a requirement that most of the purchase price must be paid in Mauritian rupees. This reform is set to have a significant impact on foreign investors. Here’s an overview...
This measure forms part of a broader initiative to redefine the property acquisition schemes in Mauritius for non-citizens—namely IRS, RES, IHS, PDS, and SCS. The main objective is straightforward: to reinforce the role of the Mauritian rupee in such transactions, thereby enhancing financial stability and improving capital flow in the local market.
A key element of this overhaul is that 85% of the purchase price must be settled in Mauritian rupees. Funds must first be transferred from abroad in a convertible currency before being exchanged locally. The remaining 15% may be paid either in rupees or in foreign currencies such as USD or EUR. This requirement replaces the previous system that allowed full payment in foreign currency, with the aim of strengthening the national currency and bolstering local reserves.
Notaries, who play a central role in these transactions, ensure that payments are compliant and correctly allocated. They also oversee administrative procedures, including registration fees and the finalisation of sales documentation. Another important change is that for properties worth over USD 750,000, buyers may now opt for a local mortgage in rupees, which can be repaid in foreign currency. This introduces a new level of flexibility for investors.
These adjustments reflect the goal of reinforcing economic stability while making the property sector more transparent and resilient. Although they address Mauritius’s current economic needs, the changes may prompt some foreign investors to rethink their acquisition strategies. By revising its regulatory framework, Mauritius is positioning itself as a forward-thinking and trustworthy property destination. This new direction, which combines economic ambition with higher standards, may not only attract fresh investment but also help retain the island’s global appeal.
