Investing in Mauritius real estate from Dubai: what you actually need to know

Every year, several hundred foreigners purchase property in Mauritius under the PDS or Smart City schemes — and receive, along with their title deed, a permanent residency permit. A growing share of these buyers come from the UAE. The reason is simple: Mauritius is one of the very few jurisdictions in the world that combines near-zero taxation, a direct flight from Dubai, and a regulated property market fully accessible to non-residents.

No capital gains tax — and it’s been that way since 1994

Mauritius abolished capital gains tax in 1994. There is no inheritance tax either, no tax on rental income for non-residents, and the income tax rate is a flat 15% — no brackets, no progressivity. The World Bank ranked Mauritius first in Africa for ease of doing business for several consecutive years. This is not an opaque offshore haven: it is an OECD-compliant jurisdiction with stable institutions, a sound legal system based on both English and French law, and a double taxation agreement with the UAE.

For a UAE resident already accustomed to zero income tax, the benefit is less about saving on tax and more about legal certainty, estate planning, and currency diversification. A Mauritius property held through a proper structure can be passed on to heirs without triggering any tax event — in either jurisdiction.

USD 375,000: the threshold for a residency permit

Any purchase in an EDB-approved project (PDS, Smart City, IRS or RES) above USD 375,000 automatically qualifies the buyer for a permanent Mauritius residency permit — extended to the spouse and dependent children. This threshold was set in 2016 and has remained stable since. There is no minimum stay requirement: you simply need to remain the owner of the property.

In practice, a two-bedroom apartment in a Smart City like Azuri, or a villa in a PDS estate, is enough to qualify. For context: Portugal’s Golden Visa (now closed to property), Spain’s equivalent (suspended in 2024) and Malta’s programme all require similar or higher investment thresholds — with far more administrative conditions attached.

4–6% gross rental yield: under what conditions?

PDS and Smart City projects in Mauritius deliver gross rental yields of between 4% and 6% per year. The range depends on location, property type and management approach. The east coast — Azuri in particular — typically achieves 5 to 5.5%, driven by year-round demand from expatriates and long-stay tourists. The north (Grand Baie, Mont Choisy) is more seasonal but sees strong peaks in July–August and December–January.

For comparison: Dubai rental yields on Palm Jumeirah or Downtown properties sit at roughly 4–5% gross — with no local tax, but no residency permit tied to the purchase, and in a market that has already seen significant price appreciation. Property management fees in Mauritius typically run at 20–25% of gross rental income — a cost to factor into your net yield calculation before committing.

Dubai to Mauritius: 6h30, direct

Air Mauritius and Emirates both operate non-stop flights between Dubai (DXB) and Mauritius (MRU) several times a week. Flight time: approximately 6 hours 30 minutes. That is short enough to fly in, inspect a property, meet a notary and return within 72 hours — which is exactly what many UAE-based buyers do. Others combine the visit with a few days on the island: Tamarin, Grand Baie and the east coast are all 30–45 minutes from Sir Seewoosagur Ramgoolam International Airport.

What a non-resident can actually buy in Mauritius

Foreign buyers cannot purchase any property they like in Mauritius: freehold ownership is restricted to approved projects under one of the following government schemes:

• PDS (Property Development Scheme) — villas and apartments in gated communities with hotel-style services. The most common framework for luxury villas.
• Smart City — integrated city projects combining residential, commercial and leisure (Azuri, Mont Choisy, Cap Tamarin, Moka). Same tax benefits and residency permit access as PDS.
• IRS/RES — older schemes still active on some legacy projects. Similar structure to PDS.

Outside these frameworks, foreigners cannot buy bare land or standard residential property on the open market. This protects the local housing market and, in practice, concentrates foreign investment into regulated, quality-controlled developments.

Alpina: a Swiss agency based in Mauritius

Alpina was founded by Swiss nationals and operates from Mauritius. We are not a global agency with a local outpost: we are on the ground, we know the projects from the inside, and we manage rental properties on behalf of owners living in Geneva, Zurich, Paris and Dubai.

Our approach: a carefully curated selection of properties, transparent legal support, and rental management with regular reporting. No inflated commissions, no unrealistic yield projections. Based in the UAE and exploring the Mauritius market? Contact us — we offer remote consultations and bespoke viewings.