top of page

Why should I invest in rental property in Mauritius?

Why is it advantageous to invest in rental property in Mauritius?

Rental real estate in Mauritius is an optimal way to build assets

Investing in rental property in Mauritius seems to be a wise strategy for various reasons. The tax advantages are notable, with the absence of capital gains tax, inheritance tax, property tax and housing tax, which potentially increases the profitability of real estate investments. The island shows an average price increase of 5% per year over the last decade and an average profitability of 4% to 6%​.

Mauritius is a very popular holiday destination

In addition, Mauritius attracts more than a million tourists each year, providing short-term rental opportunities for real estate investors​. It is also stated that real estate is less subject to economic fluctuations, making the investment safer in the long term. The government also insists nomadic workers settle on the island for a year or more, which has had the effect of increasing demand for long-term rentals. In some regions of the North and West of the island, there is more demand than available properties, hence a flagrant increase in rental prices.

Mauritius offers high-end real estate investment opportunities thanks to the Property Development Scheme (PDS), which provides properties such as luxury villas and apartments with common amenities and services​.

The Mauritian tax regime is also attractive for foreign investors, with a tax rate capped at 15% for all residents (Mauritian and foreigners), and double taxation conventions with several countries favouring investors​.

Rental investment is an attractive area, particularly in Mauritius.

By choosing to buy an apartment, a house or a villa in Mauritius to rent, you are making a reliable and lasting investment which can enhance and secure your savings thanks to rental income. This type of investment offers the possibility of achieving long-term income, thus constituting an ideal investment for creating real estate assets and passing them on to your descendants. It should be noted that there are no capital gains taxes in Mauritius and no inheritance tax which may however apply in your country of origin.

The Mauritian State applies a single tax of 15% on income, including rental income, thus offering a significant tax reduction for investors.

To ensure the success of your rental investment in Mauritius, it is essential to choose the geographical location of the accommodation carefully. Mauritius, with its undeniable tourist assets and high profitability in luxury real estate, offers fertile ground for rental investment. I advise you to be accompanied by a real estate agent in Mauritius who knows the island market perfectly, he will be able to support you in all your procedures and present to you the properties for sale which correspond to your projections in terms of return on investment.

In conclusion, the figures and tax advantages indicate that rental investment in Mauritius can be very advantageous. However, this investment should be evaluated based on your personal objectives, tax situation and risk appetite. It is recommended to consult a financial advisor and a real estate agent who knows the market well for a personalized opinion before making a decision and good support.

Real estate leverage, a considerable asset for rental investment in Mauritius

Real estate leverage remains a major asset. It allows you to increase your borrowing capacity and your capital over the long term. With financial institutions offering advantageous interest rates, and the possibility for foreigners to access a loan in Mauritius, this leverage effect can be maximized to effectively boost your profitability.

You can repay in advance without charge if you wish.

Rental opportunities in Mauritius: long-term versus short-term

Choose between short or long term rental

Mauritius, with its tropical climate and picturesque landscapes, offers interesting opportunities for property rental, whether long-term or short-term.

  • Long-term Rental: Long-term rental in Mauritius is a fairly simple process and it is open to all. Tenants must provide their passport or residence permit, such as a visa, an Occupation Permit (OP) or a Residence Permit (RP). Although proof of solvency is generally not requested, some landlords may require pay slips or a letter from the employer.

  • Short-Term Rental: Short-term rentals, often associated with vacation rentals, are also popular, particularly due to the tourist appeal of the island. However, to rent your property short-term, it is imperative to obtain a rental license issued by the Mauritius Tourism Authority (MTA).

Here is a comparative table between long-term rental and short-term rental in Mauritius:

Long-term rental in Mauritius

Short-term rental in Mauritius



Stable and predictable income

Higher income, especially in high season

Less tenant turnover

Flexibility to use the property between rentals

Simplification of property management

Expanding tourist market

​Rental can be done directly

​Need a license or go through a rental agency



Lower profitability potential than in the short-term

Requires active and time management (check-in/out, cleaning)

Rigid lease contract with less flexibility

Seasonal fluctuations and dependence on tourism

May require less frequent renovation work

Maintain the property to a high standard.

It should be noted that in the context of a purchase of a property under the RES, IRS and PDS regime, the promoter has an obligation to set up a rental management company. This company takes care of:

  • to find customers,

  • to publish property advertisements on the most well-known platforms,

  • welcoming customers,

  • to ensure that the property remains in good condition

  • involve cleaning ladies and maintenance teams if necessary.

You can also find projects like The Welnest, Jacaranda or Anantara who associate their residence with a 5* hotel which takes care of all rentals for you and opens its doors, to the tenants and yourself, to their services and activities.


Mauritius is positioned as a choice destination for rental investment, thanks to a combination of tourist assets, favourable legislation and tax advantages. By partnering with an experienced real estate developer in Mauritius, you put all the chances on your side to succeed in your rental investment and optimize your land assets.

If you liked this article, I invite you to share it and if you feel ready for this great adventure that is real estate investment in Mauritius, do not hesitate to browse my website which is full of interesting offers then contact me at for personalized support.

13 views0 comments


bottom of page