Property Development Scheme (PDS) in Mauritius
Invest USD 375,000 or more in approved real estate and obtain a Permanent Residence Permit for you and your family โ freehold ownership with no capital gains tax.
The Property Development Scheme (PDS) is the flagship foreign real estate investment programme in Mauritius, administered by the Economic Development Board (EDB). It allows non-citizens to purchase residential property within EDB-approved real estate developments for a minimum consideration of USD 375,000, thereby qualifying the purchaser โ and their immediate family โ for a Permanent Residence Permit (PRP). The PDS replaced the earlier Integrated Resort Scheme (IRS) and Real Estate Scheme (RES), consolidating and improving upon both predecessors.
Properties acquired under the PDS are held on freehold title, the strongest form of legal ownership, and may be rented out to generate rental income. There is no capital gains tax and no inheritance tax on property in Mauritius, making the scheme particularly attractive for long-term wealth preservation and estate planning. The purchaser, their spouse, dependent children, and retired parents are all eligible to receive PRPs linked to the property acquisition.
Mauritius's PDS developments are world-class in quality โ situated in prime coastal and inland locations, they typically include luxurious villas, apartments, and townhouses with resort-grade amenities including golf courses, marinas, beach clubs, spas, and concierge services. The PDS is highly popular with buyers from South Africa, France, the United Kingdom, Switzerland, Germany, and other EU countries. With Mauritius's territorial tax system, flat 15% personal income tax rate, zero capital gains tax, zero inheritance tax, and access to a network of 45+ Double Taxation Agreements, the PDS offers not merely a home but a comprehensive international wealth and lifestyle solution.
Key Features of the Property Development Scheme (PDS)
USD 375,000 Minimum Investment
The purchaser must acquire property at a minimum consideration of USD 375,000 (or equivalent in another freely convertible currency) within an EDB-approved PDS development. This is the threshold that triggers PRP eligibility.
Permanent Residence Permit for the Whole Family
The PRP covers not only the purchaser but also their spouse, dependent children (regardless of age), and retired parents. All family members gain the right to reside in Mauritius on a permanent basis linked to the property ownership.
Freehold Ownership
PDS properties are conveyed on freehold title โ the purchaser becomes the full legal owner of the land and structure. This is the highest form of property ownership and provides maximum security and transferability.
Rental Income Permitted
PDS property owners may rent out their property when not in residence, generating rental income. Mauritius does not impose capital gains tax on the proceeds from future property sales.
No Capital Gains Tax
There is no capital gains tax on property disposals in Mauritius. Future appreciation in property value is entirely free from capital gains tax, making PDS an attractive long-term investment.
No Inheritance Tax
Mauritius has no inheritance tax, estate duty, or wealth tax. PDS property can be passed to heirs without triggering any Mauritius tax liability on the transfer of value.
Access to 45+ DTA Network
PRP holders who establish fiscal residency in Mauritius gain access to the island's extensive network of 45+ Double Taxation Agreements, enabling effective tax planning for international income streams.
Access to Mauritius Banking System
PDS purchasers and PRP holders have access to Mauritius's reputable international banking sector, including institutions such as MCB, SBM, AfrAsia, and ABC Banking, facilitating multi-currency banking and international transfers.
World-Class Developments
Approved PDS projects include luxury villas, apartments, and townhouses with resort-grade facilities โ golf courses, marinas, beach clubs, spas, and concierge services โ in prime coastal and inland locations across Mauritius.
Pathway to 20-Year PRP
After holding the PRP for 10 continuous years, the holder may apply for a long-term 20-year Permanent Residence Permit, providing even greater certainty of long-term residency in Mauritius.
Step-by-Step PDS Application Process
Select an Approved PDS Project
Identify and visit EDB-approved PDS developments. Our team maintains up-to-date knowledge of available projects across all price ranges and property types. We facilitate site visits and developer introductions.
Reservation Agreement
Once a property is selected, a Reservation Agreement is signed with the developer and a deposit (typically 5โ10% of the purchase price) is paid to reserve the unit. This agreement sets out the terms, price, and timeline.
Due Diligence and KYC
The developer conducts AML/KYC due diligence on the purchaser in accordance with the Financial Intelligence and Anti-Money Laundering Act. Source of funds documentation is required. Our team assists in preparing the KYC file.
Sale Agreement
A formal Sale Agreement (Deed of Sale) is prepared by a Mauritius notary. This is the legally binding contract of purchase and must be executed before a notary in Mauritius or via a power of attorney.
Payment Schedule
The balance of the purchase price is paid according to the schedule in the Sale Agreement โ typically on a milestone or completion basis for off-plan properties, or in full for completed units.
Application to EDB
The PRP application is submitted to the Economic Development Board with all supporting documents. The EDB reviews eligibility, verifies the purchase, and assesses the application.
PRP Issuance
Upon EDB approval, the Permanent Residence Permit is issued to the applicant and eligible family members. This typically takes 4โ8 weeks from submission of a complete application.
Property Handover
For completed properties, handover occurs at or shortly after sale completion. For off-plan properties, the handover milestone is defined in the Sale Agreement, typically aligned with construction completion.
PDS Application Requirements
- Valid passport (and certified copies) for the applicant and all family members to be included, with at least 6 months' remaining validity
- Documentary proof of available funds of at least USD 375,000 โ bank statements, investment account statements, or bank reference letter confirming sufficient funds
- Certificate of good character or police clearance certificate from the applicant's country of residence and/or citizenship, dated within 6 months
- Confirmation that the property is located within an EDB-approved PDS development โ only properties in approved schemes qualify for PRP eligibility
- AML/KYC documentation: certified passport copies, proof of residential address (utility bill or bank statement within 3 months), and professional references as required
- Signed source of funds declaration and supporting documentation evidencing the legitimate origin of the purchase funds, in compliance with Mauritius AML/CFT requirements
- Signed and notarised Sale Agreement (Deed of Sale) confirming the purchase price meets or exceeds the USD 375,000 minimum threshold
- Completed PRP application form as prescribed by the EDB, with all supporting documents prepared and reviewed by our team prior to submission
- Medical certificate or health declaration confirming the applicant is in good health and free from communicable diseases, as required by the EDB
- Bank reference letter from the applicant's principal bank confirming the account relationship and satisfactory standing, supporting the source of funds documentation
PDS Investment and Associated Costs
| Item | Estimated Range |
|---|---|
| Minimum Property Purchase Price | USD 375,000+ |
| Registration Duty | 5% of property value |
| Notary Fees | ~1% of property value |
| EDB Application Fee | USD 500โ1,000 |
| Legal and Immigration Advisory | USD 2,000โ5,000 |
| Annual Property Management | Varies by development |
Frequently Asked Questions About Property Development Scheme (PDS) in Mauritius
What is the minimum investment for the PDS?
The minimum qualifying purchase price is USD 375,000 (or equivalent in a freely convertible currency). This threshold must be reflected in the notarised Deed of Sale. Only properties in EDB-approved PDS developments qualify for the Permanent Residence Permit.
Can I rent out my PDS property?
Yes. PDS properties can be rented out when the owner is not in residence. Many PDS developments offer professional rental management services. Rental income earned in Mauritius is subject to Mauritius income tax at the standard rate, but there is no capital gains tax on proceeds from a future sale.
Does my family also get a Permanent Residence Permit?
Yes. The PRP extends to the purchaser, their spouse, dependent children (of any age), and retired parents. All eligible family members receive PRPs linked to the property acquisition, giving the entire family the right to reside in Mauritius permanently.
Is there capital gains tax on PDS property in Mauritius?
No. Mauritius does not levy capital gains tax on the disposal of property. Any appreciation in the value of your PDS property between purchase and sale is entirely free from capital gains tax in Mauritius, subject to your individual tax position in your country of residence or citizenship.
Can I work in Mauritius with a PDS Permanent Residence Permit?
The PRP acquired through the PDS grants the right to reside in Mauritius but does not automatically confer the right to engage in employment or business activities. If you wish to work or operate a business locally, a separate Occupation Permit (Investor or Professional) should be considered.
How long does the PDS and PRP process take?
The timeline from signing a Reservation Agreement to receiving the PRP typically ranges from 3 to 9 months, depending on the developer's KYC process, the notarisation timeline, and EDB processing times. For off-plan properties, the PRP application is usually submitted upon or after completion of the Deed of Sale.
What happens to the PRP if I sell the PDS property?
The PRP is linked to ownership of the qualifying PDS property. If the property is sold, the PRP associated with that purchase ceases to be valid. The holder would need to acquire another qualifying property to maintain PRP status, or transition to a different permit category.
Can I obtain Mauritius citizenship through the PDS?
The PDS does not directly confer citizenship. However, after residing in Mauritius as a PRP holder for a qualifying period, an individual may apply for naturalisation as a Mauritius citizen, subject to meeting all applicable requirements under the Mauritius Citizenship Act. Timelines and eligibility criteria should be confirmed with an immigration specialist.