Since last December, significant amendments have been made to the regulations governing the acquisition of residential properties by non-citizens under the IRS (Integrated Resort Scheme), RES (Real Estate Scheme), IHS (Invest Hotel Scheme), PDS (Property Development Scheme), and SCS (Smart City Scheme). These changes now require foreign investors to pay 85% of the purchase price in Mauritian rupees, rather than in foreign currencies as previously allowed.
In practice, non-citizens must transfer funds in strong currencies (USD, EUR, or any other convertible currency) to Mauritius, and then pay 85% of that amount in Mauritian rupees to the promoter. The remaining 15% can be paid in either foreign currency or Mauritian rupees. This adjustment aims to strengthen the local economy by encouraging the use of the rupee in real estate transactions.
Before these amendments, non-citizens could pay the full purchase price in their preferred currency, provided the funds originated from abroad. Additionally, if a loan was obtained from a local bank, a minimum of $500,000 had to be transferred from abroad.
Notaries play a crucial role in this process. According to the law, they must facilitate the payment of the property to the promoter, ensuring that 85% of the total is paid in Mauritian rupees while the remainder can be in either foreign currency or rupees. They are also responsible for registering the notarial deed with the Registrar General’s Office within eight days and ensuring that registration fees are paid in strong convertible currencies.
For properties priced above $750,000, the procedure varies slightly. The first $750,000 must be transferred to Mauritius and paid in rupees, while the remaining balance can be financed through a local loan in rupees, with repayments made in strong currencies.
At a conference in December 2024, Rama Sithanen, the Governor of the Bank of Mauritius, emphasized that these new regulations were essential to eliminate distortions in the foreign exchange market.