Invest Hotel Scheme (IHS)

The Invest Hotel Scheme (IHS) is a program created by the Mauritian government to attract foreign investment in the tourism and real estate sectors. Introduced to enhance the country’s hospitality infrastructure, the IHS allows individuals and companies to invest in hotel properties. Investors can buy units in hotels, such as rooms, suites, or villas, and benefit from both usage and rental income. This scheme supports the growth of Mauritius’s tourism industry and provides investors with attractive opportunities​ (​ .

What is the Invest Hotel Scheme (IHS)?

The Invest Hotel Scheme (IHS) was established to allow the sale of hotel units to non-citizens, citizens, companies, and trusts. These units can be purchased off-plan, during construction, or after completion. The scheme aims to boost the hospitality sector by providing a new model for hotel development financing. Under the IHS, buyers can acquire rooms, suites, or villas in hotels that are approved by the Economic Development Board (EDB) of Mauritius. The scheme is governed by specific regulations to ensure transparency and protect investors​ (​ .

Benefits of the Invest Hotel Scheme

Advantages for Foreign Investors Investing in IHS properties offers several benefits. Firstly, investors gain the right to use the property for a set number of days each year, usually up to 45 days. Secondly, they can earn rental income when the property is rented out as part of the hotel’s operations. This provides a dual benefit of personal use and investment return​ (​ .

Economic Impact on Mauritius The IHS contributes significantly to the Mauritian economy. By attracting foreign capital, the scheme helps finance new hotel projects and upgrades existing ones. This boosts the tourism sector, creates jobs, and stimulates related industries like construction and services​ (​ .

Lifestyle Benefits and Amenities Provided Investors in IHS properties enjoy access to the hotel’s amenities, such as restaurants, spas, fitness centers, and swimming pools. These benefits make the investment attractive not just for financial returns but also for enhancing personal lifestyle​ (​ .

Eligibility Criteria for IHS

To invest in the IHS, potential buyers must meet specific eligibility criteria. These criteria ensure that the scheme attracts genuine investors capable of contributing positively to the Mauritian economy.

Who Can Invest in IHS Properties?

  • Non-citizens: Foreign individuals and entities are eligible to invest in IHS properties.
  • Mauritian Citizens: Local individuals and companies can also invest.
  • Companies and Trusts: Both foreign and local companies, as well as trusts managed by licensed trustees, can participate in the scheme​ (​ .

Minimum Investment Requirements

  • Investment Threshold: To qualify for permanent residency, the investment must be at least USD 375,000. This amount ensures that the investment is substantial and contributes meaningfully to the economy​ (​ .

Legal and Financial Prerequisites

  • Compliance: Investors must comply with Mauritian laws and regulations, including obtaining necessary permits and approvals from the Economic Development Board (EDB). This process involves thorough due diligence to ensure the legality and security of the investment​ (​ .

Types of Properties under IHS

The IHS includes various types of properties that cater to different investor preferences and needs. These properties are integrated into hotel projects, offering both usage rights and rental income potential.

Hotel Rooms

  • Investors can purchase individual hotel rooms, which are then managed by the hotel. These rooms offer a straightforward investment with the potential for regular rental income​ (​ .


  • Larger and more luxurious than standard hotel rooms, suites provide more space and amenities. Investors in suites can enjoy higher rental income and greater personal use benefits​ (​ .


  • For investors seeking maximum luxury and privacy, villas within hotel complexes offer an attractive option. These properties come with private amenities and provide significant rental income potential, along with substantial personal use benefits​ (​ .

How to Invest in IHS Properties

Investing in IHS properties involves a detailed process to ensure compliance with legal and financial requirements. Here is a step-by-step guide to the investment process:

Step-by-Step Guide to the Investment Process

  1. Initial Consultation: Potential investors consult with real estate agents and legal advisors to understand the IHS scheme and identify suitable properties​ (​ .
  2. Property Selection: Investors select a property that meets their preferences and budget. This involves visiting properties and reviewing their features and amenities​ (​ .
  3. Legal and Financial Preparation: Investors gather necessary documents, including proof of identity, financial statements, and source of funds. They also undergo due diligence checks to ensure compliance with regulatory requirements​ (​ .
  4. Purchase Agreement: Once a property is selected, a purchase agreement is signed, and a deposit is paid to secure the property. This agreement outlines the terms and conditions of the purchase, providing legal protection to both parties​ (​ .
  5. Final Payment and Transfer of Ownership: The final payment is made, and ownership of the property is transferred to the investor. This step includes registering the property with relevant authorities and obtaining the necessary permits and approvals​ (​ .

Documentation and Legal Requirements

  • Required Documents: Investors must provide comprehensive documentation, including identity proof, financial statements, and evidence of the source of funds. Compliance with these requirements ensures the transparency and legality of the transaction​ (​ .

Costs Involved

  • Initial Investment: The minimum investment required for IHS properties is USD 375,000 for eligibility for permanent residency.
  • Additional Costs: Investors should consider additional costs, such as taxes, legal fees, and maintenance fees. These expenses vary depending on the property and its location and should be factored into the overall investment budget​ (​ .

Residency Benefits of IHS

The Invest Hotel Scheme (IHS) in Mauritius offers significant residency benefits to investors and their families, making it an attractive option for those seeking long-term residency on the island.

Permanent Residency for Investors and Their Families

  • Automatic Residency: By investing in a hotel unit under the IHS, foreign investors can obtain a residence permit. If the investment exceeds USD 375,000, the investor and their immediate family (spouse and dependent children) are eligible for a Permanent Residence Permit. This permit allows them to live, work, and study in Mauritius indefinitely as long as they maintain ownership of the property​ (​ .
  • Long-Term Stability: The residence permit remains valid as long as the investor owns the property, providing long-term stability and the ability to renew residency without additional bureaucratic hurdles​ (​ .

Tax Benefits and Incentives

  • Favourable Tax Regime: Mauritius offers an attractive tax regime for IHS investors, including no capital gains tax, no inheritance tax, and a low corporate tax rate of 15%. These benefits are particularly appealing for high-net-worth individuals and business owners​ (​ .
  • Double Taxation Agreements: Mauritius has double taxation agreements with several countries, which can help investors avoid being taxed twice on the same income. This is beneficial for those with international business interests​ (​ .

Long-Term Residency and Citizenship Options

  • Path to Citizenship: While the IHS initially provides permanent residency, it also opens pathways to citizenship. After maintaining residency for a specified period (typically five years), investors may apply for Mauritian citizenship, subject to meeting the necessary legal requirements and criteria set by the Mauritian government​ (​ .
  • Quality of Life: Mauritius is known for its high quality of life, excellent healthcare system, and top-tier educational institutions. Residents enjoy a safe and stable environment with a pleasant climate and beautiful natural surroundings​ (​ .



Frequently Asked Questions

Explore answers to commonly asked questions in Outgrid’s comprehensive FAQ section.
What is the Invest Hotel Scheme (IHS) in Mauritius?

The Invest Hotel Scheme (IHS) is a program established by the Mauritian government to attract foreign investment in the hotel sector. It allows non-citizens to buy units in hotels, such as rooms, suites, or villas, and benefit from both usage and rental income. This scheme supports the growth of Mauritius’s tourism industry and provides investors with attractive opportunities​ (​.


Useful Resources

  1. Mauritius Economic Development Board – “Mauritius Economic Development Board”
  2. Investment Promotion Act Regulations 2015 – “Investment Promotion Act Regulations 2015”
  3. Mauritius Chamber of Commerce and Industry – “Mauritius Chamber of Commerce and Industry”


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