Property Development Scheme (PDS)

The Property Development Scheme (PDS) is a significant initiative by the Mauritian government aimed at attracting foreign investment into the real estate sector. Launched in 2015, the PDS allows foreigners to purchase luxury residential properties in Mauritius, promoting sustainable development and benefiting the local community. This scheme is a cornerstone of the real estate market in Mauritius, offering a unique opportunity for investors to own high-end properties in a stable and attractive environment​ (MCCI)​​ (Harmonie Golf & Beach)​.

What is the Property Development Scheme (PDS)?

The Property Development Scheme (PDS) was introduced to replace the Integrated Resort Scheme (IRS) and the Real Estate Scheme (RES). It combines the best elements of these schemes, providing greater flexibility and additional social benefits. The PDS permits the development of residential properties on plots of land ranging from 0.4220 hectares to 21.105 hectares. The scheme is designed to attract a diverse group of investors, including individuals, companies, trusts, and foundations​ (Residency in Mauritius – RIM)​​ (Fine & Country)​.

The primary goal of the PDS is to create integrated projects that include luxury residential units, high-quality public spaces, and recreational and commercial facilities. These projects must respect the environment and contribute positively to the local community​ (Harmonie Golf & Beach)​​ (L’Express Property)​.

Benefits of the Property Development Scheme

Advantages for Foreign Investors Investing in PDS properties offers numerous benefits for foreign investors. One of the most significant advantages is the eligibility for a permanent residence permit, granted to those who invest a minimum of USD 375,000. This permit extends to the investor’s immediate family, allowing them to live, work, and study in Mauritius. Additionally, PDS properties offer a high return on investment due to Mauritius’ stable and growing economy​ (MCCI)​​ (Harmonie Golf & Beach)​.

Economic Impact on Mauritius The PDS has a substantial positive impact on the Mauritian economy. By attracting foreign capital, the scheme boosts the real estate market and creates numerous job opportunities in construction, real estate, and related sectors. The influx of affluent foreign investors also stimulates local businesses and services, further enhancing economic growth and development​ (Fine & Country)​​ (L’Express Property)​.

Lifestyle Benefits and Amenities Provided PDS developments are designed to offer a luxurious lifestyle with high-end amenities such as golf courses, marinas, wellness centres, and private beaches. These properties are built to international standards, providing residents with a comfortable and convenient living environment. The inclusion of high-quality public spaces promotes social interaction and a sense of community among residents​ (Residency in Mauritius – RIM)​​ (Mauritius Property)​.

Eligibility Criteria for PDS

To invest in PDS properties, potential buyers must meet specific eligibility criteria. These criteria ensure that the scheme attracts genuine investors who can contribute positively to the Mauritian economy.

Who Can Invest in PDS Properties?

  • Non-citizens: Individuals, companies, trusts, and foundations are eligible to invest in PDS properties. This inclusivity aims to attract a diverse range of investors from different backgrounds.
  • Financial Proof: Investors must provide proof of funds to demonstrate their financial capability to meet the investment requirements, ensuring they can support the acquisition and maintenance of the property​ (MCCI)​​.

Minimum Investment Requirements

  • The minimum investment required to purchase a PDS property is USD 375,000. This investment threshold ensures that the properties remain exclusive and cater to high-net-worth individuals​ (L’Express Property)​​ (https://www.expat.com/)​.

Legal and Financial Prerequisites

  • Investors must comply with all legal and regulatory requirements set by the Mauritian government, including obtaining necessary permits and approvals for property acquisition. This compliance ensures that all transactions are transparent and legally sound​ (Harmonie Golf & Beach)​​ (Mauritius Property)​.

Types of Properties under PDS

The PDS includes a variety of residential properties designed to cater to the diverse preferences of international investors. These properties are built to high standards and include a range of amenities.

Luxury Villas

  • Luxury Villas: PDS villas are designed to offer spacious living areas, private gardens, and often come with swimming pools and other high-end facilities. These villas provide a blend of luxury and privacy, making them ideal for high-net-worth individuals​ (Harmonie Golf & Beach)​​ (L’Express Property)​.

Townhouses and Apartments

  • Modern Residential Units: In addition to villas, the PDS includes townhouses and apartments that provide a blend of luxury and convenience. These properties are typically part of larger residential complexes that offer shared amenities like fitness centres, communal gardens, and recreational areas​ (Residency in Mauritius – RIM)​​.

Additional Facilities

  • Leisure and Commercial Amenities: PDS developments are equipped with commercial and leisure amenities, including shops, restaurants, and wellness centres. These facilities provide a comprehensive living experience for residents, enhancing the overall appeal of PDS properties​ (Fine & Country)​​ (https://www.expat.com/)​.

How to Invest in PDS Properties

Investing in PDS properties involves a detailed process that ensures 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 PDS scheme and identify suitable properties.
  2. Property Selection: Investors select a property that meets their preferences and budget. This step 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​ (Harmonie Golf & Beach)​​​.
  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​ (Fine & Country)​​ (L’Express Property)​.
  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​ (https://www.expat.com/)​.

Documentation and Legal Requirements

  • Investors must provide comprehensive documentation to prove their eligibility and financial capability. This includes identity proof, financial statements, and evidence of the source of funds. Compliance with these requirements ensures the transparency and legality of the transaction​ (https://www.expat.com/)​.

Costs Involved

  • Initial Investment: The minimum investment required for PDS properties is USD 375,000.
  • Additional Costs: Investors should be aware of additional costs, including 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 in Mauritius – RIM)​​​.

Residency Benefits of PDS

The Property Development Scheme (PDS) in Mauritius offers significant residency benefits for investors and their families, making it an attractive option for those looking to establish a long-term presence on the island.

Permanent Residency for Investors and Their Families

  • Automatic Residency: By investing in a PDS property, 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​ (Fine & Country)​​ (https://www.expat.com/)​.
  • 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​ (Harmonie Golf & Beach)​​ (Evaco)​.

Tax Benefits and Incentives

  • Favourable Tax Regime: Mauritius offers an attractive tax regime for PDS 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​ (L’Express Property)​​ (Evaco)​.
  • 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​ (Fine & Country)​​ (https://www.expat.com/)​.

Long-Term Residency and Citizenship Options

  • Path to Citizenship: While the PDS 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​ (Evaco)​​ (https://www.expat.com/)​.
  • 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​ (Mauritius Property)​​ (L’Express Property)​.

Comparison with Other Property Schemes

Mauritius offers several property schemes for foreign investors, each with its unique features and benefits. Here’s a comparison of the PDS with other prominent schemes:

Integrated Resort Scheme (IRS)

  • Scale and Investment: The IRS focuses on large-scale luxury developments with a minimum investment of USD 375,000. It grants automatic permanent residency to investors and their families, offering extensive luxury amenities and services​ (Fine & Country)​​ (L’Express Property)​.
  • Residency Benefits: Similar to the PDS, the IRS provides permanent residency but requires a higher minimum investment. The IRS projects often include golf courses, marinas, and other high-end facilities​ (Fine & Country)​​ (https://www.expat.com/)​.

Real Estate Scheme (RES)

  • Flexibility and Scale: The RES allows for smaller-scale developments with no minimum investment requirement, making it accessible to a broader range of investors. However, only investments above USD 375,000 qualify for permanent residency​ (Harmonie Golf & Beach)​​ (Mauritius Property)​.
  • Residency Benefits: Unlike the PDS and IRS, the RES does not automatically grant permanent residency. Investors must meet specific criteria and investment thresholds to obtain residency permits​ (L’Express Property)​​ (https://www.expat.com/)​.

Frequently Asked Questions

What is the Property Development Scheme (PDS) in Mauritius?

The Property Development Scheme (PDS) is a program introduced by the Mauritian government to encourage foreign investment in luxury residential properties. Launched in 2015, the PDS allows non-citizens to buy high-end properties, promoting sustainable development and benefiting the local community. It replaces the earlier Integrated Resort Scheme (IRS) and Real Estate Scheme (RES), combining their best elements to offer greater flexibility and additional social benefits​ ​​ (https://www.expat.com/)​.

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