Invest Hotel Scheme in Mauritius
Understand the Invest Hotel Scheme in Mauritius, including who can buy, how leaseback works, what foreign buyers must verify, and how taxes and resale apply.
The Invest Hotel Scheme lets buyers acquire a hotel room, suite, apartment or villa in Mauritius within a regulated hotel structure. The rules differ from standard residential property ownership, especially on leaseback, personal use and resale. Within the broader range of property investment schemes open to foreign buyers in Mauritius, the IHS stands apart because ownership is tied to a hotel-led operating model.
Many buyers assume an IHS unit works like a normal holiday apartment. It does not. Your ownership is real, but your use, rental control and cashflow mechanics are governed by the leaseback agreement and the hotel’s operating rules.
This article explains what IHS is, who can buy, how leaseback works, what foreign buyers need to check, and how taxes and resale apply.
What the Invest Hotel Scheme is?
The Invest Hotel Scheme allows developers to sell individual hotel units to private buyers while keeping the property operating as a hotel. Core principles:
The hotel development area must be at least 1 hectare
Buyers must lease the unit back to the IHS company
Owner use is limited to 45 days in any 12 month period
Up to 60 percent of the hotel's units can be sold
Leaseback and owner use under IHS
Every IHS purchase comes with a non negotiable condition: you must lease your unit back under the mandatory IHS leaseback structure, typically to the IHS company or the entity designated in the project documents.
You cannot independently rent the unit, because rentals and hotel operations are handled under the mandatory leaseback structure. The IHS company manages, operates, and markets the unit. Your personal use must fit within the 45 day annual cap and the booking rules set in the leaseback agreement.
The leaseback agreement should also set out booking procedures, any peak-period restrictions, blackout dates and practical use conditions. Ask for those rules in writing before signing.
If you are looking for unrestricted personal use or the ability to treat the unit as a private holiday home, IHS is not the right structure.
When you buy an IHS unit, you buy within a co ownership structure and you must review the règlement de copropriété with your notary.
Who Can Buy a Hotel Unit?
IHS is open to a broad range of buyers, from individual foreign investors to corporate structures. Eligible buyers include:
Citizens and non citizens of Mauritius
Companies incorporated or registered under the Companies Act
Sociétés, partnerships, and trusts under relevant Mauritian legislation
What Can You Buy Under IHS?
The regulations define a unit as a room, an apartment, a villa, or a suite forming part of a hotel. Depending on the project, units may range from hotel rooms and suites to apartments or villas, each subject to project specific leaseback and usage conditions.
For stand alone villas linked to a hotel to be constructed, IHS regulations set a minimum purchase price of USD 500,000.
What to Check Before You Reserve an IHS
Before you reserve or pay, confirm with the developer and your notary:
Project stage (letter of approval or IHS certificate)
Permits already issued (Building and Land Use Permit, environmental clearance if relevant)
Buyer protections in your deed and payment mechanism (escrow and completion guarantee if off plan)
Co ownership documents and leaseback agreement are available for review
If the project is still at letter of approval stage, ask your notary what document you are signing and what happens if certification or permits are delayed.
How to assess an IHS unit
Before committing, work through these five questions:
Unit type and rights: What is the unit type, and what rights are attached to it under the co-ownership rules?
Leaseback terms: What does the leaseback agreement say about the 45 day cap, booking procedures, blackout periods, and rental yield mechanics if any?
Project status: Is the IHS certificate issued and which permits are in place?
Payment schedule: Is it aligned with the VEFA framework under the Mauritian Civil Code?
Total costs: What are acquisition costs including registration duties (10% from 1 July 2026 for non citizens) and recurring service charges?
Buying off plan under IHS
If you buy off plan, the payment schedule and protections depend on the VEFA contract structure stated in the notarised deed. Before paying, ask your notary to confirm the legal basis of the contract, the payment milestones and release conditions, and the guarantees or remedies if delivery is delayed.
Foreign buyer payment rules
If there is any non-citizen involvement in the acquisition, specific currency and financing rules apply.
The 85 Percent MUR Rule
Non-citizen buyers must pay 85 percent of the purchase price in Mauritian Rupees (MUR), after transferring funds from abroad in hard convertible currency. The remaining 15 percent can be paid in foreign currency or MUR.
Source of Funds and Financing
Funds must be transferred to Mauritius from abroad in hard convertible currency. For new acquisitions, 85 percent of the purchase price must be paid in MUR and the remaining 15 percent may be paid in MUR or hard convertible foreign currency. Local MUR financing may be available depending on the file and bank conditions.
Applications are filed to the EDB through the IHS company and coordinated by the notary, with documentation depending on buyer structure.
Duties and Taxes under IHS
Registration duty and land transfer tax apply. From 1 July 2026, the statutory treatment changes for certain transfers to a non-citizen involving residential property under an EDB Property Scheme, which includes the Invest Hotel Scheme.
Registration duty applies on the acquisition side.
Land transfer tax applies on the seller side.
From 1 July 2026, registration duty rises to 10 percent where the law so provides for a transfer to a non-citizen involving residential property under an EDB Property Scheme, or residential property first acquired under such a scheme.
From 1 July 2026, land transfer tax is 10 percent where a transfer is made to a non-citizen in respect of such property, including property first acquired under an EDB Property Scheme, where the transferor is a non-citizen.
When duties or taxes are paid in freely convertible foreign currency, the selling exchange rate in force at the time of signature of the title deed is used to calculate the US dollar equivalent.
Always ask your notary for a short duty and tax summary showing what is payable on registration, what applies on the sale side, and which exchange rate basis is used at deed signature.
Reselling Your IHS Unit
Resale is permitted under IHS. The unit owner must give written notice within 30 days prior to sale to the EDB. Resale applications have a non-refundable processing fee of MUR 10,000.
Resale requires EDB approval. The practical filing process is coordinated by the notary and may involve the IHS company depending on the project documentation.
Resale can take longer than a standard apartment sale because the incoming buyer must meet the scheme rules and the approval process must be followed.
Frequently Asked Questions
What is the Invest Hotel Scheme (IHS) and how does it work in Mauritius?
A regulated framework allowing hotel units to be sold while the property continues operating as a hotel, with mandatory leaseback and limited owner use.
Can foreigners buy a hotel unit in Mauritius under IHS?
Yes, subject to the scheme rules and project approval framework.
Is the leaseback mandatory for all IHS purchases?
Yes. The unit must be leased back under the IHS structure.
How many days per year can I use my IHS unit?
Owner use is limited to 45 days in any 12-month period.
Can I manage my own rentals with an IHS unit?
No. Rentals are handled through the IHS leaseback structure.
What is the 85 percent MUR rule for foreign buyers under IHS?
For new acquisitions, non-citizen buyers must pay 85 percent of the purchase price in MUR after funds are transferred from abroad in hard convertible currency. The remaining 15 percent may be paid in MUR or hard convertible foreign currency.
What changes for duties and taxes from 1 July 2026
From 1 July 2026, a 10 percent framework applies in the cases set by law for certain transfers to a non-citizen involving residential property under an EDB Property Scheme, including certain qualifying resales.
Is resale allowed and what is the process fee?
Yes. Resale is allowed, but EDB approval and the prescribed process still apply.
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Sources
· Economic Development Board (Invest Hotel Scheme) Regulations 2015
· Guidelines for Invest Hotel Scheme
· Amendments to IRS/ RES/ IHS/ PDS and SCS Regulations
· FAQ – Amendments to Property Regulations
Information in this article is provided for informational purposes only and does not constitute legal, tax, or financial advice. While we strive to ensure accuracy, errors and omissions may occur (E&OE). We recommend consulting qualified professionals before making any investment decisions.
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