The typical rental yield in Mauritius in 2026 is about 3% to 5% gross for long-term lets and about 5% to 9% gross for well-managed, licensed short-term rentals. After syndic charges, management, maintenance, vacancy and tax, net yields usually land 1.5 to 3 points lower, so 4.5% gross often becomes 2.5% to 3% net. Total return then depends on capital growth, which has slowed to about 1% a year on the official index.
Those numbers are the starting point, not the answer. Buyers are often shown a projected yield based on full occupancy, no furniture replacement and no management fee. This guide explains how to work out what a property will really earn, with a worked example you can adapt, and what drives return on investment in the Mauritian market. It was last updated on 18 September 2026.
Rental yield in Mauritius: key facts
- Long-term lets: about 3% to 5% gross. Global Property Guide puts the national average at 3.29% gross for Q3 2026.
- Short-term lets: about 5% to 9% gross when well located, licensed and actively managed.
- Net vs gross: expect net yield to be 1.5 to 3 points below gross once all costs are counted.
- Licence: letting to holidaymakers requires a Tourist Enterprise Licence from the Tourism Authority.
- Capital growth: the official price index stood at 240.9 in Q1 2026, up 1.0% on a year earlier (Statistics Mauritius).
- Tax: rental income is taxable in Mauritius. There is no capital gains tax on individually held residential property.
- Entry and exit costs: buyers budget 7% to 8% over the price, and sellers pay 5% land transfer tax.
What is the difference between gross and net rental yield?
Gross yield is annual rent divided by the purchase price. A EUR 400,000 apartment let for EUR 18,000 a year has a gross yield of 4.5%. It is quick to calculate and useful for comparing properties, but it ignores every cost of ownership.
Net yield is the rent you actually keep, after vacancy and all running costs, divided by the price. It is the only figure that tells you what the investment earns. The main deductions in Mauritius are:
- Syndic charges: the service charge for shared areas, security, gardens and pools. It varies widely between developments and can rise sharply when a development ages.
- Management: typically 10% of collected rent for a long-term let, and 20% or more of revenue for a short-term rental, where the manager handles bookings, guests and cleaning.
- Vacancy: the weeks or months between tenants, or unbooked nights for a holiday let.
- Maintenance and replacement: salt air and humidity are hard on air conditioning, pumps, fittings and furniture.
- Insurance, utilities and licence costs: borne by the owner on short lets, usually by the tenant on long lets.
- Income tax: on the net rental profit.
Worked example: net rental yield on a EUR 400,000 apartment
The example below compares the same 2-bedroom apartment in a North coast development let in 2 ways. All figures are illustrative assumptions for the purpose of the calculation, not LIVERIA transaction data or a forecast.
| Item | Long-term let | Short-term let |
|---|---|---|
| Purchase price | EUR 400,000 | EUR 400,000 |
| Rent assumption | EUR 1,500 a month | EUR 160 a night, 60% occupancy (219 nights) |
| Gross annual rent | EUR 18,000 | EUR 35,040 |
| Gross yield | 4.5% | 8.8% |
| Vacancy | EUR 1,500 (1 month) | Included in occupancy |
| Management | EUR 1,650 (10% of collected rent) | EUR 7,008 (20% of revenue) |
| Platform and payment fees | None | EUR 1,752 (5%) |
| Cleaning and linen | None | EUR 3,500 |
| Utilities and internet | Paid by tenant | EUR 2,400 |
| Syndic charges | EUR 2,400 | EUR 2,400 |
| Maintenance and furniture replacement | EUR 1,500 | EUR 2,500 |
| Insurance and licence | Included in maintenance | EUR 800 |
| Net income before tax | EUR 10,950 | EUR 14,680 |
| Net yield before tax | 2.7% | 3.7% |
| Income tax (illustrative 10% of net) | EUR 1,095 | EUR 1,468 |
| Net yield after tax | 2.5% | 3.3% |
3 lessons come out of this table. First, a short-term rental can double the gross yield but adds far more cost, so the net gap is much smaller than the headline gap. Second, syndic charges are the silent yield killer on lower-priced units: EUR 2,400 a year is 0.6% of this price, but on a EUR 200,000 studio it would be 1.2%. Third, the tax line depends on your situation. Mauritius tax residents pay 0% on the first MUR 500,000 of chargeable income, then 10% and 20% bands. Non-residents are taxed on net Mauritian income without the personal reliefs, so check your own position with a tax adviser.
Long-term or short-term: which earns more in Mauritius?
Long-term lets to expatriate families and professionals are steady and low effort. Demand is strongest in the North around Grand Baie and in the Centre around Moka and Ébène, where tenants want schools, offices and amenities. You accept a lower yield in exchange for predictability and minimal wear. Our guide to rental contract questions in Mauritius covers the lease terms that protect you.
Short-term letting to holidaymakers earns more in the right location, but it is a hospitality business, not a passive investment. It needs a Tourist Enterprise Licence, professional photography and pricing, fast guest response, cleaning between stays and furniture that looks fresh in every photo. Tourist arrivals reached about 1.43 million in 2025, up 3.9%, which supports demand, but occupancy is seasonal and competition in popular areas is real.
A practical middle path is a managed long-term let, where a professional handles tenant selection, rent collection and maintenance. We compare the options in managed lease vs DIY letting.
Which areas of Mauritius have the best rental yields?
Yields are generally higher where entry prices are lower and demand runs all year. Luxury villas usually yield less, because rents do not rise in proportion to price.
| Region | LIVERIA indicative prices (Sept 2026) | Rental profile |
|---|---|---|
| North (Grand Baie, Mont Choisy, Pereybere) | EUR 190,000 to EUR 3,100,000, median about EUR 850,000 | Deepest demand from tenants and holidaymakers, highest occupancy |
| West (Black River, Tamarin, Le Morne) | EUR 285,000 to EUR 5,350,000, median about EUR 1,180,000 | Strong for holiday villas and families, lower yield at the top end |
| East (Belle Mare, Beau Champ) | EUR 500,000 to over EUR 6,000,000 | Premium holiday lets, more seasonal, fewer long-term tenants |
| Centre (Moka, Ébène) | From about EUR 135,000 | Strongest long-term yields on our books, driven by professional tenants |
Global Property Guide’s Q3 2026 survey puts gross long-term yields in Grand Baie at roughly 2.9% to 3.4% depending on apartment size, close to the national average of 3.29%. That fits what we see: the most sought-after coastal addresses trade yield for capital security and resale liquidity. For a region-by-region view, read our guide to the best regions to buy property in Mauritius.
How much capital growth can you expect?
Statistics Mauritius publishes the Residential Property Price Index, with 2019 set at 100.
| Quarter | Index (2019 = 100) |
|---|---|
| Q1 2022 | 119.6 |
| Q1 2023 | 161.1 |
| Q1 2024 | 192.7 |
| Q1 2025 | 238.6 |
| Q1 2026 | 240.9 |
The index roughly doubled between Q1 2022 and Q1 2026, but almost all of that came before 2025. The latest annual change is 1.0%, below inflation of 4.4% in July 2026. The index is also weighted towards local transactions, so the euro and dollar priced scheme market that foreign buyers use does not move in step with it. Our analysis of Mauritius real estate trends in 2026 looks at the segments in detail.
What is the total return on Mauritius property?
Total return is net rental yield plus capital growth, measured after entry and exit costs. As an illustration, a 3% net yield and 2% annual growth would give about 5% a year before costs. But you pay 7% to 8% to buy and the seller pays 5% land transfer tax, so a round trip costs around 12% to 13% of value. Over a 3-year hold that eats most of the return. Over 10 years it matters far less.
2 structural advantages help the long-term investor. There is no capital gains tax on individually held residential property, and no inheritance tax, wealth tax or annual property tax. Currency matters too: most scheme property is priced in euros or dollars, so your return in your home currency depends on exchange rates as well as the local market. The full cost picture is in the cost of buying property in Mauritius in 2026.
What drives ROI on Mauritius property? Mistakes to avoid
- Buying on the developer’s projected yield. Ask what occupancy, rate and costs it assumes, and whether management fees are included.
- Ignoring syndic history. Ask for 3 years of service charge accounts and the reserve fund position.
- Overpaying for the view. Premium features raise the price faster than the rent.
- Letting without a licence. Unlicensed holiday letting exposes you to enforcement by the Tourism Authority.
- Forgetting furniture cycles. Holiday lets need a refresh every few years to hold their nightly rate.
- Holding too short. Entry and exit costs make short holds unattractive.
- Choosing the wrong manager. In our experience, the quality of management explains more of the difference between good and poor returns than location alone.
Frequently asked questions
What is the average rental yield in Mauritius?
Long-term residential lets in Mauritius typically yield about 3% to 5% gross, and Global Property Guide puts the national average at 3.29% gross for Q3 2026. Well-located, licensed and professionally managed short-term rentals can reach about 5% to 9% gross. Net yields are usually 1.5 to 3 points lower after costs and tax.
Is short-term rental more profitable than long-term rental in Mauritius?
Often, but by less than the headline suggests. A short-term rental can nearly double the gross yield, yet management, cleaning, utilities, platform fees and furniture replacement absorb much of the difference. It also needs a Tourist Enterprise Licence and active management. In good locations the net advantage is typically about 1 point of yield, not 4.
How is rental income taxed in Mauritius?
Rental income from Mauritian property is taxable in Mauritius, on the net amount after expenses incurred wholly in earning it. Tax residents benefit from a 0% band on the first MUR 500,000 of chargeable income, then 10% and 20% bands. Non-residents are taxed on net Mauritian income without personal reliefs, so the right answer depends on your residence status.
Which area of Mauritius gives the best rental return?
On a long-term basis the Centre, around Moka and Ébène, usually gives the highest yields because entry prices are lower and professional tenants rent all year. The North offers the highest occupancy and the deepest tenant and holiday demand. Prime coastal villas in the West and East yield less, but tend to offer stronger capital security.
Are Mauritius property prices still rising?
Yes, but slowly. The official Residential Property Price Index rose 1.0% year on year in Q1 2026 to 240.9, after peaking in Q2 2025. That followed very strong growth between 2022 and 2024. With inflation at 4.4% in July 2026, prices were broadly flat in real terms over the latest year.
Is property in Mauritius a good investment in 2026?
For a patient investor, it can be. Yields are moderate, but there is no capital gains tax, no inheritance tax and no annual property tax, and buying costs stayed at 7% to 8% after the planned duty rise was repealed. The best results come from finished property in established locations, held for at least 5 to 10 years.
Turn a gross yield into a real return
Most of the gap between a good and a poor rental investment is decided before you buy: the price, the syndic, the licence and the manager. The rest is decided by how the property is run.
LIVERIA International Realty is a Mauritius-based luxury real estate agency with a presence in Dubai and London, recognised by the Luxury Lifestyle Awards in 2024 and 2026 and by the Global Elite Awards in 2025 and 2026, which named LIVERIA among the Top 100 Companies Worldwide in both years. We help investors test yield assumptions before they buy, manage long-term rentals for owners living abroad, and source off-market properties where the numbers work. Reach us at [email protected].
