The key distinction in one sentence
Reunion Island is France and the European Union. Mauritius is an independent sovereign nation with its own legal, tax, and monetary system. Everything else flows from this.
Detailed comparison: 12 criteria
| Criterion | 🇷🇪 Reunion Island | 🇲🇺 Mauritius |
|---|---|---|
| Political status | French department + EU region | Independent republic (independence 1968) |
| Currency | Euro (€) | Mauritian Rupee (MUR, ~1 EUR = 50 MUR) |
| Legal system | French civil law + EU directives | Hybrid: French civil code + English common law |
| Buying as foreigner | Freely open — same rules as French buyers | Restricted outside PDS/IRS/RES/Smart City schemes (min. USD 375k) |
| Residency from purchase | EU citizens: free movement; non-EU: standard visa rules | Purchase of PDS/IRS ≥ USD 375k grants residency permit |
| Income tax on rent | French income tax (progressive 0–45%) + social contributions. Overseas incentives available | 15% flat corporate tax; 0% capital gains; favorable for rental companies |
| VAT / transfer tax | Notary fees 7–8% (old) or 2–3% (new) | Registration duty 5%, notary fees ~1% |
| Rental yield (gross) | 5–6% observed, up to 7%+ in high-tension zones | 4–6% typical (PDS apartments) |
| Currency risk | None for EU investors (euro = domestic) | MUR convertibility good but exposes to FX movements |
| Cyclone risk | Modest — strict anti-cyclonic codes, rarely major damage | Higher historical exposure, but also well-regulated |
| Population & demand | ~850,000 inhabitants, rental tension structural | ~1,260,000 inhabitants, mature tourism-driven market |
| International access | Direct flights Paris, Marseille; hub via MRU | One of the best-connected islands in the region |
Where Reunion Island wins
- EU legal security. Any EU citizen investor has the same rights as at home — consumer protection, mortgage access, estate planning integrated with European law.
- No currency risk for euro-based investors. Your rental income is in euros; your valuation is in euros.
- French tax incentives (Girardin, LMNP, Pinel Overseas, CIOP) — structural advantages for French taxpayers that simply don't exist in Mauritius.
- Free access — no minimum investment threshold, no PDS/IRS scheme to purchase property.
- Inheritance law — French civil law with its well-understood framework, EU succession rules.
- UNESCO World Heritage biodiversity (42% of territory protected) — structural driver of values where construction is allowed.
Where Mauritius wins
- 15% flat corporate tax (vs French progressive rates) — attractive for high-earning rental companies.
- Residency permit linked to property purchase (PDS/IRS schemes).
- English-speaking business culture — easier for UK/US/Commonwealth investors.
- More mature tourism real estate — well-known PDS and IRS schemes, established foreign-buyer ecosystem.
- No capital gains tax on individual property disposals.
- Distinct jurisdiction — useful for investors seeking diversification outside Europe.
Which one is right for you?
Choose Reunion Island if:
- You are an EU citizen and want to stay inside European legal/tax rails
- You are a French taxpayer who wants to leverage overseas tax incentives
- You prioritize legal security and predictability over tax optimization
- You want to avoid currency risk in euros
- You plan an estate transmission to European heirs
Choose Mauritius if:
- You are a non-EU investor and the 15% flat corporate tax is a meaningful advantage
- You want a residency permit through property purchase
- You prefer English-speaking business environment
- You want to diversify outside European jurisdictions
- You plan to operate a rental company with significant turnover
Can you own both?
Yes — and some investors do. A Reunion property for EU stability + a Mauritius property for tax optimization is a coherent strategy for high-net-worth individuals. The two islands complement rather than compete.
Our honest position
We are a French agency operating in Reunion Island — obviously we will tell you Reunion is excellent. But we refuse to pretend Mauritius is worse. For the right investor profile (non-EU, looking for a 15% flat tax environment), Mauritius makes perfect sense. Our job is to help you understand which one fits your profile, not to push you toward the one we sell.
If after reading this you think Reunion Island is the right fit — we are here to support you. See how to buy as a foreigner or talk to our team.
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