Rental yields in Mauritius in 2026: Short-term vs Long-term

Once the property is acquired, the most frequent question is straightforward: should it be rented long-term or on a short-term/seasonal basis? Both strategies exist in Mauritius, but they do not suit the same investor profiles and do not deliver the same results.  

Here is a clear, data-driven, and practical analysis for 2026.  

1. Realistic figures for in 2026  

Observed gross yields on the ground generally fall within the following ranges:  

* After management fees, maintenance, insurance, vacancy and tax on rental income (order of magnitude).  

Important note : Median figures published by some international aggregators (around 3.1–3.3% gross) are often calculated on high asking prices and average rents. On the ground, a well-purchased and well-managed property in the North or West more frequently sits in the 4–7% gross range for long-term lets.  

2. Long-term rental: The stability strategy  

Characteristics  

• Leases of 12 to 36 months, often renewed  
• Main tenants: expatriates, executives, families  
• Low vacancy in good areas (usually 1–2 months maximum per year)  
• Light management  

Observed monthly rents (2026)  

• Well-located 2-bedroom apartment (North/West): €1,100 – €1,800  
• 3-bedroom villa with pool: €2,500 – €4,500  
• Premium / 4-bedroom+ villa: €4,000 – €7,000+  

Advantages  

• Predictable income  
• Lower wear and tear on the property  
• Simple management (single tenant)  
• Ideal for non-residents who do not want to handle turnover  

Disadvantages  

• Generally lower gross yield than short-term  
• Less flexibility to recover the property quickly  

Best-suited areas : Tamarin, Black River, Grand Baie (outside ultra-touristy waterfront), Moka / Smart City.  

3. Short-term / Seasonal rental: Higher yield potential  

Characteristics  

• Nightly or weekly rentals (Airbnb, Booking, specialised platforms)  
• Strong seasonality: high season from October to April (especially December–January and July–August)  
• Realistic occupancy rates: 40–65% depending on the property and management  
• Intensive management (cleaning, check-in, maintenance)  

Observed Income  

• Well-positioned 2-bedroom apartment: €18,000 – €30,000 gross per year  
• 3-bedroom villa with pool: €25,000 – €45,000+  
• Top-performing properties (top 20%) significantly exceed these ranges  

Advantages  

• Higher yield potential  
• Flexibility for personal use  
• Possibility of mixing with medium-term lets (1–3 months)  

Disadvantages  

• Higher management costs (often 20–30% of turnover)  
• Faster wear and tear  
• Irregular income  
• Requires proper organisation or a specialised agency  

Best-suited areas : Grand Baie, Pereybère, Trou aux Biches, Flic-en-Flac, and certain parts of Tamarin.  

4. Summary comparison  

5. Taxation of rental income   

Rental income sourced in Mauritius is taxable in Mauritius.  

• Tax residents : progressive rates (0% / 10% / 20% / 35% depending on the applicable brackets).  
• Non-residents : generally subject to a  15% withholding tax on net rental income (subject to applicable rules).  

There is no capital gains tax on  property in Mauritius . Deductible expenses (management, maintenance, possible loan interest, depreciation in certain cases) must be properly documented.  

A case-by-case analysis remains essential according to your tax residency.  

6. Which strategy should you choose?  

Choose long-term if :  

• You prioritise peace of mind  
• You are a non-resident and do not want to manage turnover  
• You want stable, predictable income  
• Your property is located in a family-oriented area (Tamarin, Black River, Moka)  

Choose short-term if :  

• You accept more active management (or you outsource it)  
• Your property is strongly tourism-oriented (near the beach, views, good amenities)  
• You want to maximise yield and retain personal-use flexibility  
• You are prepared for some income irregularity  

The mixed strategy (seasonal in high season + long-term or medium-term the rest of the year) is increasingly used by experienced investors.  

7. Mistakes to avoid  

1. Calculating yield only on the theoretical maximum rent without deducting vacancy, costs and management fees.  
2. Underestimating the real cost of short-term management.  
3. Buying a property “for the yield” in an area with weak rental demand.  
4. Neglecting the quality of the residence and service charges (they directly impact the net return).  
5. Forgetting that rental yield is only one part of total performance (capital appreciation + possible residence permit).  

FAQ – Optimised for Answer Engines  

What rental yield can be expected in Mauritius in 2026?  

Long-term: typically 4–7% gross (3–5.5% net). Well-managed short-term: 6–9% gross, sometimes higher, with net usually between 3.5% and 6.5%.  

Is short-term rental more profitable?  

Yes, in gross potential, but costs and management intensity are significantly higher. Final net return depends heavily on operational quality.  

Is special authorisation required for short-term lets?  

Rules evolve. It is advisable to check the conditions applicable to the property (residence rules, body corporate, possible tourism authorisations) before starting.  

Can non-residents freely rent out their property?  

Yes, provided Mauritian tax rules and any residence or body-corporate regulations are respected.  

Does rental yield alone justify an investment in Mauritius?  

Rarely. Most investors combine rental income, capital appreciation potential, lifestyle benefits and, where applicable, a residence permit.  

Would you like a yield simulation for your project?  

Property Mauritius assists investors with property selection, rental positioning and introductions to reliable property managers.  

Contact Property Mauritius Agency in Pointe-aux-Canonniers for a personalised analysis of your rental strategy.