Bali vs Mauritius Property for Foreign Investors

Both Bali and Mauritius attract foreign property buyers with island settings and lifestyle appeal, but they sit at opposite ends of several key axes: Mauritius offers freehold title and an automatic residence permit above a price threshold; Bali delivers rental yields that are typically two to three times higher, with a larger tourism market and lower entry costs.

In Mauritius, foreigners must purchase within government-approved schemes administered by the Economic Development Board (EDB). The current framework is the Property Development Scheme (PDS), which replaced the older Integrated Resort Scheme (IRS) for new developments. Both give the buyer freehold ownership, with title registered in the buyer's name and no expiry date. A purchase above USD 375,000 in a qualifying development grants a permanent residence permit to the buyer, their spouse, and dependent children under 24, valid for the full period of ownership. From 1 July 2026, the registration duty on these non-citizen purchases rose from 5 percent to 10 percent of the transaction price under the Mauritius Finance Act 2025.

In Bali, foreigners cannot hold freehold land (Hak Milik). The practical routes are a long-term leasehold, typically structured as 25 to 30 years with an extension option negotiated at signing, or holding the property through a PT PMA, a foreign-owned Indonesian company that can hold Hak Guna Bangunan (HGB) title. Neither gives outright freehold. A PT PMA adds setup costs and annual compliance obligations but provides the stronger title security of the two. There is no minimum purchase price in Bali, and residency is not automatically linked to buying; the Indonesia Second Home Visa requires a separate application.

Rental yields diverge sharply. Global Property Guide reports average gross rental yields in Mauritius of approximately 3.07 to 3.22 percent across its residential market. Bali recorded 6.33 million international arrivals in 2024 per BPS Statistics Indonesia, supporting a much larger short-stay market; well-managed villas in established zones generate gross yields broadly in the 8 to 12 percent range. The Mauritius market drew 1,382,177 arrivals in 2024, per the Republic of Mauritius Handbook of Statistical Data on Tourism.

Mauritius holds advantages on the tax side: no capital gains tax, no inheritance tax, and no annual property tax. Non-resident rental income is subject to a flat 15 percent withholding tax. In Bali, annual property tax (PBB) is modest at roughly 0.5 percent of assessed value; rental income withholding rates range from 10 to 20 percent depending on the owner's residency status (see our Bali rental income tax guide for details). On a sale, the Indonesian seller pays 2.5 percent PPh on the gross sale price, while Mauritius levies no capital gains tax on the vendor.

A US or UAE investor who wants freehold title, a residence permit, and a simplified tax environment will find Mauritius delivers on those criteria, at the cost of lower rental income potential and higher transaction costs from July 2026 onwards. An investor focused on rental yield from a high-volume tourism market, with a lower entry price and flexible ownership structure, will find Bali the stronger choice. These are indicative ranges based on available market data, not guaranteed returns. This is not financial advice; consult a qualified adviser before committing capital.