In Mauritius, the principal taxes and costs associated with the acquisition of property are:
Notarial Fees: Calculated according to a legal scale (barème) based on the property value, plus VAT.
Agency Fees: Typically between 2% and 5% of the property value, plus VAT where applicable, depending on the agreement between the parties.
Stamp Duties and Administrative Fees: Usually relatively minor compared to the above taxes.
For a standard local property transaction, buyers should therefore budget not only for the purchase price but also for registration duty, notarial fees, and related administrative costs.
2. Can you explain in simple terms the registration fees and transfer taxes applicable to a property transaction?
In simple terms:
The buyer pays Registration Duty, which is generally 5% of the property’s value.
The seller pays Land Transfer Tax, which is generally 5% of the property’s value.
For example, on a property sold for Rs 10 million:
Registration Duty payable by the buyer = Rs 500,000
Land Transfer Tax payable by the seller = Rs 500,000
In addition, notarial fees and administrative charges must be considered.
3. Are there any tax differences between a Mauritian buyer and a foreign investor?
Yes.
For Mauritian citizens purchasing residential property, the standard Registration Duty rate generally remains 5%.
For non-citizens acquiring residential property under approved schemes such as:
Property Development Scheme (PDS)
Smart City Scheme
Integrated Resort Scheme (IRS)
Real Estate Scheme (RES)
Invest Hotel Scheme (IHS)
Ground + 2 apartments approved by the Economic Development Board (EDB)
the Registration Duty has increased from 5% to 10% for deeds registered from 1 July 2026.
4. What are the tax implications when reselling a property?
For ordinary property transactions involving Mauritian citizens, the seller is generally liable for a Land Transfer Tax of 5%.
One of the key advantages of Mauritius remains that there is no general Capital Gains Tax on the appreciation realised when an individual sells a property.
However, from 1 July 2026, where residential property under approved EDB schemes is sold to a non-citizen, the applicable Land Transfer Tax rate has increased from 5% to 10%.
5. How does inheritance tax work in Mauritius when property is passed on to heirs?
Mauritius remains one of the few jurisdictions that does not levy inheritance tax, estate duty, wealth tax or succession tax.
When property is transferred to legal heirs through succession, heirs generally benefit from exemptions from Registration Duty and Land Transfer Tax, although notarial and administrative expenses remain payable.
This favorable regime is one of the reasons Mauritius is often considered attractive for long-term wealth preservation and family estate planning.
6. In your opinion, what are the main myths or misconceptions regarding property taxation in Mauritius?
Some common misconceptions include:
Myth 1: Property transactions are tax-free.
Reality: Registration Duty, Land Transfer Tax, notarial fees and administrative charges still apply.
Myth 2: Mauritius has a Capital Gains Tax on property sales.
Reality: There is currently no general Capital Gains Tax on individuals selling property.
Myth 3: Foreign investors and Mauritian buyers are taxed exactly the same.
Reality: Foreign investors purchasing under approved schemes are now subject to a 10% Registration Duty from July 2026.
Myth 4: Inherited property is heavily taxed.
Reality: Mauritius does not impose inheritance tax.
7. What advice would you give to someone considering investing in Mauritian property today to optimize their tax situation while remaining compliant with regulations?
My advice would be:
Understand all taxes before signing any reservation or sale agreement.
Work with a registered notary and licensed real estate professional.
Verify whether the property falls under an EDB-approved scheme.
Budget for Registration Duty, notarial fees and administrative charges.
Avoid any attempt to undervalue a property to reduce taxes, as the Registrar General may reassess the market value of the property.
Focus on long-term investment value rather than short-term tax savings.
Mauritius continues to offer a relatively straightforward and investor-friendly property tax framework compared to many international jurisdictions.
New Measures in Budget 2026: The registration duty exception ceiling rises to Rs 3 million for purchasing land and Rs 6 million for a house or apartment.
Home and Apartment Purchases: The duty exception threshold for a house or apartment increased from Rs 5 million to Rs 6 million.
Agricultural Land: First-time buyer registration duty exemption scheme now expands to owners agricultural land.
Foreign Investors & Residency: The Golden Visa has been upgraded. Foreign investors who make a minimum investment of USD 1 million now have a clear, direct pathway to Permanent Residence.
Simplified Occupation Permits: The government has simplified the Occupation Permit, framework to use a single investment threshold of USD 100,000.
8. How will the 2026 Budget impact property taxation?
The most significant measure introduced by the Budget is the increase in taxes applicable to non-citizens purchasing residential property under approved schemes.
As from 1 July 2026:
Registration Duty payable by non-citizen buyers increased from 5% to 10%.
Land Transfer Tax applicable to certain sales involving non-citizens increased from 5% to 10%.
These changes apply to transactions under PDS, Smart City, IRS, RES, IHS and qualifying Ground + 2 developments.
For example:
A foreign buyer purchasing a villa valued at Rs 25 million under a PDS project will now pay:
Registration Duty at 10% = Rs 2.5 million
whereas before July 2026 the amount would have been Rs 1.25 million.
The Government’s objective is to increase fiscal revenue from high-value foreign real estate transactions while maintaining Mauritius as an attractive investment destination.
