Costs and Taxes When Buying Property in Mauritius as a Foreign Buyer

Updated August 2026

The costs of buying property in Mauritius go beyond the purchase price, especially for foreign buyers. Registration duty, notarial fees, bank charges, possible agency fees, currency conversion, ongoing ownership costs and tax considerations linked to rental income or resale can all affect the final budget.

Mauritius remains attractive for international buyers because of its structured acquisition routes, established notarial framework and ability to transfer funds internationally. Still, the real cost of buying should be understood before signing.

The tax position also changed during 2026. The broader 10% registration duty and land transfer tax measures introduced by the Finance Act 2025 for certain non-citizen transactions were subsequently repealed by the Finance Act 2026. The current general framework is again 5% registration duty on the buyer side and 5% land transfer tax on the seller side, subject to exemptions and specific statutory provisions.

A separate 10% additional seller-side duty remains in a much narrower situation involving certain residential property situated on State land or Pas Géométriques.

This article explains the main costs and taxes foreign buyers should review before buying property in Mauritius.

The purchase price is only the starting point

The advertised price of a property is not the full acquisition budget. Foreign buyers should distinguish between the price of the property itself and the additional costs required to complete, register and manage the purchase.

These costs may include:

registration duty;
notarial fees;
administrative and bank charges;
currency conversion costs;
agency fees where applicable;
mortgage-related costs if financing is used;
insurance, maintenance and co-ownership charges after purchase;
tax on rental income where the property is rented out.

The exact amount depends on the property type, the acquisition route, the buyer profile, the legal structure of the transaction and whether the property is bought for personal use, rental income or long-term investment.

For a wider view of authorised acquisition routes, see our article on property investment schemes in Mauritius.

Main buyer-side costs to expect

The main buyer-side costs usually include registration duty and notarial fees. These are separate from the purchase price and should be confirmed early in the transaction.

Registration duty is linked to the registration of the deed and is one of the main acquisition costs. Notarial fees cover the preparation of the deed, title-related formalities and the legal work required to complete the transaction.

Foreign buyers should also plan for bank-related costs. These may include transfer charges, administrative fees, foreign-exchange spreads and, where financing is used, mortgage-related costs.

Agency fees may also apply, particularly in resale transactions. The amount and the party responsible for payment can vary depending on the transaction and the agency agreement, so this should be clarified before making an offer.

Registration duty for foreign buyers

Under the current general framework, registration duty on an immovable property transfer is generally payable by the buyer at 5% of the transaction value, subject to exemptions and specific statutory provisions.

This is important because the legal position changed during 2026.

The Finance Act 2025 had introduced a special 10% registration duty for certain residential property transfers to non-citizens from 1 July 2026. The Finance Act 2026 subsequently repealed the provision that created that broader regime and the corresponding 10% rate.

The current position should therefore not be described simply as a rate reduction from 10% to 5%. The broader special regime itself was repealed.

For a detailed explanation of what changed and how the current framework works, see our article on registration duty in Mauritius for foreign buyers.

For the historical context behind the measures introduced in 2025, our article on Mauritius Budget 2025 for foreign buyers explains the original framework. That article is also being updated to reflect the subsequent Finance Act 2026 changes.

Foreign buyers should ask their notary to confirm the duty applicable to their particular deed, together with the value used for registration and any exemption or special provision relevant to the transaction.

Land transfer tax and the seller-side position

Land transfer tax is generally a seller-side cost.

Under the current general framework, the seller generally pays land transfer tax at 5% of the transaction value, subject to exemptions and specific statutory provisions.

The Finance Act 2025 had also introduced a broader 10% treatment for certain residential property transfers involving non-citizens. That broader measure was subsequently repealed by the Finance Act 2026.

However, a separate 10% additional duty remains in a much narrower situation.

Finance Act 2026 introduced an additional duty on certain transfers of residential property situated on State land or Pas Géométriques to a non-citizen under the relevant apartment acquisition route. This additional duty is payable by the transferor, meaning the seller.

It should not be confused with the general land transfer tax or with buyer-side registration duty.

The legislation also provides transitional treatment where a qualifying presale agreement was executed before 19 June 2026 and drawn up and signed before a notary.

For a foreign buyer, the seller's tax position is not normally an acquisition cost payable directly by the buyer. It can nevertheless be relevant to pricing, negotiation and future resale planning.

Anyone purchasing a property on State land or Pas Géométriques should therefore ask the notary to establish whether the separate additional seller-side duty is relevant to the transaction.

Notary fees and legal formalities

The notary plays a central role in a Mauritian property transaction. The notary prepares the deed, carries out the required legal and registration formalities and verifies the amounts due in connection with the transfer.

Notarial costs should therefore not be viewed as a simple administrative charge. They form part of the legal process required to complete and record the transaction.

Before signing, buyers should ask for a clear cost estimate covering:

notarial fees;
registration duty;
administrative charges where applicable;
specific documentation costs;
bank or mortgage-related registration costs if financing is involved.

The estimate should distinguish clearly between costs payable by the buyer and taxes or duties falling on the seller.

A clear breakdown at the beginning makes it easier to compare properties and avoid unexpected costs at completion.

Banking, currency conversion and payment mechanics

Foreign buyers should also consider how the purchase will be paid. These requirements must be kept separate from registration duty and land transfer tax.

For relevant first-sale acquisitions under IRS, RES, IHS, PDS and Smart City Scheme rules, amendments effective from 13 December 2024 introduced specific currency and financing requirements.

Under those rules, the purchaser transfers the relevant funds to Mauritius in hard convertible foreign currency. The notary then ensures that:

85% of the purchase price is paid to the promoter in Mauritian rupees;
the remaining 15% may be paid in Mauritian rupees or hard convertible foreign currency.

The EDB has clarified that these 85% / 15% amendments apply to first sales under the relevant schemes. They do not apply to resales or to apartment acquisitions under the G+2 route.

For a property price exceeding USD 750,000, the EDB framework also provides that the first USD 750,000 or equivalent must generally come from the purchaser's own funds transferred from abroad, while the remaining amount may be financed through a bank loan in Mauritius, subject to the applicable requirements.

Separate rules may apply where a resident non-citizen already holds funds or derives qualifying income in Mauritius.

These are payment and financing requirements. They do not determine the registration duty or land transfer tax rate.

Currency conversion can nevertheless influence the buyer's real acquisition cost. Exchange-rate movements, banking charges and conversion spreads should therefore be considered independently in the overall budget.

Ongoing costs after acquisition

The purchase cost is only the beginning.

Once the property is acquired, foreign owners may also need to budget for recurring expenses such as:

co-ownership or estate charges;
maintenance and repairs;
insurance;
utilities;
property management fees;
rental-management costs where applicable.

These costs vary significantly according to the property.

A villa within a managed estate, an apartment in a coastal residence and a hotel-linked unit will not have the same ongoing cost structure. Buyers should therefore request a breakdown of recurring charges before signing.

Rental income and tax considerations

Foreign buyers purchasing for rental income should also consider Mauritian income tax rules.

A non-resident is generally liable to Mauritian income tax on net income derived from or accruing in Mauritius. Rental income from a Mauritian property should therefore not be assumed to be tax-free simply because the owner lives abroad.

Tax Deduction at Source may also apply in certain situations.

The Mauritius Revenue Authority currently states that where the TDS rules apply to rent, the rate is 7.5% for a resident recipient and 10% for a non-resident recipient.

However, TDS is not automatically deducted from every private rental payment. The obligation depends on the identity of the payer and the circumstances defined by the Income Tax Act. Buyers should therefore distinguish the owner's underlying income-tax liability from any withholding mechanism that may apply to a particular rental arrangement.

The practical treatment can also vary according to the ownership structure, the owner's tax residence and whether the property is managed personally, through an operator or through a company.

Foreign owners considering short-term tourist accommodation should separately verify the applicable licensing and Tourism Authority requirements.

If rental income is part of the investment plan, our article on rental investment in Mauritius looks at rental models, operating costs and yield considerations in more detail.

Capital gains and resale planning

Mauritius does not generally impose a standalone capital gains tax on the sale of a privately held property.

However, this does not mean that every profit from a property sale is automatically outside the income-tax system.

Under the Income Tax Act, income can include amounts derived from an undertaking or scheme entered into for the purpose of making a profit. It can also include proceeds from the sale of immovable property acquired in the course of a business whose main purpose is buying and selling property.

The former specific statutory tax on gains from immovable property was repealed.

For a private owner holding a property as a residence or long-term investment, the treatment can therefore differ from that of an individual or company carrying on property trading or another profit-making activity.

Resale planning should also take account of seller-side land transfer tax and, where relevant, the separate additional duty concerning certain residential property on State land or Pas Géométriques.

Where the ownership structure, frequency of transactions or purpose of acquisition creates uncertainty, the tax treatment should be confirmed with a qualified adviser.

Frequently asked questions

What costs should foreign buyers budget for when buying property in Mauritius?

Foreign buyers should consider the purchase price, registration duty, notarial fees, bank charges, possible agency fees, currency conversion costs, financing costs and ongoing ownership expenses such as insurance, maintenance and co-ownership charges.

How much is registration duty in Mauritius?

Under the current general framework, registration duty on an immovable property transfer is generally 5% on the buyer side, subject to exemptions and specific statutory provisions.

The broader 10% regime introduced by the Finance Act 2025 for certain transfers to non-citizens was subsequently repealed by the Finance Act 2026.

Who pays land transfer tax in Mauritius?

Land transfer tax is generally payable by the seller. Under the current general framework, the rate is generally 5%, subject to exemptions and specific provisions.

A separate additional 10% seller-side duty can apply in the narrower case of certain residential property situated on State land or Pas Géométriques and transferred to a non-citizen under the relevant statutory route.

Are notary fees included in the purchase price?

Not usually. Notarial fees and registration-related costs should be budgeted separately and confirmed with the notary before signing.

Is rental income taxable in Mauritius?

Rental income from property in Mauritius may be taxable as Mauritius-source income. Where the TDS rules apply, rent payable to a non-resident is currently subject to withholding at 10%.

The precise treatment depends on the ownership and rental structure and should be checked with a tax adviser.

Is there capital gains tax when selling property in Mauritius?

Mauritius does not generally levy a standalone capital gains tax. However, profits can fall within income tax where the transaction forms part of a business or profit-making undertaking. Seller-side land transfer tax must also be considered separately.

A clearer budget before you buy

The cost of buying property in Mauritius as a foreign buyer is not limited to the purchase price.

Registration duty, notarial costs, banking charges, currency conversion, financing, recurring ownership expenses and tax considerations can all influence the final budget.

Following the Finance Act 2026 changes, the general starting point is again 5% registration duty for the buyer and 5% land transfer tax for the seller, subject to exemptions and specific statutory provisions. The broader 10% regime introduced in 2025 should no longer be presented as the current general rule.

At the same time, the narrower 10% additional seller-side duty concerning certain residential property on State land or Pas Géométriques must remain clearly distinguished.

Payment and financing requirements, including the 85% / 15% currency structure for relevant first-sale scheme acquisitions, should also be assessed separately rather than treated as part of the tax framework.

For foreign buyers, the strongest position is to build the full cost picture early. A clear budget, a reliable notary, proper banking documentation and transaction-specific tax advice where needed can make the purchase process considerably more predictable.

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Sources

The information contained in this article is provided for informational purposes only and reflects the legal and regulatory position reviewed in August 2026. Registration duty, land transfer tax, additional duties, notarial costs, property acquisition rules, financing and payment requirements, rental taxation, resale treatment and regulatory interpretations may change or depend on the circumstances of an individual transaction. Buyers and sellers should obtain transaction-specific advice and confirmation from their notary, legal adviser, tax adviser, bank, the Economic Development Board and other relevant Mauritian authorities before making any purchasing or investment decision. Allys and its representatives accept no responsibility for errors, omissions or subsequent regulatory changes.