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

The costs of buying property in Mauritius go beyond the purchase price, especially for foreign buyers. Registration duty, notary 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, particularly because of its structured acquisition routes, absence of exchange controls and established notarial framework. Still, the real cost of buying should be understood before signing. A property may look clear from a lifestyle or investment perspective, but the financial details around registration, payment rules and future ownership costs can make a meaningful difference.

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 date of registration, the buyer profile 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. These charges may not be as visible as registration duty, but they can still affect the final amount paid.

Agency fees may also apply, especially 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

Registration duty is one of the key costs to understand when buying property in Mauritius. It is generally paid by the purchaser when the deed is registered.

For many property transactions, buyers are used to seeing registration duty discussed around the 5% level. However, foreign buyers need to be especially careful because the rules affecting certain non-citizen acquisitions are changing.

For relevant deeds registered on or after 1 July 2026, amended registration duty rules apply to certain residential property transfers involving non-citizens under defined EDB Property Schemes and related statutory routes. In the relevant statutory scenarios, the rate increases to 10%.

For a fuller overview of the 2025 Budget measures affecting foreign buyers, see our article on Mauritius Budget 2025 for foreign buyers.

The important point is the deed registration date. A reservation agreement or preliminary agreement does not necessarily determine the final tax treatment if the deed itself is registered later. Buyers should therefore confirm the expected registration timeline with their notary, especially when purchasing off-plan or through a staged construction process.

Land transfer tax and why buyers should understand it

Land transfer tax is generally a seller-side cost, but foreign buyers should still understand it. It can affect pricing, negotiation and future resale planning.

From 1 July 2026, amended land transfer tax rules also apply to certain residential property transfers involving non-citizens under defined EDB Property Schemes and related routes. In the relevant cases, the rate moves to 10%.

Even when a tax is technically payable by the seller, it can influence the economics of a transaction. A seller may factor future tax exposure into the asking price, and a buyer who intends to resell later should understand how resale costs may affect exit planning.

This is especially important for foreign buyers who are purchasing for investment, rental income or future capital release rather than purely personal use.

Notary fees and legal formalities

The notary plays a central role in a Mauritian property transaction. The notary prepares the deed, carries out the necessary formalities and ensures that the deed is registered with the relevant authorities.

Notarial costs should therefore not be viewed as a simple administrative charge. They are part of the legal process that allows the transfer to be completed and recorded.

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

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

A clear estimate at the start helps avoid surprises later, particularly for buyers who are comparing several properties or acquisition routes.

Banking, currency conversion and payment mechanics

Foreign buyers should also consider how the purchase will be paid. The banking process is not only about transferring money. It also involves source-of-funds checks, compliance documentation, currency conversion and timing.

Since the December 2024 amendments, non-citizens acquiring property under IRS, RES, IHS, PDS and Smart City rules must transfer funds from abroad in hard convertible currency. After that, 85% of the consideration is paid in Mauritian rupees, while the remaining 15% may be paid in foreign currency or Mauritian rupees, subject to the applicable scheme rules and notarial process.

This is not a tax, but it affects cash planning. Exchange-rate timing, bank charges and conversion spreads can all influence the final cost in the buyer’s home currency.

Foreign buyers should also prepare the documentation banks commonly request, including proof of identity, proof of address, evidence of source of funds and supporting documents linked to the transaction.

Ongoing costs after acquisition

The purchase cost is only the beginning. Once the property is acquired, foreign owners should also budget for recurring expenses such as co-ownership or estate charges, maintenance, insurance, utilities, property management fees and rental-related costs where applicable.

These costs vary significantly depending on the property. A villa in a managed estate, an apartment in a coastal residence and a hotel-linked unit will not carry the same ongoing cost structure. Foreign buyers should therefore request a clear breakdown of recurring charges before signing.

Rental income and tax considerations

Many foreign buyers purchase property in Mauritius with rental income in mind. If the property is rented out, the income should be reviewed from a tax perspective.

A non-resident is generally liable to tax in Mauritius on income derived from Mauritius. Rental income from a Mauritian property should therefore not be assumed to be tax-free.

Tax deduction at source may also be relevant. MRA guidance states that rent payable to a non-resident is subject to tax deduction at source at 10%.

This does not mean that every rental arrangement is treated identically. The practical treatment may depend on the payer, the property structure, the owner’s tax residence and whether the rental activity is managed personally, through an operator or through a company.

Foreign owners should also check whether short-term rental activity requires additional permits or licences. This is a separate point from income tax, but it can affect the legality and profitability of a rental strategy.

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

Capital gains and resale planning

Mauritius is often described as having no capital gains tax. This is broadly attractive for investors, but the point should be understood with nuance.

There is generally no standalone capital gains tax in Mauritius. However, gains may be treated as ordinary income where the transaction forms part of a business, trading activity or profit-making undertaking.

For a private buyer holding a property as a long-term residence or investment, the situation may be different from that of a person or company buying and selling property as a business activity. This is why resale planning should be reviewed with a tax adviser, especially where multiple acquisitions, company structures or short holding periods are involved.

Frequently asked questions

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

Foreign buyers should budget for the purchase price, registration duty, notarial fees, bank charges, possible agency fees, currency conversion costs, insurance, maintenance and ongoing ownership charges.

How much is registration duty in Mauritius?

Registration duty is a key acquisition cost paid when the deed is registered. For certain non-citizen acquisitions under defined EDB Property Schemes and related routes, amended rules apply to deeds registered on or after 1 July 2026, with the relevant rate increasing to 10%.

Who pays land transfer tax in Mauritius?

Land transfer tax is generally a seller-side cost. However, buyers should understand it because it can affect pricing, negotiation and future resale planning.

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 a property in Mauritius may be taxable as Mauritius-source income. Where rent is paid to a non-resident, tax deduction at source may also apply.

Is there capital gains tax when selling property in Mauritius?

Mauritius does not generally levy capital gains tax, but gains may be taxed as ordinary income where the transaction is in the nature of trade, business or a profit-making undertaking.

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, ongoing ownership expenses and tax considerations can all influence the final budget.

This does not make the process unattractive. It simply means that the acquisition should be planned carefully. With the right information, buyers can compare properties more accurately, understand the impact of the 1 July 2026 changes and avoid unexpected costs at completion or resale.

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

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Sources

The information contained in this article is provided for informational purposes only and reflects the situation at the time of publication. Fees, taxes, procedures, exchange requirements, banking documentation, rental rules and eligibility conditions are subject to change without notice. Readers should verify all information with qualified professionals and the relevant authorities before making any purchasing or investment decision. Allys and its representatives accept no responsibility for errors, omissions or changes occurring after publication.