Mauritius Budget 2025 for foreign buyers

Updated August 2026

Mauritius’s 2025-26 Budget introduced several changes that foreign buyers needed to factor in before purchasing property. The key measures included a 10% registration duty on relevant deeds from 1 July 2026, a 10% land transfer tax in the relevant cases, tighter Smart City treatment after 5 June 2025, and the end of the VAT refund scheme on 30 June 2025.

The tax position subsequently changed again. The Finance Act 2026 repealed the broader 10% buyer-side registration duty regime introduced by the Finance Act 2025 and also repealed the corresponding broader seller-side land transfer tax provision.

Under the current general framework, registration duty is generally 5% on the buyer side and land transfer tax 5% 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 and transferred to a non-citizen under the relevant apartment acquisition route.

Mauritius therefore remains open to foreign buyers through approved routes, but the 2025 Budget measures must now be read together with the Finance Act 2026 changes.

For a broader look at price trends, regional outlooks and the market context surrounding these changes, read our article on the Mauritius Property Market Outlook for 2025-2026.

Key measures introduced in 2025

The main measures announced and subsequently implemented following the 2025-26 Budget included:

a 10% registration duty for relevant transfers to non-citizens from 1 July 2026;
a broader 10% land transfer tax treatment in the relevant cases from 1 July 2026;
changes to Smart City incentives for projects certified after 5 June 2025;
the end of the VAT refund scheme on 30 June 2025.

The first two measures no longer represent the current general tax framework because they were subsequently repealed by the Finance Act 2026.

The Smart City and VAT changes, however, remain relevant when reviewing projects and transactions affected by those measures.

What the Finance Act 2025 introduced for registration duty and land transfer tax

The Finance Act 2025 introduced a special registration duty regime for certain residential property transfers to non-citizens.

For relevant deeds witnessing transfers to non-citizens on or after 1 July 2026, section 3(1G) of the Registration Duty Act applied and paragraph K of Part I of the First Schedule prescribed a 10% rate.

A corresponding broader seller-side measure was also introduced under the Land (Duties and Taxes) Act for specified transfers involving non-citizens from 1 July 2026.

At the time, this meant that the date and structure of the transaction became particularly important when estimating acquisition and resale costs.

Our article on registration duty in Mauritius for foreign buyers explains the buyer-side framework in more detail.

What the Finance Act 2026 changed

The Finance Act 2026 subsequently revised the tax position.

It repealed section 3(1G) of the Registration Duty Act and paragraph K of Part I of the First Schedule, removing the broader 10% buyer-side regime introduced in 2025.

It also repealed the broader seller-side provision introduced under the Land (Duties and Taxes) Act.

The current general starting point is therefore again:

5% registration duty on the buyer side;
5% land transfer tax on the seller side;

subject to exemptions and specific statutory provisions.

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

The Finance Act 2026 nevertheless introduced a separate additional seller-side duty of 10% for certain transfers to a non-citizen of residential property situated on State land or Pas Géométriques under the relevant apartment acquisition route.

That narrower duty is payable by the transferor, meaning the seller. It is not a 10% registration duty payable by the foreign buyer.

A transitional exception also applies in certain cases where a qualifying presale agreement was executed before 19 June 2026 and drawn up and signed before a notary.

What changed for Smart City projects after 5 June 2025

The Finance Act 2025 also changed the fiscal incentive framework for Smart City projects.

The main incentives previously available to Smart City promoters and developers were removed for projects issued with a Smart City Certificate and for developers registered after 5 June 2025, subject to transitional treatment and more limited measures in certain cases.

The changes included the removal of benefits such as:

VAT exemption on certain buildings and infrastructure;
the 8-year income tax holiday on qualifying real estate income;
exemption from customs duty on certain construction imports;
certain registration duty and land transfer tax exemptions;
exemption from morcellement fee;
exemption from land conversion tax.

Transitional treatment may still apply where development had already started before 5 June 2025.

For buyers, the practical point is that the Smart City label alone is not enough. The project’s certificate date, development status and the incentives actually preserved for that project should be verified.

For more detail, see our article on buying property in a Smart City in Mauritius.

The VAT refund scheme ended in June 2025

The VAT refund scheme on the construction of a residential building or purchase of a residential apartment or house from a property developer ended on 30 June 2025 and was not renewed.

For foreign buyers, the measure was mainly relevant as part of the wider property-tax context, since eligibility was directed at qualifying Mauritian citizens or their spouses under the applicable conditions.

Foreign buyers should therefore assess acquisition costs without factoring in that former refund scheme.

Other payment rules to factor in

Separate from the tax changes, regulatory amendments effective from 13 December 2024 introduced specific payment and financing requirements for relevant first sales under IRS, RES, IHS, PDS and Smart City Scheme regulations.

For transactions covered by those rules:

funds are transferred from abroad in hard convertible foreign currency;
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 amendments apply to relevant first sales. They do not apply to resales or to apartment acquisitions under the G+2 route.

These payment requirements are separate from registration duty and land transfer tax and should not be treated as part of the tax framework.

What foreign buyers should check before signing

Before signing a reservation agreement, deed or related contractual document, buyers should confirm a few practical points.

The acquisition route
Confirm that the property falls within a framework legally available to a non-citizen.
The current tax treatment
Ask the notary to confirm the registration duty applicable to the buyer and the seller-side tax treatment relevant to the transaction.
The Smart City status, where relevant
Check the certificate date, project status and any transitional treatment where the property is part of a Smart City development.
The payment structure
Confirm whether the 85% Mauritian-rupee requirement applies to the specific transaction and how funds must be transferred and documented.
The full acquisition cost
Include registration duty, notarial fees, bank charges, currency costs and other transaction-specific expenses.
The project documentation
Request clear information on title, approvals, contractual annexes, timetable and the legal basis under which the property is being sold.

Considering a property purchase in Mauritius?

We can help you assess how the current legal and regulatory framework may affect your transaction structure and total acquisition cost.

Explore our developments | Contact our team

Frequently asked questions

Can foreign buyers still buy property in Mauritius?

Yes. Property acquisition by non-citizens remains possible through authorised routes. The Finance Act 2026 tax changes do not close the market to foreign buyers.

Did the 10% registration duty introduced in 2025 take effect?

The Finance Act 2025 introduced the broader 10% regime for relevant transfers from 1 July 2026. The Finance Act 2026 subsequently repealed the provisions that created that broader regime.

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

Does any 10% property duty still remain?

Yes, but in a much narrower situation.

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

Do all Smart City projects still benefit from the previous incentives?

No. Projects certified and developers registered after 5 June 2025 no longer benefit from the incentives removed by the 2025 changes, subject to applicable transitional treatment.

Has the VAT refund scheme ended?

Yes. The scheme ended on 30 June 2025 and was not renewed.

Sources

This article is intended as general information only and reflects the legal and regulatory position reviewed in August 2026. The rules applicable to property purchases in Mauritius, including registration duty, land transfer tax, additional duties, Smart City incentives, payment requirements and acquisition procedures, may change or vary depending on the property and transaction. Buyers should confirm the latest position with their notary, legal adviser, tax adviser, bank, the Economic Development Board and other relevant authorities before making any commitment.