Mauritius Budget 2025 for foreign buyers
What Mauritius Budget 2025 changes for foreign buyers in Mauritius, from duties and Smart City changes to the key checks to make before signing.
Mauritius’s 2025-26 Budget introduced several changes that foreign buyers should factor in before purchasing property. The key points are 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.
Mauritius remains open to foreign buyers through approved routes. What has changed is the level of attention now required on timing, documentation, payment structure and overall tax treatment before commitment.
For a broader look at price trends, regional outlooks and the market context surrounding these changes, read more in our article Mauritius Property Market Outlook for 2025-2026.
Key measures to factor in before buying
Key measures for foreign buyers before buying include:
10% registration duty on relevant deeds transferred to a non-citizen from 1 July 2026
10% land transfer tax in the relevant cases from 1 July 2026
Smart City incentive changes for projects certified after 5 June 2025
End of the VAT refund scheme on 30 June 2025
Before going further, buyers should check whether transaction timing, project status and total cost still make sense once these changes are factored in.
Registration duty and land transfer tax from 1 July 2026
The clearest change concerns registration duty. For deeds witnessing a transfer to a non-citizen on or after 1 July 2026 in the relevant residential categories, the revised Registration Duty Act points to paragraph K of Part I of the First Schedule, which now carries a 10% rate.
The same change affects land transfer tax. Where a transfer is made to a non-citizen on or after 1 July 2026 in the relevant cases, the updated Land (Duties and Taxes) Act applies the rate set out in Part III of the Seventh Schedule, which is now 10%.
For buyers, the practical point is simple. Deed registration timing now matters financially, not just administratively. If a purchase is likely to be registered on or after 1 July 2026, the applicable tax treatment should be reviewed with the notary before signature, especially where reservation, construction milestones and deed registration may fall in different periods. This last point is an editorial inference based on how the revised duty and tax rules apply by registration timing.
What changes for Smart City projects after 5 June 2025
The main fiscal 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.
These changes include:
VAT exemption on buildings and infrastructure
8-year income tax holiday on real estate income within the Smart City
Exemption from customs duty on certain construction imports
Exemption from registration duty and land transfer tax on certain land transfers into a Smart City company
Exemption from morcellement fee
Exemption from land conversion tax
Transitional treatment still applies in certain cases where development had already started before 5 June 2025. In practice, the Smart City label alone is no longer enough: buyers should confirm the certificate date, the actual stage of development and which benefits, if any, still remain.
The VAT refund scheme has ended
The VAT refund scheme on the construction of a residential building or the purchase of a residential apartment or house from a property developer ended on 30 June 2025 and was not renewed.
For foreign buyers, this matters mainly as part of the wider tax context. In practice, the scheme targeted eligible Mauritian citizens or their spouses under set conditions, so the real acquisition cost for a foreign buyer should be assessed without factoring in this scheme.
Can foreign buyers still buy property in Mauritius?
Yes. Property acquisition by non-citizens remains possible through Mauritius’s approved framework, including certain scheme-based routes and qualifying apartment acquisitions. The Budget changes some costs and incentives, but it does not close the market.
Before committing, buyers should first confirm the legal route and then the property itself. The question is whether the unit fits the right framework, at the right time, and with a total cost that still makes sense once duties and compliance requirements are included. This is an editorial conclusion drawn from the rules above and from the approved acquisition framework.
Other rules to factor in before buying
Alongside the Budget measures, foreign buyers should also keep in mind the December 2024 regulatory amendments. For the relevant scheme-based acquisitions:
funds must be transferred from abroad in hard currency
85% of the purchase price must be paid in Mauritius rupees
the remaining 15% may be paid in foreign currency or Mauritius rupees
these amendments apply from 13 December 2024 for new acquisitions under the Schemes
A purchase in Mauritius should no longer be assessed on headline price alone. Payment structure, bank handling, deed timing and route eligibility all need to be reviewed together. This is a practical inference from the December 2024 amendments and the revised 2025-26 tax treatment.
What to 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 the relevant approved framework for foreign acquisition.The registration timeline
Ask when the deed is expected to be registered and which duties are likely to apply at that date.The Smart City status, where relevant
If the property sits within a Smart City development, verify certificate date, project status and whether any transitional treatment may still apply.The payment structure
Confirm whether the 85% Mauritius-rupee payment requirement applies to the transaction and how the funds are to be routed and evidenced.The full acquisition cost
Look beyond the headline price and include registration duty, land transfer tax, notarial fees and any route-specific costs. The mention of notarial fees and route-specific costs is practical drafting advice rather than a quotation from one source.The project documentation
Request clear documentation on title, approvals, annexes, timetable and the legal basis under which the unit is being sold. That point is especially important for off-plan or scheme-based acquisitions. This is practical due-diligence guidance inferred from the regulatory framework and scheme documentation.
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Frequently asked questions
Can foreign buyers still buy property in Mauritius?
Yes. Property acquisition by non-citizens remains possible through approved routes. The Budget mainly changes certain costs and incentives.
When does the new registration duty apply?
For relevant deeds registered on or after 1 July 2026 in the cases covered by the law, the applicable rate is 10%.
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 removed incentives, subject to transitional treatment for certain already-started projects.
Has the VAT refund scheme ended?
Yes. The scheme ended on 30 June 2025 and was not renewed.
Sources
This article is intended as a general guide only and should not be relied on as legal, tax or investment advice. The rules applicable to property purchases in Mauritius may change and can vary depending on the type of property, the acquisition route and the timing of the transaction. Buyers should confirm the latest position with their notary and relevant professional advisers before making any commitment.
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