Why the Finance Bill 2025 Matters
Mauritius has unveiled its Finance Bill 2025, ushering in a series of fiscal, legal, and immigration reforms that will have wide-reaching implications across the investment, real estate, and financial sectors.
For international buyers, real estate developers, expatriates, and investors, understanding these changes is critical, especially as several incentives are being phased out or replaced with stricter thresholds.
Below, we break down the key changes, what they mean for your investments, and how to take strategic action ahead of the 2026 deadline.
Summary Table: What’s Changing Under the Finance Bill 2025
| Category | Current Law (Pre-2025) | New Measures (Finance Bill 2025) |
|---|---|---|
| Property Acquisition (Non-Citizens) | 5% registration & land transfer duty | 10% duty on both from 1 July 2026 under EDB schemes (PDS, RES, SCS, IHS, apartments ≥Rs6m) |
| Smart City Incentives | Income tax holiday, customs duty, land transfer exemptions | All major exemptions revoked from 5 June 2025; only limited VAT refund remains until June 2027 |
| Occupation Permit – Investor | $50,000 investment; Rs4m/year income after year 3 | Same investment; must reach Rs1.5m in year 1, Rs20m cumulative by year 5; Rs5m/year minimum from year 6 |
| Permanent Residence – Investor | Rs15m/year gross income for 3 years | Must hold OP for 5 years; Rs15m/year for 5 years or Rs75m aggregate |
| Fair Share Contribution (Individuals) | None | 15% additional tax on net income above Rs12m/year from 1 July 2025 |
| Fair Share Contribution (Companies) | Corporate tax only | 5% on income >Rs24m (15% tax rate); 2% if taxed at 3%; banks pay extra 2.5% on domestic ops |
| VAT on Foreign Digital Services | Previously proposed but not enforced | Enforced from 2025; foreign providers of streaming, ebooks, ads must register for VAT and charge 15% |
| QDMTT for Multinationals | Not applicable | Applies from July 2025 to MNEs with €750m+ revenue; ensures effective tax rate of 15% in Mauritius |
| Excise Duty on Property Vehicles | Varies by engine type | Increased rates across hybrids, plug-ins, and electric vehicles |
| Tourist Fee | None | €3 per night per tourist from 1 October 2025 |
| SME Tax Holiday | No general holiday | 4-year holiday for qualifying SMEs from July 2026 (excludes certain sectors) |
| Virtual Asset Service Providers | 80% tax exemption applied to GBCs with substance | Now extended to VASPs under prescribed substance requirements |
| Immigration – Self-Employed | $35,000 investment; Rs800k/year income from year 3 | $50,000 investment; Rs750k (year 1), Rs6m by year 5; Rs1.5m/year from year 6 |
In-Depth: Key Updates for Investors and Developers
1. Higher Property Taxes for Foreign Buyers
Effective 1 July 2026, non-citizens acquiring residential property through the Economic Development Board (EDB) schemes will pay 10% registration duty and 10% land transfer tax, up from 5%. This applies to:
- Property Development Scheme (PDS)
- Real Estate Scheme (RES)
- Smart City Scheme (SCS)
- Invest Hotel Scheme (IHS)
- Qualifying apartments valued over Rs6 million
If you’re considering property acquisition in Mauritius, acting before July 2026 could result in substantial savings.
2. Smart City Incentives Withdrawn
Smart City developers and certificate holders lose several tax benefits starting 5 June 2025, including:
- Income tax holidays
- Land transfer and conversion tax exemptions
- Customs duty exemptions on construction goods
Only VAT refunds remain, and only until 30 June 2027. This marks a significant shift for large-scale developers and investors in urban infrastructure.
3. New Immigration Criteria: Stricter Turnover Targets
Investors, self-employed individuals, and professionals will need to meet higher income and investment thresholds to qualify for residence and permanent residence permits.
For instance, an investor must now meet Rs20 million cumulative turnover in 5 years and Rs5 million per year thereafter for permit renewal. These changes aim to attract high-impact investors and are already in effect or phased in through 2026.
4. Corporate and High-Income Taxpayers Will Pay More
The Fair Share Contribution now applies to:
- Individuals with annual income over Rs12 million: additional 15% tax
- Companies with income over Rs24 million: up to 5% extra tax
- Banks: up to 7.5% total tax on domestic operations
Additionally, multinationals operating in Mauritius face new compliance rules under QDMTT, ensuring a minimum effective tax rate of 15%.
Strategic Recommendations
For LIVERIA’s international clientele, these changes highlight an urgent need for strategic timing and careful structuring of real estate and financial investments. Whether you’re considering relocation, property acquisition, or business establishment in Mauritius:
- Act before July 2026 to benefit from lower property tax rates.
- Meet new permit and renewal thresholds early to secure immigration stability.
- Review company structures to prepare for QDMTT and FSC obligations.
Speak With Experts Who Understand the Landscape
At LIVERIA, we guide HNWI and investors through the evolving regulatory environment in Mauritius. From property acquisition to residency structuring and wealth optimization, we ensure every move is informed, compliant, and strategic.
Schedule a private consultation today to plan ahead of the upcoming legislative changes.
