We’ve previously walked you through the full breakdown of costs attached to buying property in Mauritius. Since then, there was a real scare for international buyers and it has now been called off. This is the short, clear update on what finally happened, because the headline is good news: the planned doubling of registration duty has been reversed, and the rate stays at 5%.
What happened, in one paragraph
The Finance Act 2025 legislated an increase in registration duty and land transfer tax on scheme properties from 5% to 10%, due to take effect on 1 July 2026. For a market built on foreign investment, that was a significant jump. But in the 2026–27 Budget, the Government revisited the measure: the duties and taxes on transfers of residential property acquired under the EDB schemes Smart City, PDS and IRS were reworked before the higher rate ever settled in. The upshot for buyers today is that registration duty remains at 5%, not 10%.
The two numbers that matter
For non-citizens acquiring property under an approved scheme:
- Registration duty (paid by the buyer): 5% — the proposed rise to 10% did not stand.
- Land transfer tax (paid by the seller on resale to a non-citizen): 5%.
So on a scheme property purchased at, say, USD 500,000, your registration duty line stays at roughly 5% of value, not the doubled figure buyers were bracing for earlier this year. If you paused a purchase in the first half of 2026 waiting to see where the rate landed, the uncertainty is over.
The other good news: still no capital gains tax
The 2025 Budget Speech had also floated a capital gains tax on property, the kind of measure that would have changed Mauritius’ whole appeal. It was never enacted. That leaves the pillars of the investment case fully intact: no capital gains tax, no wealth tax, and no annual property tax. When you sell, your gain is yours.
Put together, the picture that emerged over 2026 is reassuring: the feared duty hike was pulled back, and the feared capital gains tax never arrived.
A quick reminder: the rules of investing in Mauritius
If you’re newer to the market, here is the framework in brief, the foundation international buyers rely on, unchanged by the 2026 developments.
You buy through approved schemes. Non-citizens cannot buy freehold land freely. Foreign ownership runs through government-approved frameworks: PDS, Smart City Scheme, IRS, RES, and Ground+2 apartments (buildings of at least two floors above ground, from Rs 6 million).
USD 375,000 unlocks residency. Invest USD 375,000 or more in a qualifying property and you become eligible for a residence permit that stays valid for as long as you hold the property. Buy jointly, and each investor contributing at least USD 375,000 independently qualifies.
Financing is available locally. Foreign buyers can finance up to 70% of a property’s value through Mauritian banks.
You can resell with clearance. Scheme properties are typically freehold and can be resold to both citizens and non-citizens, subject to EDB clearance.
Budget for the full cost, not just the price. Registration duty (holding at 5% for scheme buyers), notary fees, and syndic or maintenance charges all sit on top of the headline price. Model them in before you commit.
The bottom line
Earlier in 2026, the story looked like rising costs. It didn’t play out that way. Registration duty stays at 5%, the capital gains tax never materialised, and Mauritius remains one of the few destinations that combines a residence permit tied to property, freehold ownership through schemes, local financing, and zero tax on your eventual gain.
For buyers who were waiting for clarity before committing, that clarity has arrived, and it landed in your favour.
LIVERIA International Realty guides international investors through every stage of buying in Mauritius. For a personalised cost breakdown on a specific property or scheme, get in touch with our team.
