News brief · Real estate
Mauritius: doubled duties cool buyers' interest
The increase in Mauritian duties on transactions by non-citizens raises the cost of entry without changing the threshold that opens residence. For a buyer, this cost cannot be recovered on resale.
By Editorial team · on April 24, 2026
What the measure affects
The Mauritian budget has raised the duties levied on property transactions by non-citizens under the approved schemes which, above a certain price, open a right of residence.
The purchase threshold opening a residence permit remains from $375,0001. It is the tax on the transaction that has been raised, not the minimum value of the property.
The distinction matters for a buyer who set their budget on the threshold alone: the total cost rises without the entry price changing.
We publish neither the old nor the new rate of registration duty applicable to non-citizens, nor the date the measure took effect: we have not been able to verify them in an up-to-date official Mauritian source. They must be confirmed with the Mauritius Revenue Authority.
This gap is decisive: an increase in transfer duties amounts to tens of thousands of euros on a purchase at this price level, and no decision should be made without the exact figure.
It is worth specifying what these approved schemes cover. Outside them, property purchase is closed to non-citizens: they are therefore not incentive schemes but the only doors open, which explains why a tax measure targeting them affects the entire market accessible to foreigners.
Why this cost weighs more than it seems
Transfer duty is paid on entry, on the price or market value. It is neither spread over time, nor recoverable, nor deductible from a later capital gain: it is a dead loss on day one.
This cost must therefore be amortised over the intended holding period. Over a short horizon, it absorbs several years of net rental yield.
Yet the Mauritian market for foreigners is narrow and segmented: approved developments are resold mainly to other applicants for the same scheme, which ties the property's liquidity to the attractiveness of the regime.
Raising duties reduces precisely this attractiveness, and therefore the pool of buyers on resale. The effects compound: a higher entry cost and lower exit liquidity.
This is the mechanism that commercial presentations never describe, because it concerns the exit, not the entry.
What makes Mauritius attractive otherwise
The Mauritian scale is short and progressive: it starts at 0%2, rises to 0%3 on the second band, each band having a width of MUR 500,0004, and reaches 20%5 above that.
There is neither capital gains tax nor inheritance tax. It is this combination, rather than the level of the scale, that explains the island's appeal for wealthy individuals.
The island also offers a legal certainty that few tropical destinations share: a hybrid legal system inspired by French and British law, a reliable land register, and some deeds available in French.
Finally, the investor occupation permit is a separate route, with an investment of $100,0006 or $100,0007 depending on the option, and non-citizen retiree status is available from more than 50 years8.
What to recalculate
- Obtain the exact rate of duty from the Mauritian tax authority before making any offer.
- Amortise this cost over the holding period you actually intend.
- Examine the secondary market for the target development: number of resales, observed timeframes.
- Check that the property really falls under an approved scheme opening a right of residence.
- Handle the departure from France according to French criteria and the France–Mauritius tax treaty.
The measure is part of a broader trend: several jurisdictions have raised taxes on foreign property purchases under pressure from local public opinion on housing. Experience in other markets suggests that such measures follow one another rather than stop, which is a long-term parameter to factor in.
Please note
Sources and verification dates
- 1.
Mauritius: minimum acquisition price of a property under an approved scheme granting a residence permit : $375,000
« a non-citizen, who purchases – (a) an immovable property under the Integrated Resort Scheme, Real Estate Scheme, Invest Hotel Scheme, Property Development Scheme or Smart City Scheme; or (b) an apartment used, or available for use, as a residence in a building of at least 2 floors above ground floor, – for a purchase price of at least USD 375,000, or its equivalent in any other hard convertible foreign currency, where the exchange rate to be used to calculate the US Dollar equivalent shall be the selling rate in force at the time of signature of the title deed shall be eligible for an RP. »
business.edbmauritius.orgVerified on Nov 2, 2026Verified source
- 2.
Mauritius: rate of the first bracket of the scale : 0%
« Chargeable Income (Rs) / Rate of Income Tax : First Rs 500,000 — 0% ; Next Rs 500,000 — 10% ; On the remainder — 20%. […] 5. Fair Share Contribution — An individual is liable to pay, in addition to his income tax liability, a Fair Share Contribution where, in an income year, his Fair Share Contribution Income Threshold exceeds 12 million rupees [au taux de 15 %]. — Mauritius Revenue Authority, « Payroll Taxes », 6 octobre 2025 (année de revenu 2025/26). »
mra.muVerified on Nov 2, 2026Verified source
- 3.
Mauritius: rate of the first bracket of the scale : 0%
« Chargeable Income (Rs) / Rate of Income Tax : First Rs 500,000 — 0% ; Next Rs 500,000 — 10% ; On the remainder — 20%. […] 5. Fair Share Contribution — An individual is liable to pay, in addition to his income tax liability, a Fair Share Contribution where, in an income year, his Fair Share Contribution Income Threshold exceeds 12 million rupees [au taux de 15 %]. — Mauritius Revenue Authority, « Payroll Taxes », 6 octobre 2025 (année de revenu 2025/26). »
mra.muVerified on Nov 2, 2026Verified source
- 4.
Mauritius: width of each bracket of the income tax scale : MUR 500,000
« Chargeable Income (Rs) / Rate of Income Tax : First Rs 500,000 — 0% ; Next Rs 500,000 — 10% ; On the remainder — 20%. — Mauritius Revenue Authority, « Payroll Taxes », 6 octobre 2025. »
mra.muVerified on Nov 2, 2026Verified source
- 5.
Mauritius: rate applicable beyond the first two brackets : 20%
« Chargeable Income (Rs) / Rate of Income Tax : First Rs 500,000 — 0% ; Next Rs 500,000 — 10% ; On the remainder — 20%. — Mauritius Revenue Authority, « Payroll Taxes », 6 octobre 2025. »
mra.muVerified on Nov 2, 2026Verified source
- 6.
Mauritius, investor occupation permit: investment required under the first option : $100,000
« 2.2 Criteria — An Investor may apply for an OP (Investor) under two options: (i) Option 1 - Investor USD 100,000 ; (ii) Option 2 - Investor for Innovative Start-Ups. 2.2.1 Option 1: Investor USD 100,000 — Initial investment of USD 100,000 or its equivalent in freely convertible foreign currency […] 4. Self-Employed — 4.2 Criteria 1. Initial investment of USD 50,000, or its equivalent in freely convertible foreign currency, provided that the self-employed is engaged in the services sector only — EDB Mauritius, « Occupation Permit Guidelines ». »
business.edbmauritius.orgVerified on Nov 2, 2026Verified source
- 7.
Mauritius, investor occupation permit: investment required under the first option : $100,000
« 2.2 Criteria — An Investor may apply for an OP (Investor) under two options: (i) Option 1 - Investor USD 100,000 ; (ii) Option 2 - Investor for Innovative Start-Ups. 2.2.1 Option 1: Investor USD 100,000 — Initial investment of USD 100,000 or its equivalent in freely convertible foreign currency […] 4. Self-Employed — 4.2 Criteria 1. Initial investment of USD 50,000, or its equivalent in freely convertible foreign currency, provided that the self-employed is engaged in the services sector only — EDB Mauritius, « Occupation Permit Guidelines ». »
business.edbmauritius.orgVerified on Nov 2, 2026Verified source
- 8.
Mauritius: minimum age for non-citizen retiree status : 50 years
« A Retired Non-Citizen is a person who is not a citizen of Mauritius and who is aged 50 years or above. »
business.edbmauritius.orgVerified on Nov 2, 2026Verified source