Measures on the Mauritian real estate market and non-citizens
Here are the main measures of the 2025-2026 budget of Mauritius concerning the Mauritian real estate market and non-citizens:
I. MEASURES CONCERNING THE MAURITIAN MARKET
1. Measures relating to home ownership
• The Housing Loan Relief Scheme is extended until June 30, 2027, before being phased out.
• The VAT refund for the construction or purchase of a residential property from a developer ends on June 30, 2025.
• The Home Ownership Scheme and Home Loan Payment Scheme will not be renewed.
2. Social housing
• Income threshold for social housing eligibility raised to Rs 48,000.
• Rs 67.5 million allocated to social housing projects for Social Register beneficiaries.
• Rs 40 million earmarked for a national trustee program to improve management of NHDC residences.
3. Fiscal measures – individuals and businesses
• Introduction of progressive taxation:
- Equitable contribution of 15% on net taxable income (including dividends) for annual income over Rs 12 million.
- Rate increased to 20% for income exceeding Rs 24 million.
- Equitable contribution of 5% for companies earning more than Rs 24 million in taxable income.
- Alternative Minimum Tax (AMT): minimum taxation of 10% of book profits for certain sectors, including real estate.
- Revised personal income tax rates and brackets:
First Rs 500,000: 0%
Next Rs 500,000: 10%
Rest of income: 20%
4. Public investment and infrastructure
• Rs 128 billion will be invested in infrastructure (roads, housing, water, electricity) over five years.
5. Administrative simplification and digital transformation
• Introduction of a single electronic platform for applications for occupation and residence permits.
• Reclassification of the permit system: New categories have been introduced for Professional, Investor and Self-employed permits, with revised criteria.
• Acceptance of electronically signed deeds and documents at the Registrar-General.
• Integrated permit system: Work and residence permits will be grouped under a unified identification system.
• Clarification of trust and property transfer rules: Clearer rules now apply to transfers of real estate into trusts, as well as to mixed transfers of movable and immovable property.
II. MEASURES CONCERNING NON-CITIZENS / THE FOREIGN MARKET
1. Increase in acquisition and resale fees for non-citizens
• Registration duty: The rate increases from 5% to 10% for properties acquired under the IRS, RES, PDS, SCS, IHS programs, as well as for Ground +2 apartments.
• Land Transfer Tax on resale: When a non-citizen resells a property initially acquired under one of these schemes, or a Ground +2 apartment, the Land Transfer Tax applied will now be the higher of 10% of the sale price or 30% of the capital gain realized (i.e. the difference between the resale price and the initial acquisition price).
• Land Transfer Tax for developers: Property developers selling residential units under these schemes, including R+2 apartments, will also be subject to a 10% rate (instead of 5%) when registering the deed of sale.
Important note: These new rates of registration duty and Land Transfer Tax will apply from the date of publication of the Finance (Miscellaneous Provisions) Act 2025 in the Government Gazette. Although the exact date has not yet been confirmed, it is expected shortly. It is essential to note that these rates will apply even if a reservation agreement has been signed before this date, as long as the deed is registered after publication.
2. Removal of tax incentives for Smart Cities
• End of tax exemptions for all new certificates issued after June 5, 2025 (except for public transport projects or projects under the National Regeneration Programme).
• Removed benefits:
- VAT exemption on infrastructure;
- 8-year tax vacation;
- Exemption from customs duties and registration fees;
- Exemption from land parcelling and conversion taxes.
• Ongoing projects will retain certain benefits only if permits have been issued and construction begun before June 5, 2025.
• Smat City projects will be subject to fragmentation fees.
• Smart City projects will also have to comply with new sustainability standards defined by the EDB.
3. Amendments to the Non-Citizens (Property Restriction) Act
The Act will be amended to:
• prohibit the acquisition or transfer of an apartment situated in a building with at least two storeys above the first floor, built on State land or on the Pas Géométriques, by a non-citizen or a person not resident in Mauritius.
• to abolish the scheme introduced in December 2023, which allowed non-citizens holding a residence permit to acquire residential property outside the existing schemes, including undeveloped land, anywhere in Mauritius, provided the value of the property exceeds 500,000 USD.
4. Reform of residence and occupation permits
• Permit duration reduced from 10 to 5 years for foreign retirees, renewable subject to conditions.
• Foreign retirees will be required to transfer a minimum of USD 2,000/month or USD 24,000/year, and to stay in Mauritius for at least 180 days a year.
• They may not engage in any professional or commercial activity.
• Maximum age of dependent children: 24.
• Licenses for young professionals reduced to 2 years, with the possibility of upgrading to a professional license.
• Removal of special provisions relating to COVID-19 - including, it seems, the Premium Visa, although official confirmation of this is still awaited.
For any additional information, the DECORDIER real estate agency in Mauritius supports you in all your real estate projects:
DECORDIER immobilier Grand Baie
Phone : +230 268 2828
DECORDIER immobilier Pointe aux Canonniers
Phone : +230 268 1818
E-mail : contact@decordier-immobilier.mu
Website : www.decordier-immobilier.mu