Published on 08/06/2025
For any property acquired under the IRS, RES, PDS, SCS, IHS, or the R+2 program (apartments exceeding 6 million MUR in buildings of two floors or more), the registration fees increase from 5% to 10%.
The rate of the property transfer tax also increases from 5% to 10% when it comes to a resale to a non-citizen, regardless of whether the seller is Mauritian or not. These rates will apply to property titles registered from July 1, 2026, even if the reservation contract or sale agreement was concluded before this date.
Furthermore, if a deed concerns both real estate and movable property, and the value of the movable property is not specified separately, the land transfer tax will be applied to the total value.
Although it was mentioned during the budget speech, no capital gains tax was implemented in the Finance Act 2025, thus allowing the traditional tax regime of Mauritius to remain in place, free from taxes on capital gains, wealth, or property.
The abolition of the December 2023 provision, which allowed non-citizens holding a residence permit to purchase residential property outside the schemes approved by the EDB (valued over 500,000 USD), has been decided.
From now on, only the IRS, RES, PDS, SCS, IHS regimes or eligible Ground+2 programs will allow foreign nationals to acquire real estate.
Annual income required: 24,000 USD
Validity period: 10 years – no minimum residency period required.
Possibility of investment in the company, prohibition of employment.
Transfer of 50,000 USD within 60 days.
Revenue targets:
Year 1: 1.5 million MUR
5 years: 20 million MUR accumulated.
Update: 5 million MUR per year starting from the sixth year.
The previously proposed alternatives have been eliminated:
The qualification is no longer based on the net asset value or partial investment in cutting-edge equipment.
It is imperative to submit three letters of intent, two of which must come from Mauritian clients.
Revenue targets: From the first year, 750,000 MUR.
6 million MUR accumulated by the fifth year.
Refresh: Starting from the sixth year, the cost is 1.5 million MUR per year.
New evaluation criteria:
ProPass: 50,000 MUR per month.
Expert Pass: 250,000 MUR per month.
Prohibition of hiring in the public sector
V. PERMANENT RESIDENCE PERMIT – EXTENDED DURATION AND ENHANCED CRITERIA
The minimum time required to apply for permanent residency increases from 3 years to 5 years. It is now possible for non-citizens who have successfully completed five years under a valid work or residence permit, and who meet new criteria regarding turnover, income, or investments, to obtain these permits.
Investor:
Before: financial contribution of 375,000 USD and generation of 15 million MUR in annual revenue over a period of three years.
Now: 5 years of occupancy permit + 15 million MUR per year or 75 million MUR in total over 5 years.
Professional:
Before: 3 years of experience with a monthly salary of 150,000 MUR.
Now: 5 years of experience and a monthly salary of 400,000 MUR.
Self-Employed:
Before: 3 million MUR per year for three years.
Now: 3 million MUR per year for a period of five years or a cumulative total of 15 million MUR.
Retirees:
Before: 54,000 USD over a period of 3 years.
Now: 200,000 USD spread over a period of 5 years.
A significant transition to digital systems is currently underway:
1. From now on, all requests and renewals for work, residence, and occupation permits are done exclusively thru the National Electronic Licensing System (NELS).
2. A joint residence and work permit will be granted upon arrival in the territory.
3. Introduction of new temporary occupation permits (OP), valid for up to 9 months and renewable once.
5. Holders of an OP have the possibility to own shares within the company that employs them (without necessarily being majority shareholders).
6. From now on, employers who hire foreign workers will have to pay a non-refundable annual fee for each foreign employe.
7. Update of the registration of deeds.
8. From now on, notaries, banks, insurance companies, and other authorized organizations will have the ability to file documents electronically. Documents signed with a secure electronic signature will be fully recognized as having legal force.
VII. CONFIRMATION OF THE ABANDONMENT OF HOUSING ASSISTANCE MEASURES FOR MAURITIAN CITIZENS
The finance bill indicates that the following housing-related measures will not be extended beyond June 30, 2025:
The residential property scheme.
These schemes, which provided financial support to Mauritian buyers and mortgage holders, have now been abolished.
The 2025 Finance Bill implements a significant overhaul of the framework governing smart cities, thru amendments to the Economic Development Council's (Smart Cities Scheme) 2015 regulations. This reform removes a number of major tax incentives that had historically favored large-scale real estate expansion within the context of this regime.
Starting from June 5, 2025, the following incentives have been abolished without a transition period, which means they are no longer in effect, even if a project was already underway:
1. Exemption from the land conversion tax (land conversion tax)
2. Exemption from registration fees and property transfer tax (land tax)
4. Exemption from parcel division costs.
5. Projects that receive a Smart City certificate starting from June 5, 2025, will benefit from a tax exemption on profits for a duration of 8 years.
Smart City developers will now be required to pay a Smart City tax, calculated based on the terms of the subdivision fees stipulated by the Subdivision Act, for each land division in their project.
However, a series of temporary measures and project-specific incentives have been preserved:
The VAT refund on infrastructure and buildings is still in effect until June 30, 2027, for companies or Smart City developers with valid certificates.
After this date, the possibility of reclaiming VAT will be limited to:
1. The construction of stations or terminals for public transportation.
2. The development of public roads or routes accessible to the public.
The exemption from profit tax for a period of 8 years is maintained for:
The immunity from customs duties is maintained only for goods used in the construction of public transport infrastructure.
This is a crucial moment: we are moving from a system of generalized tax incentives to a more limited structure, focused solely on public interest infrastructure.
To conclude:
The 2025 Finance Bill brings substantial changes in the fiscal and regulatory domain of real estate and housing in Mauritius. It establishes more rigorous compliance standards and removes a number of incentives that have been in place for many years. However, we are reassured to see that some of the more controversial initiatives mentioned during the budget speech were ultimately not adopted, including the introduction of a capital gains tax and the expansion of acquisition restrictions.
We hope this summary will be useful for adapting your projects or decisions, and we are here to answer any questions you may have.
DECORDIER Real Estate Grand Baie
Phone: +230 268 2828
DECORDIER real estate Pointe aux Canonniers
Phone: +230 268 1818
E-mail : contact@decordier-immobilier.mu
Website: www.decordier-immobilier.mu
Real estate and residence permit in Mauritius
Budget 2025/2026: New Developments - Real Estate and Residence Permits in Mauritius
Following our initial correspondence regarding the Budget 2025-2026 speech, we are pleased to provide you with this detailed report on the confirmed measures affecting the real estate sector, as well as the revised framework for permits for non-citizens, as outlined in the 2025 Finance Bill.
This year, the reforms bring significant changes in the field of real estate taxation regulated by the EDB, purchase rights for foreigners, eligibility criteria for permits, the tax regime for Smart Cities, and the digitization of administrative processes. While several actions have been implemented as planned, others have been modified or abandoned, bringing more clarity and a more thoughtful balance for all parties involved.
I. INCREASE IN TAXES ON REAL ESTATE TRANSACTIONS - IMPLEMENTATION STARTING JULY 1, 2026
Starting from July 1, 2026, transaction taxes for foreigners buying or selling a residential property under authorized schemes will be increased as follows:For any property acquired under the IRS, RES, PDS, SCS, IHS, or the R+2 program (apartments exceeding 6 million MUR in buildings of two floors or more), the registration fees increase from 5% to 10%.
The rate of the property transfer tax also increases from 5% to 10% when it comes to a resale to a non-citizen, regardless of whether the seller is Mauritian or not. These rates will apply to property titles registered from July 1, 2026, even if the reservation contract or sale agreement was concluded before this date.
Furthermore, if a deed concerns both real estate and movable property, and the value of the movable property is not specified separately, the land transfer tax will be applied to the total value.
II. CAPITAL GAINS TAX - NOT IMPLEMENTED
Although it was mentioned during the budget speech, no capital gains tax was implemented in the Finance Act 2025, thus allowing the traditional tax regime of Mauritius to remain in place, free from taxes on capital gains, wealth, or property.
III. PURCHASE OF GOODS BY NON-CITIZENS – STRICTER RULES
The abolition of the December 2023 provision, which allowed non-citizens holding a residence permit to purchase residential property outside the schemes approved by the EDB (valued over 500,000 USD), has been decided.
From now on, only the IRS, RES, PDS, SCS, IHS regimes or eligible Ground+2 programs will allow foreign nationals to acquire real estate.
IV. OCCUPATION AND RESIDENCE PERMITS – NEW RULES
- Retirees:
Annual income required: 24,000 USD
Validity period: 10 years – no minimum residency period required.
Possibility of investment in the company, prohibition of employment.
- Investors:
Transfer of 50,000 USD within 60 days.
Revenue targets:
Year 1: 1.5 million MUR
5 years: 20 million MUR accumulated.
Update: 5 million MUR per year starting from the sixth year.
The previously proposed alternatives have been eliminated:
The qualification is no longer based on the net asset value or partial investment in cutting-edge equipment.
- Independents :
It is imperative to submit three letters of intent, two of which must come from Mauritian clients.
Revenue targets: From the first year, 750,000 MUR.
6 million MUR accumulated by the fifth year.
Refresh: Starting from the sixth year, the cost is 1.5 million MUR per year.
- Professionals (New categories established):
New evaluation criteria:
ProPass: 50,000 MUR per month.
Expert Pass: 250,000 MUR per month.
Prohibition of hiring in the public sector
- Professionals at the beginning of their careers: No significant changes (a recognized degree is required).
V. PERMANENT RESIDENCE PERMIT – EXTENDED DURATION AND ENHANCED CRITERIA
The minimum time required to apply for permanent residency increases from 3 years to 5 years. It is now possible for non-citizens who have successfully completed five years under a valid work or residence permit, and who meet new criteria regarding turnover, income, or investments, to obtain these permits.
Investor:
Before: financial contribution of 375,000 USD and generation of 15 million MUR in annual revenue over a period of three years.
Now: 5 years of occupancy permit + 15 million MUR per year or 75 million MUR in total over 5 years.
Professional:
Before: 3 years of experience with a monthly salary of 150,000 MUR.
Now: 5 years of experience and a monthly salary of 400,000 MUR.
Self-Employed:
Before: 3 million MUR per year for three years.
Now: 3 million MUR per year for a period of five years or a cumulative total of 15 million MUR.
Retirees:
Before: 54,000 USD over a period of 3 years.
Now: 200,000 USD spread over a period of 5 years.
VI. DIGITALIZATION OF IMMIGRATION AND REGISTRATION PROCEDURES
A significant transition to digital systems is currently underway:
1. From now on, all requests and renewals for work, residence, and occupation permits are done exclusively thru the National Electronic Licensing System (NELS).
2. A joint residence and work permit will be granted upon arrival in the territory.
3. Introduction of new temporary occupation permits (OP), valid for up to 9 months and renewable once.
4. From now on, the spouses of OP holders can apply for their own OP.
5. Holders of an OP have the possibility to own shares within the company that employs them (without necessarily being majority shareholders).
6. From now on, employers who hire foreign workers will have to pay a non-refundable annual fee for each foreign employe.
7. Update of the registration of deeds.
8. From now on, notaries, banks, insurance companies, and other authorized organizations will have the ability to file documents electronically. Documents signed with a secure electronic signature will be fully recognized as having legal force.
VII. CONFIRMATION OF THE ABANDONMENT OF HOUSING ASSISTANCE MEASURES FOR MAURITIAN CITIZENS
The residential property scheme.
1. The Home Loan Payment Scheme
2. The Home Ownership Scheme
These schemes, which provided financial support to Mauritian buyers and mortgage holders, have now been abolished.
VIII. INCENTIVES FOR SMART CITIES - REDUCED WITH TRANSITIONAL MEASURES
The 2025 Finance Bill implements a significant overhaul of the framework governing smart cities, thru amendments to the Economic Development Council's (Smart Cities Scheme) 2015 regulations. This reform removes a number of major tax incentives that had historically favored large-scale real estate expansion within the context of this regime.
Starting from June 5, 2025, the following incentives have been abolished without a transition period, which means they are no longer in effect, even if a project was already underway:
1. Exemption from the land conversion tax (land conversion tax)
2. Exemption from registration fees and property transfer tax (land tax)
3. Exemption from customs duties on the importation of construction materials, equipment, and furniture.
4. Exemption from parcel division costs.
5. Projects that receive a Smart City certificate starting from June 5, 2025, will benefit from a tax exemption on profits for a duration of 8 years.
6. Accelerated depreciation applicable to eligible capital expenditures.
Smart City developers will now be required to pay a Smart City tax, calculated based on the terms of the subdivision fees stipulated by the Subdivision Act, for each land division in their project.
However, a series of temporary measures and project-specific incentives have been preserved:
The VAT refund on infrastructure and buildings is still in effect until June 30, 2027, for companies or Smart City developers with valid certificates.
After this date, the possibility of reclaiming VAT will be limited to:
1. The construction of stations or terminals for public transportation.
2. The development of public roads or routes accessible to the public.
The exemption from profit tax for a period of 8 years is maintained for:
1. Initiatives that received a Smart City certificate before June 5, 2025
2. Initiatives that specifically focus on the construction of a terminal or a public transport station.
The immunity from customs duties is maintained only for goods used in the construction of public transport infrastructure.
This is a crucial moment: we are moving from a system of generalized tax incentives to a more limited structure, focused solely on public interest infrastructure.
To conclude:
The 2025 Finance Bill brings substantial changes in the fiscal and regulatory domain of real estate and housing in Mauritius. It establishes more rigorous compliance standards and removes a number of incentives that have been in place for many years. However, we are reassured to see that some of the more controversial initiatives mentioned during the budget speech were ultimately not adopted, including the introduction of a capital gains tax and the expansion of acquisition restrictions.
We hope this summary will be useful for adapting your projects or decisions, and we are here to answer any questions you may have.
DECORDIER Real Estate Grand Baie
Phone: +230 268 2828
DECORDIER real estate Pointe aux Canonniers
Phone: +230 268 1818
E-mail : contact@decordier-immobilier.mu
Website: www.decordier-immobilier.mu