Budget - Mauritius Finance Act 2026-2027

Real Estate, Budget, Taxation & Residence Permits in Mauritius

In brief: the 10% rate introduced in 2025 has been abolished.

For reference:
https://www.decordier-immobilier.mu/fr/actualites/details/1636/budget-2025-2026-ile-maurice/

Registration duty and land transfer tax on transfers to non-citizens under EDB schemes revert to 5%, except for one specific category detailed below. Unless otherwise stated, the measures take effect upon publication of the Act in the Government Gazette.

Summary table

1. For foreign buyers and investors

Return to the 5% rate

A non-citizen buying a residential property under an EDB scheme (IRS, RES, PDS, Smart City, Invest Hotel) or a G+2 apartment will pay 5% registration duty; the seller will pay 5% land transfer tax. Lawmakers didn't create a new rate — they simply repealed the 2025 provisions that had raised it to 10%.

One exception to know: State land and Pas Géométriques

An additional 10% duty — payable solely by the seller — now applies to transfers to non-citizens of properties located on State land or the Pas Géométriques (section 3(3)(c)(v) of the Non-Citizens Property Restriction Act).

Key points:

• What matters is the legal status of the land, not its location. A freehold villa under an EDB scheme, even beachfront, is unaffected. A leasehold apartment on the Pas Géométriques is.
• Exception to the exception: if a preliminary contract was signed before a notary before 19 June 2026, the measure doesn't apply. Both conditions are cumulative — a simple private reservation agreement isn't enough, regardless of its date.
• A 10% lease transfer duty (already existing, unchanged) still applies to both buyer and seller on these lands, calculated on the land value only.
• The vast majority of G+2 apartments, built on private land, aren't affected by this exception.

End of new G+2 leases on State land (2027)

From 1 July 2027, the State will no longer grant new leases allowing the sale of apartments on its land and the Pas Géométriques to non-citizens. Current owners and already-approved schemes aren't affected.

The Golden Visa, now in law

The Golden Visa allows an application for permanent residence following an investment of at least USD 1 million within 12 months of issuance — an economic investment, separate from EDB property acquisition. Buying an EDB property doesn't count toward this amount.

The classic property route remains separate and unchanged: a residence permit for any purchase of at least USD 375,000 under IRS, RES, IHS, PDS, Smart City, or G+2. Holders benefit from the Premium Visa tax regime: their foreign income is taxed only when repatriated to Mauritius.

Occupation Permit: new criteria

The Family Occupation Permit is abolished. A Professional permit holder undergoing their first renewal is still assessed under the previous criteria.

A new scheme to watch: the AI City Scheme

The EDB is creating a dedicated scheme for a technology and innovation hub, with fast-track permits and tax incentives. The associated property arrangements will be set out by regulations, not yet published.

Sociétés civiles: new transparency obligation

A société civile is now explicitly subject to the beneficial ownership regime. Each structure must maintain a register (identity, date of birth, nationality, address, nature of rights) and file it with the Registrar, updating within 14 days of any change. Fines can reach Rs 300,000, applying to both the structure and its managers.

Structures already in existence have until 31 March 2027 to comply — a deadline foreign owners who structured their purchase through a société civile shouldn't miss.

Rental income and taxation

A non-tax-resident renting out their property through a tenant company will have tax withheld at source at 10%, creditable against their final return. Where a double-taxation treaty provides for a lower rate, that reduced rate now applies directly.

Digital travel authorisation

From 1 October 2026, anyone travelling to Mauritius will need an electronic travel authorisation, to be applied for before departure.

2. For Mauritian buyers and owners

Expanded first-time buyer exemption

• Bare land: no registration duty up to Rs 3M (previously Rs 2.5M).
• House or apartment: no registration duty up to Rs 6M (previously Rs 5M).
• Owning agricultural land no longer causes loss of first-time buyer status for a residential purchase.

Contesting a valuation now costs less

The deposit required to contest a value set by the Registrar-General, previously unlimited, is now capped at Rs 5 million — the same cap applies to appeals before the Revenue Tribunal (5% of the disputed amount or Rs 5M, whichever is lower).

3. General taxation

The income tax scale now shows a top rate of 35% — but this isn't an increase: since 2025, the Fair Share Contribution already added 15 points above Rs 12M of income, bringing the real marginal rate to 35%. This contribution is abolished and folded directly into the scale, with two improvements:

• It was originally due to run only until 2027/28; it now stops after the 2025/26 tax year.
• Local dividends no longer count toward the Rs 12M threshold that triggers the 35% rate — a clear benefit for shareholders and partners receiving Mauritian dividends.

In addition, a 5% tax on non-life insurance premiums takes effect on 1 January 2027: home, building, condominium, and construction-site policies will be affected — a point to factor into syndic budgets.

4. A regulated real estate profession

The Real Estate Agent Authority becomes a fully operational regulator from 1 July 2026. Registration with the Authority has been mandatory since 1 August 2026 for agents, land developers, and property developers.

At DECORDIER immobilier®, we welcome this professionalisation of the sector: a public register lets every client verify who they're dealing with before committing, not after.

What stays the same: why Mauritius remains attractive

Taxation

• Income tax at 0%, 10%, 20%, 35% — effective rate of 15% at Rs 3M income, 18.75% at Rs 12M.
• Corporate tax at 15%.
• No capital gains tax, no inheritance tax, no wealth tax, no annual property tax.
• Broad network of double-taxation treaties.

Ownership and residence

• Freehold ownership open to non-citizens under IRS, RES, PDS, Smart City, Invest Hotel, or G+2.
• Residence permit from USD 375,000 of investment, extendable to dependents.
• Residence permit for non-citizen retirees aged 50 and over, based on transfer of foreign income.

Living environment

• Hybrid legal system (French civil law / English common law), English and French both in everyday use.
• GMT+4, free movement of capital, no exchange controls.

This article is a general information summary based on the Finance Bill (No. XII of 2026) and the Economic and Financial Measures (Miscellaneous Provisions) Bill (No. XIII of 2026). It does not replace personalised legal, tax, or financial advice. The legislation may be amended, subject to delayed entry into force, or open to differing interpretations. We recommend confirming any point with your notary, lawyer, or tax adviser before making any decision.

DECORDIER immobilier®

Download link for THE FINANCE ACT 2026: https://mauritiusassembly.govmu.org/mauritiusassembly/wp-content/uploads/2026/08/Act1426.pdf