Infos | Property Taxes and Fees in Mauritius: Essential Guide

Overview of Property Taxes in Mauritius

One of the most attractive aspects of owning real estate in Mauritius is the absence of annual property tax. Whether you’re a Mauritian citizen or a foreign buyer, you won’t pay recurring property taxes, making the island a prime destination for investors.

However, there are other taxes and fees involved in buying or selling property.
Here’s what you need to know:

Notary Fees

Notary fees are calculated on a progressive scale based on the sale price, including 15% VAT. Here’s a breakdown:

• 2% on the first 250,000 MUR
• 1.5% on the next 500,000 MUR
• 1% on the next 1,000,000 MUR
• 0.5% on the remaining amount

Real Estate Agency Fees

Real estate agency fees vary based on the type of property:

• Constructed Properties
  2% + VAT paid by the seller
  2% + VAT paid by the buyer
• Off-Plan Properties
  Fees are included in the sale price (3% to 6%), paid directly by the developer.

Special Administrative Fees

Certain administrative processes involve additional fees:

• Letter of Authorization (LOA): 20,000 to 30,000 MUR
• Residence Permit (PR): 25,000 to 40,000 MUR

These can be processed by either the real estate agency or the notary.

Transfer Taxes

Registration Duty: Paid by the buyer.

• For Mauritian citizens and others: 5% of the sale price.
• For foreign buyers purchasing property under Economic Development Board (EDB) schemes such as the Property Development Scheme (PDS), Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Smart City Scheme (SCS), Invest Hotel Scheme (IHS), or buying apartments in buildings with at least two floors above ground: the registration duty has increased to 10% of the sale price.

Transfer Tax (Land Transfer Tax): Paid by the seller.

• For local sellers: 5% of the sale price.
• For foreign sellers or developers selling properties acquired under the above EDB schemes or apartments in qualifying buildings: the transfer tax has increased to 10% of the sale price or 30% on the capital gains realized on resale, whichever is higher.

Benefits for First-Time Buyers

• Exemption: No registration duty on the first 5 million MUR.
• Excess: 5% registration duty on the portion exceeding 5 million MUR.

Eligibility Criteria:

• Neither the buyer nor their spouse has benefited from similar exemptions since July 29, 2016.
• They were not sole owners of a property as of the same date.

Home Ownership Scheme (HOS)

Under the Home Ownership Scheme, buyers can receive a reimbursement:

• 5% cash back of the declared amount, capped at 500,000 MUR.
• Reimbursements are made as disbursements occur for off-plan projects.

Fees for Foreign Buyers

Foreigners purchasing under specific schemes, such as the Property Development Scheme (PDS), must pay an application fee to the Economic Development Board (EDB):

• Fees range between 10,000 MUR and 50,000 MUR, depending on the property type.

Why Mauritius is Perfect for Property Investments

• No annual property tax
• A straightforward fee structure
• A stable economy
• Foreign investor-friendly schemes

The island’s appeal extends beyond its natural beauty, making it a top choice for real estate investments.

Key Takeaways

• Consult Professionals: Work with a notary and a real estate agent to ensure compliance.
• Plan for Costs: Be aware of registration duties, notary fees, and agency charges.
• Explore Schemes: Foreign buyers should account for additional fees and updated registration and transfer taxes under specific property programs.