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 and include a 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

Example:
For a property worth 8,000,000 MUR, the notary fees amount to approximately 53,750 MUR + VAT.

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.

Some agencies may also charge compliance fees for checks with the Financial Intelligence Unit (FIU). These costs are typically managed by the agency or notary.

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, equal to 5% of the sale price.
• Transfer Tax: Paid by the seller, also equal to 5% of the sale price.

Benefits for First-Time Buyers

First-time buyers in Mauritius enjoy significant benefits:

• 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.

Certain exceptions apply to inherited property and co-ownership.

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

Mauritius offers:

• 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

When purchasing or selling property in Mauritius:

• 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 under specific property programs.