Buying Your First Property in Mauritius? Start with the Taxes
Mauritius is famous for its stunning coastline, stable economy, and attractive real estate opportunities for both locals and foreign investors. But before you sign that sales agreement, it’s essential to understand the property taxes and related costs you’ll be responsible for.
At HomeFront Realty, we guide first-time buyers every step of the way, so here’s a complete breakdown of what you need to know about property tax in Mauritius.
Do You Pay Annual Property Tax in Mauritius
Good news, Mauritius does not have an annual property tax like many countries do. This means you won’t be charged a recurring yearly tax simply for owning a property.
However, there are one-off fees and transaction costs associated with buying and selling, as well as income tax if you generate rental income.
Key Taxes & Fees for First-Time Buyers
Registration Duty (Payable by the Buyer)
When you buy property in Mauritius, you pay registration duty to the government.
- Rate for Locals: 5% of the property’s purchase price or market value (whichever is higher).
- Rate for Foreign Buyers: Also 5%, provided the property is purchased under an approved scheme such as PDS, IRS, RES, or Smart City Scheme.
Notary Fees
All property transactions in Mauritius must be completed with a registered notary.
- Rate: Generally around 1 – 2% of the property price, plus VAT (15%).
- Covers legal verification, contract drafting, and registration.
Land Transfer Tax (Payable by the Seller)
While buyers don’t directly pay this, it’s good to know it exists, especially if you plan to sell in the future.
- Rate: 5% of the sale price or market value.
Rental Income Tax (If You Rent Out Your Property)
If you generate rental income from your property in Mauritius:
- Tax Rate: Flat 15% income tax on net rental income (after allowable deductions).
- Both residents and non-residents are subject to this rate.
Special Notes for Foreign Buyers
If you’re not Mauritian, you must purchase through an approved property scheme:
- PDS (Property Development Scheme)
- IRS (Integrated Resort Scheme)
- RES (Real Estate Scheme)
- Smart City Scheme
For investments over USD 375,000, you may qualify for permanent residency in Mauritius, a huge advantage.
Quick Tax Cost Example for First-Time Buyers
Let’s say you’re buying a beachfront apartment for MUR 10 million (~USD 215,000):
| Fee Type | Rate | Amount (MUR) |
|---|---|---|
| Registration Duty | 5% | 500,000 |
| Notary Fees | 1.5% + VAT | ~172,500 |
| Agency Commission | 2% + VAT | ~230,000 |
| Total (Approx.) | — | 902,500 |
HomeFront Realty Tip: Always Budget for Taxes & Fees
Many first-time buyers focus on the property price but forget to budget for transaction costs. We recommend setting aside 8 – 10% of the property value for taxes, notary fees, and commissions, so there are no surprises.
Final Thoughts
Mauritius is a tax friendly destination for property ownership, no annual property tax, attractive income tax rates, and straightforward purchase processes. As a first-time buyer, understanding these costs will help you plan your budget better and make confident decisions.
At HomeFront Realty, we ensure our clients have a clear cost breakdown before they commit, so you know exactly what you’re paying and why.
