The short answer: Mauritius has one of the most tax-friendly property regimes in the world. There is no annual property tax on residential property for most owners, no capital gains tax, and no inheritance tax — making it an exceptionally attractive destination for foreign investors and relocating families alike.
That said, there are specific duties, fees, and levies that apply at the point of purchase and in certain ownership scenarios. Understanding these upfront will help you budget accurately and avoid surprises.
Does Mauritius Have an Annual Property Tax?
For most residential property owners — both Mauritian citizens and foreign nationals holding property through approved schemes — there is no recurring annual property tax in the traditional sense. This is one of the headline advantages that draws high-net-worth individuals and retirees to the island.
However, a Land Transfer Tax and a Registration Duty do apply at the point of sale, and some commercial or agricultural landholdings may be subject to different rules. The absence of ongoing property taxes makes the total cost of ownership significantly lower than in comparable destinations like France, the UK, or South Africa.
What Taxes Apply When Buying Property in Mauritius?
Registration Duty
Registration Duty is the primary transaction tax paid when a property changes hands. The rates are:
- 5% of the purchase price for Mauritian citizens and residents purchasing residential property
- 5% of the purchase price for foreign nationals purchasing through approved government schemes (IRS, RES, PDS, IHS, or Smart City)
- 10% may apply in certain non-residential or non-scheme transactions
This duty is payable to the Mauritius Revenue Authority (MRA) and is typically settled at the time of signing the deed of sale before a Notary.
Land Transfer Tax
The Land Transfer Tax is paid by the seller, not the buyer. It is charged at:
- 5% of the sale price (or the market value, whichever is higher)
This tax replaced the previous capital gains-style levy and applies to most freehold property transactions. Sellers should factor this into their net proceeds calculations.
Notary and Registration Fees
In addition to the above taxes, both buyers and sellers will incur:
- Notary fees: Typically 0.5%–1% of the transaction value, shared or negotiated between parties
- Registration and transcription fees: Modest administrative charges payable to the Conservator of Mortgages
Always request a full fee schedule from your Notary before proceeding.
How Does Property Tax Work for Foreign Buyers?
The Approved Scheme Framework
Foreign nationals cannot purchase freehold land in Mauritius freely — they must buy through one of the government-approved property investment schemes:
- Property Development Scheme (PDS) — the current flagship scheme for luxury residential units
- Integrated Resort Scheme (IRS) — legacy scheme for high-end estates
- Real Estate Scheme (RES) — for smaller developments
- Invest Hotel Scheme (IHS) — for hotel-linked units
- Smart City Scheme — for mixed-use urban developments
Within these schemes, the minimum purchase price is USD 375,000, and the Registration Duty of 5% still applies. Critically, purchasing through an approved scheme also qualifies the buyer (and their immediate family) for Mauritian residency, adding significant lifestyle value beyond the tax benefits.
No Capital Gains Tax
Mauritius does not levy capital gains tax. If you purchase a property and later sell it at a profit, that gain is not taxed at the individual level. The Land Transfer Tax (paid by the seller at 5%) is the closest equivalent, but it is applied to the sale price rather than the profit margin.
No Inheritance or Estate Tax
Mauritius abolished inheritance tax, meaning property can be passed to heirs without a tax penalty. This makes it a popular jurisdiction for estate planning and generational wealth transfer.
Are There Property-Related Taxes During Ownership?
Rental Income Tax
If you rent out your Mauritius property, rental income is subject to income tax at a flat rate of 15% under the Mauritius tax system. This is one of the lowest income tax rates globally. Non-residents receiving rental income from Mauritius property are also subject to this rate, though double taxation treaties may affect the final liability depending on your country of residence.
VAT on New Builds
VAT at 15% may apply to the purchase of new residential developments in certain circumstances. In many PDS and Smart City transactions, VAT is already incorporated into the quoted price, but buyers should confirm this with the developer and their legal advisor.
Ground Rent (Morcellement Schemes)
Some properties, particularly in older morcellement (subdivision) schemes, carry a nominal ground rent payable to the original landowner or developer. These amounts are typically very small — often a few hundred rupees per year — but should be identified during due diligence.
How Do I Calculate the Total Cost of Buying Property in Mauritius?
Here is a simplified cost model for a foreign buyer purchasing a PDS property at USD 500,000:
| Cost Item | Rate | Estimated Amount |
|---|---|---|
| Purchase Price | — | USD 500,000 |
| Registration Duty | 5% | USD 25,000 |
| Notary Fees | ~0.75% | USD 3,750 |
| Legal / Due Diligence | Variable | USD 2,000–5,000 |
| Total Estimated Cost | ~USD 530,000–535,000 |
This represents a relatively low transaction cost compared to many European or Asian property markets.
Where Can I Search for Property in Mauritius?
Whether you are looking for a beachfront villa through a PDS scheme, a long-term rental apartment, or a commercial space, PropertyFinder.mu is Mauritius's leading property portal. It lists properties across all approved foreign buyer schemes, with detailed pricing and agent contact information to help you make an informed decision.
Tips for Managing Your Mauritius Property Tax Obligations
- Engage a local Notary early — all property transfers in Mauritius must go through a Notary, who will also handle tax registrations
- Check MRA guidance — the Mauritius Revenue Authority (mra.mu) publishes up-to-date rates and forms
- Declare rental income — even as a non-resident, rental income from Mauritius property must be declared
- Review double taxation treaties — Mauritius has treaties with over 40 countries, which can reduce your overall tax burden
- Get a tax residency assessment — if you spend more than 183 days per year in Mauritius, you may qualify as a tax resident, which has broader implications
FAQ: Mauritius Property Taxes
Frequently Asked Questions
Is there an annual property tax in Mauritius?
No. Mauritius does not levy an annual residential property tax on most owners. The main taxes apply at the point of purchase (Registration Duty) and sale (Land Transfer Tax), not on an ongoing annual basis.
How much is the Registration Duty when buying property in Mauritius?
Registration Duty is typically 5% of the purchase price for both Mauritian citizens and foreign buyers purchasing through approved schemes such as PDS, IRS, or Smart City.
Do foreign buyers pay the same property taxes as Mauritians?
Yes, in most approved scheme purchases, foreign buyers pay the same 5% Registration Duty as locals. However, foreign nationals must purchase through a government-approved scheme and the minimum investment threshold is USD 375,000.
Is there capital gains tax on property in Mauritius?
No. Mauritius does not have a capital gains tax. Sellers do pay a 5% Land Transfer Tax on the sale price, but any profit made above the original purchase price is not separately taxed.
Do I pay tax on rental income from my Mauritius property?
Yes. Rental income from Mauritius property is taxed at the flat income tax rate of 15%, which applies to both residents and non-residents. Double taxation treaties may reduce your overall liability depending on your home country.
Is there inheritance tax on property in Mauritius?
No. Mauritius abolished inheritance and estate taxes, so property can be transferred to heirs without a tax penalty, making it an attractive jurisdiction for estate planning.
Who pays the Land Transfer Tax — buyer or seller?
The Land Transfer Tax is paid by the seller at a rate of 5% of the sale price or market value, whichever is higher. Buyers are responsible for Registration Duty instead.
Does buying property in Mauritius give me residency?
Yes. Purchasing a qualifying property through an approved scheme (PDS, IRS, RES, IHS, or Smart City) at a minimum of USD 375,000 automatically qualifies the buyer and their immediate family for Mauritian residency.
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