A guide on Understanding the legal and tax implications of buying property in Mauritius

A Guide to Understanding the Legal and Tax Implications of Buying Property in Mauritius

Mauritius has long captivated European and British investors with its azure lagoons, stable democracy, and increasingly sophisticated real estate market. But beneath the postcard-perfect surface lies a structured legal and fiscal framework that every serious buyer must understand before signing on the dotted line. The good news? Once you know the rules, buying property in Mauritius is genuinely accessible — and remarkably rewarding.

Who Can Buy Property in Mauritius?

Foreign nationals cannot freely purchase any property on the island. Instead, non-citizens are permitted to acquire real estate through a number of government-approved investment schemes, each designed to attract quality foreign investment while protecting local land ownership.

The primary schemes available to foreign buyers include:

• PDS (Property Development Scheme) — the most widely used route, allowing foreigners to purchase luxury residential units within integrated, amenity-rich developments
• Smart City Scheme — properties within designated mixed-use urban hubs combining residential, commercial, and leisure spaces
• G+2 Scheme — permits purchase of apartments in buildings of at least three storeys
• IRS and RES legacy schemes — earlier frameworks still operational for eligible developments

Each scheme has its own minimum investment thresholds and eligibility requirements, so it is essential to confirm which scheme governs any property you are considering.

The Role of a Notary

In Mauritius, property transactions are conducted under a civil law system inherited from French Napoleonic code — which will feel familiar to French or Belgian buyers but may surprise British purchasers accustomed to solicitors and contracts exchanged between parties.

All property sales must be formalised before a Notary Public (Notaire), a legally appointed officer who drafts the Deed of Sale (Acte de Vente) and registers the transaction with the Registrar-General. The notary acts as a neutral party and is responsible for verifying title, ensuring the property is free of encumbrances, and confirming the legality of the transaction. While you may also appoint your own independent legal counsel — which is strongly recommended — the notary's role is non-negotiable.

Before the final deed is signed, both parties typically enter into a Preliminary Agreement (Contrat Préliminaire de Vente), commonly accompanied by a deposit of around 10% of the purchase price.

Taxes and Fees: What to Budget For

One of Mauritius's most compelling advantages is its clean, low-tax environment — and property transactions are no exception.

Registration Duty is payable by the buyer and is currently set at 5% of the purchase price for properties acquired under the approved foreign investment schemes. This is considerably lower than stamp duty rates in the UK or much of Europe.

Additionally, buyers should budget for:

• Notary fees: typically 1–2% of the transaction value
• Land Transfer Tax: currently 5%, paid by the seller but worth factoring into negotiations
• VAT: applicable on new developments in certain cases — confirm this with your legal adviser

There is no inheritance tax, no capital gains tax, and no wealth tax in Mauritius — a significant draw for long-term investors and those planning intergenerational wealth transfer.

Residency Rights Linked to Property

A major incentive for foreign buyers is that purchasing property through an approved scheme at a minimum value of USD 375,000 automatically qualifies you for a Mauritian Residence Permit. This permit is valid for the duration of your property ownership and can be extended to your spouse and dependants — making it an attractive pathway for those considering a permanent or semi-permanent lifestyle move.

Mauritius also has double taxation agreements (DTAs) with a number of countries including France, the UK, Germany, and South Africa, which helps prevent investors from being taxed twice on rental income or capital returns.

Rental Income and Ongoing Obligations

If you intend to let your property, rental income derived in Mauritius is subject to income tax at progressive rates, 0% up to MUR 500,000, 10% up to MUR 1,000,000, 20% up to MUR 12,000,000 and 35% above that, still one of the more competitive regimes in the world. Non-residents who earn rental income must register with the Mauritius Revenue Authority (MRA) and file annual returns accordingly.

Under certain PDS developments, properties are managed by on-site operators and rental programmes are offered as part of the scheme — providing a hands-off investment option for overseas owners.

Due Diligence Is Non-Negotiable

While Mauritius offers a transparent and investor-friendly environment, thorough due diligence remains essential. Always verify that the development is registered under an approved scheme with the Economic Development Board (EDB), confirm the developer's track record, and ensure the title deed is clean and unencumbered before committing funds.

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Navigating the legal and tax landscape of Mauritian property doesn't need to be daunting — but it does require the right guidance from the outset. At PropertyFinder Mauritius, we connect discerning buyers with verified listings across the island's most prestigious developments, alongside trusted legal and financial professionals who specialise in foreign acquisitions. Browse our curated portfolio today and take your first step towards owning a piece of this extraordinary island.