The Mauritius property tax increase for foreign buyers took effect on 1 July 2026, doubling both Registration Duty and Land Transfer Tax from 5% to 10% on residential deals under the island’s EDB investment schemes.
PORT LOUIS, Mauritius — 02 July 2026
The change was flagged in the 2025-26 Budget and locked in through Prime Minister Navin Ramgoolam’s 2026-27 national Budget delivered in June. From this week, a non-citizen registering a deed on a villa or apartment under the Integrated Resort Scheme (IRS), Real Estate Scheme (RES), Property Development Scheme (PDS) or Smart City Scheme pays 10% Registration Duty on the way in. Sell later, and the Land Transfer Tax on the way out has doubled as well.
Mauritius spent two decades building its pitch as the Indian Ocean’s premier destination for residency in Mauritius through property. That pitch just got materially more expensive, and anyone weighing residency overseas through real estate needs to rerun the numbers before signing anything.
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What the Mauritius Property Tax Increase Changes From 1 July
The mechanics are dead simple. When a non-citizen buys a residential unit under an EDB scheme, the buyer pays Registration Duty at deed registration. When a non-citizen sells one, the seller pays Land Transfer Tax. Both rates sat at 5% for years. Both are now 10%, applying to every deed registered on or after 1 July 2026, as confirmed by ENSafrica’s analysis of the 2026-27 Budget.
| Charge | Who pays | Before 1 July 2026 | From 1 July 2026 |
|---|---|---|---|
| Registration Duty (EDB schemes) | Non-citizen buyer | 5% | 10% |
| Land Transfer Tax (EDB schemes) | Non-citizen seller | 5% | 10% |
| G+2 apartment resale levy | Vendor | None | 10% special levy |
The numbers don’t lie. At the long-standing USD 375,000 minimum that anchors the property residency route, duty at purchase jumps from about USD 18,750 to USD 37,500. On a USD 2 million Smart City villa, the buyer now hands over USD 200,000 before collecting the keys. And KPMG’s alert on the underlying Finance Act indicates the resale side bites even harder: the Land Transfer Tax on a non-citizen’s exit is calculated as the higher of 10% of the sale price or 30% of the capital gain realised.
No Grandfathering, Not Even for Signed Agreements
Here’s the kicker. The new rate turns on one date only: the day the deed is registered. A reservation agreement signed in March, a promise of sale notarised in May, none of it shields the buyer. ENSafrica put it bluntly, noting the new rate bites even where the reservation agreement or promise of sale was signed before 1 July. Buyers mid-transaction who failed to push their notaries to register before the deadline are simply out of luck. That ship has sailed.
Developers on the island reportedly spent June racing deeds to the Registrar-General for exactly this reason. Anyone whose paperwork slipped past the cutoff now owes double.
The G+2 Apartment Door Closes Too
Buried in the same Budget is a second blow to foreign buyers. The Government will stop granting leases under the G+2 Scheme that allow apartments on State Lands and Pas Géométriques to be sold to non-citizens. Existing owners and approved leaseholders keep their rights, but future vendors of those units face a fresh 10% special levy, with only already-signed notarial reservation contracts grandfathered. The G+2 route was the budget-friendly side door into Mauritian property for foreigners. Going forward, that door is closed to new entrants.
Why Mauritius Is Squeezing Buyers While Courting Millionaires
Let’s be blunt: this is a repricing, not a retreat. The same Budget that doubled duty rolled out a new Golden Visa for investors committing at least USD 1 million to high-value sectors such as fintech, AI, biotechnology, renewable energy and global treasury within their first year, complete with a two-year renewable visa, a path to permanent residence and Premium Visa-style tax treatment, according to both ENSafrica and PwC Mauritius. The Occupation Permit for investors still starts at USD 100,000. Port Louis wants capital that builds businesses, not just capital parked in beachfront concrete.
There may be more coming. The Budget states that duties and taxes on EDB-scheme transfers are under review, which reads like a warning that 10% is a floor rather than a ceiling. Anyone who watched Portugal’s Golden Visa crisis unfold knows how quickly a residency-by-investment regime can turn hostile once a government starts tinkering. The pattern rarely stops at one tax rise.
Mauritius Property Duty FAQ
How much is the Mauritius property tax increase for foreign buyers?
Does the 10% duty apply if I signed a reservation agreement before 1 July 2026?
Which Mauritius property schemes are hit by the doubled duty?
Can foreigners still get Mauritius residency by buying property?
What does a foreign seller pay under the new Land Transfer Tax rules?
Bottom line: Mauritius remains one of the most liveable low-tax bases on earth, and the Mauritius property tax increase will not change that for buyers who love the island. For pure residency shoppers, though, the maths has shifted, and comparing the property route against a longer-term Mauritius citizenship play or a cheaper permit elsewhere is now essential homework.
Sources and References
- Ministry of Finance, Republic of Mauritius, National Budget 2026-27
- ENSafrica, Mauritius National Budget 2026-27: Key Takeaways
- PwC Mauritius, National Budget 2026-2027: Taxation Measures
- KPMG, Non-citizens in Mauritius: Changes to Residency and Property Ownership Rules
- Mauritius Revenue Authority, Registration Duty and Land Transfer Tax Administration