Real Estate & Investment Insights from the National Budget 2025-2026
Category All about Mauritius
The National Budget 2025-2026, presented by Prime Minister and Minister of Finance Dr. the Hon. Navinchandra Ramgoolam, introduces an updated policy framework that will influence both local and foreign participation in the real estate and investment landscape of Mauritius. The Budget reflects the Government's commitment to strengthening fiscal discipline and encouraging long-term sustainability, while creating a more streamlined and transparent business environment.
Mauritius has long built its reputation on openness to investment, attractive tax incentives, and political stability. These elements have contributed to positioning the country as a secure destination for property buyers and global investors. While this Budget introduces important updates to existing frameworks, it continues to reinforce Mauritius's position as an attractive investment destination, with enhanced transparency and sustainable growth at its core.
At Rawson Properties Mauritius, our goal is to keep you informed on key developments that may influence your property journey, whether you're buying, selling, or investing. Below, we outline the main measures from the Budget that are relevant to our sector.
I. What International Investors and Non-Citizens Should Know
1. Revised Property Transaction Structure
- Registration Duty adjusted to 10% (from 5%) for non-citizens purchasing property under IRS, RES, PDS, SCS, IHS, and Ground +2 schemes.
- Land Transfer Tax on resale: the higher of 10% of the sale value or 30% of the capital gain.
- Developers now subject to 10% Land Transfer Tax upon deed registration for residential units sold under the above schemes.
- These changes will apply once the Finance Act is gazetted, even if a reservation agreement was signed beforehand.
2. Updated Acquisition Guidelines
- Foreign buyers will be subject to revised guidelines regarding apartments in buildings constructed on State Land or Pas Géométriques.
- The December 2023 provision allowing Residence Permit holders to acquire residential property outside of approved schemes (above USD 500,000) has been updated.
3. Smart City Programme Transition
- New incentive structures will apply for Smart City certificates issued after 5 June 2025, with continued support for public transport and National Regeneration Programme projects.
- Updated benefit framework includes:
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- Revised VAT structure on buildings and infrastructure
- Modified income tax arrangements
- Updated customs duty and registration duty framework
- Adjusted land conversion and morcellement fee structure
- Existing projects initiated before the transition date retain their current benefit structures.
- Smart City developments will now incorporate enhanced sustainability features and updated fee structures.
4. Updated Residence and Occupation Permit Framework
- Permit durations adjusted from 10 to 5 years, with renewals based on compliance requirements.
- Premium Visa scheme transitioning (pending final confirmation).
- Enhanced requirements for retired non-citizens:
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- Minimum residency of 180 days per year in Mauritius
- Monthly transfer requirement of USD 2,000 or USD 24,000 annually
- Focus on residential rather than commercial activities
- Dependent children age limit refined to 24 years.
- Young Professional Occupation Permits available for 2 years, with pathways to full permit status.
II. What's New for Mauritian Buyers and Local Stakeholders
1. Enhanced Tax Framework
- Introduction of a progressive income tax structure:
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- 15% tax on annual chargeable income above Rs 12 million.
- 20% tax for chargeable income above Rs 24 million.
- 5% "Fair Share Contribution" for companies earning above Rs 24 million.
2. Updated Housing Support Measures
- Housing Loan Relief Scheme extended until 30 June 2027.
- The following schemes will transition after 30 June 2025:
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- VAT Refund Scheme for residential construction or acquisition from developers.
- Home Ownership Scheme and Home Loan Payment Scheme.
- Introduction of 10% Alternative Minimum Tax (AMT) on book profits across various sectors, including real estate.
- Revised personal income tax structure:
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- First Rs 500,000: 0%
- Next Rs 500,000: 10%
- Remainder: 20%
3. Enhanced Business Processes and Digital Innovation
- Launch of digital platform for online Occupation and Residence Permit applications.
- Streamlined permit categories (professional, investor, self-employed) with updated eligibility criteria.
- Introduction of electronic deed registration using secure digital signatures, accepted by the Registrar-General.
- Simplified processes for property and trust transfers.
The 2025-2026 Budget introduces several important updates that will shape the property market in the coming years. While these changes represent a transition from previous frameworks, they also reflect Mauritius's evolution toward a more mature and sustainable economy that balances local development objectives with continued international investment opportunities.
Mauritius continues to offer a unique combination of opportunity, lifestyle, and security. Our role at Rawson Properties Mauritius is to help you navigate these developments with clarity, transparency, and confidence, ensuring you can make informed decisions in this evolving landscape.
Author: Rawson Properties Mauritius