Mauritius 2025-2026 Budget: What Property Buyers Need to Know

Mauritius 2025-2026 Budget: What Property Buyers Need to Know

The 2025-2026 national budget introduces key changes that impact real estate in Mauritius. These reforms affect both local and international buyers. As the government focuses on strategic investment and fiscal reform, property remains central to national growth. At Tropical Riviera Realty, we explain what this means for you.

Higher Costs for Foreign Property Buyers

The most notable change for international investors is the increase in taxes on property transactions. Buyers acquiring homes under schemes like IRS, RES, PDS, or Smart City will now face:

• Registration duty increased from 5% to 10%.

• Land transfer tax for sellers also raised to 10%.

These changes make upfront costs higher for non-citizens. However, Mauritius still offers attractive benefits such as permanent residency and tax efficiency. The long-term advantages continue to outweigh these adjustments.

End of Smart City Incentives

The government will discontinue tax incentives for Smart City developers. However, ongoing projects where construction has started will remain eligible under a transitional arrangement.

For buyers, this is an important window of opportunity. Investing in these projects now may secure better terms and long-term capital gains. Smart Cities still offer modern amenities, integrated living, and excellent growth potential.

Land Repurposing Opens New Opportunities

The budget introduces a Land Repurposing Scheme. Owners of small agricultural plots may now use their land for strategic projects without applying for a Land Conversion Permit.

This reform supports development in areas such as eco-resorts, sustainable housing, and agri-tourism. Buyers interested in niche or value-driven investment should take note of this change.

Infrastructure Investments to Boost Property Value

Mauritius plans to invest Rs 128 billion in infrastructure over the next five years. This includes:

• Roads and public transport

• Water and drainage systems

• Electricity and housing

These projects will enhance connectivity, reduce flood risk, and improve quality of life. As a result, property in growing regions will likely see strong appreciation.

Housing Access for Local Buyers

The budget raises the income threshold for social housing from Rs 40,000 to Rs 48,000 per month. The government is also reviewing housing policy to better meet the needs of low- and middle-income families.

In addition, 8,000 social housing units are being reviewed and upgraded before being handed over. These changes will open the market to more Mauritian families and increase demand for mid-range properties.

Better Support from EDB and Investment Services

The Economic Development Board (EDB) will undergo reforms to streamline services and attract investment. Its new focus includes simplifying processes and improving transparency.

For buyers, this means a faster, more efficient approval process when investing in property schemes that offer residency.

Summary: What Buyers Should Know

Local buyers can benefit from improved housing access and better infrastructure. New land policies also support innovative developments across the island.

International buyers should plan for higher taxes but can still gain from stable growth and residency options. Buying into Smart City and PDS projects before incentives end can be a smart long-term move.

Work with Trusted Experts

Tropical Riviera Realty offers expert guidance for buyers exploring real estate in Mauritius. Whether you seek a family home, a luxury villa, or a strategic investment, our team ensures a smooth and informed journey.

Visit www.tropicalriviera.com to discover premium listings and speak with our dedicated advisors.