Mauritius Finance Bill 2025/2026: What Changed — And What The Finance Act 2026 Reversed

Anyone reading Mauritius property-tax articles published in 2025 or during the first half of 2026 needs to check the date carefully. The 10% foreign-buyer registration duty and corresponding special seller tax were real legislative measures, but they are no longer the general position after the Finance Act 2026.

This matters because an outdated article can overstate the acquisition cost of a foreign-owned PDS, IRS, RES, Smart City, IHS or qualifying apartment by tens of thousands of dollars. It can also distort a seller's calculation of net proceeds.

The current approach should be transaction-specific: establish the property route, identify whether any special rule applies and ask the acting notary to confirm the duty and tax treatment applicable when the deed is registered.

What The 2025/2026 Budget Originally Proposed

The Mauritius Budget 2025/2026 announced that registration duty on the acquisition of residential property by non-citizens under the EDB Property Scheme and Ground Plus Two framework would increase from 5% to 10%, with effect from 1 July 2026.

It also proposed increasing the land transfer tax applicable to sales of residential property to non-citizens from 5% to 10%. The Finance Act 2025 subsequently inserted the special statutory provisions required to implement those measures.

What The Finance Act 2026 Changed

The Finance Act 2026 expressly repealed the special provisions that had created the higher general rates for these foreign-property transactions. Section 9 repealed section 4(9) of the Land (Duties and Taxes) Act, while section 16 repealed section 3(1G) of the Registration Duty Act and the related paragraph K in the First Schedule.

Those repeals remove the special 10% regime that had been introduced for the main categories of residential property acquired by non-citizens. Current EDB material continues to show the ordinary framework as 5% registration duty payable by the purchaser and 5% land transfer tax payable by the vendor for standard property transfers, subject to the exact category of property and any special rule.

A Simple Timeline

Does A Foreign Buyer Now Pay 5% Or 10% Registration Duty?

For a normal acquisition under the principal foreign-buyer property frameworks, the broad special 10% provision introduced in 2025 has been repealed. Current EDB guidance shows a 5% registration-duty rate for ordinary property acquisition and, in its PDS guidance, a 5% rate for both first sales and resales.

That does not justify writing “all foreign buyers always pay exactly 5%.” Mauritius property taxation contains exemptions, legacy scheme rules and special provisions. The notary should confirm the rate for the particular deed rather than relying on a website calculator.

What Is The New 10% State Land / Pas Géométriques Rule?

The Finance Act 2026 introduced a much narrower property measure. Where a deed transfers residential property situated on State land or Pas Géométriques to a non-citizen under the specified provision of the Non-Citizens (Property Restriction) Act, an additional duty of 10% is payable by the transferor.

The Act states that this additional duty is imposed in addition to the transferor's ordinary liability. It also contains a grandfathering provision where a qualifying presale agreement was executed before 19 June 2026 and was drawn up and signed before a notary.

The 2026 Budget also announced that Government would no longer grant new G+2 leases authorising the sale of apartments constructed on State land or Pas Géométriques to foreigners, while preserving certain existing approved leases and subsequent disposals by existing owners.

Why This Is Not The Same As The Old 10% Rule

The two measures should not be blended together. A PDS resale on ordinary freehold land is not the same transaction as an apartment situated on State land or Pas Géométriques.

What This Means For PDS, IRS, RES, Smart City And IHS Property

These frameworks remain relevant to foreign buyers, but the tax analysis should return to the actual scheme rules and current legislation rather than the old assumption that every foreign acquisition after 1 July 2026 automatically carries 10% registration duty.

For the complete ownership framework, read our 2026 guide to foreigners buying property in Mauritius.

What Sellers Need To Calculate

A seller should distinguish the ordinary land transfer tax applicable to the sale from any special additional duty that applies to the exact asset. The new 2026 State-land / Pas Géométriques provision is particularly important because it is imposed on the transferor.

For an ordinary resale, the seller should have the notary calculate the expected land transfer tax, outstanding charges, agency fees and other completion costs before setting a minimum acceptable net price. For a transaction falling within the special State-land rule, the additional duty can materially alter the seller's net proceeds.

This is why a single “seller tax percentage” should not be copied from one property type to another.

Does Mauritius Have Capital Gains Tax On Property?

Mauritius does not generally impose a separate capital gains tax on an ordinary capital disposal merely because an asset has appreciated. That should not be turned into a blanket statement that every property gain is automatically tax-free.

The nature of the activity and the taxpayer's circumstances matter. A gain arising in the course of a property-trading or other taxable business activity can be treated differently from the disposal of a long-held capital asset. International owners should also consider the tax rules of their country of residence.

What Foreign Buyers Should Do Now

Buyers who want the search conducted across the market rather than through one developer can use our International Buyer Representation in Mauritius service.

What Retirees Should Take From The Tax Changes

Retirement residence in Mauritius does not require a property purchase. A retiree can qualify separately under the Retired Non-Citizen Residence Permit and rent a home before deciding whether long-term ownership is appropriate.

For retirees who do buy, the 2026 reversal removes the need to assume a broad 10% foreign-buyer registration duty across the main approved property routes. The more important questions remain property eligibility, total ownership costs, healthcare access, location and long-term practicality.

Our Retire in Mauritius guide covers the residence and relocation framework separately.

Common Mistakes With The 2025/2026 Property Tax Story