Finance Act 2026/2027: Clarity Has Been Provided — Closing Costs Remain at 5 %

Ever since the budget discourse in June, one question has been hanging in the air: How high will the additional acquisition costs for foreign buyers in Mauritius be in the future? I deliberately refrained from speculating and instead promised to get back to you only when the text was finalized.

It stands. The Mauritian Parliament has passed the Finance Bill (No. XII of 2026) and the accompanying Economic and Financial Measures Bill in their third reading. I have worked through both texts—a total of 247 pages—article by article, checking them with my contacts at the EDB and my local notary network. This post summarizes what matters to you.

First things first: 10 % are off the table—back to 5 %

Parliament did not create a new rate. It simply repealed the provision in the Finance Act of 2025 that had raised the rate to 10 % effective July 1, 2026. The standard rate of 5 % applies again—with no conditions, no threshold, and no exception clause.

This concerns every purchase of real estate under an EDB scheme — IRS, RES, PDS, Smart City, or Invest Hotel — as well as freehold G+2 apartments, which make up by far the largest share of the market supply.

To put this in perspective: For a property valued at Rs 40 million (approximately €735,000), the return to the 5 % system results in savings of approximately Rs 2 million (≈ €37,000) — for both buyers and sellers — compared to the 10 % scenario that had been in effect since July 1.

The exception: State land and Pas Géométriques

An additional set of 10 %—at the seller’s expense—continues to apply to properties on state-owned land or the Pas Géométriques. What matters is the legal status of the property, not its location by the sea: A villa or apartment held in freehold under an EDB scheme is not affected, even if it is located directly on the beach. An apartment held on a leasehold basis on the Pas Géométriques, on the other hand, is affected.

An exception applies if a notarized preliminary contract (reservation agreement or promise to buy) was concluded before June 19, 2026 — both conditions must be met cumulatively; a reservation agreement in private writing is not sufficient.

Effective July 1, 2027: no new G+2 lease agreements on state land for foreigners

Starting from this date, the state will no longer issue new lease agreements that allow the sale of G+2 apartments on state land to non-citizens. Programs that are already ongoing and approved are not affected—for interested parties in this very specific segment, this represents a real, foreseeable window of opportunity.

Golden Visa now enshrined in law

The Golden Visa is anchored for the first time in the legal text itself. Following an investment of at least USD 1 million within twelve months, it entitles the holder to a permanent residence permit—however, the investment must flow into an economic activity other than the purchase of an EDB property. The Golden Visa is an investment pathway, not a real estate pathway.

The proven real estate pathway to a residence permit remains unchanged: starting at a purchase price of USD 375,000 under IRS, RES, IHS, PDS, Smart City, or G+2 — including the tax advantages of the Premium Visa, under which foreign income is only taxed upon transfer to Mauritius.

The industry is regulated — an advantage for buyers

The Real Estate Agent Authority will receive a budget, staff, and mandatory auditing duties starting July 1, 2026; starting August 1, 2026, registration will be mandatory for brokers and developers. I expressly welcome this. The market previously had a very low barrier to entry — which is precisely why I have been working as a curator rather than a traditional broker for over five years: instead of selling lists, I selectively choose properties from solid developers out of the wide range available. With a public register, buyers will in future be able to vet any provider before the first appointment rather than after the first deposit.

Why Mauritius remains what it is

The numbers change, but the fundamentals remain the same: 0 %, 10 %, 20 %, and 35 % income tax depending on income level (effectively only 15 % for Rs 3 million, ≈ €55,000), 15 % corporate income tax, no capital gains tax, no inheritance tax, no wealth tax, no annual property tax. Add to that a hybrid legal system combining French civil law and English common law, English and French spoken in every law firm on the island, GMT+4 for a morning in sync with Europe and an afternoon in sync with Asia—as well as political stability and free movement of capital without exchange controls.

My recommendation

Anyone who has hesitated since June due to uncertainty now has the clarity they have been waiting for. I have been involved in real estate projects since 1987—from my very first developer project in Germany in 1990 to my latest project in Bodrum, Turkey—and have been living in Mauritius myself for over five years. Through my contacts with the Economic Development Board, for which I have conducted an interview with the Deputy CEO and supported the EDB Roadshow 2026 in Munich, among other things, I know firsthand where the market is heading.

This post was prepared by Invest & Living Mauritius Ltd. based on the Finance Bill (No. XII of 2026) and the Economic and Financial Measures Bill (No. XIII of 2026) and serves for general information purposes. It does not replace individual legal, tax, or financial advice; we recommend consulting with your notary, lawyer, or tax advisor before making any decision.