There is news that is interesting. And there is news that makes a significant financial difference in a major real estate decision.
This message clearly belongs to the second category:
The planned increase of the registration fee for foreign real estate buyers from 5 to 10 percent is to be reversed.
The Finance Bill published on July 24, 2026, provides for the removal from the law of the special 10 percent rule for real estate purchases by non-citizens that was introduced last year.
If the Finance Bill is passed in this form, the buyer will still be subject to the regular registration fee of 5 percent.
For anyone considering the purchase of a villa, apartment, or other approved residential property in Mauritius, this is an extremely positive development.
The current Finance Bill 2026 provides crucial relief for foreign real estate buyers in Mauritius:
The planned increase of the registration fee from 5 to 10 percent is to be withdrawn.
If the bill is passed in this form, it will remain for buyers at the regular Registration fee of 5 percent.
An additional submission of 10 percent is only for certain residential properties State Land or Pas Géométriques intended.
According to the Finance Bill, this additional levy must be paid from seller or transferor shall be borne – not by the buyer.
For notarial preliminary contracts that already before the June 19, 2026 have been completed, a transitional arrangement is provided.
Since this is currently still a bill, the final adopted version remains to be seen.
For your Plan B, this means: The feared doubling of the buyer's fee is not going to happen. This allows you to plan your property purchase in Mauritius on a much more predictable basis again.
There is news that is interesting. And there is news that makes a significant financial difference in a major real estate decision.
This message clearly belongs to the second category:
The planned increase of the registration fee for foreign real estate buyers from 5 to 10 percent is to be reversed.
The Finance Bill published on July 24, 2026, provides for the removal from the law of the special 10 percent rule for real estate purchases by non-citizens that was introduced last year.
If the Finance Bill is passed in this form, the buyer will still be subject to the regular registration fee of 5 percent.
For anyone considering the purchase of a villa, apartment, or other approved residential property in Mauritius, this is an extremely positive development.
Especially with high-end real estate, it is not about a minor incidental expense item.
A doubling from 5 to 10 percent would have meant that buyers would have had to budget for an additional substantial amount. Money that, for example, would no longer have been available for interior design, high-quality fittings, necessary renovations, or simply as a financial reserve.
In my conversations with customers over the past few months, I have clearly sensed how great the uncertainty caused by this planned increase was.
My clients were rarely concerned with the question of whether they could afford the property in principle. Anyone who establishes a new center of life in Mauritius after many successful years in their profession usually plans soundly and for the long term.
Rather, the crucial question was:
Can I rely on the framework conditions for my investment remaining sensible and comprehensible?
That is precisely why this correction is so important. It not only reduces non-wage labor costs, but it also sends a signal that legitimate objections from the market are being taken seriously.
The Finance Act 2025 had provided that certain transfers of residential real estate to non-citizens would be subject to a registration fee of 10 percent starting July 1, 2026.
The new Finance Bill 2026 now expressly provides for the repeal of the corresponding section 3(1G) of the Registration Duty Act. Exactly this section contained the special 10 percent rule for foreign buyers.
According to the current draft, this means:
This would mean the regular rate for the buyer would be back to 5 percent remain decisive.
This is the crucial point for anyone currently preparing to buy property in Mauritius.
A clean distinction is important at this point.
The Finance Bill does in fact still contain a new additional levy of 10 percent. However, this affects not fundamentally the foreign buyer.
The additional levy is intended exclusively for the transfer of residential real estate:
to a non-citizen.
What is crucial here is:
According to the bill, this additional levy is to be paid by the seller or the transferor – not by the buyer.
The Finance Bill explicitly uses the term „transferor“ for this. This is the person or company that transfers the ownership. In the draft, the tax is set at 10 percent.
This point is partly oversimplified in initial reports.
The new vendor fee does not automatically apply to every property with a leasehold agreement. Nor does it apply across the board to every villa or apartment located near the sea.
The wording of the Finance Bill refers specifically to residential property located in State Land or Pas Géométriques be located and transferred to a non-citizen.
Pas Géométriques are a category of coastal land that receives special treatment in Mauritius. For such properties, the ownership structure, land title, and rights of use must be examined with particular care anyway.
In my experience, that is precisely the point where sweeping statements become dangerous.
A property can be located directly on the ocean and still have a different legal land structure. Conversely, a property can be advertised as a „beachfront property“ even though the actual rights to the land are much more complicated than the sales brochure suggests.
That is why when looking at a property, I never just look at the pretty picture, the sea view, or the name of the project. What is always crucial as well:
The Finance Bill also contains a transitional provision.
The additional seller fee shall not apply if before the June 19, 2026 a corresponding preliminary contract has already been concluded and this contract has been drawn up and signed before a notary.
The draft specifically mentions notarial reservation agreements for purchases under the VEFA model as well as notarial „promesses de vente“.
Here too, the specific form of the contract is decisive. A simple reservation confirmation, an offer not notarized, or a loose written agreement does not automatically have to be sufficient.
This is a good example of why, in real estate transactions in Mauritius, not only the date of a document matters. Equally decisive is, which document was actually signed, in what form and before whom.
I have been working in the construction and real estate sector since 1990 and have experienced in various countries how strongly political or tax decisions can influence a real estate market.
Since I live in Mauritius myself and assist German, Austrian, and Swiss clients here, I see the subject from yet another perspective.
I do not observe the market from a distance. I regularly speak with property developers, real estate agents, banks, notaries, project managers, and the authorities involved in approval and residency procedures.
When the planned 10 percent rule became known, the market's reaction was clear. In my view, the doubling would have primarily hit those buyers who want to invest consciously, for the long term, and with a clear concept.
Intensive discussions have therefore taken place behind the scenes over the past few weeks. Various market participants have pointed out the potential consequences for investors, property developers, and Mauritius as a real estate location.
The Finance Bill itself does not state a political justification for why the provision is now to be repealed. However, the correction now at hand shows that the originally intended burden is not to remain unchanged.
I think that's sensible.
Mauritius does not need short-term purchasing decisions. The island benefits most from people who want to live, invest, and take responsibility here in the long term.
You don't need to act hastily because of this message.
But you can now continue your planning on a much more reasonable basis.
If you are already thinking about buying a property in Mauritius, your next step should not simply be to collect as many offers as possible. It is much more important to first answer a few fundamental questions:
Which region fits your actual everyday life?
Do you want to live here permanently, spend several months a year in Mauritius, or rent out the property partially?
Do you also need a residence permit with the purchase?
Are you buying a ready-made existing property or a property that is yet to be built?
And what is the legal structure of the specific property?
Especially in Mauritius, two externally comparable properties can be completely different legally, structurally, and economically.
The purchase price alone reveals surprisingly little about that.
I understand very well why people fall in love with a property in Mauritius.
You stand on a terrace, gaze out over the sea or into a tropical garden, and immediately feel: A new chapter could begin here.
This feeling is valuable. However, it should not be the sole basis for an investment decision.
In my professional career, I have seen too many properties that seemed impressive at first glance, but later raised questions regarding construction quality, drainage, property structure, contract clauses, or actual additional costs.
My approach is therefore always:
First we check the substance and the legal framework. After that, enthusiasm can decide.
The current news about the registration fee is a real relief. However, it does not replace the careful examination of the specific property.
The published document is currently the Finance Bill No. XII of 2026, so about a bill.
The draft was published on July 24, 2026. The Finance Act 2026 is not yet listed on the official overview of acts that have already been passed. The parliamentary procedure must therefore be awaited.Mauritius Assembly)
The direction is nevertheless clear:
The special 10 percent rate for foreign real estate buyers is to be abolished again.
As soon as the final version of the law is published, I will update this post accordingly.
The complete Finance Bill comprises 128 pages and has been published in English.
You will find the changes that are particularly relevant to real estate buyers especially:
Download the original English version of the Finance Bill 2026
Additionally, I will provide a comprehensible German summary of the real estate-relevant passages:
Then your first step should not be visiting ten randomly selected houses.
In a free initial consultation, we first clarify which property, which region, and which legal structure really fit your plan.
Afterwards, I can specifically select suitable properties from the market, regardless of a single developer or broker.
This does not create just any sightseeing tour, but a clear, well-founded pre-selection.
Schedule a free initial consultation
Warm greetings from Mauritius
Armin Schreiber
Real estate curator and expert for construction and residency solutions in Mauritius
Construction and project experience since 1990
Note: This post is for general information purposes only and does not constitute legal or tax advice. The definitive sources are the original English text, the finally passed version of the law, and the review of the specific real estate transaction by a licensed notary or tax advisor.
Yes – but not without restrictions. Foreigners can only buy property in Mauritius through approved acquisition schemes, such as PDS, Smart City, or certain G+2 apartments. Free purchasing like in Germany is not possible. Which model fits depends on your goals.
No. The residence permit is tied to certain conditions – among other things, a minimum purchase price of more than USD 375,000 for qualifying programs. Not every property automatically meets these criteria.
The purchase price is only a part. Added to this are notary fees, registration, taxes, bank fees, potential inspection costs, and furnishing. Anyone who only calculates the list price often experiences unpleasant surprises.
These programs differ legally, fiscally, and in their residency regulations. They are not interchangeable. Which model makes sense for your situation depends on the purchase price, intended use, and residency strategy.
Off-plan can be attractive – but carries risks if the contract is not carefully reviewed. Scope of delivery, deadlines, execution quality, and security mechanisms must be clearly regulated before signing.
Because sellers and project sales representatives naturally represent their own perspective. An independent expert examines the property technically, legally, and strategically – exclusively in your interest. That often saves more afterwards than it costs.
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