Mauritius Scraps Planned Doubling of Property Tax on Foreign Buyers

Port Louis, The Gulf Observer: The Mauritian government has abandoned a proposed measure to double transaction taxes on residential property purchases by foreign nationals, opting instead for a more targeted tax on certain high-value apartment sales.

The policy reversal was formalised through the Finance Bill 2026, repealing a measure contained in the 2025–2026 Budget that was scheduled to take effect on July 1, according to News Moris.

Under the original proposal, registration duties on residential property acquired by non-citizens through Economic Development Board (EDB) schemes, as well as on certain apartment purchases, would have increased from 5 percent to 10 percent. The Land Transfer Tax payable by sellers was also due to rise from 5 percent to 10 percent.

Following the repeal, foreign property acquisitions under EDB schemes will continue to attract the standard 5 percent registration duty.

The government has instead introduced a targeted 10 percent additional tax payable by sellers when an apartment under the “G+2” scheme, valued at at least Rs 6 million, and built on state land or pas géométriques, is sold to a non-citizen. The additional tax will not apply where a notarised preliminary sales agreement was signed before June 19, 2026.

The decision has triggered debate over fiscal policy and the government’s approach to taxation of wealth and property. During parliamentary discussions on the Finance Bill 2026–2027, MP Joanna Bérenger criticised the reversal, arguing that the original measure could have generated additional public revenue and required greater contributions from higher-income groups.

Political voices have also questioned whether pressure from private interests contributed to the government’s decision, while advocates of higher taxation have called for investment to be directed toward productive sectors rather than property.

The real estate sector, however, has welcomed the policy change. Estate Agents Association President Mahendranath Poligadoo said retaining the 5 percent acquisition tax would provide reassurance to international investors and help preserve Mauritius’ attractiveness as a destination for foreign real estate investment.

The move therefore represents a shift from a broad tax increase on foreign property purchases toward a more selective approach, balancing government revenue considerations with Mauritius’ efforts to remain competitive in attracting international investment.