The Mauritius Budget 2025–2026, titled “From Abyss to Prosperity”, outlines bold fiscal and structural reforms to tackle high public debt and trade deficits while strengthening social protection, business resilience, and sustainable development.
Whether you’re a business owner, real estate investor, employee, or policymaker, understanding these changes is critical. Below, we break down the budget’s most impactful proposals, grouped by theme.
Disclaimer: These are proposed measures. Final implementation is subject to approval via the Finance Bill 2025. Some measures may still be adjusted or excluded.
BUSINESS & CORPORATE TAX CHANGES
Measure
What’s Changing
Impact
Fair Share Contribution (FSC)
New 5% tax for domestic companies with profits over MUR 24M (2% for exporters)
Raises effective tax rate to 24% (domestic) and 9% (export)
Corporate Climate Responsibility (CCR) Levy
Additional 2% levy on companies with turnover above MUR 50M
Applies even with tax holidays or partial exemptions
Alternative Minimum Tax (AMT)
10% tax on book profits if effective tax is below that rate (applies to real estate, hotels, telecom, etc.)
Prevents under-taxation in key sectors
Domestic Minimum Top-up Tax (DMTT)
Effective from 1 July 2025, aligned with OECD Pillar Two
Targets multinational companies to meet global 15% minimum tax
Tax Holiday Limits & SME Rules
Restrictions on tax holidays for SMEs converting from partnerships
Limits tax planning opportunities
Tax Incentives for Innovation
Deductions up to MUR 150K for AI investments, 5% tax credit for small biz equipment
Encourages tech adoption and productivity
REAL ESTATE & PROPERTY SECTOR
Measure
What’s Changing
Impact
Registration Duty (Non-Citizens)
Increased from 5% to 10%
Doubles acquisition cost for foreign buyers
Land Transfer Tax (Developers & Sellers)
Raised from 5% to 10%
Developers and non-citizen sellers pay significantly more
New Resale Tax for Non-Citizens
10% of resale value or 30% of capital gain, whichever is higher
Substantial reduction in profit margins
End of USD 500,000 Acquisition Scheme
Scheme allowing bare land/property acquisition by foreigners abolished
Keeps Mauritian property market separate from international
Smart City Scheme Changes
Incentives removed post-5 June 2025 except for public transport or regeneration
Developers lose VAT/customs/tax exemptions on new projects
Restrictions on Apartments on State Land
Non-citizens cannot buy/sell units in buildings on State Land with 2+ floors
Reduces investor access to key locations
PERSONAL INCOME TAX
Measure
What’s Changing
Impact
Revised Tax Bands
New simplified brackets: 0% up to MUR 500K, 10% above
More progressive for middle earners, higher tax for upper tiers
Fair Share Contribution (FSC)
15% additional tax on net income above MUR 12M
High-income earners now face up to 35% effective tax rate
Youth Tax Exemption
18–28-year-olds earning under MUR 1M get full exemption
Incentive for youth employment and entrepreneurship
Eliminated Deductions
No more deductions for donations, domestic workers, animal adoption, etc.
Parking VAT input disallowed unless used strictly for business
Tightens VAT credit claims
E-Invoicing Expansion
Required for companies above MUR 80M turnover
Prepares for full digital tax compliance
ADMIN & COMPLIANCE
Measure
What’s Changing
Impact
Tax Amnesty Schemes
Settle disputes or disclose undeclared income by March 2026
Full waiver of penalties and interest
Foreign Currency Tax Payments
Companies earning 50%+ in foreign currency must pay taxes in FX
Reduces rupee conversion pressure
Cap on Interest & Penalties
Capped at 100% of unpaid tax
Protects businesses from runaway interest accumulation
Filing Requirements
More streamlined timelines and limits on retrospective audits
Encourages better recordkeeping and compliance
SUSTAINABILITY & ENVIRONMENT
Measure
What’s Changing
Impact
Excise Duty on EVs
15%–25% depending on power
Makes EVs more expensive, despite green positioning
Green Rules for Construction
Mandatory energy efficiency in new buildings
Higher compliance costs for developers
Ban on Prime Agri Land Conversion
Stricter controls on land use changes
Protects food security, limits new morcellements
Plastic & Pollution Levies
Penalties for black smoke, noise, and non-recyclable packaging
Pushes green practices in transport and packaging
MUR 30B for Renewables
Solar and biomass energy investments
Long-term shift toward sustainable infrastructure
SOCIAL PROTECTION & PENSIONS
Measure
What’s Changing
Impact
Retirement Age Raised
Phased from 60 to 65 over 5 years
Reduces pension liabilities
Revamp of Pension Fund
Phasing out of CSG, revival of NPF
Shift to sustainable pension financing
Price Stabilization Fund
MUR 10B to combat inflation
Temporary relief amid rising living costs
Free Internet for Vulnerable Groups
For SRM families and youth aged 18–25
Promotes digital inclusion
Maternity & Pregnancy Allowance Phase-Out
Fully discontinued by 2027
Budget reallocation from short-term support to long-term welfare
MACROECONOMIC OUTLOOK
GDP Growth Forecast: 3.7% in 2025–2026
Public Debt: 88.3% of GDP (slightly lower)
Current Account Deficit: 5.9% of GDP
Targeted Budget Deficit: Reduced to 4.9% of GDP
FDI Concern: Property sector expected to see a decline in foreign capital due to new restrictions and taxes
Final Thoughts
The Mauritius Budget 2025–2026 sends a clear message: fiscal discipline, tax justice, and sustainability are now national priorities. While these changes are necessary to stabilize the economy, they also introduce significant headwinds for investors, businesses, and high-net-worth individuals, particularly in real estate and cross-border sectors.
As a trusted real estate and investment advisory firm, LIVERIA recommends all stakeholders monitor the Finance Act and consult with professionals to understand how these measures will impact their decisions moving forward.
