The Mauritius Budget 2025–2026 proposes sweeping changes to the country’s real estate landscape. With a sharp focus on fiscal discipline, environmental sustainability, and regulating foreign property ownership, these measures signal a significant shift in how property is developed, sold, and owned in Mauritius.
Whether you’re a non-citizen looking to invest in Mauritian property, a developer planning a new Smart City or Property Development Scheme (PDS) project, or a local buyer exploring opportunities, it’s essential to understand how these reforms could affect the market. From higher registration duties to the phasing out of tax incentives and the introduction of green development standards, the government’s approach aims to build a more balanced, inclusive, and resilient real estate sector.
Please note that while these changes have been proposed in the budget speech, certain regulations still need to be passed through relevant authorities and formalized before coming into effect. Below, we’ve broken down the key proposed changes in a clear comparison table to help you stay informed and prepare for what’s ahead:
| Measure | Previous Practice | New Reform (2025–2026) | Reason for Change / Impact |
|---|---|---|---|
| Smart City Scheme Tax Incentives | Tax exemptions for Smart City projects (e.g., VAT, income tax) | Removed for all new projects after 5 June 2025 | Reduce fiscal costs, promote fairer investment models |
| Smart City Green Requirements | No green compliance obligations | New projects must include green features as per EDB | Promote sustainable development and eco-friendly planning |
| Registration Duty for Non-Citizens | 5% registration duty on property purchases | Increased to 10% | Ensure foreign buyers contribute fairly to government revenues |
| Resale Tax for Non-Citizens | 5% land transfer tax on property value | New tax of 10% of value or 30% of profit, whichever is higher | Discourage short-term speculation and stabilize the property market |
| Land Transfer Tax for Developers | 5% land transfer tax on sale of property | Increased to 10% | Raise government revenue and regulate developer margins |
| Property Purchases on State Land / Pas Géométriques | Permitted under certain schemes | Now prohibited for non-citizens in several cases | Protect public land and national interests |
| VAT Refund on Home Construction / Developer Purchases | VAT refund available up to Rs 500,000 | Terminating after 30 June 2025 | Reduce government spending, improve fiscal discipline |
| Green Space Requirement for Projects | Not mandatory | 4% of land (if >5 arpents) must be forested with endemic trees | Encourage biodiversity and quality of life |
| Setback Requirement for Morcellement Projects | Less defined setbacks | Minimum 30m setback from settlements required | Improve privacy, reduce congestion, preserve environment |
| Strategic Environmental Assessment (SEA) | Not always required | Mandatory for all Smart City, PDS, and morcellement projects >10 arpents | Ensure environmental oversight on large-scale developments |
| Residence & Occupation Permits (Validity) | 10-year permits for foreigners | Now 5 years for new applicants | Strengthen oversight, align with international norms |
| Residency Requirement for Retired Permit Holders | No clear minimum stay | Must reside in Mauritius minimum 180 days/year | Ensure genuine ties to Mauritius, prevent misuse |
Final Thoughts: What the Budget Means for the Future of Real Estate in Mauritius (Forecast)
The 2025–2026 budget marks a potential turning point in the real estate sector in Mauritius. By tightening regulations on non-citizen property ownership, increasing tax contributions from investors and developers, and introducing eco-conscious development rules, the government aims to realign the property market to prioritize long-term national interest over short-term gains.
While some of these reforms may raise entry costs or reduce speculative incentives, they are designed to promote transparent, high-quality investments and preserve the island’s natural and economic integrity.
As a buyer or investor, now more than ever, it’s important to work with a knowledgeable and licensed real estate partner like LIVERIA, who understands the evolving landscape and can help you navigate these new requirements confidently as they come into effect.
