Note: These measures have not yet been passed and will be discussed this month.
The Mauritius budget for 2025-2026, presented by Dr. Navinchandra Ramgoolam on June 5, 2025, at the National Assembly, introduces a dynamic and forward-thinking shift in the country’s real estate policy—one grounded in sustainability, long-term economic stability, and a fairer investment climate. Whether you are a local homebuyer, property developer, or international investor, this analysis, pulled from the budget speech, its annex, and some web insights, breaks down the key real estate changes that will reshape your approach to property in Mauritius.
The Big Picture
This budget’s all about rebuilding Mauritius’s economy while tackling tough financial challenges. Pre-budget talks highlighted goals like boosting growth, promoting green policies, and tightening the fiscal belt. For real estate, that translates to new rules aimed at greener and smarter urban developments, better long-term housing access for locals, more stable and ethical foreign investment, and stronger economic foundations. With public debt expected to hit 77% of GDP by June 2025, as Moody’s points out, these measures are also partly about bringing in more revenue through taxes.
Real estate changes: What’s happening?
The budget lays out several big shifts for the property market. Here’s a rundown of the main measures:
| Change | What it Means | How It hits |
| Smart City Scheme Evolution | No more tax breaks (like VAT or income tax exemptions) for new Smart City projects after June 5, 2025. Existing projects keep some perks, like VAT recovery. New ones must include green features set by the Economic Development Board (EDB). | Although it makes new Smart City projects less enticing, this move signals a strong pivot toward sustainable urban development. It ensures that urban expansion aligns with green development goals. Existing Smart Cities will still benefit from VAT recovery, allowing a smoother transition. |
| Fees for Non-Citizens | Non-citizens buying under EDB schemes or apartments now pay a 10% registration fee (up from 5%) on the property’s value. | These changes are designed to discourage short-term speculation and ensure that foreign investors contribute meaningfully to Mauritius’ economic development. |
| Resale Taxes for Non-Citizens | Non-citizens selling EDB properties or apartments get hit with a tax—either 10% of the property value or 30% of profits, whichever’s bigger. | Aimed at encouraging responsible and long-term foreign investment. This move allows more mindful resales by foreigners. |
| Promoters Adjustments | Developers selling under EDB schemes or apartments now owe 10% (up from 5%) land transfer tax on the property value. | Building more with a vision than developer profits, encouraging focus on higher quality, eco-friendly construction. Embracing strategic, long-term planning, and creating lasting value in real estate market. |
| New Rules for Non-Citizens | Non-citizens cannot buy certain apartments on State Land or Pas Géométriques anymore. The USD 500,000 high-value purchase scheme is scrapped, and post-registration approvals are gone. | These reforms reflect a policy direction focused on transparency, inclusivity, and fair land use. |
| End of VAT Refunds | VAT refunds for building homes or buying from developers stop on June 30, 2025. | This move brings greater budget discipline and clarity to fiscal planning, both for developers and buyers. |
These changes show Mauritius is getting serious about regulating property, especially for non-citizens and big projects like Smart Cities. Dropping perks like the 8-year income tax holiday for new Smart Cities signals a shift away from relying on foreign cash to drive development. Instead, the focus is on green standards, with new projects needing EDB approval for sustainability features.
Mauritius has introduced two new categories of Occupation Permits (OPs) tailored for non-citizen professionals. These permits target highly skilled individuals and come with updated salary requirements and eligibility conditions to attract top talent.
The eligibility period for non-citizen Residence Permits and Occupation Permits has been shortened from 10 years to 5 years. Additionally, holders of Retired Non-Citizen Residence Permits are now required to reside in Mauritius for at least 180 days per calendar year to maintain their permit status.
Why it matters for the economy
These real estate moves are part of a bigger plan to fix Mauritius’s finances. With debt at 77% of GDP and a deficit climbing, the government needs cash. Higher property taxes help, while discouraging speculative foreign buys. The push for green Smart Cities could also put Mauritius on the map as a sustainable real estate hub, aligning with global trends. But Moody’s negative outlook warns of economic bumps ahead, so these changes are a balancing act—trying to grow while keeping the budget in check.
Wrapping up
While the 2025-2026 Mauritius budget flips the script on real estate, with higher taxes, reduced perks, and more rules for non-citizens, Mauritius is entering a new era, one that balances growth with responsibility. Although, these measures may challenging with big implications for anyone in the real estate game, they open the door for sustainable growth, improved urban planning, and a more stable economic landscape. At Villa Vie, we are here to support you through these changes—with honesty, care and local expertise. Feel free to reach out with any questions or for tailored support.
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