The revised Finance Bill 2026 clearly proposes the complete removal of the restrictive provisions that had initially raised concerns among foreign property buyers.
Registration Duty:
The Bill repeals Section 3(1G) and Paragraph K of the First Schedule, effectively eliminating the proposed doubling of the registration duty rate for non-citizens.
Land Transfer Tax:
Section 4(9) of the Land (Duties and Taxes) Act is also repealed, removing the special tax that would have applied to resale transactions involving non-resident owners.
In practical terms:
If the Bill is passed in its current form, the proposed increase to a 10% registration duty will no longer apply. Property purchases under approved schemes such as PDS, Smart City, IRS, RES, and IHS will continue to benefit from a much clearer and more attractive tax framework.
While the revised Bill removes the general increase, it introduces a more targeted measure.
The new measure:
An additional 10% duty will apply to the transfer of residential properties located on State Land or Pas Géométriques, under the Non-Citizens (Property Restriction) Act.
Who pays this tax?
This is a key point for investors: the additional duty is payable by the seller (transferor), not by the foreign purchaser.
Protection for existing transactions:
To safeguard ongoing transactions, this additional duty will not apply where an off-plan reservation agreement (VEFA) or a promise of sale was notarized before 19 June 2026.
Thanks to these legislative changes, buyers of luxury villas and apartments in Mauritius avoid the significant increase in acquisition costs that had originally been anticipated.
Example: Purchasing a PDS villa for USD 500,000
Instead of facing an additional USD 25,000 to USD 50,000 in registration fees, buyers can continue to purchase under the existing tax framework, subject to the final adoption of the Bill.
Mauritius also continues to offer several key advantages for international investors, including:
Understanding the implications of the Finance Bill, EDB-approved property schemes, and the distinction between freehold properties and State Land requires in-depth local expertise.
As an independent real estate agency with over 40 years of experience in Mauritius, Villa Vie helps protect your investment by providing:
Legal guidance
We verify the property’s eligibility, ownership structure, and the necessary EDB approvals before you commit.
Trusted network of notaries
We work with experienced notarial offices to provide a clear breakdown of your acquisition costs, taxes, payment schedule, and legal procedures.
Tailor-made support
From selecting your beachfront villa in Grand Baie or a luxury property on the West Coast to assisting with your relocation, we guide you through every stage of your investment.
The revised Finance Bill 2026 explicitly proposes repealing the legal provisions that introduced this increase. If the amendments are adopted, the current tax framework will remain in place for approved property schemes.
The additional 10% duty applies to the seller, not the foreign purchaser. It only concerns residential properties situated on State Land or Pas Géométriques.
Yes. The Bill includes grandfathering provisions. Reservation agreements (VEFA) and promises of sale notarized before 19 June 2026 are exempt from the new additional duty.
Don’t let regulatory changes delay your property investment plans. Contact Team Villa Vie today for personalized advice and gain access to our exclusive portfolio of premium properties across Mauritius.
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