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When you embark on a real estate process, whether it is a holiday rental, a long-term rental, or the purchase or sale of a property, it is essential to be informed of the additional costs that may be incurred and added to your main financial commitment. In this article, we’ll look at the different fees that can be incurred during a real estate transaction and how these are calculated.
What are the additional costs involved in a real estate transaction in Mauritius?
Property transaction fees in Mauritius can vary depending on a number of factors, including the nature of the transaction, the value of the property, and the specific circumstances of the sale. As an integral part of any real estate transaction, it’s essential to understand them as well as possible so as not to be surprised.
These fees are usually calculated as a percentage of the cost of selling or renting the property. It should be noted that agency fees are payable by both parties: the tenant/buyer and the property owner. Here are some of the common additional fees that may apply:
- Government registration fees: you will need to pay a registration fee to register the property transaction with the relevant authorities. These fees are calculated as a percentage of the transaction value.
- Notary fees: you’ll need to hire a notary to manage the real estate transaction. These fees are also calculated as a percentage of the transaction value + VAT.
- Agency fees: if you use an estate agent to buy or sell your property, you’ll have to pay a commission based on the sale price. Our fees are based on standard market practice in Mauritius. Agency fees amount to 2% of the property price + VAT.
How do additional fees work?
| Holiday rental | Medium-term rental (contract of less than one year) | Long-term rental (contracts of more than one year) | Local sales | Foreign sales | |
| Renter/ Buyer | Agency fees included in price | 10% of total rental amount + VAT | One month’s rent + VAT | 5% government registration fee 2% + VAT agency fees 1% + VAT notary fees | 5% government registration fee 2% + VAT agency fees 1% + VAT notary fees MUR 25,000 EDB fee |
| Owner | Approx. 25% agency fee | 10% of total rental amount + VAT | One month’s rent + VAT | 5% government transfer tax 2% + VAT agency fee | 5% government transfer tax 2% + VAT agency fee |
When buying off-plan, agency fees are included in the purchase price of the property.
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