Land transfer tax is an important seller-side cost in Mauritius property transactions and should be reviewed whenever residential property is transferred to a non-citizen. The standard rate is generally 5%, subject to any exemption or specific statutory provision that may apply.
The Finance Act 2026 repealed the broader 10% land transfer tax introduced under the Finance Act 2025 for certain transfers involving non-citizens. A separate 10% additional duty now applies in a narrower situation where residential property situated on State land or Pas Géométriques is transferred to a non-citizen under the relevant G+2 framework.
For buyers and sellers, the distinction matters because seller-side duties can influence pricing, negotiation, resale planning and the net proceeds from a transaction. For a broader view of foreign acquisition rules, approval steps and buyer-side costs, see our article on buying property in Mauritius as a foreign investor.
What changed under the Finance Act 2026
The Finance Act 2026 reversed the broader 10% land transfer tax regime introduced by the Finance Act 2025 for certain residential property transfers involving non-citizens.
The standard land transfer tax framework therefore continues to apply, while a separate 10% additional duty now targets a narrower category of transfers involving residential property situated on State land or Pas Géométriques and transferred to a non-citizen under the relevant G+2 framework.
The applicable treatment should be confirmed against the property’s legal status, acquisition route and transaction structure before the parties rely on any cost estimate.
Land transfer tax is a seller-side issue
Land transfer tax and registration duty are separate costs. Registration duty is generally payable by the buyer when the deed is registered, while land transfer tax is normally payable by the seller or other transferor.
The standard rates are generally 5% on each side, subject to applicable exemptions and specific statutory provisions. In addition, the Finance Act 2026 introduced a separate 10% seller-side additional duty for the narrower G+2 situation involving residential property on State land or Pas Géométriques transferred to a non-citizen.
Buyers and sellers should therefore review both sides of the transaction separately rather than treating acquisition and disposal costs as a single tax issue.
Which properties should be checked
The Finance Act refers to an EDB Property Scheme and to property acquired under section 3(3)(c)(v) of the Non-Citizens (Property Restriction) Act.
This is why labels used in marketing material should not be the only reference point. A property may be described commercially as foreign-buyer eligible, approved, part of a scheme, or a qualifying apartment. Those labels are useful, but they do not replace the legal classification of the asset.
Before a sale or resale, the notary and advisers should confirm:
the property’s original acquisition route;
whether the property falls within an EDB Property Scheme or the G+2 framework;
whether the property is situated on State land or Pas Géométriques;
whether the buyer is a non-citizen;
whether the transaction is a first sale or a resale;
whether any transitional provision applies.
This is particularly important where a property has already passed through a foreign-buyer acquisition route before being resold.
Why the resale history matters
Resale history can affect the tax review because the legal route through which the property was acquired may determine which rules apply to a later transfer.
For a non-citizen owner, resale planning should therefore include the applicable land transfer tax, any separate additional duty, transaction costs and the expected net proceeds. This is particularly important for G+2 property situated on State land or Pas Géométriques, where the targeted 10% additional duty may become relevant when the property is transferred to a non-citizen.
For buyers, the seller’s tax exposure can also influence negotiation and pricing, even where the duty is not payable by the buyer directly.
Why timing still matters
Timing still matters because transitional provisions can affect whether the new additional duty applies.
In particular, certain transfers made pursuant to qualifying presale agreements entered into before 19 June 2026 may fall within the transitional exception provided by the Finance Act 2026. The relevant dates and documents should therefore be confirmed with the notary before the parties rely on a tax estimate.
This is especially important for off-plan purchases, staged transactions and resales where contractual steps took place before the Finance Act 2026 was enacted.
Impact on pricing and negotiation
Seller-side taxes and duties can affect the way owners assess net proceeds from a sale.
Where the targeted 10% additional duty applies, the seller may face a materially higher transfer cost. Even where it does not apply, ordinary land transfer tax and other transaction costs should still be factored into the expected net proceeds.
For buyers, this can influence negotiation room and pricing expectations, particularly where two apparently similar properties have different legal histories or tax treatment.
This does not reduce the appeal of Mauritius property, but it does reinforce the need for both sides of the transaction to understand the full cost structure before agreeing terms.
What buyers and sellers should clarify
Before signing, the parties should obtain a clear position from the notary or relevant adviser.
The review should confirm:
whether the property falls within the relevant legal category;
whether the buyer is a non-citizen;
whether the property is situated on State land or Pas Géométriques;
whether the G+2 framework is relevant;
whether the transaction is a first sale or resale;
the land transfer tax applicable to the transferor;
whether any separate additional duty applies;
the base value used for the calculation;
whether movable items are valued separately in the deed;
whether any transitional exception applies.
This is not only a tax question. It is part of structuring a clean transaction.
Land transfer tax should be reviewed as part of the full transaction
Land transfer tax should be assessed alongside registration duty, notarial costs, financing, payment structure and the legal route through which the property is acquired.
The Finance Act 2026 has made it particularly important to distinguish the ordinary land transfer tax framework from the separate 10% additional duty that may apply to the targeted G+2 situation involving State land or Pas Géométriques.
For international buyers assessing Mauritius as a long-term property destination, our article on Mauritius property market for foreign investors provides wider context on market structure, premium locations and long-term positioning.
A Mauritius property transaction involving a non-citizen buyer should therefore be reviewed not only for eligibility and approval, but also for tax exposure on both sides of the transfer.
Clarifying transfer costs before a Mauritius transaction
A well-structured transaction begins with a clear understanding of the property’s legal route, buyer status, seller position and expected transfer costs. Before committing to a purchase or resale in Mauritius, buyers and sellers should confirm the applicable land transfer tax and whether any separate additional duty applies to the transaction.
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This article is provided for general guidance only. Land transfer tax, additional duties, registration duty, acquisition rules, resale conditions and regulatory interpretations may change. Buyers, sellers and property owners should verify the applicable position with their notary, legal adviser, tax adviser and the relevant Mauritian authorities before making a purchase or resale decision.
