Key Takeaways
- Mauritius does not levy a recurring annual property tax, which affects how foreign owners and investors plan their holdings.
- Local authority rates form the main recurring charge on property, alongside a narrow campement site exception for certain owners.
- Liability and exemptions differ for owner-occupiers, residential and commercial property, so non-residents should confirm which charges apply to them.
- Outlook on a possible future recurring property tax is worth monitoring, as the current absence shapes the position for companies and foreign investors.
Introduction: Understanding Property Tax in Mauritius
Property tax in Mauritius works differently from what most foreign owners expect. There is no recurring national property tax on residential real estate, no annual wealth tax, and no capital gains tax on resale. Taxes administered by the Mauritius Revenue Authority operate on a self-assessment basis, and the MRA overview of administered taxes lists income tax, VAT, and land transaction duties, but no national property holding charge.
Two narrow recurring charges do exist outside that national list: local authority rates levied by municipal and district councils, and the campement site and campement taxes that apply to coastal land under the Land (Duties and Taxes) Act. This article explains what you pay to hold property as a foreign owner, who is liable, how the charges are assessed and billed, and what the absence of a property tax means for corporate structuring. It is most relevant to non-resident investors, expatriate buyers, and advisers weighing real estate acquisition or company-held property on the island.
Does Mauritius Levy a Recurring Property Tax? The Short Answer
No. There is no recurring national property tax on homes, and this holds equally for Mauritian citizens and foreign buyers. Unlike France, which charges an annual taxe foncière, the island imposes no comparable levy on owning residential real estate.
The wider tax position reinforces this. The country has no net wealth tax, no inheritance or estate duty, no gift tax, and no tax on capital gains.
There is one qualification worth stating early. Owners of immovable property within municipal (urban) areas pay an annual local "general rate" to fund municipal services, and coastal properties may attract a separate campement charge. Neither of these is a national property tax; both are limited in scope and are explained in the sections that follow.
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The Legal Basis for the Absence of an Annual Property Tax
The absence of a property tax is not an oversight or a temporary concession; it reflects how the system is built. The MRA administers tax on a self-assessment footing, and its published list of taxes covers income tax, VAT, customs and excise duty, and land transaction taxes only.
Where immovable property is taxed at all, the rules sit in the Land (Duties and Taxes) Act (Act 46 of 1984). That statute consolidates property-related levies into three: land transfer tax on transfer deeds, an annual campement site tax on coastal land, and a tax on the transfer of leasehold rights in State land. None of these is a general annual holding tax on ordinary residential property.
The Finance Act 2025 left this framework untouched. A capital gains tax floated during the 2025 Budget speech was not enacted, so the traditional regime remains free of taxes on capital gains, wealth, and property holding.
Local Authority Rates: The One Recurring Charge on Property
The one genuinely recurring charge most owners will meet is the local rate. Municipal and district councils are empowered to levy this on immovable property within their areas, and it funds services such as street lighting and refuse collection.
The charge is calculated as a percentage of the Net Annual Value (NAV) of the property, which broadly tracks rental value. Rates differ by council type, and exemptions can apply to new construction.
| Council type | Rate (% of annual rental value) | Notes |
|---|---|---|
| Municipal (urban) areas | 10–15% | Funds municipal services |
| District council areas | 6–8% | Lower than urban rates |
| New constructions | Exempt | Typically a two-year exemption |
For most owner-occupiers, these rates are the only annual property charge, and they are modest in absolute terms. The Local Government Act 2011 sets the timing: the rate is due on 1 July and payable in two equal instalments, the first by 31 July and the second by 31 January of the same financial year.
Where the local rate is not paid within the set periods, the owner pays a surcharge equal to 10% of the rate left outstanding.
The exact monetary amount per council is fixed by each council's own budget resolutions rather than by national rule, so the percentage ranges above are the working figures to plan around.
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The Campement Site / Campement Tax: A Narrow Exception Under the Land (Duties and Taxes) Act
Coastal land carries its own treatment. If you buy near the sea, two distinct charges may apply: one on the land itself and one on any building used for residential purposes.
The campement site tax applies to land situated wholly or partly within 81.21 metres of the high water mark and with access to the sea. Every owner of such a site pays an annual tax of between MUR 2 and MUR 6 per square metre, with the rate fixed by zoning.
The coast is divided into five zones for this purpose, and the applicable rate turns on the quality of the beach and the sea. The higher MUR 6 figure applies to the more desirable zones, the lower MUR 2 to the less.
The campement tax is the charge on the structure. It is levied at 0.5% of the open market value of the campement, payable by the owner, where a building, flat, or apartment on the site is used at any time for residential purposes.
Market value for this purpose is fixed for a three-year period running from 1 July, so the valuation does not reset annually. Both charges fall due on or before 31 July each year.
- Late payment of the campement site tax triggers a surcharge of 10% for the first month, then 2% for each subsequent month, capped at 50% of the tax.
Owners liable for campement tax must also file an annual declaration in the approved form by 31 July, unless they qualify as an exempt owner.
Who Is Liable and Who Is Exempt for These Recurring Charges
For local rates, liability attaches to immovable property within the council area. This covers land (other than agricultural land), flats and apartments held individually or jointly, and any building or part of a building actually occupied, even where construction is not finished.
Exemption categories under the Local Government Act are set by individual councils rather than published centrally, so the position varies by location. New constructions are the most commonly cited case, frequently attracting a two-year exemption.
For the campement charges, the person liable is the owner by acquisition, succession, donation, legacy, or prescription. Where no such person is identifiable, liability falls on the occupier, and the campement site tax may in practice be borne by a lessee, a proxy of the owner, or the occupier.
The Act exempts certain owners from campement tax, defined by reference to specific relationship categories such as an associate or partner in a société in proportion to their share. The full list sits in the statute and should be checked against your own holding structure.
On nationality, the distinction that matters most to a foreign buyer is that there is none. Mauritian citizens and foreign owners are treated identically: no recurring national property tax applies to either.
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How Property Owners Are Affected: Owner-Occupiers, Residential and Commercial
What you actually pay depends on the type of property and how you use it. For a typical owner-occupier, the annual cost is limited to modest municipal rates, with no national property tax layered on top.
Commercial property and short-term letting sit differently. Rental income is taxable at the standard income tax rate of 15% after allowable deductions such as mortgage interest, syndic fees, repairs, insurance, and agent fees.
For non-resident landlords, withholding tax applies to rental payments and is then reconciled in the annual return. This is income tax on rent, not a property tax, but it is the recurring cost most foreign landlords will track.
Owners of units in managed complexes also pay monthly syndic fees for the upkeep of common areas. These are private charges, not taxes, and they vary widely by standard of building.
| Property type | Monthly fee (per square metre) |
|---|---|
| Basic building | from MUR 5 |
| High-end complex (security, gym, pool, concierge) | MUR 25 or more |
Coastal properties carry the additional campement site tax and campement tax described earlier. Outside that coastal band, ownership generates no ongoing property-related liability beyond the applicable local rate.
What the Absence of Property Tax Means for Companies and Foreign Investors
For an investor, the headline is that holding and selling property generates very little recurring or exit tax. There is no property tax on ownership and no capital gains tax on resale, and assets held in the country attract no wealth tax, inheritance tax, or estate duty.
Corporate ownership introduces one structural point worth planning for. Where a company holds immovable property, transferring its shares (other than shares listed on the Stock Exchange of Mauritius or traded on the secondary market) can attract registration duty.
A further charge applies on such transfers. Land Transfer Tax of 5% is payable by the transferor on a share transfer in a property-owning company, calculated on the lower of the value of the shares or the property.
Foreign nationals can acquire real estate only through defined routes. Effective under the Finance Act 2025, eligible acquisition runs through the IRS, RES, PDS, Smart City Scheme, Invest Hotel Scheme, or qualifying Ground+2 programmes.
These EDB-approved schemes also open a residence path. A minimum investment of USD 375,000 confers eligibility for a residence permit, with registration duty set at 5% regardless of residency status.
For larger groups, one international rule deserves attention. A Qualified Domestic Minimum Top-up Tax brings the effective rate up to 15% for entities in multinational groups with consolidated turnover above EUR 750 million in at least two of the four preceding years, but real estate investment vehicles, investment funds, and insurance investment entities are excluded from its scope. The KPMG summary of Finance Act 2025 sets out these changes in detail.
Assessment, Billing and Payment of Local Property Charges
The two recurring charges follow separate administrative tracks. For local rates, the Local Government Act 2011 fixes the rate as due on 1 July, payable in two equal instalments by 31 July and 31 January, with a 10% surcharge on any amount left unpaid. The assessment base is the property's Net Annual Value.
The campement site tax runs through the Registrar-General. An authorised officer prepares a plan of the coastal zones and keeps a register recording each site and each declaration filed, and that register may be inspected during office hours.
Owners self-declare. Every owner of a campement site files a declaration in the approved form, and the tax is paid by 31 July each year, with the tiered late-payment surcharge described earlier.
If you disagree with a decision, there is a defined route. Written representations may be lodged with the Clerk to the Committee within 28 days of notification, under the Mauritius Revenue Authority Act.
Unpaid amounts can be enforced. After any objection is determined, the Registrar-General or authorised officer may recover the outstanding sum by attachment under the Attachment (Rates and Taxes) Act.
Outlook: Will Mauritius Introduce a Recurring Property Tax?
No draft legislation or official proposal for a recurring national property tax has surfaced. The capital gains tax raised in the 2025 Budget speech was dropped from the Finance Act 2025, alongside a mooted expansion of acquisition restrictions, leaving the traditional regime intact.
The Budget for 2026–2027 continued in the same direction, rewarding investment and tightening compliance without adding any property holding tax. The OECD classifies the country among its more virtuous on taxation, and the stated policy aim is to keep a simplified system aligned with international standards. The PwC tax summary tracks these property-related levies as they stand.
One caveat is honest to make. The outlook rests on the absence of any consultation paper or ministerial signal pointing toward a new property tax, rather than on a positive guarantee that one will never appear; investors should treat continuity as the working assumption while monitoring future Finance Acts.
Conclusion
Property held in Mauritius carries a lighter recurring cost burden than in most comparable jurisdictions, and for a non-resident business owner that gap is not incidental to planning, it is central to it. The practical question is therefore not whether the current position is favorable, but how confidently you can rely on it remaining so.
Before committing capital or structure, confirm which local authority charges and campement obligations attach to the specific property type you hold or intend to acquire, then build a monitoring step into your compliance calendar for any legislative signal on a future recurring tax.
How Expanship Can Help Your Business in Mauritius
Expanship supports foreign owners and companies on the practical side of property-related obligations, from registering for the relevant local and campement charges to keeping rental income filings accurate under the 15% income tax rules. The same team handles the broader requirements of running a foreign-owned entity, so structuring, registration, and ongoing filings sit in one place.
- Company formation and entity structuring for property and trading activity
- Registered agent and registered office services
- Tax registration with the MRA and preparation of annual returns
- Ongoing compliance management against statutory deadlines
- Accounting and bookkeeping, including rental income reconciliation
- Introductions to local banking partners
To discuss a property acquisition or company structure, contact Expanship Mauritius.
Frequently Asked Questions
No. There is no recurring national property tax on residential real estate, and this applies equally to Mauritian citizens and foreign owners. The only annual charge most owners face is a modest local rate set by the municipal or district council.
No. Nationality and residency make no difference to recurring property charges, since no national property tax applies to either group. Foreign buyers pay the same local rates and, where relevant, the same campement charges as local owners.
Local rates are an annual charge levied by municipal and district councils, calculated as a percentage of the property's Net Annual Value to fund services such as street lighting and refuse collection. Municipal areas typically charge 10–15% of annual rental value and district areas 6–8%, payable in two instalments due by 31 July and 31 January, with the exact amount fixed by each council.
The campement tax applies to coastal property used for residential purposes and is levied at 0.5% of the open market value of the building, payable annually by the owner. A separate campement site tax of MUR 2 to MUR 6 per square metre also applies to the land itself, with the rate depending on the coastal zone, and both fall due by 31 July.
No. There is no capital gains tax on the resale of property held in Mauritius. Where property is held through a company, however, transferring the shares can attract registration duty and a 5% Land Transfer Tax payable by the transferor on the lower of the share or property value.
Yes. Rental income is taxable at the standard income tax rate of 15% after allowable deductions such as mortgage interest, syndic fees, repairs, and insurance. For non-resident landlords, withholding tax applies to rental payments and is then reconciled through the annual return.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
