Ambitious economic recovery: why this budget is the talk of the town
On June 5, 2025, the Mauritian government unveiled a budget geared towards responsible recovery and fiscal consolidation. Called “From Abyss to Prosperity”, this plan marks a strategic shift for the country. After years of sustained public spending, the emphasis is now on austerity, value creation and innovation.
But what does this mean in practice for investors, expatriates and property buyers? This article gives you the answers.
1. What are the main game-changing tax measures?
📌 Tax breaks for new real estate projects abolished
If you are considering buying a property in a Smart City or under a PDS, RES or IRS scheme launched after June 5, 2025, be aware that :
Exemptions from VAT, registration fees and import duties are abolished.
Projects already underway are not affected. That’s why it’s strategic to choose programs that are at an advanced stage or have been delivered.
💡 Good to know: this could lead to a slowdown in some projects no longer benefiting from these advantages, but reinforce the value of programs already approved.
📌 Registration fee increase for foreigners: 10% instead of 5%.
This measure applies to all property purchases by non-citizens, whether under the IRS, RES or PDS regimes.
👉 Direct impact: a higher acquisition cost, but this needs to be qualified:
The absence of wealth tax, property tax or capital gains tax remains a unique advantage in Mauritius.
Compared to other destinations such as Dubai, Portugal or France, Mauritius remains fiscally attractive.
2. Is it still worth investing in Mauritius after this budget?
Yes, but the investment profile is changing.
Instead of focusing solely on tax exemption or rapid capital gains, we now need to think in terms of :
project resilience (location, management, sustainability),
its alignment with government priorities (environment, inclusion, technology),
and actual long-term rental or residential demand.
To put it plainly: real estate in Mauritius is becoming more selective, but potentially more profitable for investors who adopt a strategic approach.
3. What new opportunities should we be keeping a close eye on?
🏡 Ecological and intelligent residences
The government is investing heavily in :
solar energy and sustainable networks (water, electricity, mobility),
the creation of a Green Future Fund to finance green projects,
technological innovation programs (AI, biotechnology, Smart Infrastructure).
Developers aligned along these lines will offer investors :
better value over time,
appropriate taxation,
and a differentiating positioning in a demanding high-end market.
🚧 Infrastructures: a lever for added value
Infrastructure development (M4 freeway, water projects, fiber optics, healthcare, public transport) will increase the attractiveness of certain regions:
Anahita, Cap Tamarin, Beau Plan, Moka and Rivière Noire could all benefit from these ripple effects.
4. What should you do if you plan to buy in 2025 or 2026?
Here are the 3 best practices to adopt now:
✅ 1. Identify projects already registered
Those launched before June 5, 2025 retain all their tax benefits. Westimmo can provide you with a targeted selection of eligible programs.
✅ 2. Compare total costs, not just the advertised price
Higher registration fees and the elimination of certain benefits can alter the final cost. A TCO (Total Cost of Ownership) analysis is crucial.
✅ 3. Surround yourself with professionals to ensure your success
The new rules increase legal and administrative complexity. Our role is to support you from A to Z, from tax validation to notarial signature.
5. Why call on Westimmo in this context?
We are a real estate agency specializing in prestige real estate in Mauritius, with a network of experts (notaries, tax specialists, certified developers). Our approach:
Rigorous selection of the most resilient properties,
Personalized tax analysis for each investor profile,
Customized support, including EDB and residence permit procedures.
Are you planning to buy a home or move to Mauritius?
Contact Westimmo today for personalized advice, aligned with the latest regulatory developments and the best market opportunities.
Other articles that may be of interest to you:
→ “Why invest in luxury real estate in Mauritius in 2025?”
→ “Which residence permit to choose in Mauritius?”
→ “Complete guide to buying property in Mauritius”
