New budget 2024-2025 Mauritius

Dear Partners and Investors,

We are pleased to present the latest developments regarding the National Budget 2024/2025, a key financial plan to strengthen Mauritius’ resilience in the face of global challenges.
The Budget, conceived by Dr. the Honorable Renganaden Padayachy, Minister of Finance, Economic Planning and Development, builds on past successes and charts a course for a prosperous future.

Mauritius’ 2024-2025 budget brings significant reforms and initiatives to strengthen the economy and attract investment. Here are the six most important measures:

Promotion of Foreign Investment in Real Estate

Foreign entities can now hold real estate properties for industrial or commercial purposes via non-renewable leases for up to 30 years. This measure facilitates foreign investors’ access to the Mauritian real estate market and stimulates economic development.

Travail des Retraités Étrangers

Non-citizens holding a residence permit under the retirement category will be allowed to work without the need for an additional work permit. This encourages foreign retirees to settle in Mauritius and participate in the local economy.

Elimination of foreign worker quotas

Quotas on foreign workers in the manufacturing, jewelry, free port and ICT/BPO sectors will be abolished. This measure is aimed at attracting more foreign skills and filling labor shortages in these key sectors.

Sustainable Development Initiatives

Subdivision projects and initiatives under the Smart City Scheme and the Property Development Scheme must allocate at least 4% of the total surface area to the creation of green forests, composed mainly of endemic trees. This measure reinforces Mauritius’ commitment to sustainable development and environmental protection.

Tax incentives for home ownership

The Home Ownership Scheme and Home Loan Payment Scheme, which offer a refund of 5% of the amount paid or borrowed up to a maximum of MUR 500,000, have been extended until June 30, 2025. These incentives facilitate home ownership for Mauritians and stimulate the real estate market.

Extension of the Length of Stay for Foreign Workers

The maximum period of stay for foreign workers in certain sectors will be extended from 4 to 8 years. This extension will enable better retention of foreign talent and ensure greater stability in sectors requiring foreign expertise.

Key measures for real estate

Sustainable Development and Urban Planning

Morcellement projects: Any morcellement project planned on land of more than 5 arpents must allocate at least 4% of the total surface area to the creation of a green forest, mainly composed of endemic trees.

Smart City Scheme and Property Development Scheme (PDS): These projects will also have to comply with the 4% rule for green forests.

Minimum setback: A new subdivision project must have a minimum setback of 30 metres from the boundaries of existing settlements.

Strategic Environmental Assessment: Mandatory for projects on land larger than 10 arpents.

Tax and financial incentives

Home Ownership Scheme: Purchases of properties under the “vente en l’état futur d’achèvement” (VEFA) scheme will continue to benefit from a refund of 5% of the amount paid, up to a maximum of MUR 500,000, until June 30, 2025.

Home Loan Payment Scheme: Extended to June 30, 2025, offering repayment of 5% of the amount borrowed, up to a maximum of MUR 500,000.

Contribution for Smart Cities: Increase in the contribution per residential property or serviced plot of land from Rs 25,000 to Rs 100,000.

Foreign Investment Facilitation

Acquisition of Property by Foreign Entities: Foreign entities will be able to hold real estate property through a non-renewable lease for industrial or commercial use, for a maximum term of 30 years.

Work for retired foreigners: Non-citizens who have obtained a residence permit under the retirement category will be able to take up employment without an additional work permit.

Simplification of work permits

Elimination of Quotas: Quotas on foreign workers in the manufacturing, jewelry, free port and ICT/BPO sectors will be eliminated.

Simplified recruitment process: Simplifying the recruitment of agricultural workers under work permits.

Extension of length of stay: The maximum period of stay for foreign workers in certain sectors will be extended from 4 to 8 years.

These measures in the 2024-2025 budget demonstrate Mauritius’ commitment to fostering a stable, attractive and sustainable economic environment. They aim to stimulate investment, protect the environment, and strengthen the island’s competitiveness on the international scene.

If you have any questions or would like to explore real estate investment opportunities in Mauritius, please contact us. We are ready to assist you with a comprehensive and personalized service.