{"id":331741,"date":"2026-09-23T18:09:57","date_gmt":"2026-09-23T14:09:57","guid":{"rendered":"https:\/\/real-estate-mauritius.mu\/?p=331741"},"modified":"2026-09-23T18:15:12","modified_gmt":"2026-09-23T14:15:12","slug":"selling-property-mauritius-foreigner","status":"publish","type":"post","link":"https:\/\/real-estate-mauritius.mu\/en\/selling-property-mauritius-foreigner\/","title":{"rendered":"Selling Property in Mauritius as a Foreigner: Tax, Residence Permit and Repatriation"},"content":{"rendered":"

A foreigner selling property in Mauritius pays a land transfer tax of 5% of the sale price, the same rate as any seller, and owes nothing on the capital gain, which Mauritius does not tax. What actually changes for a foreign seller: the residence permit tied to the original purchase ends with the sale, and the Economic Development Board (EDB) must receive 30 days’ written notice before signing.<\/p>\n

Who pays what on resale<\/h2>\n

Two charges apply to a resale in Mauritius, regardless of the seller’s nationality. The land transfer tax, set at 5% of the property’s value, is paid by the seller. Registration duty, at the same 5% rate, is paid by the buyer and is covered in our guide to registration duty and notary fees<\/a>. No tax applies to the capital gain a private individual realises, a point already covered in our article on a property owner’s taxes and charges<\/a>. Neither rule changes depending on whether the seller is Mauritian or foreign: the Land (Duties and Taxes) Act makes no such distinction for an ordinary resale.<\/p>\n

How the 5% land transfer tax is calculated<\/h2>\n

The tax is calculated on the property’s value excluding VAT, at the rate in force on the date the deed is registered. If the price declared in the deed looks understated, the Registrar-General can reassess the property at open market value and claim a penalty: 10% of the gap where it falls between 10% and 50% of the declared price, 25% beyond that.<\/p>\n

Why some sites still quote 10%<\/h2>\n

The Finance Act 2025 inserted a new rule: from 1 July 2026, a foreign seller reselling a residential property acquired under an EDB scheme (IRS, RES, PDS, Smart City, Invest Hotel) would owe a 10% land transfer tax instead of 5%. That increase never took effect: the Finance Act 2026 (Act No. 14 of 2026, assented to on 12 August 2026) repealed it before its start date. The standard 5% rate, paid by the seller, remains the rule for an ordinary resale. Registration duty on the buyer’s side went through the same reversal and is likewise back to 5%.<\/p>\n

The exception that survives: Pas G\u00e9om\u00e9triques and State land<\/h2>\n

A new exception, introduced by the same Finance Act 2026, targets one specific case: the sale to a foreigner of a residential property located on State land or on the Pas G\u00e9om\u00e9triques. There, the seller pays an additional 10% duty on top of the standard 5% land transfer tax, 15% in total. This does not apply to the great majority of freehold IRS, RES or PDS villas; it concerns projects built on a State lease, such as some of the leasehold arrangements described in our article on the Pas G\u00e9om\u00e9triques lease<\/a>. Sales already under way are protected: if a preliminary contract (a promise of sale or a VEFA reservation agreement) was signed before a notary before 19 June 2026, the additional duty does not apply.<\/p>\n

What happens to the residence permit<\/h2>\n

The residence permit obtained through the purchase of a property worth at least USD 375,000 remains valid, under the EDB’s own guidelines, for as long as its holder keeps the property under the scheme. Selling the property therefore ends it: the permit has no legal basis once the property is gone, and the same applies to the permit held by a spouse and dependent children attached to the same file. Our comparison of Mauritius residence permits<\/a> covers the other routes to residency, and our article on tax residency, the residence permit and citizenship<\/a> distinguishes three statuses that are often confused.<\/p>\n

The 30-day notice to the EDB<\/h2>\n

Before signing, the seller must send written notice to the Chief Executive Officer of the EDB, with a copy to the relevant IRS, RES or PDS company, at least 30 days before the sale. The property can be sold to a Mauritian citizen, another foreigner, a company, a soci\u00e9t\u00e9 or a trust meeting the usual conditions. The buyer, in turn, files a full application as a first-time purchaser would: a non-refundable fee of MUR 25,000, identity documents, and an attestation of a bank account opened for the payment. Our guide to buying an IRS, RES or PDS resale<\/a> covers this process from the buyer’s side.<\/p>\n

Undeveloped land cannot be resold before construction<\/h2>\n

A non-citizen who bought a serviced land plot in an IRS or PDS project to build on cannot resell it until construction of the residential property is complete. The same restriction applies to the residence permit: it is only issued once construction is finished. A stalled project or a rushed resale of the bare plot therefore falls outside the normal resale process and requires a separate agreement with the EDB.<\/p>\n

Repatriating the sale proceeds<\/h2>\n

Mauritius suspended exchange control in 1994, which, according to law firms specialising in Mauritian law, allows a foreign investor to repatriate capital, dividends and sale proceeds freely, without prior approval. The sale price passes through the notary’s account handling the deed, as with any property payment in Mauritius, before being transferred to the seller.<\/p>\n

Frequently asked questions<\/h2>\n

Does the spouse’s and children’s residence permit also end at resale?<\/h3>\n

Yes. The permit issued to a spouse and dependent children is attached to the same file as the main holder’s and ends under the same conditions.<\/p>\n

Can a Mauritian citizen buy the property being resold?<\/h3>\n

Yes, the sale can go to a Mauritian citizen, another foreigner, a company or a trust meeting the usual conditions; the EDB imposes no restriction based on the buyer’s nationality.<\/p>\n

Does the 10% land transfer tax announced for 2026 still apply?<\/h3>\n

No. It was repealed by the Finance Act 2026 before it was due to start on 1 July 2026. The rate remains 5%, except for the exception covering properties on State land or the Pas G\u00e9om\u00e9triques.<\/p>\n

Sources and verification<\/h2>\n