Buying costs, taxes and retiring in Mauritius
Mauritius pairs a straightforward set of property purchase costs with one of the lighter personal tax regimes available to relocating buyers: no capital gains tax, no inheritance tax and income tax that tops out at 20% for most people.
Here is what you will actually pay when you buy, what the tax picture looks like once you live there, and how the 10-year retirement permit works for the over-50s.
One-off costs when you buy
The buyer pays registration duty at an effective rate of 5% of the purchase price. The seller normally pays land transfer tax at 5%, though PwC's Mauritius tax summary (reviewed March 2026) reports that from 1 July 2026 the land transfer tax rises to 10% where a non-citizen buys residential property under the EDB schemes or a qualifying apartment - in practice sellers may build this into asking prices. Sales of residential buildings are exempt from the 15% VAT.
On top of the taxes, budget for notarial and legal fees and, for scheme purchases, the EDB application process. Rates are set at each annual budget, so check the Mauritius Revenue Authority's current schedules before you sign.
Income tax once you live there
Mauritius taxes residents on a simple progressive scale. According to PwC's tax summary (reviewed June 2026), from 1 July 2025 the first MUR 500,000 of chargeable income is tax-free, the next MUR 500,000 is taxed at 10%, and the remainder at 20%.
High earners pay more: individuals with net income above MUR 12 million owe a Fair Share Contribution of 15% on the excess, a measure PwC notes applies through the 2027-28 tax year.
- First MUR 500,000: 0%
- Next MUR 500,000: 10%
- Above MUR 1 million: 20%
- Fair Share Contribution: 15% on net income above MUR 12 million
What Mauritius does not tax
Much of the island's appeal to relocating owners lies in the taxes that do not exist. PwC's Mauritius tax summaries confirm there is no capital gains tax, no inheritance, estate or gift tax, no net wealth tax and no recurring national property or land tax on individuals.
Employees do contribute to the social security system (the Contribution Sociale Generalisee, at 1.5% or 3% of salary depending on earnings, with employers paying more), but for retirees living on pensions or investment income the ongoing tax burden is modest by European standards.
Retiring: the 10-year permit for over-50s
Non-citizens aged 50 or over can apply for a residence permit as a retired non-citizen. The EDB residency portal requires evidence of either an initial transfer of at least US$24,000 or a guaranteed income of US$2,000 a month, paid into a local bank account. The permit runs for 10 years and is renewable on showing continued funds of US$24,000 a year.
After 5 consecutive years as a retired resident you become eligible to apply for a 20-year permanent residence permit. The application fee is US$1,000, and a spouse, parents and unmarried children can accompany you as dependents. Retirees can also buy property under the approved schemes, and a purchase of US$375,000 or more carries its own ownership-linked residence permit.
Rules change - verify before you commit
Mauritius adjusts tax rates and permit conditions at its annual budget, and the July 2026 land transfer tax change shows how quickly the arithmetic can move. Treat the figures here as a snapshot for mid-2026 and confirm current rules with the Mauritius Revenue Authority and the Economic Development Board.
When you are ready to look at actual homes and areas, Habio has Mauritius listings, area guides and buyer guides to explore alongside the official sources.
Frequently asked questions
Is there capital gains tax in Mauritius?
No. PwC's Mauritius tax summaries confirm there is no capital gains tax on individuals, and also no inheritance, estate, gift or net wealth taxes and no recurring national property tax.
How much income tax will I pay in Mauritius?
From 1 July 2025, the first MUR 500,000 of chargeable income is tax-free, the next MUR 500,000 is taxed at 10% and the rest at 20%. Net income above MUR 12 million attracts an extra 15% Fair Share Contribution.
What are the costs of buying property in Mauritius?
Buyers pay 5% registration duty plus notarial and legal fees. Sellers pay land transfer tax, rising from 5% to 10% from 1 July 2026 on sales of scheme property to non-citizens, according to PwC. Residential sales are VAT-exempt.
How do I retire to Mauritius?
If you are 50 or over, apply for the retired non-citizen residence permit: show an initial transfer of US$24,000 or guaranteed income of US$2,000 a month into a Mauritian bank account. The permit lasts 10 years, is renewable, and costs US$1,000 to apply for.
Does the Mauritius retirement permit lead to permanent residence?
Yes. After 5 consecutive years on the retired non-citizen permit you become eligible to apply for a 20-year permanent residence permit, according to the EDB residency portal.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.