Fees and taxes when buying real estate in Mauritius

In a tropical paradise like Mauritius, purchasing real estate represents a fantastic investment opportunity. However, it's crucial to understand the various fees and taxes that accompany such a decision. This article guides you through the different expenses you should expect.

Legal fees

Legal fees mainly consist of the notary's fees, which are essential for drafting and validating legal documents. These fees may vary based on the property price, but they are generally set by law. It's essential to budget for this cost upfront to avoid surprises. In general, notary fees are 2% up to 250,000 Rs, 1.5% on the next 500,000 Rs, 1% on the following 1,000,000 Rs, and finally 0.5% on the balance of the price, beyond 1,750,000 Rs.

Registration duty

Registration duty is a tax levied by the Mauritian government when property ownership is transferred. The amount of this duty depends on the value of the property acquired. Understanding its calculation mechanism will help you effectively plan your investment. The Economic Development Board (EDB) application fees amount to 10,000 Rs

Property tax

Property tax is an annual tax based on the cadastral rental value of the property. It is payable by every property owner and must be considered when evaluating the annual costs associated with the property.

Bank transaction fees

Real estate transactions involving foreign currencies can incur additional fees, such as conversion and transfer fees. It is advisable to consult your bank to get an accurate estimate of these fees before proceeding with the purchase.

Real estate agency fees

If you go through an agency, the agency fees generally amount to 2% of the sale price + VAT, payable on the day of signing the deed of sale at the notary's office.

Possible exemptions and reductions

Under certain conditions, it is possible to benefit from exemptions or reductions on some taxes and fees. For example, first-time buyers or investments in specific projects may benefit from favorable conditions.

Understanding the fees and taxes related to buying real estate in Mauritius is essential for successful financial planning. Take the time to inform yourself and consult experts to optimize your investment.