A guide on Understanding the legal and tax implications of buying property in Mauritius

Category: Buying a Property

When you buy property in Mauritius, it's important to know how taxes and the law will affect you. 

Here is a guide to the tax and legal issues that come up when you buy a home in Mauritius:

Foreigners are allowed to purchase property in Mauritius. However, there are a lot of rules and restrictions that must be adhered to. They include the need for a residency permit and the limitations on the amount of land that foreigners are allowed to own.

On the purchase of a property in Mauritius, a stamp duty of 3% is due. The value of the property as stated in the sale agreement or as determined by the government, is used to determine the duty.

Property Tax in Mauritius

Based on the value of the property, Mauritius requires property owners to pay a property tax. Depending on the location and value of the property, the tax rate may change.

Capital Gains Tax

In Mauritius, a capital gains tax is due when a property is sold. The gain from the property's sale is subject to a 15% tax rate. There are exceptions, though, and they only apply in limited circumstances.

Notary fees: When purchasing a property in Mauritius, notary fees will also be charged. The fees might change depending on the complexity of the transaction and are normally based on the property's valuation.

Registration fee

When registering the transfer of ownership of a property with the Land Registration Office, a registration fee is due.

Legal Advice

When purchasing real estate in Mauritius, it is crucial to acquire legal counsel, to understand the terms of the sale agreement and to make sure that all legal requirements are met.

Residence Permit

If a foreign national intends to remain in Mauritius, they must first get a residence permit. For individuals planning to stay in Mauritius for longer than 90 days, it is necessary.

It's important to have property insurance to avoid accidents and natural disasters..

Property management

Whether it's a property management business or a reliable local source who can take care of the property for you. It's crucial to have a strategy in place for managing the property when you're not using it. This will make it more likely that the home will be well-maintained and generate extra cash from rentals.

Buying property in Mauritius has legal and tax ramifications. Learn about foreign ownership rules, stamp duty, property tax, capital gains tax, and notary costs; the need for a resident permit; and insurance coverage. If you don't have a property management strategy, you may run into problems. Get legal counsel, understand the tax repercussions, and plan for the long-term maintenance of the property.

Send an email to office@propertyfinder.mu to reach the team so they can help you with your inquiry.

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Karen Thornalley

2023-01-10 11:27:00

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