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Mauritius' 2026–2027 National Budget was relatively calm from a property market perspective, with no sweeping reform of the sector. Even so, it introduced measures that will affect property, hospitality and construction over time, across transaction costs, land use, housing, infrastructure and sustainability.
The biggest unresolved issue is the proposed review of duties and taxes on residential transfers under EDB property schemes. The Budget confirmed a review is coming but gave no detail. Until the Finance Act is published, the market will not know whether the impact is limited or material.
Property and land
The expansion of registration duty relief for first-time buyers is one of the more positive measures. A first-time buyer of bare land will be exempt on the first Rs 3 million of the property value, up from Rs 2.5 million, while a buyer of a house or apartment will be exempt on the first Rs 6 million of the purchase price, up from Rs 5 million. Buyers who already own agricultural land, previously excluded, will now also qualify.
At the same time, the previously announced doubling of Registration Duty and Land Transfer Tax, due to take effect from 1 July 2026, was not reversed. That remains an important issue for the market, particularly if followed by further changes to EDB-linked schemes.
The Government also announced a significant change to the G+2 framework. It will no longer grant leases allowing apartments built on State land or Pas Géométriques to be sold, nor authorise the sale of those apartments to foreign buyers. Existing approved leases and apartments already held by owners are not affected. A 10% levy will apply to future sales, payable by the vendor, except where a notarial reservation contract has already been signed.
Morcellement and housing
The Morcellement Act will be amended to remove the Association Foncière and Green Forest requirements, while retaining the 2% green-space requirement for morcellements of more than 20 lots. The Integrated Modern Agricultural Morcellement Scheme will also be discontinued, signalling a tighter approach to agricultural land as a development route.
On housing, Government will partner with the private sector to deliver mixed-income projects on privately owned land, with units reserved at preferential rates for low- and middle-income families. The Budget allocates Rs 2 billion for off-site infrastructure under Phase One of the 8,000 social housing units project.
Residence and investment permits
Occupation Permit criteria will be reviewed and streamlined across the Investor, Professional and Self-employed categories. The ProPass and Expert Pass will merge into a single permit with a minimum monthly basic salary of Rs 50,000 across all sectors, and the Family Occupation Permit will be abolished. Foreign buyers and investors relying on permit pathways into Mauritius should monitor these changes closely.
Hospitality, construction and infrastructure
The hospitality sector faces a less generous tax regime. The annual capital expenditure allowance on hotels drops from 30% to 15%, and the 150% deduction for cleaning, renovation and embellishment works is removed from 1 July 2026.
A binding Green Building Code will be introduced for new construction, reinforcing a clear policy direction: sustainability and energy efficiency are now central to property development in Mauritius.
Key infrastructure commitments include Rs 2.7 billion for SSR International Airport modernisation, Rs 2 billion for the M4 Motorway, and the proposed USD 1 billion Island Container Terminal Project. A 41-arpent mixed-use development adjoining the Cruise Terminal is under consideration, alongside an 83-arpent Special Economic Zone at Côte d'Or for AI and advanced manufacturing.
PropertyCloud's view
Budget 2026–2027 is best read as incremental rather than transformative. It contains a meaningful mix of tax changes, land-use reforms and infrastructure commitments, but leaves several significant questions unanswered.
The Budget was silent on the IRS, RES, PDS and Smart City schemes, on property funds, and on the general rules governing acquisition by foreigners. For investors and developers active in those segments, that silence is itself worth noting.
For local buyers, the expansion of first-time buyer relief is welcome. For developers, investors and sellers, the bigger issue remains uncertainty around the EDB duty review and the fact that higher transaction costs are still very much in play.
Once the Finance Act is released, the market will have a clearer view of which measures are largely administrative and which will materially affect pricing, transaction volumes and buyer behaviour.
