Buying a property in Mauritius and all the additional fees

Considering a property acquisition in Mauritius?

Be prepared for a collection of supplementary charges that extend beyond the mere purchase price. These transactional costs are an essential part of the financial landscape when securing real estate on the island.

Registration Duty (Transfer Tax):

This constitutes a substantial outlay, generally amounting to 5% of the property's purchase value. The onus of payment falls upon the buyer, with collection handled by the notary upon the execution of the sale agreement.

First-time Mauritian homebuyers might qualify for an exemption from the registration duty for properties valued up to a specific threshold. This typically applies to the initial MUR 5 million or MUR 6 million, contingent on the prevailing governmental program. To be eligible, the acquired property must serve as their principal dwelling, and they must not have previously held ownership of any residential real estate within Mauritius.

Notary Fees:

Furthermore, notaries might levy administrative fees and stamp duties, generally ranging from MUR 2,500 to MUR 10,000.

In Mauritius, notary fees are calculated using a graduated scale tied to the property's value, with an additional 15% VAT.

2% on the initial MUR 250,000
1.5% on the subsequent MUR 500,000
1% on the following MUR 1,000,000
0.5% on the remaining amount

Overall, notary fees can vary between 0.60% and 1.15% of the property price, including VAT.

 

Real Estate Agency Fees:

Typically, brokerage charges amount to 4% of the property's sale price, plus an additional 15% VAT, bringing the total to 4.6%. This cost is usually split evenly between the purchaser and the vendor, meaning the buyer's portion is 2.3% inclusive of VAT.

In uncommon scenarios, particularly with newly constructed properties, the developer might cover the agency's commission, thereby exempting the buyer from this fee.

For properties sold off-plan, the brokerage fees are frequently embedded within the overall sale price.

 

Other Potential Costs:

When securing a home loan, be prepared for various bank charges. These typically include processing fees, which range from 0.5% to 1% of the total loan sum, and valuation fees to assess the property's worth.

Home insurance is a wise investment, particularly for high-value residences or properties within developments featuring shared amenities.

For homes situated in apartment complexes or gated communities, Syndic (Homeowners Association or HOA) fees are levied monthly or quarterly. These charges cover the upkeep of communal areas like gardens, swimming pools, and security services, with the exact amount varying by development.

Home renovation
Average Construction Cost (structure & plastering): MUR 700 - MUR 1,000 per square foot.
Finishing Works (painting, openings, plumbing, electrical, tiling, etc.): MUR 1,200 - MUR 1,500 per square foot.
Simple renovation projects: Start around €200/m² (approx. MUR 9,800/m²).
More complex projects: Minimum €800/m² (approx. MUR 39,200/m²).

Rental Income Tax: Any rental income generated in Mauritius is subject to a 15% tax, regardless of tax residency.

 

E-mail: info@mauritiusproperty.org