Property Taxation in Mauritius for French Nationals: Understanding Local Taxes, Capital Gains, and the Tax Treaty

Published on June 9, 2026 and written by Cyril Jarnias

Acquiring property in Mauritius has become one of the preferred moves for French investors seeking sunshine… and tax relief. But behind the postcard image lies a precise legal and tax framework, governed by both Mauritian law and the double taxation treaty signed with France.

Good to know:

For French buyers, it is crucial to consider the taxes applicable to buying, renting, and reselling a property in Mauritius, as well as their impact on French taxation (IFI – real estate wealth tax, capital gains, inheritance). Recent Mauritian budget reforms, particularly those taking effect on July 1, 2026, are changing these rules.

This article provides a complete breakdown, in plain language, of real estate taxation in Mauritius for the French, based on the most recent data.

A Mauritian tax environment very different from France

Before diving into the details of registration duties, transfer taxes, or treaty rules, it is important to understand just how different the Mauritian framework is from the French system.

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In Mauritius, there is no wealth tax, no annual property tax, no occupancy tax, no capital gains tax on real estate, no local inheritance tax, and no gift tax.

In France, conversely, real estate is hit with successive layers of taxes: income tax on rental income, social security contributions, the real estate wealth tax (IFI), property tax, occupancy tax on second homes, capital gains tax on resale, inheritance tax, etc.

The following table illustrates the differences in major asset-based taxes related to real estate.

France–Mauritius tax treaty: the cornerstone for the French

For a French investor, not only Mauritian law matters, but also the double taxation treaty signed between France and Mauritius, which came into force in the early 1980s, was modernized in 2011, and adapted to OECD standards via the Multilateral Instrument (MLI).

This treaty has a dual objective: to avoid double taxation and to prevent abusive non-taxation (treaty shopping schemes). It specifies in particular where rental income, capital gains, and wealth are taxed, and how France must neutralize the tax already paid in Mauritius.

Determination of tax residence: a key issue

Article 4 of the treaty governs the concept of tax residence. It prevents the same person from being considered a resident of both countries simultaneously. In case of conflict (for example, a French person living part of the year in France and part in Mauritius), the treaty provides a series of successive “tie-breaker” criteria:

– existence of a permanent home;

– center of vital interests (family, main activity, place of business, etc.);

– country of habitual abode;

– nationality;

– failing that, mutual agreement between tax authorities.

Attention:

To benefit from the tax treaty, the Mauritian side must provide a residence certificate from the Mauritius Revenue Authority, while France requires real substance in Mauritius (offices, local presence, effective management); a simple mailbox is not sufficient.

Rental income: taxed in Mauritius, declared in France

Article 6 of the treaty is unambiguous: income from real estate is taxable in the state where the property is located. In practice, an apartment or villa in Mauritius generates rental income taxable in Mauritius, even if the owner is a French tax resident.

But this advantage does not exempt one from French formalities entirely: the income must still be declared in the French tax return. The treaty then provides a mechanism for eliminating double taxation, generally in the form of a tax credit or an exemption with progression (taking the income into account for the effective rate).

In practical terms, this means that a French owner of a property in Mauritius:

– pays tax on rental income in Mauritius;

– declares this rental income in France;

– receives a tax credit equal to the Mauritian tax, capped at the corresponding French tax, thereby avoiding double taxation.

Real estate wealth (IFI): Mauritian assets outside French radar

The treaty plays a decisive role for the real estate wealth tax (IFI). The article dealing with “wealth” stipulates that real estate assets are taxable in the state where they are located. However, Mauritius has no wealth tax.

Example:

A property located in Mauritius owned by a French resident is not subject to IFI in France, because France cannot tax this property through that tax, according to the treaty analysis.

Conversely, as long as a taxpayer remains domiciled in France, all of their real estate assets located in France (and, in the absence of an adapted treaty, in other countries) continue to fall within the scope of IFI. Investing in Mauritius therefore allows for diversification and reduction of IFI exposure, without eliminating taxation on French real estate.

Capital gains on property in Mauritius: 0% in Mauritius and not taxable in France

The absence of tax on real estate capital gains in Mauritius is a major advantage confirmed by the Finance Act 2025: the taxation mentioned in the budget speech (10% of the price or 30% of the gain) was ultimately not adopted.

Good to know:

The resale of a property in Mauritius is not subject to local capital gains tax, except in the case of a property dealer activity. Moreover, under the Franco-Mauritian treaty, a French tax resident pays neither tax nor social contributions (CSG/CRDS) in France on this gain.

In other words, the entire gross gain from the resale stays in the investor’s pocket.

The contrast with France is striking: on a real estate sale in France, a French resident can face up to 19% tax + 17.2% social contributions, not counting an additional surcharge of 2% to 6% for gains exceeding €50,000, i.e., an overall rate that can exceed 30%.

Inheritance tax: treaty silent, French law lurking

Important point: the France–Mauritius tax treaty does not specifically address inheritance tax. In practice:

– Mauritius imposes no inheritance tax, regardless of the heirs’ status;

– France remains free to apply its inheritance tax on the worldwide estate of a French resident.

Thus, a French person still tax resident in France but owning a property in Mauritius will have that property included in the base for French inheritance tax upon death, unless both they and their direct heirs have become Mauritian residents. In the latter case, assets located in Mauritius escape French inheritance tax, with only French assets remaining taxable in France.

Local taxes and ongoing holding costs: a near‑void in Mauritius

For a French person accustomed to juggling property tax, occupancy tax, local levies, and IFI, the ongoing Mauritian tax on real estate can be surprising.

No property tax, no occupancy tax, no wealth tax

The 2025–2026 budget confirmed in black and white that no annual property tax is planned, either for Mauritian citizens or non-residents. There is also no local wealth tax (ISF/IFI), nor local inheritance or gift taxes.

The table below summarizes the situation:

In practice, once the property is purchased, the only significant recurring tax cost related to ownership will be tax on rental income, if the property is rented out.

Rental income: Mauritian taxation but moderate rates

Until 2023, Mauritius largely operated with a flat rate of 15% on many types of income, including rent. Since July 1, 2023, the country moved to a progressive scale for individuals, with several brackets ranging from 0% to 20%. According to updated sources, the scale for individuals can be presented in simplified form:

– 0% up to a first threshold (around MUR 390,000 to 500,000 depending on the version);

– 10% on an intermediate bracket;

– 20% above a certain income level.

Tip:

Rental income received as an individual is taxed according to a specific scale. You can deduct expenses directly related to the rental (maintenance, management, loan interest, etc.), which significantly reduces your taxable base.

For companies, the rate remains 15% on profits, including when they receive rental income. As for non-residents receiving rental income from Mauritian sources, they are in practice taxed at rates close to 15%, sometimes with withholding tax if the payer is an entity other than an individual.

Worked example of rental income for a French person

Imagine a French person investing in Mauritius and receiving the equivalent of €100,000 in annual rent (after deductible expenses) through a structure or as income taxed at a flat 15% in Mauritius.

In France, the same rental income could be taxed up to 45% in income tax, plus 17.2% in social contributions, i.e., an overall rate that can exceed 60% for high incomes. In Mauritius, even with recent moves toward more progressivity and the Fair Share Contribution mechanism at 15% for very high incomes above MUR 12 million, the levels remain significantly lower.

Remittance basis: the hidden advantage for Mauritian residents

Another Mauritian peculiarity: residents are taxable on their Mauritian-source income and on their foreign income only to the extent that the latter is “remitted” to Mauritius, i.e., brought into the country.

Good to know:

A Mauritian tax resident is not taxed in Mauritius on dividends, interest, or other income that they keep abroad without transferring it to the island. This “remittance basis” rule offers tax optimization for French people who become Mauritian residents, provided they manage their international financial flows correctly.

Taxation of real estate transactions: buying and selling in Mauritius

While holding is very lightly taxed, the transaction itself – both purchase and resale – is subject to specific duties: registration duty on the buyer side and Land Transfer Tax (LTT) on the seller side. These taxes are at the heart of recent reforms that clearly target non-citizens, i.e., the foreign clientele.

Key principles: Registration duty and Land Transfer Tax

In most cases, for a property in Mauritius:

– Registration duty is paid by the buyer;

– Land Transfer Tax is paid by the seller.

Both are applied to the value of the property (market value or sale price, whichever is higher), excluding VAT where applicable. However, there are exceptions and exemptions, notably for transfers by inheritance or contributions to trusts.

Until the adoption of the Finance Act 2025, the standard rate was 5% for each of these taxes, including for foreigners buying through programs approved by the Economic Development Board (EDB). It is this framework that changes profoundly for non-citizens as of July 1, 2026.

EDB schemes: the only entry points for foreigners

A French person cannot buy just any plot or house in Mauritius. Unless an exceptional derogation is granted by the Prime Minister, real estate acquisition by a foreigner is done through specific schemes, approved by the EDB:

Investment schemes in Mauritius

Overview of the various land and real estate regimes available to investors

IRS (Integrated Resort Scheme)

Large estates with luxury villas and hotel services

RES (Real Estate Scheme)

Smaller projects than IRS but also high-end

PDS (Property Development Scheme)

Current flagship scheme for integrated residential and tourism projects

SCS (Smart City Scheme)

New towns integrating housing, activities, services, offices

IHS (Invest Hotel Scheme)

Hotel units sold as freehold or under enjoyment rights

Ground+2 / R+2

Apartments in buildings of at least two floors above the ground floor, with a minimum price of MUR 6 million

At one point, an opening was made to allow foreigners holding a residence permit to buy properties outside these schemes for a minimum value of USD 500,000. This possibility, introduced in late 2023, was removed by the Finance Act 2025. Now, only EDB schemes and Ground+2 apartments legally allow a non-citizen to acquire a residential property.

Registration duty: 5% today, 10% after July 1, 2026

For non-citizens buying a residential property under IRS, RES, PDS, SCS, IHS, or Ground+2, the registration duty will double:

– before July 1, 2026: 5% of the property value;

– from July 1, 2026: 10% for deeds registered from that date.

Essential point: it is the date of registration of the notarial deed that matters, not the date of signing the promise or reservation contract. A promise signed in 2025 will not prevent the application of the 10% rate if the final deed is registered after July 1, 2026.

The government clearly intends to make foreigners contribute more, while leaving a “window of opportunity”: any deed registered before this date remains subject to the 5% rate, which can represent substantial savings.

On a property worth USD 500,000, the difference is concrete:

A French investor who signs and registers their deed before this deadline therefore saves 5% of the purchase price, i.e., USD 25,000 in this example.

Good to know:

When a deed covers both real estate and movable property (furniture, equipment) without a breakdown of value, the 10% rate applies to the total amount.

Land Transfer Tax: increase to 10% and gain-linked mechanism

On the seller side, the Land Transfer Tax (LTT) follows the same upward trajectory for transactions involving a non-citizen buyer:

– before July 1, 2026: rate of 5% on the property value;

– from July 1, 2026: rate increased to 10%.

Mauritian law had, at one point, considered a more sophisticated mechanism for non-citizens, based on whichever is more advantageous for the tax authority between:

– 10% of the sale price;

– 30% of the realized gain.

This formula was widely discussed but was not definitively enacted in the Finance Act 2025 as adopted. Several sources confirm that the country ultimately abandoned the idea of introducing a capital gains tax as such, preferring to remain with a 0% capital gains regime for real estate, with an LTT set at 10% for certain non-resident or developer transactions.

In any case, keep one principle in mind: the LTT is legally the seller’s responsibility, but in off-plan sales or developer sales, it is often included in the listed price. In practice, the buyer therefore indirectly pays this tax.

Exemptions: inheritance and trusts

Two major situations escape the combination of registration duty / Land Transfer Tax:

Good to know:

The registration of inheritance transfers of Mauritian real estate is exempt from registration duty and LTT, consistent with the absence of local inheritance tax. Moreover, contributions to trusts may also benefit from exemptions from these same duties, subject to conditions.

For a French person concerned with planning the transfer of their Mauritian assets, these rules open the way to secure estate planning, provided of course that Mauritian law, the tax treaty, and French civil and tax law are correctly combined.

Ancillary costs: notary, agency, administrative fees

Beyond the taxes themselves, buying real estate in Mauritius involves a number of additional costs.

Notary fees are regulated and follow a degressive scale, for example:

– 2% on the first MUR 250,000;

– 1.5% on the next bracket;

– 1% then 0.5% above certain thresholds.

In practice, for IRS, RES, PDS, or Smart City schemes, notaries often apply a simplified flat fee of around 1% of the price, plus 15% VAT. Fixed administrative fees (e.g., MUR 25,000 on a PDS or Smart City, MUR 10,000 for a Ground+2 apartment) are sometimes added.

Agency commissions are capped at 4% of the price, plus 15% VAT, i.e., 4.6% total. They are generally payable by the seller, but in practice may be shared.

Adding up registration duty, the indirect share of LTT, notary fees, agency fees, and small bank charges, a foreign buyer often ends up with total acquisition costs ranging from 6% to 12% of the price, with 7–12% being common for a PDS villa worth USD 500,000.

Resident status and interaction with France: tax residence, IFI, and exit tax

The advantages described can only be fully exploited if the tax residence strategy is well understood.

Becoming a Mauritian resident through real estate

One of the main attractions of EDB schemes for the French is the possibility of obtaining a residence permit by investing a minimum amount in real estate:

– threshold of USD 375,000 in an eligible project (PDS, IRS, RES, Smart City, certain IHS or Ground+2 under conditions);

– the permit covers the investor, their spouse, and dependent children;

– as long as the property is kept, the right of residence is maintained.

Good to know:

Recently, conditions for the “retired non-citizen” permit have been tightened: initial transfer of USD 2,000 within 60 days, foreign income of at least USD 24,000 per year (or €2,000 monthly transferred to Mauritius), minimum stay of 180 days per year, prohibition on local employment, and dependent children limited to age 24.

Access to permanent residence has also been extended: it can no longer be applied for after 3 years, but after 5 years of regular residence, with stricter criteria on income, turnover, or investments.

Effects on the French side: IFI, capital gains, and income

A French person who becomes a Mauritian tax resident and ceases to be a French tax resident will see several major changes:

Tip:

Properties located in Mauritius are excluded from the IFI base thanks to the treaty. Capital gains from real estate in Mauritius are taxed neither in Mauritius (0%) nor in France under the treaty. Mauritian rental income is taxed locally according to the Mauritian scale, with a tax credit or elimination of double taxation when declared in France if tax residence remains French.

Conversely, French-source assets and income (real estate in France, French rental income, dividends from French companies, etc.) continue to fall under French tax law, including:

– income tax;

– social contributions of 17.2% on investment income;

– IFI on French real estate assets above €1.3M.

Finally, for certain taxpayers leaving France with significant financial assets, the exit tax may apply: for securities exceeding €800,000 or representing more than 50% of a company’s profits, a theoretical tax of 30% (12.8% income tax + 17.2% social contributions) on unrealized capital gains may be due, with the possibility of a deferral and extinction of the debt after several years.

Strategies and points of caution for a French investor

The stacking of Mauritian and French rules creates opportunities, but also requires discipline and good advance planning.

Take advantage of the window before July 1, 2026

For a French person considering an investment under PDS, IRS, RES, Smart City, IHS, or Ground+2, the planned increase in registration duty and Land Transfer Tax is a very strong time indicator:

– deed registered before July 1, 2026: registration duty at 5% (and LTT at 5% in most cases);

– deed registered after: 10%.

On a budget of USD 500,000, the immediate saving of USD 25,000 is far from trivial. Therefore, one must account for construction timelines, marketing, financing arrangements, and notarial procedures to secure a signature before the switch.

Choose the right holding structure

A French person can hold their property in Mauritius:

– directly, in their own name;

– through a Mauritian company;

– through a trust or a more sophisticated estate planning vehicle.

Each configuration has consequences in terms of: tax rate on rental income (individual progressive scale vs. 15% corporate flat rate); ability to benefit from the remittance basis on foreign flows; application of tax treaties for dividends or capital gains on shares; and inheritance treatment, in interaction with the French Civil Code and the French General Tax Code.

Research data also shows that, regarding the treaty, the French and Mauritian authorities are increasingly attentive to the beneficial owner and real substance. Purely artificial shell structures are clearly in the crosshairs.

Plan for transmission: inheritance and IFI

For someone who remains a French tax resident, a property in Mauritius:

– will not be taken into account for IFI (thanks to the treaty);

– but will be likely to be included in the base for French inheritance tax.

To reduce this impact, several avenues exist:

Attention:

To optimize taxation, one must become a Mauritian resident along with one’s direct heirs, leaving only French assets in France, and use trusts or Mauritian companies while respecting French rules on trusts and real estate held through intermediate structures.

French case law regularly reminds us that the tax authorities can “look through” certain structures to tax the underlying real estate value. A serious, well-documented structure aligned with the actual use of the property is therefore essential.

Distinguish between investment and property dealer activity

Finally, one must ensure they stay within the framework of a capital asset investment. In Mauritius, if the administration considers the activity to be commercial in nature – for example, a series of frequent sales with evident speculative intent – the gains may be reclassified as business profits and subject to income tax, rather than under a capital gains regime (which is anyway at 0%).

In other words, the tax haven for real estate capital gains is not designed for a disguised professional property dealer activity.

Conclusion: a very attractive framework, but one to handle methodically

For a French person, real estate taxation in Mauritius presents a rare combination: no capital gains tax, no recurring taxes on holding (no property tax, no local IFI, no inheritance tax), moderate taxation of rental income, a remittance basis for foreign income, and a very favorable tax treaty with France regarding IFI and real estate capital gains.

The recent increases in registration duty and Land Transfer Tax from July 1, 2026, do not undermine this attractiveness, but they clearly raise the entry and exit cost for non-citizens. They reinforce the value of a well-timed schedule for acquisitions under consideration.

However, this environment must never be assessed in isolation. Any asset strategy must articulate:

– Mauritian law (residence permit, local tax scales, property transfer rules);

– the France–Mauritius double taxation treaty (IFI, real estate income, capital gains);

– French tax law (exit tax, IFI on French real estate, inheritance tax, possible reclassification of structures).

Used properly, this framework allows a French investor to place a significant portion of their real estate assets in a tax-stable jurisdiction, with no capital gains tax, while enjoying solid treaty protection vis-à-vis France. Provided one plans ahead, documents their tax residence, and secures the legal holding structures, Mauritius remains one of the most powerful destinations in the world for sustainably optimizing the taxation of international real estate.

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Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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