Buying Smart City property in Mauritius after the 2025–26 Budget changes
What buyers should check before purchasing Smart City property in Mauritius after the Budget changes.
Updated August 2026
Smart City property in Mauritius remains a regulated route for buyers seeking a home or investment within a planned, mixed-use environment. The 2025–26 Budget and Finance Act 2025 introduced important changes affecting Smart City projects and foreign buyers, but the tax position changed again with the Finance Act 2026.
The broader 10% registration duty introduced for certain transfers to non-citizens from 1 July 2026 has now been repealed. Under the current general framework, registration duty is generally 5% on the buyer side, subject to exemptions and specific statutory provisions.
Buyers should therefore focus on the current tax treatment, project status, eligibility, payment requirements and total acquisition cost before committing.
What has changed for Smart City buyers
The Finance Act 2025 had introduced a 10% registration duty for relevant transfers to non-citizens under approved EDB property schemes, including the Smart City Scheme, from 1 July 2026.
The Finance Act 2026 subsequently repealed that broader buyer-side regime.
Under the current general framework, registration duty is generally 5% on the buyer side, subject to exemptions and specific provisions applicable to the transaction.
The 1 July 2026 date remains relevant when explaining the historical Finance Act 2025 measure, but it should no longer be presented as the start of a continuing general 10% registration duty for Smart City buyers.
The Finance Act 2025 also changed the fiscal incentive framework for Smart City projects. The date of 5 June 2025 remains important when assessing whether earlier Smart City incentives were preserved for a particular project. Buyers should therefore verify the project’s Smart City status, certification history and approval pathway rather than assume that every Smart City development benefits from the same incentives.
For a wider overview of the measures originally introduced in 2025, see our article on Mauritius Budget 2025 for foreign buyers.
Why transaction timing still matters
A Smart City purchase may take several months from reservation to completion. During that period, the buyer may complete due diligence, obtain approval, transfer funds and sign preliminary documents.
The repeal of the broader 10% regime means that buyers should no longer base current budgeting solely on whether a deed is registered before or after 1 July 2026.
Timing still matters, however, because the transaction may span different contractual, regulatory and payment stages.
Before proceeding, buyers should ask the notary or adviser to confirm:
the expected deed and registration timeline;
the registration duty applicable to the transaction;
whether the property falls within an approved Smart City acquisition route;
whether the buyer satisfies the requirements applicable to a non-citizen;
whether any earlier cost estimate needs to be updated.
For buyers working within a fixed budget, an up-to-date transaction estimate remains essential.
What buyers should verify before signing
The Smart City label does not remove the need for project-specific due diligence. Developments may differ in their approval status, construction stage, contractual terms, management rules and suitability for the buyer’s intended use.
The buyer should verify four main areas.
Eligibility and project status
Confirm that the unit is eligible for acquisition by the intended buyer and request the documents supporting the project’s Smart City status, approval pathway and the buyer’s right to acquire.
The project’s certification history should also be checked where the fiscal incentive changes introduced from June 2025 are relevant.
Total acquisition cost
Review registration duty alongside notarial fees, banking charges, currency movements, payment requirements and ongoing ownership costs.
Under the current general framework, registration duty is generally 5% on the buyer side. The notary should confirm the treatment applicable to the specific deed.
The advertised purchase price alone does not show the full financial commitment.
Intended use
Check that the property rules support the buyer’s objective, whether it is a primary residence, second home, rental property, relocation base or long-term investment.
Timing and contractual safeguards
For off-plan purchases, review the construction schedule, payment milestones, safeguards, approval timeline and expected deed registration date.
Our article on VEFA in Mauritius explains these checks in more detail.
For a fuller explanation of the Smart City framework itself, read our article on buying property in a Smart City in Mauritius.
Comparing Smart City with other approved routes
Smart City property should be selected because the specific development and ownership framework match the buyer’s plans, not simply because it is a recognised route for foreign ownership.
Compared with PDS, Smart City developments may offer a more connected, mixed-use and master-planned environment. G+2 apartments generally provide a more conventional apartment route outside a wider Smart City setting, while IHS properties are linked to a hotel or managed hospitality model.
The right choice depends on the buyer’s priorities. A relocating family may value schools, services and daily convenience. An investor may focus on rental flexibility and resale conditions, while a second-home buyer may prioritise security and management from abroad.
For a broader comparison, see our article on property investment schemes in Mauritius for foreign buyers.
What buyers should decide before signing
Before committing, buyers should clarify why they are purchasing and whether a Smart City property supports that objective.
It may suit those seeking convenience, services and a planned environment, but may be less appropriate for buyers looking for a coastal villa lifestyle, a hotel-managed investment or a simpler standalone apartment purchase.
The acquisition budget should also be updated before signing. Older estimates based on the broader 10% registration duty introduced by the Finance Act 2025 no longer reflect the current general framework.
Bringing the notary, banking adviser and property consultant into the process early helps align the legal route, payment schedule, approvals and total budget.
Frequently asked questions
Can foreigners still buy Smart City property in Mauritius after the Budget changes?
Yes. Foreign buyers can still acquire qualifying Smart City property, subject to eligibility, approval and transaction requirements.
Is registration duty 10% for Smart City buyers?
Not as a general current rule.
The broader 10% registration duty introduced by the Finance Act 2025 for relevant transfers to non-citizens was repealed by the Finance Act 2026.
Under the current general framework, registration duty is generally 5% on the buyer side, subject to exemptions and specific statutory provisions.
Why can transaction timing still matter?
Smart City acquisitions can involve several stages, including reservation, approval, payment, deed signature and registration. The notary should confirm the treatment applicable to the individual transaction and update any earlier cost estimate where necessary.
Does Smart City property support residence permit planning?
Yes. A non-citizen purchasing qualifying Smart City residential property for at least USD 375,000 may qualify for a residence permit, subject to the applicable conditions and continued ownership.
Buying Smart City property with clearer expectations
Smart City property in Mauritius remains a relevant option for buyers seeking a regulated acquisition route within a planned environment.
The 2026 changes mean that buyers should no longer rely on the broader 10% registration duty introduced by the Finance Act 2025 when calculating the current acquisition cost. The general starting point is again 5% registration duty on the buyer side, subject to exemptions and specific statutory provisions.
At the same time, the Smart City changes introduced in 2025 continue to make project status and certification history important points to verify.
Before signing, buyers should confirm the property’s eligibility, project status, total acquisition cost, intended use and transaction timeline.
Looking at Smart City property in Mauritius? Our team can help you compare approved routes, clarify buyer-side checks and identify opportunities aligned with your plans.
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Sources
The information contained in this article is provided for general guidance only and reflects the legal and regulatory position reviewed in August 2026. Property acquisition rules, registration duty, transaction taxes, residence conditions, Smart City requirements, project approvals and payment procedures may change or depend on the circumstances of an individual transaction. Buyers should verify all important points with their notary, legal adviser, tax adviser, bank, the Economic Development Board and the relevant authorities before making any purchase or investment decision.
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