Capital Gains, inheritance tax and exit strategy: What real estate investors must anticipate in Mauritius

One of the most frequently cited advantages of Mauritian real estate is its wealth-tax regime. No capital gains tax, no local inheritance tax, no wealth tax… These elements are real. However, they do not remove the need to anticipate resale, transmission, and the interaction with the investor’s country of tax residence.

1. Capital gains on property: The fundamental principle

Mauritius does not levy capital gains tax on property for individuals, whether they are residents or non-residents, provided the sale is a capital transaction (and not a trading activity).

This absence has been confirmed despite earlier budget announcements. The resale of a PDS, IRS, RES, Smart City or G+2 property therefore generates no Mauritian tax on the capital gain itself.

Point of attention for French tax residents (or residents of other countries)
The double tax treaty between France and Mauritius and the domestic rules of the country of residence may still trigger taxation in the home country. Each situation must be analysed individually with a tax adviser.

2. Transfer taxes on resale (Land Transfer Tax & Registration Duty)

Even without capital gains tax, the resale of a property in Mauritius generates transfer duties.

These taxes apply when the deed is registered. The applicable rate depends in particular on:

• the status of the buyer (citizen / non-citizen),
• the type of property and the EDB scheme,
• the date of registration of the deed.

Following the 2025-2026 legislative changes, the rates applicable to transactions involving non-citizens have been subject to modifications (announced increases followed by partial adjustments). It is essential to check the rate in force on the date of registration of the resale deed, not on the date of the promise or reservation.

Practical consequence: the cost of exit is not zero. It must be factored into the overall return calculation of the investment.

3. Inheritance and transmission of the property

Mauritius levies no inheritance tax or gift tax on assets situated on its territory. The transmission of a Mauritian property to heirs therefore triggers no local succession duty. In many cases, transfers to heirs also benefit from exemptions from registration duty and land transfer tax.

However:

• If the deceased was a tax resident of another country (France, Belgium, Switzerland, etc.), the rules of that country may apply to worldwide assets or to real estate according to treaties and domestic law.
• The status of the heirs (citizens or non-citizens) and the scheme of the property can influence formalities and any transfer duties.

Succession planning therefore remains essential, especially for international families.

4. Exit strategy: Questions to ask 

A sound investment strategy incorporates exit or transmission conditions from the outset.

Key points to anticipate

5. Best practices to secure your exit

1. Choose a liquid property: location, type and standing that match real demand (expats, families, investors).
2. Document the origin of funds and the acquisition price thoroughly: this facilitates future calculations and justifications.
3. Monitor the evolution of transfer duties: rates can change; the date of registration of the deed is decisive.
4. Anticipate the tax rules of your country of residence: do not limit the analysis to Mauritius alone.
5. Consider transmission tools (will, company, dismemberment…) in advance, especially when heirs have different nationalities.
6. Work with a notary and tax adviser familiar with both Mauritian law and the rules of the investor’s country of origin.

6. Summary: What is truly advantageous… and what is not

Real advantages

• No capital gains tax on property in Mauritius
• No local inheritance tax
• No wealth tax
• Overall favourable regime for long-term holding

Points of vigilance

• Transfer duties on resale (not zero)
• Possible taxation in the country of tax residence
• Liquidity of the property according to location and type
• Formalities of transmission for non-citizens

Frequently Asked Questions about What real estate investors must anticipate in Mauritius 
 

Is there capital gains tax on property in Mauritius?

No. Individuals do not pay tax on the capital gain when selling a property (except in the case of a trading activity).

Are there inheritance taxes in Mauritius?

No. Mauritius does not levy inheritance or gift tax on assets situated on its territory.

What costs should be expected on resale?

Mainly transfer duties (Land Transfer Tax and/or Registration Duty), the rate of which depends on the status of the buyer and the date of registration of the deed.

Does tax residency change the picture?

Yes. Even in the absence of Mauritian tax, the investor’s or heirs’ country of tax residence may tax the capital gain or the succession under its own rules.

Should the exit be anticipated from the moment of purchase?

Yes. The choice of property, its liquidity and the holding structure directly influence the ease and cost of resale or transmission.

Learn more about Real estate taxation and investment in Mauritius: The 2026 expert guide 

Would you like to integrate these elements into your investment strategy?

Property Mauritius assists investors with property selection, understanding of holding and resale rules, and introductions to specialised notaries and advisers.

Contact Property Mauritius Agency in Pointe-aux-Canonniers for a personalised discussion.