Real Estate Taxes & Duties
Philippe de Beer, Founder and Director of Park Lane Properties, explains what are the duties and taxes payable when buying a property in Mauritius and that are added to the selling price of a property.
It all happen at the time of signing the authentic deed in front of a notary and they are based on the selling price of the property.
You will be asked to pay to the notary, along with the purchase price of your property, the various duties and taxes due on the real estate transaction.
First of all, the registration duties:
For any purchase within an IRS or a RES, and this since August 2021, the registration duties for the acquisition of a property by a non-citizen amount to 5% of the amount of the sale, capped at USD 70,000.
For any purchase within a PDS, a Smart City or an apartment in a Ground + 2 residence, the registration duties amount to 5% of the sale price.
These registration duties are collected by the notary who pays them on your behalf to the property registration office.
The other cost which is payable by the buyer is the Notary fees
- They are based on the a sliding scale and you will pay between 0.6% and 0.75% of the transaction value.
- Except in the case of real estate projects for which notary fees can vary between 1.15 and 1.5.
In some cases, real estate developers choose to include all costs and duties in the sale price. So clarify this point with the developer or your real estate agent when choosing a property directly from a developer.
The Agency fees
They are usually included in the sale prices of most of the real estate projects sold off plan or when a property is sold by a developer.
Best is therefore to be accompanied by a reputable and professional local real estate agent who who will be able to advise you and introduce you to trusted developers. Buying a home in Mauritius, as in most other markets, can be a complex process especially for noncitizens. The agent will be able to give you an independent opinion on each real estate development that are of interest to you and present you with a selection of properties that best meet your expectations.
An agent will also be able with his network to find you a resale or off-market property.
In case of a resale, the agency fees payable by the buyer amount to 2% + VAT.
The seller will also pay 2% + VAT to the real estate agency for the sale of his property.
On average, you will therefore pay approximately 8 to 8.5% of duties, taxes and fees in addition to the acquisition price of your property.
There you go .. all you have to do now is start your search for a propertyhttps://properties.parklane.mu/inte... in Mauritius ! See you soon!
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