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Correstion the "exit tax" is 10% not 20%.

Yes, this budget changes will impact on the 'middle-class' looking for a decent life in Mauritius.

For retirees, the financial commitment has changed, as well as the new regulation that they have to spend at least 180 days in Mauritus. That will really change things.

I really do not know how changing the retirement permit to 5 years initially instead of 10 will help anyone. It takes 2-3 years to settle in a new place and a new life. If changes to the rules are then changed retrospectively, I really would not wish to move now. 10 years was reasonable, with the option to extend to 20 after 3 years was a good thing.

If I was retiring, I would wish to purchase a property within or outside the various schemes and that  too may not be good idea now.

As a potential retiree in Mauritius, I am now re-evaluating my options.

I hope some viable and practical changes will be made soon regarding these new measures.

I remember the recent post in social media where the Honorable President clearly stated that he wanted retirees to come to live in Mauritius and enjoy the lifestyle.

Best wishes.

@Tookays

Totally agree. One would think twice before making any long term commitment if you only have 5 years.

I do understand the residency requirement but not the shortening of permit periods. Likewise for the other categories.  Investors potentially take even longer to establish.

I believe most sectors, not just real estate will take a knock

It certainly feels that expats are no longer encouraged to come to Mauritius. We have been happily here for 3 years and had been looking for a place to purchase. We are now re-evaluating our options and even investigating other places in the world where we may want to consider. We are not ultra rich at all so the house taxes (on houses which are already well over priced) and residence permit changes concern us. Is this an indication that the government wants to discourage us from sharing and paying our taxes in this beautiful country?

We all appreciate MU has rising public debt, faces Moodys downgrade and  needs to raise revenue to correct a lot of things that seem to have gotten to lose after the last regime that has been swept clean. Those of us planning to live here accept that taxes might rise. We need to play our part.

But wether meant or not, many investors will feel the proposed changes are hostile. Why change retired permits to  5 years from 10 if you don't plan on changing the rules every 5 years?  Who will invest in such uncertainty? Why impose a 10% sales tax on a property, even if one is selling at par or a loss with no gain, like a sale forced by emergency? Why apply extra taxes on propery already sold and signed for deposits of other ladderd payments when builders are late and the EDB takes endless months to issue titles which is not the fault of the investor. Why no  "grandfather" clauses? The 180 days rule for retirees is unwise and misunderstands retiree dynamics.  Deductions for private schooling are dropped yet many middle class Mauritians, not UHNW  expats, break an arm and a leg to get their children private education, not just the few in Ferraris one sees..private education is a big growth industry benefitting Maurtiius.

Even stranger is the statementthat non-Mauritians will not be allowed to buy or sell leasehold G+2 apartments which hundreds if not a few thousand already own. Are they trapped in limbo?

Speaking to my realtor today, there is a lot of uproar over these changes.The entire Real Estate sector is unhappy and big mettings are planned with government The full import  will only be spelled out in all details in The Miscellaneous Bill that will come out in some weeks. One hopes  changes will be made.

For a destination that competes with many others and reuiqres goodwill and long planning the government should realise a velvet glove is far better than a hammer.

@peterg123

Yes as a retired real estate guy - the waters are muddied - I can no longer tell my friends come to Mauritius there is no CGT - there is - remember we compete with many other countries and this is a mistake and puts us behind them.  Less sales mean less money for government.  In any even it is a retro tax that I did not sign up to.

KR

@SimonMT

100% agree. It's bait and switch. Many other aspects of the budget are good but punishing investors sold  on one sales pitch by switching  once you have their money is not on.  Now with the new property "entry and  exit tax" our family, already 2 years schooling in MU on Premium Visa  and spending to benefit all Mauritians, one  should feel how?. We invested  in family property, not some Smart City speculation. What was sold  under rule positive X  was  changed  rules to negative   Y.  Mauritians have every right to ask for forward taxes and one respects that We want to help build where we live better. But not  retrospective  taxes!  Prospective we can deal with ~.

If the government "grandfather"  these changes OK, if not  we wont be ringing any bells for others to bring money here, and we already brought one family to join  the existing rules.  More likely  we will be banging a warning drum.