Authored by the expert who managed and guided the team behind the Mauritania Property Pack
Everything you need to know before buying real estate is included in our Mauritania Property Pack
Property investment in Mauritania involves multiple taxes and fees that significantly impact your total investment cost and ongoing expenses.
From one-time purchase taxes like registration fees and stamp duty to annual property taxes and rental income taxation, buyers need to understand the complete financial picture before making investment decisions. The tax structure includes both government-mandated fees and service provider charges that can add 8-18% to your property purchase price.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mauritania, based on reliable facts and data, not opinions or rumors.
Property purchases in Mauritania incur one-time costs of 8-18% of purchase price, including registration tax (1-5%), notary fees (1-2%), and stamp duty (1-2%).
Annual property taxes range from 3-10% of rental value, while rental income faces 10-40% taxation depending on residency status.
| Tax/Fee Type | Rate/Amount | Who Pays |
|---|---|---|
| Registration Tax | 1-5% of declared price | Buyer |
| Notary Fees | 1-2% of purchase price | Buyer |
| Stamp Duty | 1-2% of declared price | Buyer |
| Annual Land Tax | 3-10% of rental value | Owner |
| Rental Income Tax | 10-40% (depends on residency) | Owner |
| Capital Gains Tax | 25% on gains | Seller |
| VAT on New Builds | 16% (often included by developer) | Buyer |
What one-time taxes and government fees apply when buying property in Mauritania?
Mauritania imposes several mandatory one-time taxes and fees when purchasing property, all calculated on the declared purchase price or contract value.
The Registration Tax (Droit d'enregistrement) ranges from 1-5% of the declared price and represents the largest single government fee. This tax is typically set at 2-3% for most residential properties but can reach 5% for luxury properties or commercial real estate.
Stamp Duty (Droit de timbre) applies at 1-2% of the declared price and covers the official documentation and contract validation. Notary fees are mandatory at 1-2% of the purchase price to validate all legal documents and ensure proper title transfer.
Additional fixed fees include title search and survey costs (MRU 5,000-20,000), appraisal fees when required (MRU 10,000-50,000), and land registry fees (MRU 2,000-10,000). These amounts remain relatively stable regardless of property value.
All taxes use the declared purchase price as the calculation base, making accurate property valuation crucial for tax planning.
Who is responsible for paying each purchase cost and can any fees be negotiated?
The buyer typically bears responsibility for most purchase-related taxes and fees in Mauritanian real estate transactions.
Buyers pay registration tax, stamp duty, notary fees, title search, survey costs, appraisal fees, and land registry charges. The seller usually covers agency commission if they hired the real estate agent, though this can be split through negotiation.
Registration tax and stamp duty are government-mandated and non-negotiable, with rates set by law. Notary fees follow official scales and cannot be reduced below minimum requirements.
Agency commissions remain the most negotiable element, typically ranging from 2-5% and often split between buyer and seller. Some sellers may agree to cover certain buyer costs as part of price negotiations, but this effectively increases the property price.
Certain exemptions exist for public housing projects or special investment zones, but these apply only to specific government-approved developments and are not available for standard residential transactions.
What are the total closing costs for properties priced at 1 million and 5 million MRU?
| Cost Type | 1,000,000 MRU Property | 5,000,000 MRU Property |
|---|---|---|
| Registration Tax (2-5%) | 20,000-50,000 MRU | 100,000-250,000 MRU |
| Notary Fees (1-2%) | 10,000-20,000 MRU | 50,000-100,000 MRU |
| Stamp Duty (1-2%) | 10,000-20,000 MRU | 50,000-100,000 MRU |
| Agent Commission (2-5%) | 20,000-50,000 MRU | 100,000-250,000 MRU |
| Title Search/Survey | 5,000-20,000 MRU | 5,000-20,000 MRU |
| Land Registry | 2,000-10,000 MRU | 2,000-10,000 MRU |
| Miscellaneous Fees | 5,000-20,000 MRU | 5,000-20,000 MRU |
| Total Closing Costs | 72,000-190,000 MRU | 312,000-850,000 MRU |
What annual property taxes must owners pay after purchase?
Property owners in Mauritania face several recurring annual taxes and municipal charges that continue throughout ownership.
The Land Tax on Built Property (Taxe foncière sur les propriétés bâties) represents the primary annual obligation, calculated at 3-10% of the property's rental value. Most municipalities apply rates around 8% of assessed rental value, determined by local tax authorities based on comparable rental properties in the area.
Municipal charges vary by commune and typically range from 0.5-2% of property value annually. These cover local services including street maintenance, lighting, and administrative costs. Nouakchott and other major cities tend to have higher municipal charges reflecting enhanced services.
Sanitation taxes and other local levies add another 0.5-1% annually, charged as either fixed fees or percentages based on property characteristics. Building owners may also face additional charges for shared infrastructure maintenance.
It's something we develop in our Mauritania property pack.
The tax base for annual property taxes relies on rental value assessments conducted by municipal authorities, typically updated every 3-5 years to reflect market conditions.
Don't lose money on your property in Mauritania
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
When are annual taxes due and what penalties apply for late payment?
Annual property taxes in Mauritania follow a standardized payment schedule with significant penalties for late payment.
All annual property taxes are due by March 31st of the year following the assessment year. Property owners receive tax notices in January with detailed calculations and payment instructions.
Late payment penalties range from 25-80% of the total tax due, applied immediately after the March 31st deadline. Interest charges may accumulate monthly on unpaid balances at rates set by the Ministry of Finance, typically 2-3% per month.
The penalty structure escalates based on delay duration: 25% penalty for payments 1-3 months late, 50% for 3-6 months late, and 80% for payments over 6 months late. These penalties can quickly exceed the original tax amount.
Early payment discounts are not commonly offered in Mauritania's tax system, unlike some neighboring countries that provide incentives for advance payment.
What taxes apply to rental income from investment properties?
Rental income taxation in Mauritania varies significantly based on the property owner's residency status and total income level.
Resident individuals pay progressive income tax on rental income at rates ranging from 15-40%, depending on their total taxable income bracket. The rental income combines with other income sources for tax calculation purposes.
Non-resident property owners face a flat 10% tax rate on gross rental income, with no deductions for expenses or depreciation. This "property income tax" is typically withheld at source by property management companies or tenants.
For gross annual rental income of 120,000 MRU, non-resident owners pay 12,000 MRU in taxes (10% flat rate). Resident owners might pay 18,000-48,000 MRU depending on their overall income bracket and available deductions.
For gross annual rental income of 360,000 MRU, non-resident owners pay 36,000 MRU in taxes. Resident owners could pay 54,000-144,000 MRU depending on their total income situation and applicable tax brackets.
How do taxes differ for new construction versus existing properties?
New-build and off-plan purchases in Mauritania face additional VAT obligations that don't apply to second-hand property transactions.
Value Added Tax (VAT) applies to all new construction at the standard rate of 16%, typically included in the developer's quoted price. This VAT is paid to the developer, who remits it to tax authorities as part of their business obligations.
Second-hand properties are exempt from VAT since they've already entered the market through the initial VAT-inclusive sale. These properties only face the standard transfer taxes: registration tax, stamp duty, and notary fees.
Certain new developments may qualify for VAT exemptions or reduced rates, particularly affordable housing projects or special economic zone developments. Export-oriented projects and non-profit housing can sometimes obtain 0% VAT rates through special authorization.
Buyers should verify whether quoted prices include VAT, as this 16% addition significantly impacts the total investment required and affects loan calculations for financed purchases.
What are the standard costs for required professional services?
| Service Type | Cost Range | Required Documents |
|---|---|---|
| Notary Services | 1-2% of purchase price | Sale contract, ID documents, title deed |
| Title Search | MRU 5,000-15,000 | Property identification, previous titles |
| Survey/Cadastre | MRU 10,000-20,000 | Property boundaries, municipal permits |
| Property Appraisal | MRU 10,000-50,000 | Property details, comparable sales |
| Land Registry | MRU 2,000-10,000 | Ownership documents, survey results |
| Legal Translation | MRU 5,000-15,000 | Foreign documents, contracts |
| Due Diligence | MRU 10,000-20,000 | Financial records, legal status |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mauritania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What additional charges apply when financing property purchases?
Mortgage financing in Mauritania involves several mandatory charges that increase the total cost of property acquisition.
Loan origination fees typically range from 0.5-1% of the loan amount, charged by banks to process and approve mortgage applications. For an 800,000 MRU loan, this means 4,000-8,000 MRU in upfront fees.
Mortgage registration tax equals 1% of the loan amount and must be paid to register the mortgage lien with government authorities. This 8,000 MRU charge (on 800,000 MRU loan) protects the lender's interest in the property.
Property valuation fees range from 10,000-50,000 MRU and are required by all lenders to confirm the property's worth supports the requested loan amount. Banks typically require independent appraisals from approved valuers.
Credit insurance premiums cost 0.2-0.5% annually of the outstanding loan balance, protecting lenders against borrower default. Over a 20-year loan term, this totals 32,000-80,000 MRU for an 800,000 MRU mortgage.
Total financing charges over 20 years reach approximately 54,000-146,000 MRU for an 800,000 MRU loan, including all origination fees, registration costs, and insurance premiums.
What taxes and fees apply when selling property?
Property sales in Mauritania trigger capital gains taxation and various administrative fees that reduce net proceeds from the transaction.
Capital gains tax applies at 25% of the profit realized from property sales, calculated as the difference between sale price and original purchase price plus improvements. This tax applies to both residents and non-residents without distinction.
Certain exemptions reduce or eliminate capital gains tax liability. Properties held for more than 5 years may qualify for reduced rates in some cases, while principal residences often receive partial exemptions.
For a property generating 200,000 MRU in capital gains, the tax liability reaches 50,000 MRU. Properties with 600,000 MRU in gains face 150,000 MRU in taxes, significantly impacting investment returns.
Additional sale costs include notary fees for transfer documentation (1-2% of sale price), agent commissions if applicable (2-5%), and various administrative charges for title transfers and registry updates.
It's something we develop in our Mauritania property pack.
Are there special tax rates or incentives for different buyer categories?
Mauritania offers limited special tax treatment for different categories of property buyers, with most incentives focused on specific development projects rather than buyer characteristics.
First-time buyers do not receive systematic tax reductions or exemptions in the standard residential market. However, government-sponsored affordable housing projects occasionally offer reduced registration fees or stamp duty waivers for qualifying buyers.
Principal residence purchases generally follow the same tax structure as investment properties, though some municipal programs may offer minor reductions in processing fees for owner-occupied homes.
Corporate buyers face identical tax rates to individual purchasers for property acquisition costs. However, companies can potentially deduct certain expenses as business costs, providing indirect tax benefits.
Foreign buyers encounter no additional taxes or restrictions compared to Mauritanian nationals, though they must complete additional documentation and registration requirements. Some bilateral investment treaties provide minor procedural advantages but not tax reductions.
What additional costs should buyers budget beyond standard taxes and fees?
Property buyers in Mauritania should budget for numerous ancillary costs that extend beyond government taxes and professional fees.
Utility connection fees vary by service type and location but typically cost 15,000-40,000 MRU for electricity, water, and telecommunications setup. Urban areas generally have higher connection costs but faster service availability.
Homeowners association (HOA) fees or building maintenance charges apply to condominiums and managed properties, ranging from 10,000-50,000 MRU annually depending on building amenities and management quality.
Legal document translations for foreign buyers typically cost 5,000-15,000 MRU per document set, required when original documents are in languages other than Arabic or French.
Due diligence searches by legal professionals cost 10,000-20,000 MRU and help identify potential issues with property titles, zoning compliance, or outstanding debts.
Additional miscellaneous costs include bank processing fees (2,000-5,000 MRU), moving and insurance expenses (10,000-30,000 MRU), and various administrative charges throughout the purchase process.
It's something we develop in our Mauritania property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property investment in Mauritania involves comprehensive understanding of tax obligations that can significantly impact investment returns.
From one-time purchase costs ranging 8-18% of property value to ongoing annual taxes and potential capital gains taxation, investors must factor all expenses into their financial planning for successful real estate ventures.
Sources
- GHA Mauritanie - Fiscal Guide 2025
- The African Investor - Moving to Mauritania Property Guide
- PwC Tax Summaries - Mauritania Individual Taxes
- PwC Tax Summaries - Mauritania Corporate Taxes
- KPMG Mauritania Fiscal Guide
- Global Property Guide - Mauritania Rental Income Tax
- Grant Thornton - Mauritania Indirect Tax Guide
- Lloyds Bank Trade - Mauritania Tax Information