Do expats pay tax on foreign income in Mauritius?
Direct Answer
Tax residents in Mauritius pay tax on Mauritius-source income. Foreign income is only taxable if it is remitted to Mauritius, and a foreign tax credit is available to prevent double taxation.
Territorial tax system
Mauritius operates a territorial tax system with a partial remittance basis for residents. This means that tax residents are not automatically taxed on worldwide income — only on income arising in Mauritius and on foreign income that is remitted (brought into) Mauritius.
The remittance basis in detail
If you receive, say, a salary from a UK employer paid into a UK bank account and you never transfer that money to Mauritius, it is not taxable in Mauritius. If you then transfer it to your Mauritius bank account, it becomes taxable. This gives residents meaningful flexibility to manage which income is within scope.
Foreign tax credit
If you have already paid tax on foreign income in another country and you then remit that income to Mauritius, you can claim a foreign tax credit against your Mauritius tax liability. The credit is limited to the lower of the foreign tax paid and the Mauritius tax that would apply. This prevents double taxation.
Tax residency test
You are a Mauritius tax resident if you are present in Mauritius for more than 183 days in a tax year (1 July to 30 June). Day of arrival and day of departure are both counted as days of presence.
Occupation Permit holders
Holders of an Occupation Permit in the Professional or Investor category receive a certificate of residency from the MRA, which establishes their Mauritius tax residency. This is important for treaty purposes — for example, to claim treaty benefits under the Mauritius–India or Mauritius–South Africa treaties.
Pensions and retirement income
Foreign pension income remitted to Mauritius is taxable at the standard 15% rate, but personal reliefs (MUR 325,000 for under-60s, higher for over-60s) often reduce or eliminate the liability for modest pension amounts.