Taxes in Mauritius

Tax at a glance

Tax residency rules

Mauritius tax residency is determined by physical presence:

• Primary test: Present in Mauritius for 183 days or more in the tax year (1 July to 30 June)
• Alternative test: Present for 270 days across the current and prior two tax years combined, and you have a domicile of choice in Mauritius

As a Mauritius tax resident, you are taxed on income remitted to Mauritius, not on worldwide income. Income earned and kept outside Mauritius is not subject to Mauritius income tax.

Non-residents (present fewer than 183 days) are taxed only on Mauritius-source income.

Income tax bands

Personal income tax in Mauritius is progressive. The bands below apply from the income year starting 1 July 2026 (Finance Act 2026). Only the part of your chargeable income above each threshold is taxed at the higher rate.

Income tax bands (from 1 July 2026)

Employment income, rental income and pension income are all taxed within these same bands. Corporate income tax (15%) is separate and covered below.

Residents and non-residents

The same bands apply to residents and non-residents. The difference is which income is taxed: residents are taxed on Mauritius-source income and on foreign income remitted to Mauritius, while non-residents are taxed only on Mauritius-source income.

Reliefs and deductions

Chargeable income is your income after exempt income and any reliefs or deductions you are entitled to. Reliefs can include:

• Reliefs for dependants
• Medical insurance premiums paid
• Interest on a housing loan
• Donations to approved charities
• Contributions to approved pension funds

Eligibility rules and amounts change with each Budget, so confirm which reliefs apply to you, and their current values, with the MRA.

What this means in practice

An individual with chargeable income of MUR 1,500,000 in the year (approximately USD 33,300):

• First MUR 500,000 at 0% = MUR 0
• Next MUR 500,000 at 10% = MUR 50,000
• Remaining MUR 500,000 at 20% = MUR 100,000
• Total tax: MUR 150,000, an effective rate of 10%

At chargeable income of MUR 4 million, the tax is MUR 50,000 on the 10% band plus MUR 600,000 (20% of the MUR 3 million above MUR 1 million), a total of MUR 650,000 and an effective rate of about 16.3%.

What to confirm with the MRA

The bands on this page reflect the Finance Act 2026 as enacted. Tax rules change with each annual Budget, so confirm current figures with the Mauritius Revenue Authority (MRA) or a licensed Mauritius tax adviser before you rely on them. In particular, check:

• Which reliefs and deductions you can claim, and their current amounts
• How your foreign income and remittances will be treated
• How a double tax treaty applies to your pension, rental or investment income
• Any year-specific contribution: the individual Fair Share Contribution applied to the 2025-26 income year only

The remittance basis — understanding it

This is one of the most important tax features for expats. Mauritius taxes resident individuals on income remitted (transferred) to Mauritius — not on worldwide income.

What is taxable

• Income received in a Mauritius bank account
• Income used to purchase assets in Mauritius
• Income brought into Mauritius in any form

What is not taxable in Mauritius

• Foreign income kept in an overseas account (even if you are Mauritius tax resident)
• Capital gains on overseas assets (regardless of whether remitted — no CGT)
• Gifts received from non-residents

Capital gains tax — zero

Mauritius has no capital gains tax on any asset class:

• Property: Sell your Mauritius villa at any profit — zero Mauritius CGT
• Shares and equity: Sell listed or unlisted shares — zero CGT
• Unit trusts and funds: Zero CGT on redemptions
• Cryptocurrency: Zero CGT (though OECD reporting frameworks are evolving)
• Business sale: Zero Mauritius CGT on proceeds
• Overseas property: Zero Mauritius CGT (subject to source country rules)

The only caveat: if the MRA determines that you are habitually trading property as a commercial activity, gains may be reclassified as trading income and taxed within the income tax bands. One-off or infrequent property sales are not affected.

There is also no inheritance tax, estate duty, or wealth tax in Mauritius.

Corporate tax

Mauritius corporate income tax is 15% for domestic companies. The most important corporate structure for international business is the Global Business Company (GBC):

Global Business Company (GBC)

• For companies conducting international business through Mauritius
• Access to the full DTA treaty network (46 treaties)
• Foreign tax credits mean the effective corporate tax rate can be as low as 3% on foreign-source income
• No withholding tax on dividends paid to foreign shareholders
• Must be managed and controlled from Mauritius (substance requirements)
• Requires a licensed Mauritius management company to administer

The GBC structure is widely used for holding African investments, private equity funds, and international trading companies. Mauritius is a top channel for foreign direct investment into Africa (and historically India, where DTA rates are particularly favourable).

VAT

VAT (Value Added Tax) is charged at 15% in Mauritius on most goods and services. Key exemptions:

• Basic foodstuffs (fresh produce, rice, flour, sugar, oil)
• Medical services and medicines
• Educational services
• Financial services

Businesses with annual turnover above MUR 6 million must register for VAT. Most imported goods attract VAT plus customs/excise duty — which is why imported products in Mauritius supermarkets are more expensive than in Europe.

Double tax treaties (DTAs)

Mauritius has 46 double tax treatiesin force — a remarkably large network for a small island. This treaty network, combined with the GBC structure and low domestic tax rates, is the foundation of Mauritius's status as a major African investment hub.

Key treaties relevant to expats

The USA is the notable gap. US citizens living in Mauritius remain fully subject to US tax on worldwide income (including FATCA reporting obligations) regardless of where they live. The Mauritius tax savings apply on top of, not instead of, US tax obligations.

Breaking home country tax residency

This step is the one most relocating expats underestimate. Moving to Mauritius does not automatically stop your home country taxing you. Formal cessation is required:

South African nationals (SARS)

SARS taxes South African tax residents on worldwide income. Formally ceasing to be a South African tax resident involves completing the SARS "Cease to be a Resident" (CTRP) process. This may trigger an "exit tax" on certain assets deemed to be disposed of at market value on departure. The process takes 3–12 months. A SARS-specialist tax adviser is essential.

UK nationals (HMRC)

HMRC's Statutory Residence Test (SRT) determines UK tax residency. To break UK residency: typically spend fewer than 16 days in the UK per tax year (for those who were resident 3 of the last 4 years). File a P85 form on departure. UK-source income (state pension, rental income from UK property, employment income from UK) may remain taxable in the UK under the DTA.

French nationals (DGFIP)

French tax residency breaks when your principal home, professional activity, and centre of economic interests all move to Mauritius. Notify the French tax office (centre des finances publiques) and file a final French tax return for the year of departure. French state pension (retraite) income may continue to be taxed in France under the Mauritius-France DTA.