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 and personal reliefs

The 15% flat rate applies to net chargeable income — which is gross income minus the personal allowance and eligible reliefs.

Personal allowances (per individual, 2025/26)

Other deductible reliefs

• Medical insurance premiums paid (up to MUR 20,000/year)
• Interest on housing loan (up to MUR 200,000/year)
• Donations to approved charities
• Tuition fees for dependant children
• Contributions to approved pension funds

What this means in practice

A couple (both under 60) with combined remitted income of MUR 1,500,000/year (approximately USD 33,300):

• Joint allowances: MUR 390,000 + 110,000 (spouse) = MUR 500,000
• Net chargeable: MUR 1,000,000
• Tax at 15%: MUR 150,000 (USD ~3,330/year)
• Effective rate on gross: ~10%

The Solidarity Levy

The Solidarity Levy applies to individuals with net chargeable income exceeding MUR 3 million per year (approximately USD 66,700 or MUR 250,000/month). The rate is 2.5% on the amount above the threshold only.

Example: Net chargeable income of MUR 4 million/year:

• Income tax at 15% on MUR 4m = MUR 600,000
• Solidarity Levy at 2.5% on MUR 1m (above threshold) = MUR 25,000
• Total tax: MUR 625,000
• Effective rate: 15.6%

The Solidarity Levy does not apply to pension income or certain investment returns depending on their source and structure.

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 subject to 15% income tax. 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.