Is there capital gains tax in Mauritius?
Direct Answer
No. Mauritius does not have a capital gains tax. Profits from selling property, shares, or other assets are not subject to tax.
No capital gains tax
Mauritius is one of the few jurisdictions globally that has never introduced a capital gains tax (CGT). Gains from the disposal of property, equities, private company shares, bonds, or any other asset are not taxable in Mauritius, regardless of the holding period or the amount of the gain.
What this means in practice
If you purchase a villa for USD 500,000 and sell it five years later for USD 800,000, the USD 300,000 gain is not taxed in Mauritius. Similarly, if you hold shares in a Mauritius company or a global business company (GBC) and sell them at a profit, no Mauritius tax applies to the gain.
Transfer taxes on property
While there is no CGT, there are transfer taxes on property transactions. The seller typically pays a land transfer tax of 5% on the sale price, and the buyer pays a 5% registration duty. These are transaction taxes, not taxes on gains. Your notary will calculate and collect these at completion.
Corporate perspective
Mauritius holding companies and Global Business Companies (GBCs) used as holding vehicles for African or Asian investments benefit significantly from the no-CGT rule. Dividends from foreign subsidiaries and capital gains on the disposal of subsidiary shares are generally exempt at the GBC level.
Double tax treaties
Mauritius has signed double tax treaties with over 45 countries, including India, South Africa, China, and most African nations. These treaties often cap withholding tax on dividends and may contain CGT allocation clauses — meaning that even if the other country would normally tax a gain, the treaty may give exclusive taxing rights to Mauritius (where no tax applies). This is a major driver of Mauritius's use as a holding jurisdiction for African investments.