Tax in Mauritius

Why Mauritius is attractive for tax

Mauritius has deliberately designed its tax system to attract high-value residents, investors, and businesses. The combination of a 15% flat income tax rate, no capital gains tax, no inheritance or estate duty, a territorial tax system with remittance basis for foreign income, and an extensive double tax treaty network makes it one of the most tax-efficient jurisdictions in the world — while remaining a legitimate OECD-compliant jurisdiction, not a secrecy haven.

This is important context: Mauritius is on the OECD's "white list" of compliant jurisdictions, has signed the Common Reporting Standard (CRS), and exchanges tax information with over 100 countries. It is not a place to hide income — it is a place where legitimate income is taxed at genuinely low rates.

Tax residency in Mauritius

Your tax obligations in Mauritius depend on whether you are a tax resident. The Mauritius Revenue Authority (MRA) uses the following tests:

Non-residents are taxed only on Mauritius-source income, at the same 15% flat rate. There is no difference in the rate between residents and non-residents — the key difference is what income is in scope.

Income tax — 15% flat rate

Mauritius has a single flat income tax rate of 15% on chargeable income. There are no progressive brackets — the rate does not increase as income rises (except for the Solidarity Levy, which applies only above MUR 3 million per year and is covered separately).

Chargeable income is calculated as: total income minus personal allowances and deductions, minus exempt income. The 15% rate is then applied to the resulting figure.

What counts as taxable income

For residents: employment income (salaries, bonuses, benefits in kind), self-employment income, rental income from Mauritius properties, interest from Mauritius bank accounts, dividends from Mauritius companies (though these are often exempt — see below), and foreign income remitted to Mauritius.

Dividends from Mauritius companies are generally exempt from income tax at the shareholder level, because the company has already paid corporate tax. This avoids double taxation at source.

Tax on benefits in kind

Benefits in kind provided by employers — company cars, housing allowances, school fees paid, etc. — are taxable as employment income. However, certain approved benefits (such as meal allowances up to a specified limit) are exempt. Employers must include the market value of taxable benefits on annual returns submitted to the MRA.

Personal reliefs and exemptions

The MRA provides a range of personal reliefs that reduce the amount of income subject to tax. These reliefs are deducted from your total income before the 15% rate is applied.

A retired individual aged 65, claiming their personal allowance and medical insurance relief, can earn approximately MUR 425,000–435,000 per year (around USD 9,500) before paying any income tax. Combined with the foreign income remittance exemption, many retirees have a Mauritius income tax bill of zero or very close to zero.

Solidarity Levy

The Solidarity Levy is a surcharge on high earners introduced in 2020. It applies at a rate of 25% on chargeable income above MUR 3,000,000 per year (approximately USD 66,500). Income below this threshold is unaffected — only the portion above MUR 3 million attracts the levy.

In practice, the Solidarity Levy only affects a small number of high-earning employed professionals and business owners. For most expats and retirees, the effective rate remains 15%.

Territorial system and the remittance basis

This is the most important feature of the Mauritius tax system for internationally mobile individuals: Mauritius taxes foreign income only if it is remitted (transferred) into Mauritius.

How it works in practice

If you earn income abroad — dividends from foreign shares, rental income from an overseas property, interest in a foreign bank account, pension income, capital gains — and you keep those funds in the foreign country, Mauritius does not tax them. Only the money you bring into your Mauritius bank account is potentially taxable.

This makes Mauritius highly attractive for individuals who have significant overseas assets and investment portfolios: you can live in Mauritius, remit just enough to cover your living expenses, and leave the rest of your wealth offshore without Mauritius tax applying to it.

Important caveat: your home country

The remittance basis in Mauritius does not eliminate your home country tax obligations. If you are still tax resident in the UK, France, South Africa, or another country with a worldwide tax system, you will owe tax there on your global income regardless of where you live. The solution for many is to formally establish Mauritius tax residency (by spending 183+ days there) and break tax residency in the home country — but this is complex and country-specific. Professional advice from a tax adviser experienced in cross-border matters is essential.

No capital gains tax — what this means in practice

Mauritius has no capital gains tax. Full stop. Gains from selling any asset — a Mauritius property, foreign real estate, shares in any company, cryptocurrency, art, or anything else — are not taxed in Mauritius, whether you are a resident or non-resident.

For property investors, this is significant: when you sell a villa that has appreciated by USD 200,000, you pay no tax on that gain in Mauritius. For retirees drawing down an investment portfolio, gains realised and kept offshore are similarly exempt (under the remittance basis). For business owners, selling a company stake generates no CGT liability.

The only caveat is Mauritius-source income rules: in a minority of cases, gains from property trading (where a person is deemed to be in the business of buying and selling property) may be reclassified as trading income subject to the 15% income tax. Occasional sales of appreciated properties are not affected — only habitual trading activity.

Corporate tax

Mauritius companies pay corporate income tax at a flat rate of 15% on net chargeable profits. The tax year for companies is flexible — they may choose their own accounting year end.

Dividend withholding

Dividends distributed by Mauritius companies to shareholders are exempt from withholding tax. This means profits distributed from a Mauritius company reach shareholders without further deduction — important for investors structuring holdings through Mauritius entities.

Interest and royalties

Interest paid to non-resident companies or individuals is subject to 15% withholding tax, unless reduced by a double tax treaty. Royalties paid to non-residents are similarly subject to 15% withholding, with treaty reductions available.

Global Business Companies (GBC)

A Global Business Company is a special category of Mauritius company designed for international business and investment. GBCs must have genuine economic substance in Mauritius (at least 2 directors resident in Mauritius, sufficient local staff, and decision-making happening in Mauritius).

GBC tax rate

GBCs pay 15% corporate tax but are entitled to claim an 80% partial exemption on certain qualifying foreign-source income — including dividends, interest, royalties, and capital gains on the disposal of shares. The effective tax rate on qualifying income is therefore 3% (15% × 20%).

Access to treaty network

One of the primary benefits of a GBC is access to Mauritius's 46 double tax treaties. A GBC holding investments in India, Africa, or elsewhere can use treaty protection to reduce withholding taxes on dividends and interest from those countries. This treaty-shopping function is why Mauritius is one of the largest foreign investors into India and several African countries.

VAT

Value Added Tax (VAT) in Mauritius is 15%, applied to most goods and services. Registration for VAT is mandatory for businesses with annual turnover exceeding MUR 6 million. For businesses below this threshold, voluntary registration is possible.

Zero-rated supplies include: exports of goods, international transport services, and certain financial services. Exempt supplies include: financial services, residential property rental, and certain educational and healthcare services.

VAT returns are filed monthly or quarterly depending on turnover. Refunds for net input tax credits are processed by the MRA within 28 days for most returns.

Double tax treaties

Mauritius has signed 46 double tax treaties (DTAs), providing relief from double taxation on income and capital for residents and companies. Key treaty partners include:

The India DTA is historically the most significant — it reduced withholding taxes on Indian dividends and capital gains for Mauritius-resident investors and was the primary driver of Mauritius becoming one of the largest sources of FDI into India. The treaty was substantially revised in 2016 to add a principal purpose test, but Mauritius remains a major investment corridor to India through genuine GBC structures.

For South African expats, the Mauritius-South Africa DTA provides relief on pension income, interest, and dividends when one country is the source and the other the residence jurisdiction.

Filing your Mauritius tax return

The Mauritius tax year runs from 1 July to 30 June. Individual tax returns are due by 30 September following the end of the tax year. Corporate tax returns are due within 6 months of the company's accounting year end.

Online filing

The MRA's e-filing portal (mra.mu) handles individual and corporate tax returns. The system is reasonably user-friendly and supports all common reliefs and deductions. First-time filers should register for a MRA tax account using their national identity card (or passport for expatriates).

Pay As You Earn (PAYE)

Employers deduct income tax from salaries monthly under the PAYE system and remit it to the MRA by the 15th of the following month. Employees whose only income is salary, and whose employer operates PAYE correctly, may not need to file a separate return.

Professional advice

For expatriates with complex situations — multiple income sources, foreign assets, corporate structures, or cross-border pension arrangements — engaging a Mauritius-based accountant for at least the first tax return is strongly advisable. The accountants listed on Mauritius Life include several firms with expatriate and international tax specialists.

Taxes that do not exist in Mauritius

To be explicit about what is not taxed in Mauritius:

Frequently asked questions