Why Mauritian taxation attracts international entrepreneurs
Mauritius has established itself as one of the most competitive jurisdictions in the world for corporate and personal taxation. With a corporate tax rate of 15%, a total absence of capital gains tax and a network of 45 double taxation avoidance agreements currently in force (MRA, 2026), the country offers a unique tax framework combining economic attractiveness with rigorous international compliance.
The Mauritian tax system is governed by the Income Tax Act, complemented by the Value Added Tax Act 1998 and a series of sector-specific regulations. Contrary to common misconceptions, Mauritius does not appear on any tax haven blacklist. The jurisdiction is a member of the OECD Global Forum on Transparency, a signatory to FATCA, a participant in the CRS, and fully compliant with the BEPS (Base Erosion and Profit Shifting) recommendations. This compliance guarantees the credibility and longevity of structures established on the island.
Mauritius appears on the European Union whitelist and obtained a "Largely Compliant" rating in the peer review conducted by the OECD Global Forum. This international recognition ensures that Mauritian tax structures are fully accepted by tax administrations worldwide.
Overview of the Mauritian tax system
The Mauritian tax system is based on principles of simplicity, competitiveness and transparency. The tax architecture is designed to attract international investment while maintaining the highest standards of compliance. Here is a complete overview of the main taxes and levies applicable:
| Type of tax | Rate | Legal basis | Notes |
|---|---|---|---|
| Corporate income tax (CIT) | 15% | Income Tax Act | Effective rate ~3% for GBCs via the Partial Exemption System |
| Personal income tax | 0% to 35% | Income Tax Act | Progressive bracket scale since 1 July 2026 (Finance Act 2026) |
| Capital gains | 0% | Income Tax Act | No tax on the disposal of assets, whether movable or real estate |
| Withholding tax (WHT) on dividends | 0% | Income Tax Act | No withholding, for residents and non-residents alike |
| Withholding tax on interest | 0% | Income Tax Act | No withholding on interest paid to non-residents |
| Withholding tax on royalties | 0% | Income Tax Act | No domestic withholding on royalties |
| VAT (Value Added Tax) | 15% | VAT Act 1998 | Exemptions for service exports and financial services |
| CSR Levy | 2% | Income Tax Act | Applicable to companies with turnover exceeding MUR 50M |
| Wealth tax | 0% | — | No wealth tax |
| Estate duty | 0% | — | No estate duty |
| Gift tax | 0% | — | No gift tax |
Corporate income tax: an attractive 15% rate
The nominal corporate income tax rate in Mauritius is set at 15% for all categories of companies, in accordance with the provisions of the Income Tax Act. This rate applies both to domestic companies and to Global Business Companies (GBC).
The distinctive feature of the Mauritian regime lies in the Partial Exemption System, introduced in 2019 to replace the former deemed Foreign Tax Credit system. This new mechanism, compliant with the OECD's BEPS recommendations, grants an 80% exemption on certain categories of foreign-source income, bringing the effective tax rate down to approximately 3%.
Income categories eligible for the partial exemption
The categories of income benefiting from the 80% exemption include:
- Foreign-source dividends: dividends received from subsidiaries or shareholdings held abroad
- Foreign-source interest: interest received on loans granted to non-resident entities
- Profits from the export of services: income from services provided to clients located outside Mauritius
- Income from licences and royalties: income from intellectual property exploited outside Mauritius
- Income from aircraft and ship leasing: mobile asset financing activities
- Income of reinsurance companies: net foreign-source premiums
- Profits from fund management: management fees charged to offshore funds
Economic substance requirements
To benefit from these advantages, one must first set up a company in Mauritius. GBCs must demonstrate genuine economic substance in Mauritius: at least two resident directors, premises, qualified staff and operating expenditure proportionate to the level of activity. Failure to meet these requirements may result in the loss of the exemption and taxation at the full 15% rate.
To learn more about this topic, see our dedicated page on corporate tax in Mauritius.
Personal income tax
Since 1 July 2026, personal income tax in Mauritius has been based on a progressive scale (Finance Act 2026): 0% up to MUR 500,000, 10% up to MUR 1,000,000, 20% up to MUR 12,000,000 and 35% beyond that, applicable to all tax residents.
Determining tax residence
An individual is considered a tax resident of Mauritius if they meet one of the following conditions:
- Domicile in Mauritius: the person has their habitual domicile on the island
- 183-day presence: the person has been present in Mauritius for at least 183 days during the tax year
- Combined presence: the person has been present in Mauritius for at least 270 days during the tax year and the two preceding years combined
Taxable income and exemptions
Tax residents are taxed on their Mauritian-source income and on foreign-source income remitted to Mauritius. Foreign-source income not transferred to Mauritius is not taxed, which constitutes a major advantage for expatriates and international investors.
| Tax component | Detail |
|---|---|
| Tax rate | Progressive scale: 0% up to MUR 500,000, 10% up to MUR 1M, 20% up to MUR 12M, 35% beyond that (Finance Act 2026) |
| Personal allowance (2025-2026) | MUR 390,000 for a single taxpayer; MUR 500,000 with spouse and dependants |
| PAYE (Pay As You Earn) | Withholding at source by the employer on salaries |
| Social contributions (NPF/NSF) | Mandatory employee and employer contributions |
| Non-remitted foreign income | Not taxed |
Since 1 July 2026, personal income exceeding MUR 12 million per year is taxed at 35% on the excess bracket (Finance Act 2026). This bracket replaces the former "Fair Share Contribution" of 2025-2026 for individuals.
A network of 45 tax treaties (MRA, 2026)
One of Mauritius's major strategic advantages is its vast network of double taxation avoidance agreements (DTAs). With 45 treaties in force (MRA, 2026), Mauritius offers an optimal tax platform for international investments, particularly toward Africa and Asia.
The most strategic treaties cover:
| Region | Countries covered | Main interest |
|---|---|---|
| Europe | France, United Kingdom, Germany, Luxembourg, Belgium, Italy, Cyprus | Gateway for European investments |
| Asia | India, China, Singapore, Malaysia, Thailand, Nepal, Bangladesh | India-Africa corridor, access to the Chinese market |
| Africa | South Africa, Kenya, Senegal, Rwanda, Madagascar, Mozambique, Uganda, Botswana, Lesotho, Swaziland, Zambia, Congo, Tunisia, Egypt | Investment hub toward the African continent |
| Middle East | United Arab Emirates, Qatar, Oman, Kuwait, Bahrain | Middle East investments and sovereign wealth funds |
These treaties make it possible to reduce, or even eliminate, withholding taxes on dividends, interest and royalties paid between signatory countries. See our detailed analysis of double taxation avoidance agreements, including a complete table of rates by country.
Tax optimisation strategies
The combination of the low tax rate, the absence of capital gains tax and the DTA network makes it possible to implement tax optimisation strategies that are perfectly legal and compliant with international standards. The main strategies used by international investors include:
Intermediate holding
Use of a Mauritian GBC as a holding company for investments in Africa or Asia, benefiting from DTAs to reduce withholding taxes on dividends, interest and royalties flowing back to Mauritius.
International trading
Invoicing services or goods via Mauritius, with an effective CIT rate of 3% on profits from the export of services and a zero VAT rate on exports.
Intellectual property
Domiciling licences and patents in Mauritius with reduced taxation of royalties, in compliance with the OECD's DEMPE rules for the substance of IP management.
Investment funds
Structuring funds via Mauritius (Expert Fund, CIS) to benefit from the capital gains exemption, the absence of withholding on distributed dividends, and the DTAs with Africa.
Intra-group financing
Centralising a multinational group's treasury via a GBC Treasury Centre, with a financing margin taxed at 3% and reduced withholding rates thanks to DTAs.
Entrepreneur relocation
Personal relocation to Mauritius to benefit from the progressive scale capped at 35% (compared with often higher rates elsewhere), the absence of capital gains taxation, and the exemption of non-remitted foreign income.
Discover all the strategies in our dedicated guide to tax optimisation in Mauritius. Use our tax simulator to estimate your tax burden based on your profile.
VAT and indirect taxes
VAT in Mauritius is set at a single rate of 15% under the Value Added Tax Act 1998. It applies to most goods and services supplied within Mauritian territory. The system is characterised by its simplicity, with a single standard rate, unlike the multiple reduced rates applied in Europe.
Several categories benefit from favourable treatment:
- Zero-rated: exports of goods and services, certain basic food products (rice, flour, bread, milk), international transport
- Exempt: financial services, medical and hospital services, educational services, residential rents, public transport
Companies with taxable turnover exceeding MUR 3 million (approximately EUR 60,000) are required to register for VAT. GBCs supplying services exclusively abroad are generally not liable. To learn more, see our page on VAT in Mauritius.
The CSR (Corporate Social Responsibility) levy
Companies with turnover exceeding MUR 50 million (approximately EUR 1 million) are subject to the CSR levy at a rate of 2% of their taxable profits. This levy is used to fund social programmes. Companies may allocate half (1%) to programmes of their own choosing, with the other half paid to the Mauritius Revenue Authority (MRA).
International compliance: FATCA and CRS
Mauritius has made the strategic choice of full tax transparency by adhering to the main international regulatory frameworks:
- FATCA: signature of a Model 1 intergovernmental agreement (IGA) with the United States in 2014, requiring Mauritian financial institutions to report accounts of US taxpayers via the MRA
- CRS: participation in the OECD's Common Reporting Standard since 2018, with automatic exchange of tax information with more than 100 jurisdictions
- OECD Global Forum: Mauritius obtained a "Largely Compliant" rating in its peer review
- Multilateral Convention (MLI): Mauritius has signed the Multilateral BEPS Convention to incorporate anti-abuse clauses into its tax treaties
- FATF: Mauritius is a member of the Financial Action Task Force (via ESAAMLG) and complies with anti-money laundering standards
This compliance is a guarantee of security for investors and entrepreneurs, and is one of the major tax advantages of Mauritius. Find all the details on the FATCA and CRS in Mauritius page.
Comparison with other jurisdictions
To fully appreciate the tax advantage of Mauritius, a comparison with other popular jurisdictions is instructive:
| Criterion | Mauritius | Dubai (UAE) | Singapore | Hong Kong | Luxembourg |
|---|---|---|---|---|---|
| Nominal CIT | 15% | 9% | 17% | 16.5% | 24.94% |
| Effective CIT (international structures) | ~3% | 0-9% | ~10% | ~8% | ~5-6% (IP Box) |
| Capital gains | 0% | 0% | 0% | 0% | Variable |
| WHT on dividends | 0% | 0% | 0% | 0% | 15% (reduced by DTAs) |
| Tax treaties | 45 | 90+ | 90+ | 40+ | 80+ |
| Privileged access to Africa | Excellent (14+ African DTAs) | Good | Limited | Limited | Moderate |
| French language | Yes (bilingual FR/EN) | No | No | No | Yes |
| OECD/BEPS compliance | Fully compliant | Compliant | Compliant | Compliant | Compliant |
The pillars of Mauritian tax competitiveness
Stability and predictability
The Mauritian tax framework stands out for its remarkable stability. Tax rates have undergone only minor adjustments over the past two decades, providing the predictability needed to plan long-term operations.
Administrative simplicity
The Mauritius Revenue Authority (MRA) has digitalised most of its processes, enabling online filing and payments. The average processing time for VAT refund claims is among the shortest in the region.
International compliance
Mauritius does not appear on any international blacklist (EU, OECD, FATF). The jurisdiction complies with BEPS standards and maintains economic substance requirements for GBCs, guaranteeing the legitimacy of structures.
Professional ecosystem
A complete ecosystem of qualified professionals: international accounting firms (Big Four), specialised law firms, Management Companies licensed by the FSC. French-English bilingualism facilitates exchanges.
Explore tax topics in detail
To delve deeper into each aspect of Mauritian taxation, we invite you to consult our specialised guides:
- Corporate tax — 15% rate, Partial Exemption System, GBC regime, substance requirements
- Double taxation avoidance agreements — Network of 45 treaties (2026), reduced rates by country, complete table
- Tax optimisation — Legal strategies for holding, trading, IP, funds, intra-group financing
- VAT in Mauritius — 15% rate, exemptions, registration, filings
- FATCA and CRS — Compliance, automatic exchange of information, obligations of financial institutions
Disclaimer: The tax information presented on this site is provided for informational purposes only and does not constitute personalised tax advice. Rates, thresholds and regulations may change. Consult a qualified tax advisor for an analysis tailored to your specific situation.