When you become a Mauritian tax resident, do not close your investments blindly.
With a French life insurance policy and a PEA (equity savings plan), the key issues are the redemption date, your tax status on the date of the transaction, and whether or not a non-cooperative state or territory exists. In practice, the PEA is often kept, while life insurance requires more careful consideration.
This guide is for informational purposes only. It does not replace a personalized tax, legal, or immigration analysis.
The right reflex before departure
In Mauritius, a tax resident is generally defined as someone present for 183 days or more in a single year, or 270 days over two consecutive years, and the Mauritius Revenue Authority (MRA) issues a Tax Residence Certificate upon request. In France, the year of departure is declared to the former tax office, and subsequent years only include French-source income taxable in France. the MRA page on tax residency and foreign income, the MRA's TRC portal and the official information sheet on leaving for abroad summarize this framework.
If you are still in the preparation phase, keep our guide on the 183-day rule in Mauritius and residency procedures, because the exact date of the switchover is just as important as the financial product itself.
French life insurance: keep it or redeem it?
Keeping the contract is often possible
In practice, the French tax authorities explicitly regulate the taxation of withdrawals made by individuals domiciled outside of France, demonstrating that a life insurance contract can remain valid after departure. The issue, therefore, is not necessarily about closing the policy, but rather about determining whether a withdrawal should be made before or after the change of tax residence. the information sheet on the redemption of a non-resident's life insurance policy And the impots.gouv.fr page on life insurance and PEA provide the basic tax framework.
Buy back before departure
If you redeem your policy before becoming a non-resident, you remain subject to the standard French tax regime. For payments made since September 27, 2017, the proceeds are subject to a flat-rate withholding tax of 12.8% (%) or 7.5% (%) after eight years, with an annual allowance of €4,600 or €9,200 for contracts held for more than eight years. From January 1, 2026, social security contributions will increase to 18.6% (%) on many products, with exceptions provided by the tax authorities. The impots.gouv.fr page on life insurance and PEAs (equity savings plans) specifies these rates and thresholds.
If your contract is old, the unrealized gains are significant, or you need immediate access to cash, a pre-departure cash-out may be a worthwhile option. To consider this choice within your overall budget in Mauritius, see our article on Mauritian tax at 15% (%) for expatriates helps to compare the tax burden on the Mauritian and French sides.
After settling in Mauritius
If the redemption occurs while you are a tax resident outside of France, the insurer applies a flat-rate withholding tax, and social security contributions do not apply to this investment income. However, the rate can rise to 75% if the payment is linked to a non-cooperative state or territory, which is not a scenario to be taken lightly. See the information sheet on life insurance redemptions for non-residents. the information sheet on income from movable capital They specify it.
Regarding Mauritius, the MRA (Mauritius Revenue Authority) reminds residents that they are taxed on their income from Mauritian sources or income remitted to Mauritius. Therefore, a large purchase after moving to Mauritius warrants prior verification, especially if you are transferring the funds to a Mauritian account or reinvesting them locally.
If your move also involves local health or welfare coverage, keep the insurance aspect in mind with our guide to the right insurance coverage in Mauritius.
PEA: the product that is most often kept
The PEA can be kept after departure
The administration's message is clear: you can only open a PEA if your tax residence is in France, but you can keep it after leaving France, unless your new residence is in a non-cooperative state or territory. the page dedicated to the PEA for non-residents He said it explicitly.
Withdrawals and partial redemptions
If you are a non-resident on the date of a withdrawal, closure, or partial redemption, the net gain realized is exempt from income tax and social security contributions. The BOFiP (French Official Tax Bulletin) also specifies that, during the period of non-residence, dividends from a bank-based PEA (equity savings plan) are not subject to withholding tax, except in the specific case of unlisted French securities. the BOFiP on the operation of the PEA He elaborates on this point.bofip.impots.gouv.fr)
If your PEA (equity savings plan) is less than five years old and you withdraw funds before leaving France, the French tax system may be much less favorable, as early withdrawal generally results in the closure of the account and taxation of the gains. Conversely, if you are already a non-resident on the date of the transaction and your new residence is not a non-cooperative tax jurisdiction, the net gain is exempt from income tax and social security contributions.impots.gouv.fr)
In other words, for a PEA (equity savings plan), the main instinct is to keep the plan and secure the transaction date. If you're also looking to compare your savings vehicles with your everyday insurance coverage, see France-Mauritius tax comparison and, more broadly, how Dress warmly in Mauritius.
How to make a decision in practice
The term "transfer" is often misleading. For these accounts, the issue isn't simply moving them to a Mauritian equivalent, but rather choosing between keeping them, redeeming them, or waiting for a change in tax residency. The best approach is therefore to consider the timeframe, the holding period, and cash flow needs.
Summary table
| Product | In practice | When to buy back before departure | Point of vigilance |
|---|---|---|---|
| Life insurance | Most often, we keep it and decide when to buy it back. | If you want to take advantage of the resident status before changing your tax residence, or if you need cash. | After departure, the buyback follows the non-resident regime in France, with PFL and without social security contributions. |
| PEA | It is generally kept if the new residence is not in an ETNC. | Buying back before departure is not the standard option, except with a specific wealth management strategy. | After departure, withdrawals by a non-resident are outside the scope of income tax and social security contributions, except in the case of non-cooperative foreign nationals. |
To put these choices into perspective with your overall tax situation, the France-Mauritius tax comparison This remains a good starting point before finalizing your schedule.
Concrete steps in Mauritius and organizations to be aware of
The Mauritian framework for residence and work permits was further adjusted in 2026, so it's always essential to check the thresholds and forms before submitting an application. If your departure begins on the tax transition date, our guide on Mauritian tax residency and procedures 2026 will help you set the right timing.edbmauritius.org)
- MRA This is the tax authority to contact for tax residency, the Tax Residence Certificate (TRC), and information regarding foreign income. The TRC application is done online; individuals pay MUR 1,000. The certificate can be issued within a stated timeframe of 7 days if the application is complete, and the MRA may request additional documents. If the form is incorrect or if payment deadlines are not met, the application may be blocked.
- EDB This is the natural entry point for residency, occupancy permits, and investment projects. The EDB reminds us that the permit framework was further adjusted in 2026, that categories exist depending on your profile, and that the thresholds must be rechecked at the time of application. Nothing is automatic here, and the criteria depend on your actual activity.
- PIO The Passport and Immigration Office manages entry and residence, including the Occupation Permit and the Residence Permit. For employment, the authorities remind applicants that the correct residence permit and work permit are required, and the application requires precise information on identity, passport, length of stay, position, and employer. The employer-related cost is currently 500 Mauritian rupees per year per non-citizen worker, but this type of fee is subject to change.passport.govmu.org)
- CBRD, and the Registrar of Companies Contact this if your business setup involves creating a company. The CBRD is the registration office, and its official documentation indicates that incorporation can be done online by submitting the required documents, then issuing an e-certificate once the file is complete.
- MQA The Mauritius Qualifications Authority intervenes if your foreign diploma or qualification needs to be recognized or equivalent for you to work or register locally. This is something to check if your permit, job, or retraining depends on formal recognition of your qualifications.mqa.govmu.org)
- Civil Status Office This is useful for birth, marriage, and death certificates, as well as civil status extracts, especially if your residency application depends on family documents. The Central Civil Status Office is located in Port Louis and has several sub-offices.csd.govmu.org)
- NTA The National Transport Authority, now listed on the government portal as NLTA, becomes useful if your arrival also involves driving, licenses, or registration. It is the regulatory authority for land transport.nlta.govmu.org)
If your expatriation project is broader than just tax considerations, our guide on How to dress appropriately when moving to Mauritius can also save you time.dha.govmu.org)
FAQs about life insurance and PEAs when moving to Mauritius
Can I keep my French life insurance policy if I become a tax resident in Mauritius?
Yes, most of the time. French regulations clearly govern the taxation of withdrawals made by someone who is a tax resident outside of France, meaning the contract can continue after their departure. The real point to be aware of, therefore, is not whether you hold the contract, but the timing of the withdrawal and where the proceeds are taxed. If the contract is old, has high unrealized gains, or if you need cash, compare the withdrawal before and after your change of residence.
Can I keep my PEA if I move to Mauritius and become a Mauritian tax resident?
Yes, provided your new residence is not in a non-cooperative state or territory. The tax authorities specify that a PEA (equity savings plan) can be retained after leaving France. In practice, this often makes it the simplest investment vehicle to keep when settling in Mauritius. The key point remains to check the date of any withdrawal, as the tax treatment differs depending on whether the transaction occurs before or after departure.
Should you redeem your life insurance policy before leaving France for Mauritius or transfer it?
There is no automatic answer. If you redeem your policy before leaving France, you remain subject to French tax law as a resident, with social security contributions applicable on the date of the transaction. If you wait until you are a non-resident, the redemption will be subject to the non-resident tax regime, with a flat-rate withholding tax and no social security contributions. The term "transfer" is often misleading here, as the real decision lies primarily in whether to keep the policy or redeem it at the right time.
How does Mauritian tax residency affect my life insurance and PEA gains?
It primarily changes which country takes precedence. The MRA (Mauritius Revenue Authority) points out that a Mauritian tax resident is taxed on their Mauritian-sourced income or income remittances to Mauritius. Meanwhile, France continues to tax certain French-sourced income depending on the non-resident's situation. Consequently, the same redemption or transfer can have different consequences depending on your departure date, your contract, and how the money is subsequently transferred.
What happens to my PEA and my life insurance when I am a Mauritian tax resident and I leave permanently?
A PEA (equity savings plan) can generally remain open, unless you move to a non-cooperative tax jurisdiction. Life insurance can often be kept as well, but each withdrawal will be analyzed according to the non-resident tax regime. If you are leaving permanently, the most important thing is to fix your tax transition date, keep your proof of residence, and verify whether a withdrawal before departure would actually be advantageous. For many people, a PEA is preferable, while life insurance should be assessed on a case-by-case basis.
And now ?
If you are preparing to move to Mauritius, first set your tax residency change date, then decide separately what to do with your life insurance and your PEA (equity savings plan). To continue reading, you can start from the 183-day rule and residency procedures, compare with France-Mauritius tax comparison and return to the homepage of’EXPAT MAURITIUS if you wish to move forward with structured support.
