Mauritian taxation is simple… but not always as one might imagine.
If you type “flat tax ”Mauritius“ or ”expatriate taxes Mauritius”, you are generally looking for two things: how much you will actually pay (income tax, social security contributions, VAT, property) and In what cases does Mauritius tax (or not tax) your foreign income?. This article gives you a clear, data-driven and up-to-date view, with concrete examples and key points to consider.
For more information on settling in (visas/permits, housing, banking, education, real estate), you can also consult the Expat Mauritius website and their resources.
1) “Flat tax” in Mauritius: myth, shortcut… and new reality since 2025
A scale now in 3 tiers (0% / 10% / 20%)
People still often talk about a “flat tax” in Mauritius, because for a long time income tax was presented as low and transparent. Since July 1, 2025, personal income tax (on the chargeable income) follows a scale in three tiers:
- 0% on the first Rs 500,000 of annual taxable income,
- 10% on the Rs 500,000 following,
- 20% on the stay.
Key takeaway: the term “flat tax” is still used in searches, but the actual tax situation in 2025/2026 is progressive (up to 20%), while often remaining competitive compared to many European countries.
Mauritian fiscal year: a key point that changes the landscape
In Mauritius, income tax is calculated by income year (income year) which typically runs from July 1st to June 30th. For example, the’income year 2025/2026 covers from July 1, 2025 to June 30, 2026.
Chargeable income: this is the taxable base, not your gross salary
The tax applies to taxable income (chargeable income), calculated as: Gross income – allowable deductions – exemptions/reliefs. In other words, two people with the same "gross" income can pay different amounts depending on their situation and applicable deductions.
2) Tax residency: the real trigger (resident vs. non-resident)
When are you considered a “tax resident” in Mauritius?
Tax residency is determined according to criteria established by Mauritian tax law. In practice, the tax authorities consider, in particular, the presence of:
- 183 days or more in the relevant tax year, or
- 270 days or more on the relevant fiscal year + the 2 previous years (aggregate).
Important : Tax residency is not strictly the same as immigration status (visa/permit). In reality, these topics overlap: your permit allows you to live, work, and invest, while tax residency determines... perimeter of your taxable income.
Residents: Mauritius taxes your Mauritian income… and certain foreign income if it is deposited/repatriated
According to the Mauritius Revenue Authority (MRA), once the residency rule is met, the resident is subject to tax in Mauritius on derivative income in Mauritius Or remitted to Mauritius (repatriated/returned to Mauritius). The MRA also specifies that a resident may be eligible for reliefs, deductions and allowances, whereas non-residents are not entitled to them.
In practice, this is a central point for expatriates: the way you collect your “foreign” income (and where you repatriate it) This can change your taxable base in Mauritius. In some cases, foreign income repatriated years later may be taxable. the year of repatriation.
Non-resident: taxation limited to income from Mauritian sources
The MRA indicates that the non-residents are taxed only on the net income derived from/increased in Mauritius, and that they do not benefit from the reliefs/deductions/allowances granted to residents.
Tax Residence Certificate (TRC): useful for tax treaties
If you need to prove your Mauritian tax residency (bank, foreign employer, tax authorities of your country of origin, application of a tax treaty), the MRA provides a procedure for Tax Residence Certificate (TRC), particularly through its e-services.
To check the existence of a tax treaty between Mauritius and a country (and access the official list), the MRA's "Double Taxation Agreements" page is the reference.
Cautionary note: Your tax residency may remain contestable if you maintain a strong "center of interests" elsewhere (family, permanent home, main occupation). Tax treaties (where they exist) often include rules for resolving these disputes. Have your situation reviewed if the stakes are high.
3) Expatriate employee: what you really pay (tax + contributions)
Income tax withheld at source (PAYE)
For an employee, tax is generally withheld through the system PAID (Pay As You Earn). The 2025/2026 rates are based on the 0% / 10% / 20% scale.
Note: the MRA also indicates that an employee whose monthly earnings do not exceed Rs 38,462 may be considered “exempt employee” (PAID under certain conditions).
CSG (General Social Contribution): a significant social deduction
Beyond income tax, many expatriates discover the CSG. For a private sector (non-public) employee, the MRA displays the following rates (on the basic salary or prescribed bonus):
- if the monthly salary ≤ Rs 50,000 : 1,5% (employee share) and 3% (employer's share),
- if the monthly salary > Rs 50,000 : 3% (employee share) and 6% (employer's share).
PRGF (Portable Retirement Gratuity Fund): an employer cost to be aware of
Another component frequently overlooked in international comparisons is the PRGF. The MRA guide indicates that the employer must contribute to the PRGF at 4.5% of the monthly remuneration of each worker (with temporary arrangements for certain SMEs over the period indicated in the guide).
Simple example (to understand the order of magnitude)
Let's imagine an expatriate employee whose annual taxable income (chargeable income, after deductions/exemptions) is Rs 1,500,000 on the fiscal year.
- 0% on Rs 500,000 = Rs 0
- 10% on Rs 500,000 = Rs 50,000
- 20% on Rs 500,000 = Rs 100,000
Total tax (excluding other mechanisms): Rs 150,000 over the year, this represents an average tax rate of 10% in this example. Social security contributions (CSG) and, depending on your income level, specific mechanisms may also apply (see below).
4) High incomes: the “Fair Share Contribution” (not to be ignored)
Threshold at Rs 12 million and rate at 15% on the surplus
The MRA provides for, in addition to income tax, a Fair Share Contribution (FSC) for individuals exceeding a certain threshold. The MRA's "Payroll Taxes" document states, in particular:
- application when the Fair Share Contribution Income Threshold exceeds Rs 12,000,000 based on annual income,
- calculation at 15% on the income exceeding Rs 12,000,000,
- applicable for the’income year starting on July 1, 2025 and the two following years.
A subtle but crucial point: the MRA includes elements such as certain domestic dividends (even though these dividends may be exempt from income tax as such).
5) Entrepreneurs, freelancers, managers: most common taxes and obligations
Corporate tax: standard rate at 15% (with special cases)
For business activity via a company, the standard corporate tax rate in Mauritius is generally presented as 15%. But the reality can be more nuanced depending on your sector (incentives, exemptions, "substance" rules, etc.) and since reforms related to international standards (for example, mechanisms targeting certain multinational groups).
If you're starting a business, the key issue isn't just "the rate": it's also income qualification, Accounting, VAT, payroll if you hire staff, and consistency between immigration/tax residency/invoicing. "Setting up + business" support often saves months of administrative back-and-forth: you'll find helpful guidance in Expat Mauritius expatriation guides.
VAT (VAT) at 15%: lowered registration threshold and new features for 2026
VAT in Mauritius is at the standard rate of 15%.
Since the 2025–2026 Budget, PwC Mauritius has summarized an important measure: the VAT registration threshold was lowered by Rs 6 million to Rs 3 million of taxable turnover, with effect from October 1, 2025.
Another “expat-friendly” but often overlooked point: from the January 1, 2026, The MRA specifies that certain digital/electronic services provided from abroad in Mauritius may be subject to VAT at 15% (with obligations for foreign suppliers as the case may be).
Dividends, interest, withholding taxes: what changes cash flow
For individuals, the MRA lists income tax-exempt. Among the most frequently cited points by expatriates:
- Dividends paid by a company resident in Mauritius: exempt income tax.
- Interests on certain savings accounts or deposits (subject to conditions): the MRA list provides for cases of exemption.
Regarding "withholding tax," recognized tax summaries (Deloitte, PwC Tax Summaries) also point out that there is generally No withholding tax on dividends in Mauritius (domestic rate 0%).
6) Investments and assets: capital gains, foreign income, and the remittance basis“
Capital gains: the general idea (and its limitations)
Mauritius is often described as a country without capital gains tax. On the MRA side, we find in particular the exemption from gains/profits on the sale of units, securities or debt obligations.
In addition, reputable firms point out that Mauritius generally does not tax capital gains, while highlighting a nuance: if a transaction resembles a trading activity (commercial nature), the administration may reclassify certain gains.
Foreign income: taxable if you are a resident and if the funds are remitted to Mauritius
The MRA “Foreign Income” page is clear on the principle: foreign income includes, among other things, salaries, pensions, employment income, rents, investment income, interest… and it is taxable in the hands of the resident. Then, the MRA specifies that the resident will be subject to income tax. derivatives in Mauritius or remitted to Mauritius.
Finally, the MRA also published clarifications on the treatment of distributions from foreign fiscally transparent entities: if a distribution retains the nature of capital gain, She is not subject to income tax in Mauritius (according to this press release).
7) Real estate: taxes on purchase/sale and what is planned for July 1, 2026
Registration fees & Land Transfer Tax: the “true cost” of a transaction
In a Mauritian real estate transaction, we often talk about:
- of Registration Duty (often at the buyer's expense),
- and Land Transfer Tax (often at the seller's expense).
The EDB (Economic Development Board) points out, for example, that the Land Transfer Tax maybe 5% of the transaction value (in the general case presented).
Planned increase for non-citizens (EDB property schemes): date to remember
If you are buying property under an EDB scheme (Smart City Scheme, Property Development Scheme, etc.), a significant change has been announced: according to a KPMG note (Finance Act 2025), the rate of Registration Duty payable by a non-citizen would pass from 5% to 10%, and the Land Transfer Tax on sales to non-citizens would also pass 5% to 10%, with an indicated effective date as of July 1, 2026.
At March 25, 2026 (Date of update of this article), this point is especially useful for planning a purchase: If you are aiming for an acquisition in 2026, the date of July 1, 2026 may change your expense budget..
8) Summary table: taxes & levies most commonly encountered by an expatriate
Key figures (2025/2026) to estimate “what I pay”
| Tax / contribution | Who pays? | Rate / rule (reference) | Base / note |
|---|---|---|---|
| Income tax (individual) | Resident / Non-resident (on Mauritian income) | 0% (first Rs 500k) / 10% (subsequent Rs 500k) / 20% (remainder) since 01/07/2025 | On the chargeable income (taxable income) |
| Fair Share Contribution (FSC) | People with very high incomes | 15% on the excess beyond Rs 12m (income year from 01/07/2025, for 3 years) | This includes, in particular, certain domestic dividends within the threshold. |
| CSG (private sector) | Employee + employer | ≤ Rs 50k/month: 1.5% employee + 3% employer; > Rs 50k/month: 3% employee + 6% employer | Based on base salary / prescribed bonus (according to rules) |
| PRGF | Employer | 4.5% of the monthly remuneration (general rule of the guide) | This should be included in the “employer cost” and salary negotiations. |
| VAT | Consumer (pays), company (collects) | 15% (standard rate) | Registration threshold lowered to Rs 3m on 01/10/2025 (according to Budget 2025–2026) |
| Dividends (resident company) | natural person (beneficiary) | Exempt from income tax (MRA list) | However, they can count towards certain thresholds (e.g., FSC). |
9) Quick method to estimate your taxes before leaving
In 6 steps (without a complex spreadsheet)
- Determine your status : probable or not tax resident (183/270 days, domicile, etc).
- List your income : salary (Mauritius/abroad), consulting, rents, dividends, interest, pensions.
- Sort by “source” : Derivative income in Mauritius vs potentially remitted foreign income.
- Calculate a taxable base (order of magnitude): gross – applicable deductions/reliefs.
- Apply the scale 0/10/20 (and check if you are approaching the FSC threshold at Rs 12m).
- Add social contributions (CSG, and PRGF on the employer's side if you are negotiating a package).
10) Common mistakes made by expats (and how to avoid them)
- Confusing “flat tax 15%” with the 2025/2026 reality : the scale now goes up to 20%.
- Forget about social charges (CSG) in the net in hand.
- To think that “all foreign income is tax-free” : for a resident, the question of remittance is crucial.
- Ignoring tax treaties and not anticipating the supporting documents (TRC).
- Underestimating real estate costs (registration duty / land transfer tax) and do not include the date of 01/07/2026 for certain non-citizen schemes.
FAQ – Taxation in Mauritius: Questions Expats Really Ask
Is Mauritius really at “15% flat tax”?
Not exactly. Since the July 1, 2025, Personal income tax is calculated on the chargeable income with a three-tiered pricing structure: 0% on the first Rs 500,000, 10% on the Rs 500,000 following, Then 20% Regarding the rest, in practice it is often still perceived as "simple" and "low," but it is no longer a single flat tax. Also consider social security contributions (CSG) which impact net income.
If I become a tax resident in Mauritius, do I have to declare my foreign income?
The MRA indicates that the foreign income (salaries, pensions, rents, investments, interest, etc.) is taxable in the hands of the resident and specifies that the resident is subject to income tax derivatives in Mauritius or remitted to Mauritius. In short, the "where" and "when" you repatriate your income can have an impact. A non-resident, on the other hand, is only taxed on net income from Mauritius (without deductions/allowances). If this is a significant issue, have your case reviewed.
Are dividends and capital gains taxed in Mauritius?
For individuals, the MRA lists exempt income, including the dividends paid by a resident company. The MRA also mentions the exemption on certain gains/profits These transactions are linked to the sale of securities (units, bonds), which contributes to the reputation of being subject to "no capital gains tax." However, be aware that, according to tax summaries, if a transaction resembles trading activity, the tax authorities may reclassify it. And for very high earners, certain dividends may be included in the Fair Share Contribution threshold.
What taxes should I expect if I buy a property in Mauritius?
Acquisition/disposal costs frequently include the Registration Duty and the Land Transfer Tax (often presented as 5% in institutional information). If you are purchasing under an EDB scheme (Smart City, PDS, etc.) as non-citizen, A change is to be anticipated: according to a KPMG analysis related to the Finance Act 2025, the transition to 10% (instead of 5%) on certain duties/taxes would be provided with effect from July 1, 2026. This is a major budgetary point if you are planning a signing around this date.
I am American: is living in Mauritius enough to stop paying taxes in the United States?
No, not automatically. Mauritian taxation can be favorable, but some countries (including the United States) have specific rules: a US citizen may retain reporting and tax obligations in the US even while living abroad. Tax treaties and tax credit mechanisms can help in some cases, but you must consider "Mauritius + country of origin" (and sometimes several countries if you have international income). For your Mauritian procedures (residency, TRC, structuring), start by clarifying your status and income streams.
And now ?
If you want to put theory into practice (residency status, tax assessment, business structuring, family relocation, and potentially a real estate project), Expat Mauritius can assist you with a hands-on approach and comprehensive support. Start by exploring their resources and services: Living in Mauritius: turnkey expatriation and real estate, then complete with their practical guides. For initial contact and evaluation, please contact us via their official website.
