In Mauritius, expatriate tax depends primarily on their tax residence. Since July 1, 2025, the tax scale for individuals is progressive: 0 % on the first Rs 500,000, 10 % on the next Rs 500,000, and then 20 % beyond that.mra.mu)
In other words, there is no general flat tax of 15 % for all expatriates. The 15 % appears in certain specific cases, for example for directors' remuneration, for the valuation of furnished accommodation provided by the employer, or for certain specific levies; it is this mix of rules that often creates confusion.mra.mu)
The actual income tax scale in Mauritius
The MRA clearly distinguishes between tax status, nature of income, and method of collection. Employees generally use PAYE, the self-employed and rental income use CPS, while certain other income such as interest, royalties, foreign dividends, or annuities follow specific rules.mra.mu)
Resident, non-resident and special cases: what does it really change?
| Situation | Tax base | Rate or withholding | Practical consequence for an expatriate |
|---|---|---|---|
| Tax resident employee | Worldwide income, including certain foreign income deposited in Mauritius. | Scale 0 % / 10 % / 20 % and access to reliefs. | Residents are taxed more heavily, but they can reduce their taxable base with permitted deductions.mra.mu) |
| Non-resident employee | Only income from Mauritius. | No personal relief, deductions or allowances. | Non-residents are taxed more simply, but without the tax advantages available to residents. |
| Non-resident director | Management fees paid by the company. | PAID at 15 % or 20 % at choice in certain cases. | This case often fuels the idea of a Mauritian “15 %”, when in fact it is a specific rule. |
| High annual income | Portion of income exceeding the applicable threshold. | Fair Share Contribution of 15 % on the surplus exceeding Rs 12 million. | Very high expatriate salaries may therefore be subject to an additional contribution, on top of income tax.mra.mu) |
| Independent or landlord | Profits from business, profession, trade and rents. | Annual declaration and taxation according to the scale for natural persons. | The CPS and the annual declaration become essential if you are self-employed or receive rent. |
Tax residency: the criterion that changes everything
In Mauritius, nationality does not determine taxation. The central criterion is tax residence: a person is generally considered a resident if they are present in Mauritius for 183 days or more in the tax year, or 270 days or more in the two preceding years, or if their domicile is Mauritian without a permanent place of residence abroad.
If you need formal proof of your status, the MRA allows you to request a Tax Residence Certificate from the Director General. This is often useful for documenting your personal circumstances, foreign income, or the application of a tax treaty.
If you are preparing your installation, the Practical guides for expats in Mauritius can help you link taxation to your housing, banking, school or business creation processes.
Foreign income, remittances and expatriates residing in Mauritius
The Mauritius Revenue Authority (MRA) clarifies that foreign income is income originating outside Mauritius, whether it be salary, directors' fees, pension, business income, rent, investment income, or interest. For a tax resident, this income is taxable, and according to the rule published by the MRA, this tax liability applies to income derived from or deposited in Mauritius. A non-resident, however, remains subject to taxation only on income originating in Mauritius.
In cross-border situations, the Mauritian network of tax treaties can also be a factor; the Mauritian government indicates that the island has concluded 46 tax treaties.govmu.org)
Salary, housing, car: benefits in kind matter
For an expatriate, the employment package is often as important as the base salary. The MRA considers benefits in kind, including accommodation, a company car, personal expenses paid by the employer, and board and lodging provided to expatriates or locals, as emoluments. If the accommodation is furnished, the taxable value is 15 % of the total emoluments; if it is unfurnished, it is 10 %; and if the employer rents the property, the actual rent is taken into account. (mra.mu)
This is one of the reasons why an expatriate may feel they are "paying 15 %" when, legally, it is often a benefit valued at 15 % and not a flat-rate income tax. (mra.mu)
Why do we often talk about 15 %?
- Mauritian VAT is 15 % on taxable supplies, but it remains separate from income tax.
- The fees of certain administrators may be subject to 15 % in PAYE, with an option at 20 % in the case of a non-resident citizen who is a director.
- Furnished accommodation provided by the employer is valued at 15 % Total emoluments for calculating PAYE. (mra.mu)
- Very high incomes may be subject to an additional contribution of 15 % on the share exceeding Rs 12 million, via the Fair Share Contribution.
Concrete example: an annual income of Rs 600,000
Let's consider a resident expatriate with an annual taxable income of Rs 600,000 and no special reliefs. Under the current tax schedule, the first Rs 500,000 are taxed at 0%, then the next Rs 100,000 at 10%, for a total tax of Rs 10,000. The effective rate is therefore approximately 1.67% before any deductions are taken into account. If the person is a resident and entitled to reliefs, the final amount could be even lower.
The discounts and deductions that can reduce the bill
Only residents can claim personal relief, deductions, and allowances for the tax year ending June 30, 2026. For an expatriate with family or recognized expenses, these mechanisms can significantly change the final tax bill. (mra.mu)
- The deduction for dependents is Rs 110,000 for one dependent, Rs 190,000 for two, Rs 275,000 for three, and Rs 355,000 for four or more dependents. (mra.mu)
- An additional deduction of Rs 500,000 may apply for a dependent child pursuing unsponsored higher education abroad, subject to certain conditions. (mra.mu)
- Health insurance premiums or contributions may entitle you to a relief of up to Rs 25,000 for yourself, Rs 25,000 for the first dependent, and Rs 20,000 for each of the second, third, and fourth dependents. (mra.mu)
- Electronic donations to charitable institutions are tax-deductible up to Rs 100,000 and contributions to a registered personal pension scheme up to Rs 50,000. (mra.mu)
Other tax breaks are also available, notably for guaranteed mortgage interest, solar investments, rainwater harvesting, electric vehicle charging stations, private school fees, and employing a carer. (mra.mu)
Reporting obligations and PAYE
Mauritian taxation is based on self-declaration: you must in principle declare your income and pay tax according to your situation, while the employer withholds PAYE when it is a salary.
- If you are a non-resident employee, you must submit an Employee Declaration Form to your employer each year, and if you change jobs you must provide a new one to your new employer; if you have multiple employers, the declaration can only be sent to one of them.mra.mu)
- PAY is calculated cumulatively over the year, which means that the employer takes into account remuneration and benefits already taken into account in previous periods.
- A tax return may be mandatory if you are registered with the MRA, if you have chargeable income, if your total net income exceeds Rs 500,000, if your business income exceeds Rs 2 million, or if your emoluments have already been subject to withholding tax.mra.mu)
- For the 2025 tax return season, the MRA indicated that individual filing and payment would be done electronically, demonstrating that digital is now the standard for management.mra.mu)
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FAQ
How does income tax work in Mauritius for resident and non-resident expatriates?
The starting point is always tax residency. An expatriate residing in Mauritius is taxed on their worldwide income and, according to MRA rules, may have their foreign income included in the tax base when it is held in Mauritius. A non-resident is taxed only on income sourced in Mauritius and does not benefit from personal reliefs, deductions, and allowances. Therefore, it is tax status, not passport, that determines the calculation method.
What is the income tax rate for an expatriate earning more than 600,000 rupees per year in Mauritius?
Since July 1, 2025, the individual tax scale is progressive: 0 % on the first Rs 500,000, 10 % on the next Rs 500,000, and 20 % beyond that. With Rs 600,000 of taxable income, the tax amounts to Rs 10,000 before deductions, representing an effective rate of approximately 1.67 %. If the expatriate is a resident and has relief, the final amount may be lower.
Does Mauritius apply a flat tax of 15 % for expatriates and under what conditions exactly does this apply?
Not generally. The 15 % rate is widely used because several distinct rules apply: VAT is levied at 15 %, certain directors' fees are deducted at 15 % in PAYE (taxable income), a non-resident director can choose between 15 % and 20 %, and furnished accommodation provided by the employer is valued at 15 % of the remuneration. Therefore, the nature of the income must be verified before referring to it as a "flat tax.".
Are foreign earnings taxable in Mauritius if those earnings are deposited in the country of residence?
For a Mauritian tax resident, the MRA (Mauritius Revenue Authority) indicates that foreign income is taxable, and that this rule applies to income derived from or deposited in Mauritius. Conversely, a non-resident is taxed only on income sourced in Mauritius. If your situation also involves another country, Mauritian tax treaties may be important to limit double taxation.
What are the tax obligations of expatriates working in Mauritius (PAYE, EDF, declaration)?
In practice, an expatriate employee must verify their residency status, provide their employer with proof of residence (EDF) if they are a non-resident citizen, and ensure that their PAYE (Pay As You Earn) is correctly calculated and withheld. They may also be required to file an annual tax return if they exceed certain thresholds, such as Rs 500,000 in total net income or Rs 2 million in earned income. The MRA (Mauritius Revenue Authority) has also indicated that individual filings are done electronically.
And now ?
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