Changing countries also means changing tax rules.
- your tax residence, (
- the income tax scale, (
- VAT, (
- the taxation of dividends (and the France-Mauritius tax treaty)
In this article, EXPAT MAURITIUS helps you understand the main mechanisms (without unnecessary jargon), to identify what has changed recently in Mauritius, and to avoid the classic mistakes when leaving France.
Important note This article is for informational purposes only. Expatriation situations are always structured on a case-by-case basis (departure dates, income in France/Mauritius, assets, company, agreements, etc.). Before making a decision, consult a qualified professional and/or refer to official documents.
1) First and foremost: tax residence, tax calendar and “who taxes what”
The right question is not “where are taxes lower”, but “where am I a tax resident”.”
Your tax residence often determines whether you are taxed on your global revenues (resident) or only on your local source revenue (non-resident), subject to international conventions.
In France, the administration points out that, in particular, people who have their tax domicile in France are considered to be domiciled there. hearth (center of family interests), or their main living area, or a main professional activity, or the center of economic interests (Article 4 B of the CGI, reproduced in the official documentation). Source: impots.gouv.fr – tax residency criteria
The tax calendar: France (calendar year) vs Mauritius (budget year)
In practice, this sometimes complicates the "first year" of expatriation:
- France Income tax follows the’calendar year (from January 1st to December 31st).
- Mauritius The fiscal year generally corresponds to the budget year. from July 1st to June 30th.
2) Income tax: Mauritius vs France (tax brackets, surcharges, non-residents)
Mauritius: New income tax rates (effective July 1, 2025)
The Mauritius Revenue Authority (MRA) indicates that, effective July 1, 2025, An individual is taxed on his chargeable income according to the following scale:
- 0% on the first Rs 500,000
- 10% on the Rs 500,000 following
- 20% on the stay
Source: MRA – “Obligation to file a return” (Tax Rates as from 1 July 2025)
The MRA also mentions, for high incomes, a Fair Share Contribution (collected via PAYE) when the threshold is exceeded. Source: MRA – PAYE (Fair Share Contribution)
Furthermore, the MRA points out the existence of a Solidarity Levy when the leviable income exceeds Rs 3,000,000 (with specific calculation methods). Source: MRA – Individuals (Solidarity Levy)
France: progressive income tax (0% to 45%)
In France, income tax is progressive and depends on family quotient. The tax brackets change regularly. Service-Public reminds users of the principle and publishes the reference scale (with updates according to finance laws). Source: service-public.fr – Income tax scale
Important note regarding expatriation: if you leave France during the year, the administration generally distinguishes between the period before departure (resident regime) and after departure (non-resident regime for French-source income), subject to conventions. Source: impots.gouv.fr – calculation methods (departure from France)
Comparative table (quick summary): taxes, VAT, dividends
| Theme | Mauritius | France |
|---|---|---|
| Income tax (individuals) | Scale announced by the MRA from 1/07/2025 : 0% / 10% / 20% depending on tranches. MRA | Progressive scale (up to 45%) + family quotient. Public Service |
| VAT (standard rate) | 15%. MRA – VAT | 20% (Metropolitan France). Customs.gouv.fr |
| Local dividends | Dividends paid by a resident company: indicated as exempt from income tax (exempt income). MRA – Exempt Income | Often taxed via flat-rate tax (or optional tax brackets). In 2026, the flat-rate tax rate changed (see dedicated section). Public Service Entrepreneurship |
3) VAT: 15% in Mauritius vs 20% in France (and what has changed recently)
Mauritius: VAT rate at 15%
The MRA clearly states that the The VAT rate is 15%. Source: MRA – VAT
What's changing: VAT on certain digital services provided from abroad (since January 1, 2026)
Since the January 1, 2026, VAT updates target digital/electronic services supplied by foreign providers (taxation rather than consumption logic). Several firms have summarized the reform related to the Finance Act 2025. Source: Forvis Mazars (January 28, 2026)
France: VAT rates (reminder)
In metropolitan France, Customs summarizes the rates: 20% (normal), 10%, 5,5%, 2,1%. Source: douane.gouv.fr – VAT rates
4) Dividends: where is the tax paid, and at what rate?
Dividends in Mauritius: exemption on dividends paid by a resident company (but beware of specific contributions)
The MRA classifies as exempt income THE dividends paid by a company resident in Mauritius (and by certain cooperatives). Source: MRA – Exempt Income
On the other hand, some “high income” mechanisms can include dividends in a contribution base (for example the Solidarity Levy as described by the MRA). Source: MRA – Individuals (Solidarity Levy)
Dividends in France: PFU (flat tax) and changes on January 1, 2026
For the French tax residents, Dividends generally fall within the scope of PFU (with the option to choose the pricing structure). The official website explains the principle. Source: economy.gouv.fr – PFU
New for 2026: Service-Public Entreprendre indicates that the PFU decreased from 30% to 31.4% (with a change in the CSG on January 1, 2026). Source: Service-Public Entreprendre (published on February 10, 2026)
French dividends received by a non-resident: withholding tax (and France-Mauritius tax treaty)
If you are non-resident for tax purposes and receive dividends from French sources, impots.gouv.fr indicates a withholding tax at the rate of 12,80% (rate mentioned “effective as of January 1, 2025”), subject to more favorable tax treaties. Source: impots.gouv.fr – “My dividends” (November 6, 2025)
- modified by the amendment (
- The article on "Dividends" provides for a cap on the tax in the source state (depending on the circumstances). In this consolidated version, there is notably a limit of 5% of gross tax when the beneficial owner is a company holding at least 10% of capital, and 15% in other cases (according to the terms of the treaty). Source: France-Mauritius Convention (PDF, impots.gouv.fr)
5) What changes (in concrete terms) for an expatriate leaving France for Mauritius
Change #1: The departure year is managed “in two stages”
The French administration illustrates the mechanism: your global revenues perceived before your departure remain taxed as a resident, then your income from French sources perceived after your departure fall under the non-resident regime (subject to the convention). Source: impots.gouv.fr – calculation methods
Change #2: Your French dividends (French shares) may remain taxable in France
Even if you are a Mauritian tax resident, income from French sources (including dividends) may be subject to withholding tax in France, in accordance with the convention. Source: impots.gouv.fr – non-residents and dividends
Change #3: Your "salary vs. dividends" choices become structuring (entrepreneur/manager)
If you are an entrepreneur, the issue is not limited to the headline rate: you need to look at the combination income tax (remuneration), dividend rules (exemptions, withholding taxes), and tax treaty. In Mauritius, the MRA specifies that certain dividends (paid by resident companies) are classified as exempt income, while France applies flat tax/withholding tax depending on the situation. MRA Public Service Entrepreneurship
6) Simple numerical examples for reference
Example 1 — Income tax in Mauritius (MRA tax rates from 1/07/2025)
Suppose a annual chargeable income of Rs 1,500,000 (excluding specific contributions).
- 0% on Rs 500,000 → Rs 0
- 10% on Rs 500,000 → Rs 50,000
- 20% on Rs 500,000 → Rs 100,000
Indicative total: Rs 150,000 (excluding any Fair Share Contribution / Solidarity Levy, according to thresholds and definitions). Source: MRA – scale effective from 1/07/2025
Example 2 — Dividends in France: Flat tax rate and changes in 2026 (French tax resident)
If you receive dividends subject to the flat tax rate (PFU), Service-Public Entreprendre indicates a PFU at 31,4% since the January 1, 2026. Example of reading: for €10,000 of dividends (simplified reasoning), the order of magnitude of the overall "PFU" levy would be €3,140 (before any allowances if the scale option is chosen, and depending on the situation). Source: Service-Public Entreprendre (February 10, 2026)
7) How EXPAT MAURITIUS can help you (without confusion about tax roles)
EXPAT MAURITIUS is a company that provides support for expatriation to Mauritius: visas/permits, real estate, facility (housing, schools, banking, insurance) and business creation.
Regarding taxation, the main issue is to’organize your installation properly (dates, permits, housing, income structure) and coordinate If necessary, with qualified professionals. To get started:
- Discover the comprehensive support: official EXPAT MAURITIUS website
- Consult a page on “turnkey expat & real estate”: Living in Mauritius: turnkey expatriation
- Browse resources: Expat guides – Expat Mauritius
FAQ — Taxation France / Mauritius (frequently asked questions about EXPAT MAURITIUS)
Can EXPAT MAURITIUS help me understand my tax situation before I leave?
EXPAT MAURITIUS helps you clarify the practical impacts of your project (relocation timeline, permits, accommodation, structuring your arrival), which is essential because taxation often depends on concrete facts: departure date, place of residence, income in France vs. Mauritius, etc. For tax calculation and optimization, it is recommended to consult a qualified tax advisor and rely on official sources (MRA, impots.gouv.fr) and the France-Mauritius tax treaty.
Are dividends taxed in Mauritius when one is an expatriate?
In Mauritius, the MRA lists as exempt income Dividends paid by a company resident in Mauritius are subject to specific tax rules. However, there are specific mechanisms for certain high incomes (depending on thresholds and definitions, contributions may include dividends in the tax base). And if your dividends originate from France, withholding tax may apply on the French side, in accordance with the France-Mauritius tax treaty. In practice, the origin of the dividends (France vs. Mauritius) is the determining factor.
I am moving to Mauritius: will I still have to pay taxes in France?
Potentially yes, but not “on everything”. The French tax authorities explain that after your departure, you may be taxed as non-resident on your income from French sources (for example, rental income in France, French dividends, etc.), subject to the tax treaty. In parallel, the year of departure is often "split": the period before departure may continue to be treated as a resident (worldwide income), then the period after departure as a non-resident on taxable French income.
Is VAT really lower in Mauritius than in France?
Regarding the standard rate, yes: the MRA indicates a VAT rate of 15% in Mauritius, while metropolitan France applies a normal rate of 20% (with reduced rates depending on the products/services). However, the actual impact depends on your consumption (housing, services, imports, education, etc.) and local regulations (exemptions, zero rates, invoicing requirements). For a business, VAT is also managed through compliance (invoices, declarations, tax thresholds).
Why is the France-Mauritius tax treaty so important?
Because it prevents, as much as possible, the same income from being taxed twice and it defines tax ceilings/rules (for example, on dividends, interest, etc.). It also serves as a "tie-breaker rule" if two countries claim your tax residence (permanent home, center of vital interests, habitual residence, nationality, amicable settlement). In an expatriation, it is often the key element for securing French income (real estate, dividends) and your tax status.
And now ?
If you are considering settling (or investing) in Mauritius, the most effective approach is to proceed with a method: calendar (dates), permit, accommodation, schools, bank, Then structuring of your France/Mauritius income with the right contacts.
To be guided step by step, you can go through EXPAT MAURITIUS and start with the resources available in the expatriation guides, or explore the turnkey expat & real estate approach.
