Taxes on rental income in Mauritius: A guide for property owners

Do you own a villa or apartment in Mauritius and dream of earning rental income under the palm trees? With its idyllic lifestyle and transparent tax system, Mauritius is a paradise for real estate investors. But what exactly are the rules when it comes to rental income tax? Do not worry—this 2025 guide breaks it all down, from tax rates to smart strategies for reducing your tax burden while staying compliant. Whether you are a resident or non-resident, here is everything you need to know to get the most out of your property investment in Mauritius.

Why rent out property in Mauritius?

Mauritius offers more than postcard-worthy beaches. It is a stable economy with a reliable legal system and property schemes like the Property Development Scheme (PDS) that allow foreigners to purchase villas or apartments—and even obtain a residence permit. Demand for rentals remains strong in areas like Grand Baie, Tamarin, and Pereybère, driven by both tourists and expatriates. But before calculating your returns, let us take a look at how rental income is taxed.

How is rental income taxed in Mauritius?

Mauritian rental income is taxed under the Income Tax Act with straightforward rules.

1. What is the Tax Rate on Rental Income?

• For individuals: Rental income is taxed at a flat rate of 15 percent, automatically withheld through the PAYE (Pay As You Earn) system. No surprises here—it is clear and simple.
• For companies: If the property is owned by a company, net profits are also taxed at 15 percent. Some offshore structures, like Global Business Licence (GBL) companies, may benefit from reduced rates as low as 3 percent, thanks to tax credits. A local accountant can help navigate these options.

2. Resident vs. Non-resident: What Is the difference?

• Tax residents: You are considered a resident if you spend more than 183 days per year in Mauritius (or 270 days over three years). Residents may benefit from double taxation agreements, such as the France-Mauritius treaty, which prevents you from being taxed twice on the same rental income.
• Non-residents: You also pay 15 percent on rental income, but you must take into account the tax laws in your home country. For example, French taxpayers can offset Mauritian tax against their French tax liability.

3. Deductions: How to reduce your taxable income

You can deduct property-related expenses from your taxable base, including:

• Maintenance and repair costs
• Property management fees
• Insurance premiums
• Mortgage interest

Make sure to keep all receipts and invoices. Another bonus: there is no capital gains tax in Mauritius when selling a property. Also, residential rentals are VAT-exempt, although commercial rentals (offices, retail) are subject to 15 percent VAT.

Top 4 tax tips for property owners in Mauritius

1. Register with the MRA

All landlords must register with the Mauritius Revenue Authority (MRA) and file an annual tax return—even with automatic withholding. A local tax agent is highly recommended, especially for non-residents.

2. Use tax treaties to your advantage

Mauritius has signed double taxation agreements with over 40 countries, including France and the United Kingdom. A tax advisor can help you maximize benefits and avoid unnecessary tax duplication.

3. Invest in PDS or Smart City projects

Properties under the PDS scheme often include tax incentives and access to residency. Smart City projects, such as Cap Tamarin, also attract high-end tenants and sometimes offer additional fiscal advantages.

4. Document all your expenses

Every rupee spent on your property—from repairs to agency fees—can reduce your taxable income. A reliable local accountant will ensure you claim everything you are entitled to.

Why Mauritius is a dream destination for property investors

With a flat 15 percent tax rate, no taxes on dividends or wealth, and a strong rental market supported by tourism and expats, Mauritius offers real advantages for property owners. For example, a villa rented at MUR 80,000 per month generates MUR 960,000 annually. After MUR 144,000 in taxes and MUR 150,000 in deductible expenses, your effective tax burden is far lighter than in many European countries.

Rental tax in Mauritius: Frequently Asked Questions

Do non-residents pay a different rate?
No, the tax rate is 15 percent for everyone, but tax treaties help prevent double taxation.

Can I deduct renovation work?
Yes, as long as the work is directly related to renting out the property.

How do I declare my rental income?
Register with the MRA and file your return by the required deadline. A local accountant can assist with the process.

Rental taxation in Mauritius is simple, transparent, and investor-friendly: a flat rate, generous deductions, and helpful international tax agreements. Whether you are renting out a PDS villa or a city apartment, smart tax planning can significantly boost your income.

Thinking about investing in Mauritian real estate?
Contact Villa Vie for personalized advice on property selection and tax optimization. Our team will guide you through every step to make your investment secure and profitable.