The advantages of Mauritian taxation

Tax advantages to invest in mauritius - Mauritian fiscality


Mauritius has signed 33 double taxation treaties, including France; tax laws are significantly advantageous and attractive.
To become a tax resident in Mauritius, one must first apply for an ‘Occupation’ or a ‘Residence’ permit through the purchase of a real estate property (whose price exceeds US$ 500 000) and reside on the island for a minimum of 183 days per year.

The tax benefits are as follow :

  • An income tax rate of 15%. Only those who live in the country for a minimum of 183 days per year and who are recognised as Mauritian tax residents can benefit from this rate.
  • Rental income taxed at the standard rate (15%).
  • No tax burden for inheritance gained from direct family succession.
  • No capital gains tax in case of resale or transfer of residential property.
  • No property tax, land tax, housing tax etc.

And as far as tax laws in France are concerned, the tax on real estate property (IFI), which has been replaced by the tax on wealth (ISF) since the 1st of January 2018, does not apply if you invest in real estate in Mauritius.

THE REGISTRATION DUTIES PAYABLE OF THE PURCHASE OF PROPERTY ARE :
  • Properties sold under the IRS scheme: 5% of the purchase price with a minimum amount of US$ 70 000.
  • Properties sold under the RES scheme: 5% of the purchase price with a minimum amount of US$ 25 000.
  • Properties sold under the PDS scheme: 5% of the purchase price.
  • Properties sold under the IHS scheme: 5% of the purchase price (for an asset other than a stand-alone villa), and a minimum of US$ 70 000 for a stand-alone villa.
THE TRANSFER TAXES PAYABLE IN RESPECT OF THE SALE PROPERTY ARE :
  • Properties sold under the IRS scheme: 5% of the purchase price with a minimum amount
    of US$ 50 000.
  • Properties sold under the RES scheme: 5% of the purchase price with a minimum amount
    of US$ 25 000.
  • Properties sold under the PDS scheme: 5% of the purchase price.
  • Properties sold under the IHS scheme: 5% of the purchase price.

(*) The above information is limited to the tax legislation of Mauritius and do not take into account the specific tax provisions applicable to the buyer, either due to his country of residence for tax purposes, or pursuant to the applicable rules of succession for his heirs.

 

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