Finance Bill 2025: What non-citizens need to know

Fair Share contribution: Towards greater equity

For high earners, a special 15% contribution now applies to annual income exceeding Rs 12 million (around €280,000), including dividends. This measure reflects the government’s commitment to fairer taxation and ensuring that the wealthiest taxpayers contribute responsibly.

Unlike in France, Mauritius does not apply a family quotient: each individual declares their income independently. For foreign retirees, some pensions remain taxable in their home country, while other income—such as capital gains or life insurance interest—depends on its nature and, most importantly, whether it is remitted to Mauritius.

If you use a foreign bank account to cover local expenses, these amounts may be considered remitted income and could be taxable in Mauritius. Careful attention is required to avoid any unexpected tax issues.

Tax Residency in Mauritius: Securing your status

Before moving, it is crucial to establish your tax residency to protect your income and avoid double taxation. The main criteria are:

• Permanent home: your main residence in Mauritius.
• Place of your key ties: where your family, assets, and economic activities are located.
• Length of stay: the country where you spend the majority of the year.
• Nationality: used as a last resort if the above criteria are insufficient.
• Mutual agreement between countries: possible arbitration between the tax authorities of both countries.

Practical checklist to secure your Tax Residency:

• Keep proof of your main residence (rental agreement or deed).
• Document your family and economic ties.
• Track your movements and length of stay in Mauritius.
• Consult a tax expert to review implications on your French and international income.

Understanding these criteria is essential to plan your move and optimize your income while staying fully compliant.

Taxes for freelancers and companies

Freelancers

Freelancers and self-employed professionals in Mauritius are taxed under the personal income tax system. Their taxable income is calculated as their revenue minus business expenses, and then taxed according to the progressive rates.

Concrete example for a freelancer:

• Annual income: 1,200,000 MUR (~€28,000)
• Income tax: 20% on the top bracket
• Optimization possible through local business expense deductions

Companies

The standard corporate tax rate remains 15%, but additional contributions apply for high-revenue companies:

• +5% for normally taxed companies
• +3% for companies benefiting from exemptions

These measures mainly affect companies generating substantial income and highlight the importance of careful tax planning before launching any business project.

A digital business owner in Mauritius can keep their company abroad while benefiting from local taxation on income generated in Mauritius, all while respecting non-double taxation agreements.

Real estate taxation: acquisition duties and transactions

The 2025-2026 budget includes an increase in the property transaction tax, which rises from 5% to 10% starting January 2026. This change applies to all acquisitions, whether made by residents or non-citizens.

If you are considering buying a second home or an investment property, it is important to plan your transactions with this change in mind. Owning a foreign company (e.g., an SCI) remains taxable in the country of creation, even for Mauritius tax residents.

Example:

• Purchase of an apartment for Rs 10 million: the tax increases from Rs 500,000 to Rs 1,000,000 in 2026.

This has a direct impact on long-term investment budgets for both residents and non-citizens.

VAT and digital services: what changes for foreign providers

The VAT registration threshold is lowered from 6 to 3 million MUR, expanding the scope of this tax for many businesses.

For Mauritian companies providing services to Europe, the regime remains attractive: 0% VAT in Mauritius, but European clients must self-assess VAT in their own country. In practice, even though Mauritius eases the tax burden for the service provider, the European client’s obligations remain intact.

Tax optimization and best practices for expatriates

Moving to Mauritius is about more than just tax optimization. It also involves:

• Defining your personal and professional goals
• Organizing your local and international activities
• Structuring your assets and income to protect your wealth
• Maintaining certain rights in your home country, if needed (pension, social security)

Concrete example for a foreign property owner:

• Main residence in Mauritius
• Company abroad generating dividends
• Income remitted to Mauritius taxable under the 2025-2026 rates
• Optimization through careful cash flow planning and correct reporting

Successful planning relies on advice from trusted experts: tax lawyers, specialized accountants, and corporate law specialists in Mauritius.

The 2025-2026 budget strengthens tax fairness in Mauritius, simplifies personal income tax, adjusts real estate taxation, and clarifies the rules for foreign investors.

For expatriates and property owners, the key is to understand these changes, secure your tax residency, and structure your income so you can fully enjoy the benefits of the island while contributing to its economic development.