Mauritius is a destination of choice for French investors and retirees. Beyond the quality of life this Indian Ocean island guarantees, it offers a secure and highly tax-efficient environment. Tax expatriation, however, cannot be improvised: it requires a detailed understanding of local rules and of how they interact with French law. Expat.mu reveals what you need to know to take the plunge with complete peace of mind.

The 4 pillars of taxation in Mauritius

The Mauritian tax system is built on a simplicity and competitiveness that appeal to international taxpayers. Four fundamental pillars structure this ecosystem:

1. A rate capped at 15%: the Mauritian system favours clarity. For companies, the flat rate is 15%. For individuals, the scale is progressive, guaranteeing a level of predictability that is rare for entrepreneurs and residents alike.
2. Tax efficiency for companies (GBC): for companies focused on exporting services, the Global Business Company mechanism makes it possible to reach an effective tax rate of 3%, optimising the profitability of international activities.
3. Advantageous property taxation: no property tax or council tax, rental income taxed at 15%, real estate assets that fall outside the scope of the French real estate wealth tax (IFI), and no capital gains tax on resales (this last point subject to Mauritian tax residency).
4. Advantageous inheritance taxation: Mauritius levies no inheritance or gift tax in the direct line or between spouses, which greatly simplifies passing on your estate, provided the spouse and/or children are French tax residents.

This tax architecture, combined with a robust double taxation treaty with France, offers a living environment where the fruits of your work and investments are preserved.

Income tax in Mauritius: how does it work?

The Mauritian income tax system is based on an annual return. The standard rate is set at 15% on profits. However, above 3 million Mauritian rupees (MUR) in annual taxable income, a solidarity contribution known as the Solidarity Levy may apply, which calls for a careful analysis of your income structure.

This rate varies depending on the source of your financial income. That is why it is important to distinguish employment income from investment income and property income.

Employment income

Salaries earned through employment in Mauritius are taxed on the progressive scale. A personal allowance, calculated according to your family situation and number of dependants, is deducted from your taxable income.

Investment income and dividends

Dividends paid by Mauritian companies are exempt from income tax for residents. This exemption allows capital to grow without any withholding at source.

Property income

Rental income generated in Mauritius is taxed at 15%. The local tax authorities allow the deduction of actual management, maintenance and repair expenses to determine the net taxable base. A strict tax distinction must be maintained with rental income retained in France, to ensure compliance with the bilateral tax treaty and avoid any risk of double taxation.

The France-Mauritius tax treaty: what it protects

France and Mauritius are bound by a tax treaty designed to avoid double taxation. It does not apply automatically and requires a rigorous analysis of each personal situation to validate your rights. Two parameters come into play:

1. Determining tax residency: the treaty defines the country where you are officially taxable. The length-of-stay criterion (183 days of residence in the country per year) is the basic rule, but the centre of vital interests criterion (main home, economic activities, social ties) prevails in mixed situations.
2. Allocating taxing rights: the treaty assigns taxing power according to the nature of your income:

• Retirement pensions: as a general rule, they are taxable in your country of tax residence (Mauritius).
• Dividends and capital gains: the treatment varies depending on the type of company and your profile as a beneficiary. Here, a case-by-case treaty analysis is essential to avoid undue withholding taxes and guarantee the application of treaty rates.

Leaving France: the Exit Tax and filings to anticipate

Moving to Mauritius is a major step that triggers tax obligations in France, first and foremost the Exit Tax. This mechanism is designed to tax the unrealised capital gains on your financial assets at the time of your departure.

It applies to tax households holding financial assets (shares, company stakes, securities) with a total value exceeding €800,000, provided they have been French tax residents for at least 6 of the 10 years preceding departure.

Anticipating this transition is essential for:

• Valuation: a precise estimate of your assets determines whether you are liable.
• Deferral mechanisms: deferral or exemption arrangements exist, subject to strict reporting obligations.
• Compliance: leaving France requires declaring foreign bank accounts and bringing structures such as trusts or Luxembourg life insurance policies into compliance.

A prior analysis of your asset situation is necessary to confirm your eligibility and secure your exit from the French tax system.

Corporate taxation in Mauritius

In Mauritius, the standard corporate tax rate is 15%. However, it is crucial to define the scope of your activities according to your operational strategy. The Mauritian tax authorities offer suitable structures to optimise your tax burden:

• Global Business Company (GBC): designed for internationally oriented activities, this structure allows a reduced effective tax rate of 3% or 8% thanks to the 80% partial exemption mechanism on certain income.
• Domestic Company: better suited to local service activities, this entity offers simplified management, although it does not give access to the benefits of double taxation treaties.

Choosing the right legal structure is one of the essential conditions for the success of your project. Visit our dedicated [Investor Permit] page to define the solution best suited to your needs.

Wealth, inheritance and gifts in Mauritius

Mauritius offers highly attractive inheritance taxation for French expats. There is no inheritance tax in the direct line or for the surviving spouse. Gifts are also handled in a simplified manner. However, the interplay between French civil law (forced heirship rules) and Mauritian law calls for rigorous estate planning to avoid any conflict between the two jurisdictions when your assets are passed on.

A personalised tax audit: why is it essential?

This guide offers a simplified overview of the tax mechanisms in force. It is no substitute for personalised advice. Every expatriation is unique: your asset history, your income structure and your future plans call for a tax audit. Tailor-made advice is the only way to turn an expatriation into lasting tax success.

To guarantee the reliability of this information, we rely on the expertise of specialised firms such as Legalys. This firm regularly assists French nationals with their tax and estate compliance between Mauritius and France. A rigorous analysis of your situation is the sine qua non condition for securing your relocation and ensuring the compliance of your assets.

Frequently asked questions about taxation in Mauritius

What is the tax rate?

1. Individuals: the scale is progressive: 0% up to 500,000 MUR, 10% from 500,001 to 1,000,000 MUR, and 20% above that.
2. Companies: a standard rate of 15% applies, with a possible effective rate of 8% for export activities through a GBC structure.

Do you need to be resident for 6 months?

The 183-day threshold is the basic criterion. However, in mixed situations, other factors such as the "centre of vital interests" (family home, economic activities) can confirm your Mauritian tax residency.

Where is my pension taxed?

Under the bilateral tax treaty, it is generally taxed in your country of tax residence, namely Mauritius. Exceptions exist depending on the nature of the pension (public vs private sector) and must be checked.

Is there a wealth tax (ISF or IFI) in Mauritius?

No. Mauritius levies no wealth tax of any kind, whether on real estate or financial assets.

How do you avoid double taxation?

By activating the provisions of the France-Mauritius tax treaty. The key is filing correctly in both countries, allowing either an exemption or a tax credit so you never pay twice.