Taxes and Tax Schemes in Mauritius | What You Need to Know in 2025

Mauritius, an Indian Ocean island nation known for its strategic location and sophisticated financial services sector, operates an attractive tax system that appeals to both residents and non-residents. Located off the southeast coast of Africa, Mauritius combines a business-friendly environment with lifestyle benefits, making it increasingly popular for international professionals and investors.

The country's economy, driven by financial services, tourism, and manufacturing sectors, has established itself as a leading jurisdiction for cross-border investment. Mauritius's tax system balances revenue generation with maintaining international competitiveness. Recent reforms have focused on enhancing substance requirements while preserving the jurisdiction's attractiveness for global business.

The expat community in Mauritius is growing, with many professionals drawn to sectors like financial services, IT, and global business. The tax system, characterized by its simplicity and efficiency, offers various benefits and exemptions that can significantly impact an expat's financial planning.

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Mauritian Income Tax

Mauritius employs a simple flat tax system for individuals. Tax residents face the following rates (as of 2025):

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Social security contributions (National Pension Fund) are relatively low:

• Employee contribution: 3% of basic salary
• Employer contribution: 6% of basic salary

If you want to have a better understanding of the taxes you should pay on personal income in Mauritius, you can use the personal tax calculator in the Taxation section of the Mauritius page.

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Mauritian Tax on Overseas Income

Mauritius operates on a unique residency-based taxation system:

• Tax Residents: Taxed on worldwide income brought into Mauritius
• Non-residents: Taxed only on Mauritian-source income
• Foreign Income: Taxed only when remitted to Mauritius

The system includes extensive foreign tax credits and exemptions for global business companies.

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Mauritian Tax on Investments

Investment income in Mauritius receives favorable treatment under tax law:

• Capital Gains: Generally not taxable
• Dividends: Tax-free for residents
• Interest Income: 15% withholding tax, with exemptions
• Rental Income: Taxed at 15% with deductible expenses

The system includes special provisions for global business companies and investment funds.

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Mauritian Corporate Taxation

Corporate taxation in Mauritius is highly competitive:

• Corporate Income Tax: 15% standard rate
• Global Business Companies: Effective tax rate can be reduced to 3%
• Value Added Tax (VAT): 15% standard rate
• No capital gains tax or withholding tax on dividends

Special incentives exist for various sectors including financial services, manufacturing, and freeport operations.

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Special Tax Regimes

Mauritius offers several special tax arrangements beneficial to international business:

Premium Visa Program: Tax benefits for digital nomads and remote workers.

Global Business License: Preferential tax treatment for global business companies.

Financial Services: Special regimes for investment funds and banking.

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Regional Comparison

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Tax Planning for Mauritius

Effective tax planning in Mauritius requires attention to several key areas:

Residency Planning: Managing tax residency status and foreign income remittance.

Investment Structure: Utilizing global business company benefits.

Employment Structure: Optimizing salary packages and benefits.