Fiscal Policy

Mauritius Island has lived with a political stability since its independence in 1968. The island grows at the rate of globalization and it is becoming an emerging economic power in the region. The growth of the Mauritian economy is one of the most dynamic of sub-Saharan Africa. In just three decades, the country has moved from a sugar monoculture dominated economy to services. The government made sure that doing business in Mauritius or from Mauritius was as easy as possible while complying with international best practices in terms of ethics, transparency and good governance.

Also:

  • It is possible to acquire freehold property through foreign nationals and companies,
  • Known as a culturally diverse, multilingual and highly educated workforce,
  • Strategically located between Asia and Africa,
  • Known as a growing, foreign residence and tourist population,
  • Preferential market access to Europe, USA, and Arica,
  • A network of double taxation avoidance treaties,
  • A convenient time zone (GMT +4)

FISCAL POLICY IN MAURITIUS

The Mauritian tax system is friendly in the real estate field. Multiple tax advantages encourage foreigners to invest in Mauritius’ real estate to benefit from the double taxation treaties. An agreement was signed with 33 countries throughout the world including South Africa, France, and the UK. Non-residents do not have to pay residential or property taxes and the income tax is not more than 15%.

 

Also, known as tax dreamland, Mauritius allows foreign investment with the simplified tax rate set at 15%:

  • Income tax
  • Corporate tax
  • Value Added Tax (VAT)

Tax on Wealth (ISF) – Excerpt from the Franco-Mauritian convention:

Art 23 – Fortune: Capital represented by immovable property referred to in Article 6, owned by a resident of a State (France) and situated in the other State (Mauritius), may be taxed in that other State (Mauritius)

Taxation on added value – Excerpt from the Franco-Mauritian convention:

Art 13– Capital gain: Gains derived by a resident of a State (France) from the alienation of immovable property referred to in Article 6 and situated in the other State (Mauritius) may be taxed in that other State (Mauritius).

Mauritius proposes various fiscal benefits:

  • No exchange control
  • No tax on dividends
  • No tax on capital gains
  • No inheritance tax for direct descendants
  • Unrestricted repatriation of profits and dividends
  • Foreign shareholding allowed at 100%
  • No property tax
  • Reasonable and clear taxation

Staying more that183 days, you become a local fiscal resident.