Financial Planning in Mauritius

Mauritius occupies a unique position in the global financial landscape that is often underappreciated by European investors: it is simultaneously an Indian Ocean island with a French Riviera quality of life, the most important investment holding jurisdiction for India-bound capital, the premier African gateway for international investment, and a jurisdiction with a tax system that is genuinely favourable for private investors. For internationally mobile HNW individuals — particularly those with investment interests in Africa, India, or the Indian Ocean region — Mauritius deserves serious attention.

The Tax Environment

Mauritius taxes residents on their worldwide income at low progressive rates. Following the Finance Act 2025, the long-standing flat 15% personal income tax was replaced (with effect from the 2025/26 income year) by a simplified three-band scale: 0% on the first MUR 500,000 of chargeable income, 10% on the next MUR 500,000 (up to MUR 1 million), and 20% above MUR 1 million. There is no separate capital gains tax (gains on most financial assets are not subject to income tax either), no inheritance tax on the worldwide estate of non-Mauritian-domiciled individuals, and no wealth tax.

The previous Solidarity Levy (which applied at 25% to higher earners) was abolished from the 2023/24 year of assessment. In its place, the Finance Act 2025 introduced a Fair Share Contribution for very high earners: from the income year beginning 1 July 2025 (and for the two following years), individuals with net income above MUR 12 million pay an additional 15% on the excess. For most residents, the effective Mauritius tax rate remains low, and for high earners with substantial overseas income the overall burden is still modest by international standards.

No CGT: Mauritius does not levy capital gains tax. Gains on the sale of investments, property, or businesses are not subject to tax in Mauritius. This is a significant advantage for investors with large equity portfolios or plans to exit business investments.

No IHT: For non-Mauritian-domiciled residents, there is no inheritance or estate tax on worldwide assets. Mauritius-situated property and assets are subject to local succession law but not to a dedicated estate tax.

Residency Options

Mauritius has developed a range of residency pathways designed to attract economically active and affluent individuals:

Premium Visa

The Premium Visa is a one-year renewable visa (not full residency) that allows remote workers, retirees, and investors to live in Mauritius without the need for a formal work or residency permit. It is suitable for initial exploration of Mauritius living, but does not confer tax residency on its own — genuine tax residency requires establishing domicile and meeting the standard 183-day presence test.

Residence Permit by Investment — IRS and PDS

The most direct route to permanent residency for HNW individuals is the Integrated Resort Scheme (IRS) or the Property Development Scheme (PDS), both administered by the Economic Development Board (EDB). Under these programmes:

• A foreigner purchasing an IRS or PDS-approved property with a minimum value of USD$375,000 (approximately £300,000) automatically qualifies for a Mauritius Residence Permit.
• The permit is granted to the purchaser and covers their spouse and dependants.
• There is no minimum stay requirement attached to the permit itself — though tax residency requires the standard 183-day presence test.

IRS and PDS developments are purpose-built luxury residential estates, typically featuring golf courses, spa facilities, private beaches, and managed services. Major developments include Anahita, Le Domaine de Grand Baie, and Tamarin Bay — comparable in amenity to premium developments in Spain, Portugal, or the UAE at often lower price points.

Occupation Permit (Investor, Professional, Self-Employed)

The Occupation Permit (Investor) is available to individuals investing at least MUR 3 million in a Mauritius business and generating a minimum annual turnover of MUR 3 million. This provides three-year renewable residency and the right to work. For entrepreneurs seeking to manage a Mauritius-based business, this is the relevant route.

The Occupation Permit (Professional) is available to individuals employed by a Mauritius company earning at least USD$30,000 per annum.

Retirement Non-Citizen Permit

For individuals aged 50 or over, the Retirement Non-Citizen Permit is available to those transferring at least USD$2,000 per month (USD$24,000 per year) into a Mauritius bank account from an overseas pension or retirement fund. Following the Finance Act 2025, the permit is granted for ten years and is renewable; permit-holders are expected to spend a minimum number of days per year in Mauritius. A cumulative transfer of USD$200,000 over the permit period opens a route to permanent residence. Current conditions should be confirmed before applying.

The Global Business Company (GBC) Structure

The most significant structural feature of Mauritius for international investors is the Global Business Company (GBC) licence, issued by the Financial Services Commission (FSC). A Mauritius GBC:

• Is a Mauritius tax resident company.
• Benefits from the extensive Mauritius DTA network.
• Must have genuine economic substance in Mauritius (board meetings on the island, at least two resident directors, adequate local staffing and expenditure).
• Pays Mauritius corporate income tax at 15% on worldwide income, with a credit for foreign taxes paid.

The India-Mauritius DTA

Historically, the most important application of the GBC structure was routing investment into India under the India-Mauritius Double Taxation Agreement. Under the original treaty, capital gains on shares in Indian companies held through a Mauritius GBC were exempt from Indian capital gains tax (taxable only in Mauritius, at 0%). This arrangement was used by a substantial proportion of foreign direct investment and portfolio investment into India for decades.

The India-Mauritius treaty was amended in 2016, and from April 2017, capital gains on Indian shares no longer benefit from the previous CGT exemption — they are taxed in India at applicable rates. However, Mauritius-held India investments made before the change may benefit from transitional protections, and the Mauritius-India DTA still provides benefits on other income streams (dividends, interest, royalties). Mauritius remains a significant conduit for India investment, even post-reform.

The Africa Gateway

Mauritius has an extensive DTA network with African countries — including South Africa, Zimbabwe, Botswana, Mozambique, Rwanda, Lesotho, Senegal, Namibia, Uganda, Egypt, and others. This makes Mauritius the premier African investment holding jurisdiction: a Mauritius GBC holding investments across multiple African markets can benefit from treaty-reduced withholding taxes on dividends and interest from those markets.

For investors with significant pan-African business interests, a Mauritius holding structure can substantially reduce the effective withholding tax burden on income flows from Africa.

Banking Sector

Mauritius has a well-developed banking sector with genuine private banking capability:

• MCB Group (Mauritius Commercial Bank) — the largest Mauritius bank; offers private banking, wealth management, and corporate finance.
• AfrAsia Bank — a specialist private banking and corporate finance boutique, particularly strong in Africa-related transactions.
• Standard Bank Mauritius — the Mauritius subsidiary of Standard Bank (South Africa); trade and corporate banking.
• Barclays Mauritius (now Absa) — retail and private banking.
• SBM Bank — a Mauritius government-linked bank with growing private banking operations.
• Banque des Mascareignes — private banking, associated with BNP Paribas.

Private banking thresholds in Mauritius are generally lower than in Switzerland or the Channel Islands, with meaningful relationships typically beginning at USD$500,000–1 million.

Lifestyle and Expat Community

Mauritius offers a quality of life that appeals strongly to European expatriates. The island's Franco-British colonial heritage has left it with English as the official language, a French-influenced cuisine and culture, and a climate that delivers warm, sunny winters. Grand Baie on the north coast is the main expatriate residential cluster, with restaurants, beach clubs, and international retail. Beau Bassin-Rose Hill is a more suburban alternative popular with families.

The Mauritius climate is subtropical: October to April is warm and humid (the cyclone season runs December to March); May to September is mild and dry — the best time of year. Connectivity to Europe is good: direct flights operate to London, Paris, Amsterdam, Frankfurt, and multiple other European cities, with a flight time of approximately 12 hours from London.

Healthcare in Mauritius has improved markedly: private hospitals including C-Care Hospital and Fortis Clinique Darne offer international-standard care for most procedures. For specialist treatment not available locally, medical travel to South Africa or India is common.

International schooling in Mauritius is well-developed: the International Preparatory School, Le Bocage International School, and the Northfields International High School all offer IB and/or British curriculum education to a good standard.

Compliance

Mauritius participates in CRS and is FATCA-compliant. The FSC is an experienced regulator broadly aligned with international standards. Mauritius has been subject to periodic EU and FATF compliance reviews; it has been on the FATF grey list at various points and then removed. Current compliance status should be verified at the time of any planning decision.

Important: Tax laws change, and individual circumstances vary significantly. Nothing in this guide constitutes tax, legal, or financial advice. The India-Mauritius DTA has been substantially amended and planning using this treaty must reflect current rules. GBC substance requirements are strictly enforced. Investments can fall as well as rise. You should seek independent professional advice tailored to your circumstances before making any financial or residency decisions.

How Global Investments can help

Global Investments advises internationally mobile HNW individuals and families considering Mauritius for residency, property investment, and offshore structuring. We can connect you with Mauritius-based banks, FSC-licensed corporate service providers, property developers, and tax advisers, alongside UK and international specialists. Contact us to arrange an initial discussion.