Nothing is certain in life except death and taxes, as the old saying goes. This adage holds true even in a paradise like Mauritius!
But here’s the silver lining: Mauritius generally boasts a lighter tax burden compared to many other places.
We often receive questions from expatriates about tax residency in Mauritius. That’s why we’ve put together this article to provide you with an overview of the local tax system.
If you’re eager to dive deeper into the topic, you can benefit from the invaluable advice of our team of experts. They stay on top of all the latest tax developments in Mauritius.
To book a call with our tax expert, just click HERE!
So, are you ready to learn everything about Mauritian taxes? Let’s get started!
Tax eligibility and rates
Mauritius has embarked on an ambitious program to streamline the arrival of expatriates and foreign investors. This initiative aims to foster the transfer of skills to Mauritius, facilitate the inflow of financial resources to the island, and ignite the development of new promising sectors.
Under this program, both companies and foreign workers enjoy some flexibility in taxation. It’s widely acknowledged that income tax incentives play a pivotal role in enticing new tax residents to Mauritius!
What you need to know
Only tax residents in Mauritius are required to pay taxes there.
To become a tax resident in Mauritius, you must be:
- A Mauritian national
- A foreigner holding a Mauritian residence permit (excluding the Premium Visa)
In that case, you will be subject to a single income tax in Mauritius. The tax is calculated based on the turnover made during a fiscal year. A fiscal year starts on July 1st and ends on June 30th in Mauritius.
Tax rates in Mauritius
Since July 2023, the government has adjusted the tax rates on the salaries of its tax residents. Previously, all taxable individuals were subject to a flat rate of 15% on their annual income.
This tax approach has been replaced by a progressive taxation system. It escalates based on the taxpayer’s earnings.
Here are the updated tax rates in Mauritius:
| Taxable Income | Tax rate | |
| 0 – Rs 390 000 | First Rs 390 000 | 0% |
| Rs 390 001 – Rs 430 000 | Next Rs 40 000 | 2 % |
| Rs 430 001 – Rs 470 000 | Next Rs 40 000 | 4% |
| Rs 470 001 – Rs 530 000 | Next Rs 60 000 | 6% |
| Rs 530 001 – Rs 590 000 | Next Rs 60 000 | 8% |
| Rs 590 001 – Rs 890 000 | Next Rs 300 000 | 10% |
| Rs 890 001 – Rs 1 190 000 | Next Rs 300 000 | 12% |
| Rs 1 190 001 – Rs 1 490,000 | Next Rs 300 000 | 14% |
| Rs 1 490 001 – Rs 1 890 000 | Next Rs 400 000 | 16% |
| Rs 1 890 001 – Rs 2 390 000 | Next Rs 500 000 | 18% |
| More than Rs 2 390 000 | The rest | 20% |
There are several options to lower the amount you owe. For instance, you can declare dependents (spouse, children) or deduct professional expenses from your income.
For further details, you can visit the website of the Mauritius Revenue Authority (MRA), the country’s tax authority.
How much tax are you going to pay?
We’ve collaborated with you to address this concern effectively! We’ve tailored an Excel spreadsheet designed to offer insight into your tax obligations.
Access this convenient tool in our SmartTraveller Expatriation Toolbox! By inputting your annual income, you’ll swiftly ascertain your post-tax earnings.
Get your Mauritian Tax Account Number (TAN)
In Mauritius, each taxpayer is assigned a tax identification number. We often receive inquiries from our clients about how to obtain one. Don’t worry! You can easily apply for it directly through the MRA.
This Mauritian tax identification number is known as the Tax Account Number (TAN). The application process is conducted online via the MRA website, and you’ll receive your TAN by mail afterward. Please note that only foreigners who have obtained their residency permits will be issued a TAN.
How to become a tax resident in Mauritius
If you’re not a citizen, you must obtain a residence permit to become a tax resident in Mauritius. Indeed, there are various types of residence permits in Mauritius: the retiree permit, the professional permit, the Self-Employed permit, or the investor permit.
As a resident, you are subject to taxation in Mauritius if you spend more than 6 months and one day on Mauritian territory. Still struggling to understand the different visas in Mauritius? Feel free to check our guide!
Trust our expertise to assist you in becoming a tax resident in Mauritius!
✅ Call us for free, we are here to help you!
No taxation for Premium Visas!
The Premium visa is a long-term tourist visa (more than 6 months) in Mauritius. While it allows for remote work, it is neither a residence nor a work permit. Therefore, you cannot be employed on Mauritian territory or earn local income.
If you are telecommuting or receiving pensions, your income must be deposited into your foreign bank account. You can then transfer your income to your Mauritian bank account. Rest assured, it will not be taxed again in Mauritius!
Here’s what you need to remember about the Premium visa:
- You are taxed in the country where your financial interests are located. For example, if you own a company or a start-up in Mauritius and your clients are invoiced from an entity registered there, and your funds are deposited into a Mauritian bank account, you will be taxed on this income by the tax authorities.
- However, this is not applicable under a Premium visa, as you cannot be employed or work independently in Mauritius.
- To be able to register, you will need to switch to a Self-Employed permit or an Investor permit.
Watch out ⚠️: Laws on these matters evolve quickly. It is advisable to double-check with the relevant authorities at the time of your expatriation.
What you need to remember
- The VAT rate in Mauritius is 15%. Inheritance taxes are not levied, and no property tax will be imposed.
- ❌ You should not be taxed twice on the same income. This is based on the Double Taxation Agreement between Mauritius and a long list of countries.
- If you are a tax resident in Mauritius, you will not pay taxes in your country. However, if you own assets abroad and receive rental income, you will need to pay taxes on these earnings in the country where the property is located.
To learn more about taxes in Mauritius, contact our team of experts!
They will be happy to assist you throughout your journey to a new life in Mauritius!
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