Real tax brackets, the France–Mauritius treaty, inheritance, retirement, remote work: everything an expat genuinely needs to know before packing their bags — including what the property brochures quietly leave out.

Introduction

Mauritius attracts more foreign nationals every year: entrepreneurs, freelancers, families and retirees all see an exceptional living environment paired with favourable taxation. But one misconception still circulates widely on forums and in sales pitches: the idea of a "flat 15% rate" applying to everyone. That has been false since 1 July 2025.

The Finance Act 2025 deeply overhauled the taxation of individuals: the flat rate gave way to a progressive scale with three brackets (0%, 10%, 20%). Understanding this reform, the concept of tax residency, the role of the France–Mauritius tax treaty and the system's blind spots has become essential for anyone considering moving to Mauritius. This guide lays it all out, backed by official data (Mauritius Revenue Authority, OECD, French tax administration, PwC), and tackles a subject promoters avoid: the recent pitfalls of 2025–2026.

Becoming a tax resident in Mauritius: the prerequisite for every expat

No Mauritian tax benefit applies without tax residency. The Mauritius Revenue Authority (MRA) considers as a tax resident any foreign national who has spent at least 183 days on the island during the current tax year, or 270 days in aggregate across the current year and the two preceding years (source: MRA).

Once this tax resident status is acquired, the expat becomes taxable on Mauritian-source income as well as on foreign income remitted (transferred) into the country — the so-called remittance basis. Taxable income includes salaries, business profits, pensions, rental income, interest and royalties.

A crucial point often overlooked: on the French side, you may remain a tax resident of France if you meet one of the criteria of Article 4 B of the French General Tax Code (home, main place of stay, activity, centre of economic interests). In the event of dual residence, it is the France–Mauritius tax treaty that decides. The economic substance of your move — genuinely living, working and making decisions from the island — now takes precedence over a mere legal structure, with the French administration tightening its controls in 2026. Choosing the right residence permit (Premium Visa, Occupation Permit or retirement permit) is one of the steps to anticipate when properly preparing your move to Mauritius.

Note: the Mauritian tax year runs from 1 July to 30 June of the following year, for individuals and companies alike.

Income tax brackets in Mauritius: the 2025 reform that changes everything

This is the heart of the matter, and the data point most online content has not yet updated. Since 1 July 2025, the Mauritian progressive tax system rests on three bands (source: MRA / PwC Mauritius, Budget 2025–2026):

  • 0% on the first MUR 500,000 of annual income;
  • 10% on the next band (MUR 500,000 to 1,000,000);
  • 20% above one million rupees.

This overhaul removes the former 11-band progressive scale (2%, 4%, 6%… up to 20%) in force since 2023, itself the successor to the famous flat rate of 15%. The MUR 500,000 exempt threshold corresponds to a monthly income of about MUR 38,462, widening the number of non-taxable taxpayers (source: MRA).

For employees, tax is withheld at source through the PAYE (Pay As You Earn) mechanism: each employee receives a Tax Account Number (TAN), and the employer withholds the amount due monthly. At year-end, the Employee Declaration Form (EDF) recaps non-salary income (interest, foreign dividends, royalties) to adjust the tax return filed with the Mauritius Revenue Authority.

Two new features of the 2025–2026 tax year deserve attention. First, the Fair Share Contribution: any individual whose total taxable income exceeds MUR 12 million per year must pay an additional 15% contribution, applicable for three consecutive years. Second, a full income tax exemption was created for young people aged 18 to 28 earning up to MUR 1 million (source: Finance Act 2025).

The Mauritian progressive scale therefore remains markedly lighter than the French one (up to 45%, raised by +0.9% under the 2026 Finance Act, enacted on 19 February 2026 — source: French public service).

Favourable taxation: capital gains, wealth and inheritance in Mauritius

The island's appeal does not rest on income tax rates alone. Several absences of taxation explain the influx of expats with significant wealth (source: MRA / PwC Tax Summaries):

  • No capital gains tax: both property and movable capital gains escape all taxation in Mauritius;
  • No wealth tax: there is no local equivalent of the French IFI;
  • No inheritance tax in the direct line: direct descendants pay no inheritance duty on Mauritian assets — whereas France can tax up to 45%;
  • No tax on dividends paid to a resident individual.

For many families, Mauritius thus becomes an intergenerational wealth base — a decisive argument for those considering buying property in Mauritius as a foundation for succession planning. Be careful, however, not to confuse tax residency with the location of assets: a property kept in France remains subject to the French real estate wealth tax (IFI) and to French taxation of rental income, under Article 23 of the treaty (assets of wealth are taxable only in the State where they are located). Conversely, once you cease to be a French tax resident, your properties located outside France fall out of the IFI base (the EUR 1.3 million threshold — source: impots.gouv.fr).

France–Mauritius tax treaty: the key to avoiding double taxation

Signed on 11 December 1980 in Port Louis and effective from 1982, supplemented by later protocols, the France–Mauritius tax treaty is designed to avoid double taxation on income and wealth (source: French tax administration, impots.gouv.fr). It is the cornerstone of any successful move to Mauritius.

Its principle: each item of income is attached to one State that holds the right to tax it, with the other granting a tax credit where applicable. A few structuring rules:

  • Rental income and property capital gains from a French asset: taxable in France;
  • Dividends from French shares: withholding at source in France (generally 15% under the treaty), with Mauritius granting a corresponding credit;
  • Private pensions (from former private-sector employment): taxable only in Mauritius, under Article 18;
  • Public pensions (civil servants): taxable in France, save for the specific case in Article 19.

The treaty builds on the broader network of Mauritian international tax treaties: the country has signed 46 double-taxation treaties, which makes it a platform recognised by the OECD, which ranks Mauritius among the cooperative jurisdictions on taxation (source: MRA / OECD). The condition to benefit from it remains economic substance: your move must be genuine, on pain of recharacterisation by the tax administration.

Taxation of French retirees in Mauritius: pensions and benefits

Mauritius ranks among French retirees' favourite destinations, and taxation plays a big part. Under Article 18 of the treaty, a retirement pension from former private employment is taxable only in Mauritius once you are a tax resident there. On the portion of pension taxed locally, the rate follows the progressive scale (0%, 10%, 20%), often far gentler than French taxation combined with social levies.

Add to this the absence of wealth tax, the absence of inheritance duties in the direct line and the ease of repatriating income: a retiree can receive their French pension in a Mauritian account without exchange-control restrictions.

One essential caution point, rarely reported: a draft reform plans to require holders of a "retirement" permit to spend a minimum of 180 days per year in Mauritius, and some permit durations could be cut from 10 to 5 years (source: Finance Act 2025 / EDB analyses). The "retired non-citizen" permit also requires a minimum transfer to a local account (in the order of USD 24,000 per year under the rules in force). To be checked carefully before any departure.

Corporate tax and offshore: taxation for expat entrepreneurs

For expat entrepreneurs, the Mauritian corporate tax rate is 15% on company profits, interest, foreign-source dividends and commercial rents. Compared with France's standard 25% rate, the gap is significant. Advance payments are filed quarterly (CPS system) with the MRA.

The Finance Act 2025 did, however, add layers on top of this base rate that you need to know to manage your optimisation:

  • a Fair Share Contribution of 5% on companies whose taxable income exceeds MUR 24 million (from 1 July 2025 to 30 June 2028), with Global Business licensed entities generally exempt;
  • an alternative minimum tax (AMT) of 10% on book profits for certain sectors (hospitality, telecom, real estate, financial services);
  • a domestic minimum top-up tax (QDMTT) of 15% for subsidiaries of multinational groups with consolidated turnover reaching EUR 750 million, in line with the OECD Pillar 2.

Global Business Company (GBC) structures retain benefits: no withholding at source on dividends, interest and royalties, an underlying foreign tax credit, and free repatriation of profits. The partial exemption regime (80%) is now conditional on genuine local substance (offices, resident staff, operating expenses of at least MUR 1.5 to 2 million/year). For profiles combining company formation and property investment, these mechanisms dovetail with a broader wealth strategy, detailed in our guide to investing in Mauritius.

VAT, tax returns and obligations with the Mauritius Revenue Authority

Mauritian VAT is set at 15% on consumer goods and services, with numerous exemptions (basic foodstuffs, electricity, water, public health, exports). A new feature in force since 1 January 2026: digital services supplied by foreign providers (streaming, cloud, online advertising) are now subject to VAT, with a requirement to register with the MRA.

On the tax return side, the expat must file with the Mauritius Revenue Authority by 30 September (paper filing) or 15 October (electronic filing via the e-Service, using the TAN). Taxpayers with dependants benefit from deductions: MUR 110,000 (1 dependant), MUR 190,000 (2), MUR 275,000 (3) and MUR 355,000 (4 or more). Other reliefs cover home-loan interest (subject to income and prior-ownership conditions), medical insurance, school fees and certain green investments.

French non-residents can also rely on the French tax office for non-resident individuals (SIPNR) in Noisy-le-Grand for their residual French obligations.

What the brochures avoid: the tax pitfalls of 2026

This is where this guide stands apart. Behind the image of a turnkey favourable taxation, several 2025–2026 realities deserve a clear-eyed look — points rarely highlighted by commercial players.

1. The "flat 15%" myth is dead. Any source claiming a 15% flat rate on individual income is outdated. The progressive tax system (0/10/20%) has been the rule since July 2025.

2. The remote-work trap. Receiving a foreign salary without remitting it does not automatically exempt you in France: the French administration scrutinises the actual physical location of the activity. Without demonstrable economic substance, the risk of recharacterisation is real.

3. Wealth property stays taxed in France. Keeping an asset in France means keeping the IFI and the taxation of French rental income, even after becoming a Mauritian tax resident.

4. The gradual phase-out of old schemes. The property schemes accessible to foreigners (PDS, Smart City, R+2) are evolving: the old IRS schemes are increasingly being phased out in favour of PDS; since the Finance Act 2025, the registration duty for non-citizens under certain schemes rises from 5% to 10%, and a rule requires 85% of the price to be settled in rupees (source: Finance Act 2025 / EDB).

5. The upcoming minimum-stay rule for retirees. The proposed 180-day mandatory annual stay could reshape pre-retirees' strategies.

In short: moving to Mauritius remains tax-attractive, but planning must rely on the law in force in 2026, not on dated sales arguments.

Conclusion

Mauritius tax for expats combines real advantages — a progressive scale capped at 20%, no capital gains tax, no wealth tax, no inheritance duties in the direct line — with a France–Mauritius tax treaty that protects against double taxation. But the landscape changed profoundly in 2025–2026: a reworked scale, additional contributions, and tighter substance and stay conditions.

Before any departure, verify your tax residency, the nature of each of your income streams and the concrete application of the treaty to your situation, ideally with a specialist adviser. The Mauritian dream remains within reach — provided you approach it with up-to-date information.

FAQ

Is Mauritius a tax haven? No: Mauritius complies with OECD standards and ranks among the cooperative jurisdictions. It is a regulated favourable taxation environment, not a lawless zone.

What income tax applies to a resident expat? The progressive scale of 0% / 10% / 20%, depending on the bands of annual taxable income, since July 2025.

Will my French pension be taxed in Mauritius? A private pension is taxable only in Mauritius (Article 18 of the treaty) if you are a tax resident there; a public pension remains taxable in France.