Tax advantages in Mauritius
Mauritius is ranked among the most ethical countries in terms of taxation by the Organization for Economic Cooperation and Development (OECD). As such, it attracts many foreign investors. Companies, individuals or retirees, all come to benefit from the tax advantages offered by this island with dream landscapes. A flourishing real estate market, a booming economy, a stable political life, not to mention the advantages of a tropical climate, Mauritius is a flagship destination for expatriates and foreign investors.
An advantageous tax system
Mauritius is one of the countries with the lowest taxes. There are two reasons for this advantageous tax. For one, the tax base is weak compared to other tax systems, that is, the rates are low and there is very little taxation applied. Another reason is that Mauritius has signed a non-double taxation agreement with more than 40 countries, including France and South Africa.
Mauritius has one of the lowest tax rates in the world. For good reason, it records an income tax rate of 15%. The same applies to dividends from companies outside the country as well as processing activities. Apart from that, there is no taxation on dividends and capital gains of companies headquartered on the island. Companies engaged in the export of goods are taxed at 3%.
In regards to individuals, inheritance taxes for direct descendants are not subject to tax. Investing in real estate in Mauritius and settling on the island is very attractive. Added to this, it is a country where life is good and it continues to attract tourists and expatriates, thus making it easy to find tenants and make its investment profitable.
Mauritius has a non-double taxation agreement with 45 countries, including France and South Africa. This means that taxes are only paid in the country of tax residence. These agreements have been established to attract investors because foreign investment is very beneficial to the economic development of the country. For the French investor, this non-double taxation implies that the property purchased on the Island will not be taxable in France since it will not enter the tax base of the ISF. And since the rental income produced in Mauritius is subject to a tax of 15% on net profits after deduction of expenses, this income will be exempt from tax in France.
The principle of tax residence
The notion of fiscal residence implies that the tax benefits of a country can only benefit its residents. The benefits in question are very attractive to individuals.
To be able to take advantage of the tax benefits offered by Mauritius, you must establish your tax residence there. For this, it is necessary to reside in the country more than 183 days in the year and therefore to have a residence permit. In Mauritius, foreigners can also acquire real estate in excess of US $ 500,000 under one of the specific government-approved programs, such as the Property Development Scheme (PDS), to receive permanent residence. which will give them tax residence.