Fiscal laws in Mauritius
We have described Mauritius to you; its attributes in terms of its landscape, its towns, the activities which can be enjoyed here and prestigious properties which can be bought here. What about its fiscal laws? Is the island as pleasing to the wallet as it is to the eyes and heart? Here is an overview of the fiscal laws of this beautiful island. Spoiler alert: they are very advantageous!
Taxation in Mauritius
Being a fiscal resident in Mauritius is beneficial to employees, traders and companies. Here is why:
- A mere 15% is levied as tax on the salary and on profits made by a company
- The Value Added Tax (VAT) on products and services is also 15%
- Capital gains (when re-selling property) and dividends are not taxable. There is no inheritance tax either
- As for profits obtained from companies located abroad, they may be repatriated without any restriction
- Fiscal residents in Mauritius are exempted from paying housing, local or property tax
- In addition to this, traders benefit from the absence of custom duty on some products imported through the Freeport
The Double Taxation Law
Mauritius has signed a Double Taxation treaty with not less than 40 countries. This allows foreign companies and entrepreneurs based in Mauritius to pay tax to the one government only instead of having to pay tax to both the Mauritian government and the government of their native country.
Furthermore, no wealth tax (Impôt sur la Fortune) is charged by the French government for instance, on the real estate asset owned by a French in Mauritius. Consequently, buying property here instead of another country will reduce the amount of property tax to be paid in the country of origin. In fact, Mauritius is one of the four countries with which France has signed the Double Taxation agreement to be allowing such an advantage.
How to enjoy the fiscal advantages of Mauritius?
The purchase of a residence at more than 500,000 USD (currently approximately 452,000 Euros) and an annual stay of at least 6 months on the island grant the owner and his family a residence permit and therefore the status of fiscal resident.
Owning a house in Mauritius was only a dream for non-residents before 2002. That year, buying a property in Mauritius was made possible. But not just any property; those under the Property Development Scheme (PDS), the Smart City project or the Ground +2 apartments, are luxurious. These are not only situated in idyllic and serene settings but also provide a plethora of amenities such as golf courses and private swimming pools amongst others.
It is therefore not hard to understand why Mauritius has become one of the favourite residential destinations for retired foreigners: buying property on the island is a beneficial investment on the economical, psychological and social level.
Its welcoming legal structure for foreign investment and taxation laws as well as its warm culture make Mauritius stand out from other countries as a destination to consider as a permanent residence. The purchase of a luxurious real estate asset in the country is economically and socially rewarding. This fact is further substantiated by the increasing number of foreigners acquiring property on the island. Don’t delay and make Mauritius your home today.