Opt for a tax optimisation in Mauritius

Pleasant climate all year round, long stretches of white sandy beaches, breath-taking landscapes… Mauritius is paradise on Earth. But beyond its assets of tropical Island, Mauritius offers to its residents an appealing taxation system that attracts numerous investors. Ranked in the top 10 most attractive destinations in terms of taxation, Mauritius allows some tax optimization for foreign residents.

In recent years, the country has opened to the concept of foreign real estate investment which allows foreigners to obtain a residence permit following the purchase of a property with a minimum cost of 500 000 USD. A new flagship measure that has boosted the real estate development market, and which also allows foreigners to benefit from the advantageous taxation system of Mauritius.

The UK/Mauritius double taxation convention and protocol signed in February 1981 stipulates that Income from immovable property may be taxed in the Contracting State in which such property is situated. Also, individuals who are residents of Mauritius shall be entitled to the same personal allowances, reliefs and reductions for the purposes of United Kingdom tax as British subjects not resident in the United Kingdom. Following that, individuals who are residents of the United Kingdom shall be entitled to the same personal allowances, reliefs and reductions for the purposes of Mauritius tax as Mauritius citizens not resident in Mauritius.

“Nothing in this Convention shall entitle an individual who is a resident of a Contracting State and whose income from the other Contracting State consists solely of dividends, interest or royalties (or solely of any combination thereof) to the personal allowances, reliefs and reductions of the kind referred to in this Article for the purposes of taxation in that other Contracting State.”

The corporate tax rate, which is identical to that of the income tax, is 15%. However, import-export companies are exempted and therefore do not pay corporation tax.

• Mauritian taxation implies that there is:

• No tax on dividends, capital gains, death duties for direct descendants

• A single income tax of 15%

• No Real Estate Tax

• Import-export companies are tax-exempted

To learn more about real estate investment opportunities in Azuri, contact our sales teams.