All about tax benefits in Mauritius

Why invest in real estate in Mauritius ? Many foreigners have chosen this destination located in the heart of the Indian Ocean, for its reputation of offering many tax advantages to investors, including those who choose real estate. What are these benefits?

Why invest in Mauritius?

The Mauritian government has succeeded in putting in place a tax system that is “digestible”, easy to understand, simple and attractive. This choice is conscious, with a double objective: to support the development of real estate investment, but also to encourage investors, professionals or retirees from abroad, to live, invest or work in the country.

Local taxes and VAT in Mauritius

In addition to its paradisiacal living environment, Mauritius also offers an advantageous tax system to its foreign residents as follows

• Income tax at 15% for foreigners residing a minimum of 183 days per year and recognized as Mauritian tax residents;
• Rental income taxed at the standard tax rate (15%);
• No inheritance tax in direct descending line;
• No tax on real estate capital gains in case of resale ;
• Absence of property tax, housing tax, local tax, etc. ;

Invest in real estate in Mauritius to reduce wealth tax (ISF)

French nationals should note that under French tax law, by investing in real estate in Mauritius, they escape the real estate wealth tax (IFI) which replaced the wealth tax (ISF) since January 1, 2018.

Indeed, Mauritius has signed a double taxation agreement with France, in addition to other countries around the world. Consequently, French investors residing in Mauritius benefit from a tax environment that works in their favor: real estate purchased in Mauritius is not subject to tax in France.

Are foreign investors taxable on their rental income in Mauritius?

Rental income from real estate investments in RES, IRS, G+2 and PDS programs, which consist of houses, villas and high-end apartments, is taxed at 15%. Income generating expenses are deductible when calculating taxable income. Resident individuals receiving rental income are subject to a 5% withholding tax.

Mauritius, a country resolutely favorable to foreign investors!

Over time and despite the various health events that have occurred over the past two years, Mauritius has maintained its status as a favorable destination for foreign investors. This is evidenced by the many initiatives of the government to encourage nationals of other countries to settle on this economically and politically stable island.

To learn more about the Mauritian real estate market, ask your real estate agent for advice. His knowledge of the sector and his expertise will allow you to find the perfect property to invest in all serenity!