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Questions & Answers

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VAT, what is the registration threshold?

The VAT registration threshold has been lowered to MUR 3 million in turnover.

In addition, VAT on (cross-border) digital services will now be applied locally, strengthening the tax base.

For foreign investors or companies providing digital services to Mauritius, this measure creates a local tax obligation that must be factored into projections—even if you do not have a physical presence.

What are the tax rates for individuals introduced by the budget 2025?

Since June 2025, there is a major applicable feature: a tax exemption for individuals aged 18 to 28 earning less than MUR 1 million per year.

At the same time, a Fair-Share Contribution is being introduced for high income earners

• 15% for individuals with a net income exceeding MUR 12 million (including dividends)

• 20% for those with income exceeding MUR 24 million

For expatriate investors, these measures may increase the tax burden if you receive high income or dividends. However, for young professionals or high-level employees, the proposed exemption could reduce the burden upfront.

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Retired expatriate investors, how to navigate the fiscal and regulatory adjustments?

Since June 2025, selected tax exemptions and incentives previously available to non-citizens purchasing residential property have slightly changed. For instance, transfer and registration duties for foreign buyers have increased, and access to State land for non-citizens is being more tightly controlled.

Regarding personal income tax structure, with 0% on the first MUR 500,000 of chargeable income (10% on next MRU 500,000 and 20% over a MRU 1 million) and new rates applied across higher income brackets. For retirees with investment income or pensions paid into Mauritius, this means a slightly lower taxation on modest incomes but an increase for larger revenue streams.

Mauritius remains an attractive destination for retirement and investment but the new budget means that early advisory engagement is now more valuable than ever before.

Investment diversification opportunities and digital economy: what investors should watch ?

The 2025 budget opens new avenues for investment in technology, renewable energy, and digital finance, areas supported by targeted tax reliefs and exemptions.

The EDB’s “Mauritius Digital Transformation 2025–2029: A Bridge to the Future” roadmap outlines planned enhancements in digital infrastructure, data-economy growth and incentives to attract fintech, digital services and e-commerce firms.

These measures mean that investors launching or scaling technology-led ventures in Mauritius may benefit from preferential treatment.

Retired investors looking for passive or semi-active engagement may benefit from Mauritius’ promotion of the fintech and green economy sectors, provided investments are structured within approved frameworks.

For investors, this translates to viable opportunities in green infrastructure, frontier tech and fintech/wealth-management platforms, all within a jurisdiction aiming to transition into a knowledge and innovation-based economy.

Due diligence and professional advisory remain essential to maximise the benefits.

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Residence and occupation permits, key changes for Non-Citizens?

Residence permits for retirees, as well as Occupation Permits for investors and self-employed non-citizens, will now be valid for five years instead of ten, albeit renewable.

For retirees applying for a Residence Permit, there is a financial transfer requirement of USD 2,000 per month (or USD 24,000 annually) into a local Mauritian bank account.

As of today, the minimum stay of 180 days per calendar year initially required to maintain permit status is no longer applicable.

To fully comply with the new rules, engaging qualified and professional advisers to fully align your plans is more important than ever.

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Is the digitisation of permit processes a reality ?

The Budget emphasises improving the ease of doing business for non-citizens through digitalisation and administrative reforms with the launch of a digital National e-licensing platform (NELS) for the financial services industry, and a streamlined process for Occupation and Residence Permit applications (including the new Young Professional Occupation Permit).

Through a unique identification number, these enhancements promise faster processing times, more transparency and fewer bureaucratic hurdles.

These sytems provide an important advantage for foreign residents and investors seeking efficiency but early advisory engagement is also more valuable than ever before.

Mauritius offers political stability, a favourable climate, and a high standard of living, harness the island’s enduring appeal.

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