MAURITIUS Law and Practice Contributed by: Johanne Hague, Ashwin Mudhoo, Medina Torabally and Yushrah Bayjou, CMS Prism – in association with CMS
ciaries are not subject to any Mauritius income tax on any distributions. Alternatively, assets and wealth can be reinvested (no distribution) without any tax arising in the hands of the beneficiaries. There are no close company rules in Mauritius. In addition, Mauritius-resident trusts and foundations may be eligible to treaty benefits. Mauritius has a wide double tax treaty network, which makes it an attrac - tive jurisdiction for wealth planning. 1.4 Pre-Immigration and Exit Planning Mauritius offers several planning opportunities for individuals both before becoming tax resident and before ceasing tax residency. Pre-Immigration Planning An individual relocating to Mauritius may benefit from the remittance basis applicable to foreign-source income. Foreign-source income of a Mauritius resi - dent individual is generally taxable only when remitted to Mauritius. Consequently, individuals often under - take a review of their asset holding structures and banking arrangements before relocating in order to manage future remittances efficiently. There is also no capital gains tax, inheritance tax, estate duty, gift tax or wealth tax in Mauritius. As a result, high-net-worth individuals frequently consider relocating investment portfolios, family holding struc - tures, trusts or foundations to Mauritius as part of broader wealth planning arrangements. Where trusts or foundations are used, careful consid - eration should be given to their tax residence status and the interaction between Mauritian tax rules and the laws of other relevant jurisdictions. Exit Planning Mauritius does not impose an exit tax on individuals who cease to be tax resident. Assets may therefore generally be retained upon departure without trigger - ing a deemed disposal or similar tax charge. However, individuals planning to leave Mauritius should review the tax residence implications both in
Mauritius and in their destination jurisdiction. Consid - eration should also be given to the timing of distri - butions from trusts, foundations or companies, the treatment of foreign-source income and the continu - ing application of any double tax treaties. 1.5 Taxation of Real Estate Owned by Non- Residents and Non-Citizens Rental Income Rental income on Mauritius real estate is treated as Mauritius source income. Therefore, rental income is typically subject to income tax in Mauritius, regardless of whether it is received by residents or non-residents. A withholding tax (also known as tax deduction at source) is applicable on rental payments made by any There should be no tax on the disposal of real estate (by resident or non-residents) so long as the real estate is not held for trading purposes (ie, the disposal is in connection with the disposal of a capital asset). Purchase and sale of immovable property located in Mauritius (held by residents or non-residents) may trigger registration duty or land transfer tax, respec - tively. Land transfer tax is payable by the transferor at the rate of 5% on the value of the immovable property. Registration duty is payable by the transferee at the rate of 5% on the value of the immovable property. Effective from 1 July 2026, the land transfer tax and registration duty arising upon the transfer of any resi - dential property of a minimum of two floors to a non- citizen under one of the Economic Development Board Property Schemes will increase to 10%. This applies to transfers made under the Invest Hotel Schemes, Property Development Schemes, Real Estate Devel - opment Schemes and Smart City Schemes. person other than an individual. Tax on Disposal of Real Estate Real estate can be bought through vehicles such as trusts, foundations and companies. Since foreigners cannot typically purchase land in Mauritius (save with the approval of the Prime Minister’s Office), the pur - chase of real estate by foreigners in Mauritius is nor - mally effected through special schemes. Residency permits are usually obtained on the purchase of real
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