The Mauritius Budget for the fiscal year 2024-2025 outlines a series of strategic initiatives aimed at improving the nation’s economic landscape, encouraging investment, and improving the ease of doing business. This article focuses primarily on the measures likely to affect foreign investors, professionals, and workers, reflecting the government’s commitment to making Mauritius an attractive destination for global talent and investment.

Retirement Permit

Non-citizens holding a Retired Residence Permit will be allowed to work without requiring an additional Work or Occupation Permit, offering more opportunities for retired professionals to contribute to the economy. Click here to read more on the current requirements for the Retired Residence Permit and the benefits of retiring here.

Occupation Permit

Reduced salary Threshold

One of the significant changes is the reduction of the salary threshold for Occupation Permits for professionals from MUR 30,000 to MUR 22,500. This adjustment is designed to attract a broader range of skilled workers to Mauritius.

3-months Occupation Permit

Professionals with a minimum of 10 years’ experience will receive a temporary Occupation Permit valid for 3 months, allowing them to start work while their applications are being processed.

10-year Expert Occupation Permit

To strengthen its position as a leading International Financial Centre, Mauritius will introduce a 10-year expert Occupation Permit. This permit aims to attract foreign talents in specialised fields such as wealth management, family office, virtual assets, and virtual tokens.

Ease of Doing Business

Streamlined Processes

The budget outlines measures to streamline the issuance of licences and permits, ensuring they are processed within 10 working days, provided all requirements are met. This initiative is expected to significantly improve the ease of doing business in Mauritius.

E-Gate and E-Passport

The implementation of e-Gate and e-Passport initiatives will facilitate smoother business travel.

Work Permit 

• Foreign workers in sectors where the current maximum stay is 4 years will be permitted to stay up to 8 years, with an optional break in between.
• The renewal period for the manufacturing sector will be extended to 10 years.
• A three-week maximum time-frame will be established for delivering or renewing work permits.
• Quotas on foreign labour will be removed in the manufacturing, jewellery, freeport, and ICT/BPO sectors.
• In the motor vehicle repair and maintenance sector, the ratio of foreign to local workers will be revised from one foreign worker for every two local workers to three foreign workers for every one local worker.
• The government will increase foreign labour quotas and extend the duration of stay for specific sectors.
• Additionally, the Agricultural Workers (Job Contractors’) Regulations will be amended to provide greater recruitment flexibility in the agricultural sector.

Corporate Tax

Partial Exemption Regime

Several new provisions under the Partial Exemption Regime have been introduced:

• An 80% partial exemption on income for companies holding a Robotic and AI Enabled Advisory Services licence, provided they meet substance requirements.

• An 80% partial exemption on income derived from the sale of money market instruments or debt instruments for closed-end funds.

• Payment Intermediary Services (PIS) Licence Holders will benefit from an 80% partial exemption on CIS administrative services. It is clarified that management companies are not eligible for this exemption on income derived from CIS administrative services to a CIS licence holder.

Sector-Specific Taxation

Income derived from intellectual property assets by manufacturing companies in the medical, biotechnology, or pharmaceutical sectors will now be taxed at 15% instead of 3%, aligning with international norms.

Tax Incentives for Innovation and Investment

Exemptions for Virtual Assets and Creative Industries

To stimulate investment in emerging sectors, the budget offers a 100% tax exemption on gains from the sale of virtual assets and virtual tokens. Furthermore, the Premium Investor Certificate (PIC) will be extended to cover private investments in the creative industry, including the development of concert venues and theatres.

These comprehensive measures demonstrate Mauritius’s strategic approach to attracting global talent and investment, creating a more dynamic, efficient, and business-friendly environment. While certain rules, such as the tax reforms, can be implemented immediately on 1st July with minimal hurdles, many other rules are more complex. After measures are announced, they do not become law until they are debated, voted on, and promulgated. This process is usually sufficient, but even then, some measures may not fully come into effect as intended. We advise anyone to be patient before making any significant decisions.

What TBI Business Advisors can do for you:

• We will have a Zoom/ Teams call or email exchange to understand your requirements.
• TBI will advise on the appropriate permit or visa for coming to Mauritius.
• We will send a detailed proposal with clear costs, timeframes and explanations.
• We will assemble the documents and make the application on your behalf.
• We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.
• We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.
• If you need assistance with setting up companies whether as an investor or just creating a business here.
• The directors can act as Commissioner for Oaths.
• We can assist with other business advice and can bring in law firms as and when required.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

While every effort is made to ensure that the information given is accurate, the information on this site does not contain legal, tax or any other professional advice. We accept no responsibility or liability due to any information or representation, whether accurate or not, relied upon in the contents. It is an information guide to provide the reader with a useful general, but basic understanding of the different considerations. You must seek local legal, tax or other professional advice before relying on the contents of this site.