The latest Budget Measures were announced last week and there have been lots of positive changes, many of which are beneficial for foreigners living in Mauritius. Please note the following points before you pop open the champagne.
Although some of the rules such as with the new tax system can come straight into operation on 1st July without many obstacles, it can be more complex with many of the other rules. Once the measures are announced, they don’t become law until they are debated, voted and promulgated. That is normally enough, but even then, some items do not quite properly come into force like the new rules about buying property outside the scheme from 2022. We suggest you to be patient before making any bold moves.
Rules for Personal Tax for Foreigners in Mauritius
From July 1st, 2023, the Solidarity Levy will be abolished and a progressive Income Tax system will be introduced. The individual’s annual chargeable income will be subject to the following tax rates.
| Income Range (Rs) | Tax Rate (%) |
|---|---|
| 0 – 390,000 | 0% |
| 390,001 – 430,000 | 2% |
| 430,001 – 470,000 | 4% |
| 470,001 – 530,000 | 6% |
| 530,001 – 590,000 | 8% |
| 590,001 – 890,000 | 10% |
| 890,001 – 1,190,000 | 12% |
| 1,190,001 – 1,490,000 | 14% |
| 1,490,001 – 1,890,000 | 16% |
| 1,890,001 – 2,390,000 | 18% |
| Above 2,390,000 | 20% |
Latest Rules for Foreigners Buying Property in Mauritius
If you’re interested in buying property in Mauritius as a foreigner, here are some important updates:
Property for Sale to Foreigners in Mauritius outside current schemes
Resident non-citizens can now apply to purchase a residential property with a minimum value of USD 500,000 (previously USD 350,000) outside the existing schemes. However, they will need to pay an additional registration duty of 10%. The main holder of a resident permit is allowed to acquire only one property outside of current schemes, and this allowance doesn’t extend to their spouse or children.
Property for Sale to Retired Non-Citizens in Mauritius
Retired non-citizens and their families can obtain a residence permit upon purchasing a property in a PDS project focused on senior living. To be eligible, the acquisition price must exceed USD 200,000, and the non-citizen must be above 50 years old. The resident status will remain valid as long as the property is owned by the buyer.
Property for Sale to Foreigners under the Sustainable City Scheme
The Non-Citizens (Property Restriction) Act will be amended to allow non-citizens to acquire residential property in a sustainable city in the same manner as an acquisition under the Smart City Scheme. The Immigration Act will be amended to grant a residence permit to a non-citizen and their family upon the acquisition of a property with a minimum price of USD 375,000 under the Sustainable City Scheme. The resident status will remain valid as long as the buyer holds the property.
Processing costs for Buying Property as Foreigners in Mauritius
To cover processing expenses, a new fee of Rs 25,000 per application will be introduced for non-citizens acquiring “Ground plus two apartments” and for residence permit applications under the residential schemes.
Rules for Occupation Permits in Mauritius
Some changes have been made to the Occupation Permit rules:
- The salary threshold for obtaining an Occupation Permit as a professional will be reduced to Rs 30,000.
- The Young Professional Occupation Permit (YPOP) will be available for individuals from all fields of study.
Rule for Residence Permit in Mauritius
- Retired non-citizens will have the option to provide a bank statement and a written undertaking to open a bank account within 2 months, instead of having to open a bank account at the initial stage.
Rules for Work Permit in Mauritius
The following updates relate to obtaining a work permit in Mauritius:
- A “silent is consent” principle of 4 weeks will be applied for Work Permit applications.
- Non-citizens holding a tourist or business visa will now be eligible to apply for a work permit.
- The maximum duration of stay of 4 years has been eliminated for carers on a Work Permit. They will now be permitted to work as long as their services are needed.
Mauritius Visa Rules for Foreigners
Some changes to Mauritius visa rules have also been introduced:
- Occupation Permit applicants will be granted a Business Visa of 120 days without needing to leave Mauritius.
- An International Expert Training Visa, valid for 18 months, will be introduced.
- Medical patients, retirees, and up to 2 accompanying caretakers will be eligible for a Premium Visa.
Other Tax Measures for Foreigners in Mauritius
Tax Exemptions for Foreigners in Mauritius
There are some great tax exemptions for foreigners too. For instance, the exemption for interest earned by Collective Investment Schemes or Closed End Funds established in Mauritius will be increased from 80% to 95%. This means a larger portion of your interest income will be exempted from taxation. Moreover, the exemption for interest income from Green Bonds used for renewable energy projects will be extended to cover all other sustainable projects.
Investment Tax Credit for Foreigners in Mauritius
If you’re an investor or a manufacturing company, you’ll be happy to know that there’s an investment tax credit available. Manufacturing companies can enjoy a yearly tax credit of 15% for three years on expenses related to new plant and machinery, excluding motor cars. This opportunity is valid until the financial year 2025/2026. Additionally, companies producing both alcoholic and non-alcoholic beverages can claim an investment tax credit for the costs of purchasing new plant and machinery used in the production of non-alcoholic drinks.
Protected Cell Company (PCC) and Variable Capital Company (VCC)
The MRA will not use assets from other cells or non-cellular assets of a PCC to recover taxes owed by a specific cell. Similarly, each sub-fund or special purpose vehicle of a VCC will be treated as an independent entity for tax recovery purposes.
Mauritius VAT Rules for Foreigners
There are some changes in VAT rules too. The VAT exemption, which previously applied only to the construction of purpose-built buildings for tertiary education, will now extend to constructions for primary and secondary education. Additionally, instruments and appliances used in medical, surgical, dental, or veterinary sciences (HS Code 90.18) will be zero-rated for VAT purposes instead of being VAT exempt. The special levy imposed on banks will be standardized at 5.5% for all banks, regardless of their operating income.
Extension of the Tax Arrears Settlement Scheme (TASS)
Good news! The Tax Arrears Settlement Scheme (TASS) has been extended. Under this scheme, taxpayers can have all penalties and interests waived for their outstanding tax arrears under the Income Tax Act, Value Added Tax Act, and Gambling Regulatory Authority Act. To benefit from TASS, you need to register by December 31, 2023, and pay your taxes in full by March 31, 2024. TASS is also applicable to assessments that are currently pending before the Assessment Review Committee, Supreme Court, or Judicial Committee of the Privy Council.
What TBI Business Advisors can do for you:
- We will have a Zoom/ Teams call or email exchange to understand your requirements.
- We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.
- 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.
- If you need assistance with setting up companies whether as an investor or just creating a business here.
- We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.
- 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.