Mauritius vs Dubai: Which Is Better for Residency & Tax?
Mauritius and Dubai are the two destinations international investors and entrepreneurs most often weigh against each other. Both offer sun, a low-tax environment and a fast route to residency — but they are very different places to build a life. This is an honest, lawyer’s-eye comparison rather than a sales pitch for either.
Tax compared
| Mauritius | Dubai (UAE) | |
|---|---|---|
| Personal income tax | 0%–20% (remittance basis for non-domiciled residents on foreign income) | 0% |
| Corporate tax | 15% headline; ~3% effective on qualifying Global Business income | 9% on profits above AED 375,000 (since June 2023); 0% on qualifying free-zone income |
| Capital gains tax | None | None |
| Inheritance tax | None | None |
| VAT | 15% | 5% |
| Property transfer cost (foreign buyer) | Registration duty rising to 10% from 1 July 2026 on scheme purchases | 4% Dubai Land Department transfer fee |
On headline personal tax Dubai wins with a flat 0%. Mauritius counters with a remittance basis: foreign income is taxed only when brought into Mauritius, so many residents pay little or no Mauritian tax on offshore earnings — see our guide to Mauritius tax residency and the wider taxation guide. Since June 2023 the UAE is no longer a zero-corporate-tax jurisdiction, which narrows the gap for business owners.
Residency and the path to permanence
Dubai’s Golden Visa grants 5- or 10-year residency to property buyers (from AED 2 million) and investors, processed quickly. Mauritius offers more routes at a lower entry point: property from USD 375,000 grants a residence permit while you own it; there are retirement, occupation and digital-nomad permits; and the new Mauritius Golden Visa targets USD 1 million investors. The decisive difference: Mauritius offers a genuine long-term path to permanent residence and, in time, citizenship. The UAE does not offer a realistic route to a passport, so it is a place to reside rather than naturalise.
Property and real estate
Foreigners buy freehold in both, but under different rules. In Dubai, non-nationals buy in designated freehold areas; in Mauritius, foreign purchases run through EDB-approved schemes such as the PDS, and a purchase above USD 375,000 also carries residence. Dubai’s market is larger and more liquid; Mauritius offers lower density, beachfront villas and no capital gains tax on resale. Remember the Mauritian duty rises to 10% from 1 July 2026.
Setting up a business
Dubai’s free zones offer 100% foreign ownership and, for qualifying activity, 0% corporate tax; mainland companies pay 9% above the threshold. Mauritius is built around cross-border structuring: a Mauritian company or Global Business Company pays roughly 3% effective on qualifying foreign income and plugs into a treaty network of 45+ countries, which is particularly powerful for Africa- and Asia-facing business.
Family, lifestyle and cost of living
Dubai is a fast, urban, ultra-modern hub with world-class connectivity and shopping, but high housing and schooling costs and extreme summer heat. Mauritius is a green, slower island democracy with a British-based legal system (final appeals go to the Privy Council in London), an English- and French-speaking population, strong private schools and a milder, if humid, climate. The cost of living in Mauritius is generally lower, especially for families.
Which should you choose?
Choose Dubai for a pure zero personal-tax base, global connectivity and speed. Choose Mauritius for a lower cost of living, a common-law legal system, a route to permanent residence and citizenship, an Africa/Asia treaty network and an island-family lifestyle — with a tax outcome that, on the remittance basis, is often just as efficient. We help clients model both; get in touch to talk it through.
Is Mauritius or Dubai better for tax?
Dubai has 0% personal income tax versus 0–20% in Mauritius, but Mauritius taxes foreign income only when remitted, so offshore earnings are often untaxed there too. Both have no capital gains or inheritance tax. Since June 2023 the UAE charges 9% corporate tax above AED 375,000, while qualifying Mauritian Global Business income is taxed at roughly 3%. The best answer depends on where your income arises.
Can you get citizenship in Mauritius or Dubai?
Mauritius offers a realistic long-term path from residence permit to permanent residence and, in time, citizenship. The UAE does not offer a general route to citizenship, so Dubai is a place to reside rather than naturalise.
Is it cheaper to live in Mauritius or Dubai?
Generally Mauritius, particularly for housing, schooling and everyday costs, though quality coastal property still commands a premium. Dubai offers more at the luxury end but at a higher baseline cost.
Which is better for business, Mauritius or Dubai?
Dubai suits businesses wanting a Gulf base with free-zone 0% rates on qualifying activity. Mauritius suits cross-border and Africa/Asia-focused structures, with ~3% effective tax on qualifying Global Business income and an extensive treaty network.
Sources & further reading
Figures are summarised for general guidance and were correct at the time of writing; tax and immigration rules change, so we confirm the current position for your circumstances before you act.
More insights
Related reading
What the UK–Mauritius treaty covers — residence tie-breakers, dividends, interest, pensions and gains — and how it helps people and businesses.
How UK nationals are taxed after moving to Mauritius — leaving UK residence, UK-source income, the treaty and the Mauritian remittance basis.
The 183-day and 270-day tests, the domicile rule, the remittance basis for foreign income, and how to obtain a Tax Residence Certificate — explained clearly.
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