Spain’s 100% Property Tax for Foreigners? No Thanks. We’re Moving to Mauritius.
Once upon a time, the dream of retiring abroad almost always meant Spain. Brits packed their bags for the Costa del Sol, seduced by paella, sea breezes, and low-cost living.
But a quiet revolution is underway. More and more British retirees are skipping Spain altogether, heading instead to an unexpected destination thousands of miles away: the island paradise of Mauritius.
What changed? Why would someone choose a tropical island in the Indian Ocean over a Mediterranean classic?
Let's follow the story of Alan and Margaret, a couple from Surrey who had always planned to retire in Spain.
They'd spent years researching sunny towns along the coast, dreaming of tapas in the evening and affordable living. But when they dug deeper—post-Brexit residency headaches, high taxes on their UK pension, talk of wealth taxes and a 100% tax on property for non-EU buyers—they started asking questions.
Alan, a retired engineer, put it simply: “We wanted sunshine, but not at the cost of our freedom or our savings.”
That's when they discovered Mauritius.
Chapter 1: Spain Isn't What It Used to Be
Spain still offers charm, food, and some affordable properties, particularly in inland towns or less popular regions. But for British retirees, it's become far more complicated:
- Post-Brexit Rules: British citizens now face stricter residency rules, minimum income thresholds, mandatory private health insurance, and tighter scrutiny.
- Taxation on Global Income: Spain taxes foreign pensions and worldwide investment income. Depending on your bracket, that could be as high as 47%.
- Rising Property Taxes: Spain has announced controversial proposals, including a 100% tax on foreign property purchases for non-EU buyers—effectively doubling the cost of a home.
- Wealth and Inheritance Taxes: Spain imposes both, with regional variation and little predictability.
- Overcrowding and Tourism Fatigue: Many Spanish towns are overwhelmed by short-term rentals, making them less livable and less welcoming for long-term expats.
Yes, Spain still has cheap properties—but they're often in depopulated villages or in need of costly renovations. The price tag may be low, but the true cost can be high.
Chapter 2: Mauritius—The Island That Changed Everything
When Alan and Margaret arrived in Mauritius, it wasn't what they expected.
It was better.
The roads were smooth. The people smiled. The water ran clean. English was spoken fluently. The legal system felt familiar—based on British common law. And the air? Warm, fragrant, and rich with the scent of frangipani and opportunity.
But it was the taxes that sealed the deal:
- 0% Capital Gains Tax
- 0% Inheritance Tax
- 0% Tax on Global Income (if structured correctly)
- 15% flat personal income tax (with legal routes to reduce this further)
- No Council Tax or Property Tax every year however there is a one time 5% 'Registration Fee' when purchasing your home in Mauritius.
Alan ran the numbers. Even if a home in Mauritius cost more than a fixer-upper in Spain, the long-term tax savings over 10 or 20 years could add up to hundreds of thousands of pounds.
Chapter 3: Residency Made Simple
Mauritius didn't ask for much:
- A monthly income of just $2,000 (about £1,750) qualifies you and your spouse for a 10-year renewable Retired Non-Citizen Residence Permit.
- No need to buy property, renting is fine.
- But if you choose to invest in property, you can access the Property Development Scheme (PDS), which requires a minimum investment of USD $375,000 (around £295,000), and offers world-class gated communities, golf-course homes, and ocean-view villas.
Unlike Spain, Mauritius didn't require them to jump through hoops. No Kafkaesque bureaucracy. No cultural cold shoulders. Just a warm, smiling island that said: Welcome.
Chapter 4: A Place That Feels Like Home, But Better
Mauritius isn't just beautiful. It's smart.
- English-speaking and business-friendly, with a well-educated, multicultural population.
- Excellent private healthcare, with low costs and short wait times.
- A tropical climate, but with no cyclones where most expats live.
- A strong and stable democracy, with ties to both the UK and India.
- A modern offshore financial hub, giving smart investors access to trusts, funds, and international banking.
Alan and Margaret found themselves walking on the beach at sunrise, sipping coffee at a French bakery, and joining an expat hiking club on weekends. They kept their UK bank accounts and pensions, wired money easily, and even started learning some French and Creole.
Chapter 5: A Simple Comparison
Spain has much more government debt than Mauritius, with over 100% of its GDP owed, while Mauritius is at about 77% and working to reduce it. Because of this, Spain has already started raising taxes and may need to raise them even more in the future to pay off its debts.
Mauritius, on the other hand, has kept taxes low—there's no capital gains tax, no inheritance tax, and a simple 15% flat income tax—and it's more likely to stay that way because the country is better managed financially.
Final Chapter: A Retirement with Purpose and Peace
When Alan and Margaret first considered Mauritius, they thought it might be too far, too exotic, too unknown. But now, two years into their life on the island, they say the move was the best decision they ever made.
Their money goes further. Their health has improved. They feel more secure. And they live in a place where their freedom, privacy, and lifestyle are not only respected—they are celebrated.
Spain will always have its fans. But if you're looking for a place where your wealth is protected, your future is stable, and your life is full of light and possibility, then Mauritius isn't just an alternative.
It might be the best-kept secret in the world.
Would you like to discover what Mauritius could mean for you?
Scott Oliver is a retired British writer and independent researcher living in Mauritius. A former Royal Marines Commando and former Wall Street investment professional, he has spent more than four decades living and working internationally across 14 countries. During that time, he worked extensively in international wealth management, cross-border asset protection, international business structuring and global residency planning.
Today, Scott's focus is no longer on managing money or providing professional advice. Instead, through MauritiusWealth.mu, he writes independent educational articles designed to help successful African business owners ask better questions, make better decisions and, when appropriate, identify the right expertise to help protect everything they have spent a lifetime building.
His articles are published solely for general educational and informational purposes and should not be regarded as legal, financial, tax, immigration, investment or other professional advice. Every business owner's circumstances are unique, and readers requiring professional assistance should always consult an appropriately qualified and licensed professional.
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