Mauritius Budget 2025: What Expats, Retirees, and Foreign Investors Need to Know

If you're living in Mauritius or thinking about moving there, the government's new 2025–2026 budget has made several changes that could affect you if you're a retiree, a self-employed person, or planning to buy property.

These changes are no longer just proposals. They are now official law, passed by Parliament and confirmed in the Finance (Miscellaneous Provisions) Act 2025.

Let's break down what this means for expats like you.

Buying Property in Mauritius? Here's What You Need to Know

If you're not a Mauritian citizen, you can still buy property under special schemes approved by the Economic Development Board (EDB), like PDS, Smart Cities, and IRS.

The good news? The government has confirmed that the 5% registration duty and 5% land transfer tax will stay the same until 1 July 2026.

But after that, both taxes will double. That means you'll pay 10% + 10% = 20% in total taxes on your property purchase. If you're thinking about buying a home, villa, or apartment in Mauritius, it might make sense to act before this deadline.

Are You on a Self-Employment Visa?

If you're living in Mauritius on the Self-Employed Occupation Permit, you're allowed to set up and run your own business with a new minimum investment of USD$50,000 so Mauritius still offers one of the easiest places in Africa to launch a business.

But the new budget brings some tax changes you should be aware of:

• A new 10% minimum tax on book profits (called AMT) may apply to some local businesses, especially in sectors like real estate, hospitality, insurance, or telecoms.
  
  
• If your business makes more than MUR 24 million per year (about USD $500,000), you may also have to pay the Fair Share Contribution, which is an extra 2%–5% tax depending on your sector.

If your clients are mainly outside Mauritius, you may still qualify for the Global Business Company (GBC) status, which offers a much lower tax rate—possibly as low as 3%.

Are You Retired in Mauritius?

If you're on a Retirement Residence Permit, the rules for your visa have not changed. You still qualify by showing that you bring in at least USD $2,000 a month (or $24,000 per year). Your foreign pension or investment income is not taxed in Mauritius if you're just remitting it into your bank account.

However, like other foreigners, if you want to buy a home, remember that property taxes for non-citizens will double after July 1, 2026.

Planning to Start a Business in Mauritius?

The government still supports entrepreneurs who want to launch new companies in Mauritius. You can fully own your business as a foreigner and benefit from a flat 15% corporate tax rate.

But if you're serving local clients or operate in sectors like banking, real estate, or insurance, you may be affected by:

• The Alternative Minimum Tax (AMT): a 10% tax even if your deductions would normally reduce your tax bill.
  
  
• The Qualified Domestic Minimum Top-Up Tax (QDMTT): part of global tax rules to ensure large companies pay at least 15% tax, taking effect 1 July 2025.
  
  
• The Fair Share Contribution (FSC): new taxes on high-earning individuals and companies.

On the bright side, Mauritius is still tax-friendly for offshore service providers. If your clients are abroad, you can often qualify for lower tax rates through a Global Business Company (GBC).

Other Changes Expats Should Know

• Income Tax Bands Updated: If you earn under MUR 500,000 per year (~USD $10,500), you pay 0% income tax. Above that, rates increase to 10% or 20%.
  
  
• Young workers aged 18–28 earning less than MUR 1 million now get a full tax exemption.
  
  
• Electric car buyers can get a tax credit of Rs 50,000—but most green vehicle tax exemptions will end by June 2025.
  
  
• VAT (Value Added Tax) rules have changed. If you're running a business, the VAT registration threshold is now lower (MUR 3 million turnover), and more digital services are now taxable.

What's The Bottom Line Scott?

Mauritius is still a safe, welcoming, and tax-efficient place for expats to live, retire, or run a business. But the new 2025 budget has made the rules stricter, especially for property buyers and companies earning large local profits.

If you're planning a move, or already living in Mauritius, it's a smart idea to:

• Buy property before July 1, 2026 to avoid paying double tax.
  
  
• Structure your business wisely to take advantage of lower offshore tax rules.
  
  
• Keep updated on changes to VAT and corporate tax if you're self-employed.

Want a personalized plan or expert help with structuring your move, investment, or business in Mauritius? Reach out via MauritiusWealth.mu and let's help you navigate these new rules with confidence.

Expert Resources Used To Research and Write This Article: 

1. Mauritius Budget 2025/26 – Taxation Highlights – PwC Mauritius https://www.pwc.com/mu/en/events/budget/taxation.html
2. Mauritius Budget 2025/2026 – WTS Global https://wts.com/global/publishing-article/20250708-mauritius-mauritius-budget-2025-2026-key-tax-reforms-to-watch~publishing-article
3. CMS Prism Budget Brief 2025/26 – Prism Chambers https://prismchambers.com/content/download/721912/file/CMSPrism_Budget%20Brief_2025-26.pdf
4. Budget Highlights 2025/26 – Mauritius Chamber of Commerce and Industry (MCCI) https://www.mcci.org/media/372153/budget-highlights-2025_26-05-06-2025-final.pdf
5. Mauritius Budget 2025–2026 Real Estate Impacts – Real Estate Mauritius https://real-estate-mauritius.mu/en/new-budget-mauritius-2025-2026
6. Mauritius Finance Bill 2025 – Bloomberg Tax https://news.bloombergtax.com/daily-tax-report/mauritius-assembly-considers-2025-26-finance-bill-to-implement-budget-measures
7. Budget 2025/2026 Mauritius: Key Measures for Real Estate – Decordier Immobilier https://www.decordier-immobilier.mu/en/news/details/1614/budget-2025-2026-mauritius