Mauritius is one of the destinations that present the most attractive tax benefits for investors seeking offshore solution.
So far, Mauritius has signed and ratified over 35 treaties of double taxation with countries around the world. Indeed, thanks to this approach, entrepreneurs can invest in being taxable in one country, thus eluding a double taxation.
Like the so-called tax havens (Switzerland, Liechtenstein, the Paname…), Mauritius includes slight tax jurisdictions: tax rate of 15% (on income and companies) and exemption from taxes on capital gains, fortune, dividends and estate taxes.
According to article 6 of the Treaty of the Organisation for cooperation and development (OECD), ‘revenues that a resident of a Contracting State derives from real estate (…) « situated in the other Contracting State, may be taxed in that other State. In other words, the gains from the rental of real estate in Mauritius are subject to taxation in Mauritius and not in the country of residence.’
At the same time, if the holder of a property makes the sale of a property acquired in Mauritius, it will not be subject to any tax on capital gains obtained from this transaction. Indeed, as stipulated in article 13 of the convention, « the gains from the alienation of real estate forming part of the assets of a permanent establishment that an enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of that permanent establishment (alone or with the whole company), may be taxed in that other State » thereby, as there is no tax on capital gains, the owner gets all the profits on resale.
In sum, all these exemptions: on corporations, dividends paid to shareholders, capital gains… A dream for aspiring foreign entrepreneurs. That’s why Mauritius tax policy attracts more and more investors and foreign wishing to grow their business.