Mauritius offers a range of tax benefits, making it an attractive destination for property owners. Whether you are a retiree, a business investor, or a family seeking to move to a new home, understanding the tax advantages on the island can help you make a well-informed decision. This article explores the tax benefits, income tax rates, and the overall appeal of investing in luxury properties, especially with Bijou Résidence.
What Are the Tax Benefits for Property Owners in Mauritius?
The island provides several tax advantages for property owners. With a flat income tax rate of 15% and no capital gains tax, the island is a haven for foreign investors. Additionally, property owners can benefit from specific deductions related to rental income, such as expenses for repairs and maintenance. This ensures that investors can maximize their rental yields while keeping their tax liabilities to a minimum. Luxury real estate investments with Bijou Résidence in Mauritius provide long-term returns.
Additionally, property buyers benefit from Mauritius’ extensive network of Double Taxation Agreements (DTAs) with over 40 countries, including France, India, and South Africa, among others. These agreements prevent investors from being taxed twice on the same income—once in Mauritius and again in their home country. This allows for more efficient repatriation of profits, as well as reduced tax burdens, which enhances the appeal of property investments, particularly for foreign buyers seeking long-term financial security. These tax benefits for property owners in Mauritius are great magnets to attract business investors. Explore more about these opportunities on our blog about Strategic Investment in Mauritius.
What is the Property Tax Rate in Mauritius?
The property tax system in Mauritius is designed to encourage investment, particularly in luxury and sustainable real estate. Currently, the island does not impose property taxes or capital gains taxes, making it highly attractive for property buyers. However, buyers are subject to a one-time registration fee of 5%, which is relatively low compared to many other countries. For rental income, there is a flat tax rate of 15%, which aligns with the general income tax rate in Mauritius.
Additionally, in other forms of tax benefits for property owners in Mauritius, non-resident property owners can benefit from favourable conditions, as there are no estate duties or wealth taxes on property holdings. These features make Mauritius a competitive destination for business investors in luxury real estate, especially if you are looking to invest in luxury penthouses, high-end villas or modern apartments in the west of Mauritius.
Mauritius as a Top Investment Destination
Mauritius has consistently been ranked as a top investment destination, particularly in real estate. The island’s stable economy, political climate, and tax benefits create a secure environment for investors. The combination of no capital gains tax, favourable income tax rates, and the ability to obtain a residence permit through property investment under the Property Development Scheme (PDS) or Smart City Scheme (SCS). Thus, making investing in Mauritius a wise decision for both short-term and long-term gains whether you are a business investor, looking to retire or expatriate to the island.
Certainly, many expats and retirees choose the island for its tax-efficient environment. By investing in property, foreign investors can also qualify for residency in Mauritius through the Smart City Scheme, which allows property buyers to live on the island with a residence permit. Not only that, Mauritius offers a perfect blend of lifestyle benefits, including pristine beaches, modern amenities, making it a prime destination for those seeking a new home on a paradise island located in the Indian Ocean. Discover more about expat life on the west coast.
Whether you’re an investor or someone looking to relocate, the island provides an exceptional environment for maximising returns on property investments and other various tax benefits for property owners in Mauritius. Bijou Résidence offers a variety of luxury properties that not only provide high returns, but also align with Mauritius’s attractive tax policies. As a conclusive note, the island has one of the lowest tax rates in Africa.
Explore the benefits of property investment in the west of Mauritius by having a look at our blog articles.
