Mauritius Capital Gains Tax Guide 2026

Overview — No Capital Gains Tax in Mauritius

Mauritius is one of the few countries worldwide that imposes no capital gains tax. There is no separate CGT regime, and capital gains are not included in the chargeable income definition for either personal income tax (IIT) or corporate income tax (CIT). This applies to both residents and non-residents. The absence of CGT has been a key factor in Mauritius's success as an international financial centre and investment hub.

Gains Not Taxable

The following capital gains are not taxable in Mauritius:

• Sale of shares in listed or unlisted companies
• Sale of securities including bonds, debentures, and derivatives
• Sale of real estate (residential, commercial, land)
• Sale of business assets (machinery, equipment, goodwill)
• Sale of cryptocurrencies (unless held for trading)
• Foreign exchange gains on currency transactions
• Sale of collectibles (art, antiques, jewellery)

Exceptions — Property Developers and Dealers

While capital gains are not taxed, profits from trading or dealing in assets are treated as business income and subject to the standard 15% IIT/CIT. The MRA distinguishes between:

• Property developers: Persons who acquire land, develop it (subdivision, construction), and sell the developed property are considered to be carrying on a business — profits are taxable as business income at 15%
• Property dealers: Persons who buy and sell property frequently as a trade are classified as dealers — profits are taxable as business income
• Share dealers: Financial institutions, banks, and persons who trade shares as a business (frequent transactions, short holding periods) may be classified as dealers

The distinction between a capital gain (not taxable) and trading profit (taxable) depends on facts and circumstances: frequency of transactions, holding period, intention at acquisition, and nature of the taxpayer's business.

International Holding Structures

The absence of CGT makes Mauritius a premier jurisdiction for international holding companies. A Mauritius holding company (GBL1 or domestic) can:

• Sell shares in subsidiaries with no capital gains tax
• Receive dividends with no withholding tax (Mauritius does not impose WHT on dividends)
• Access Mauritius's extensive DTT network (over 45 treaties) for reduced WHT rates on interest, royalties, and dividends from treaty partners
• Exit investments tax-efficiently with no CGT leakage

Comparison with Other Jurisdictions

Mauritius is one of the few countries with no CGT, alongside other financial centres such as Singapore, Hong Kong, UAE, Qatar, and Bahrain. This aligns with Mauritius's positioning as a gateway for investment into Africa and Asia. Most developed economies impose CGT at rates ranging from 15% to 40% on investment gains.

FAQs

If I sell my house in Mauritius, do I pay capital gains tax?

No, the sale of a personal residence is not subject to any capital gains tax in Mauritius. However, property transfer costs apply: registration duty of 5% (first MUR 2 million exempt for principal residence) and stamp duty of approximately 0.5%.

Does the 0% CGT apply to non-residents selling Mauritian property?

Yes, non-residents also benefit from the 0% CGT on the sale of Mauritian property or shares. However, non-residents face restrictions on purchasing certain types of property and must obtain approval from the Economic Development Board (EDB) for real estate acquisitions.

How does the MRA distinguish between a capital gain and trading profit?

The MRA applies the "badges of trade" test: frequency of transactions, period of ownership, intention at acquisition, nature of the asset, and whether the taxpayer is in a similar business. A single isolated sale of an asset held for many years is typically capital (not taxable). Frequent purchases and sales of similar assets are treated as trading (taxable).

Disclaimer

This guide provides general information about Mauritian capital gains tax for the 2026 tax year. Tax laws may change. Always consult with a qualified Mauritian tax advisor or the MRA directly for advice specific to your situation. InvestmentKit does not provide tax advice.