Mauritius Investment Income Guide 2026

Overview — Investment Income Taxation

Mauritius offers a favourable environment for investment income. The flat 15% IIT rate applies to dividends, interest, and other investment returns, while capital gains on investments are entirely tax-free. The absence of dividend withholding tax and the extensive DTT network make Mauritius an excellent jurisdiction for holding company structures. The personal allowance of MUR 390,000 applies to total chargeable income including investment returns.

Dividend Taxation — 15% IIT

Dividends received by individuals are subject to IIT at the standard 15% rate. However, the practical treatment depends on the source:

• Dividends from Mauritian companies: No withholding tax is deducted at source. The individual includes the gross dividend in their chargeable income and pays tax at 15% (or 10% for pensioners)
• Dividends from foreign companies: Taxable at 15% IIT on the gross amount received. A Foreign Tax Credit (FTC) is available for any withholding tax paid in the source country (subject to DTT limits)
• Dividends to resident companies: Dividends received by a resident company from another resident company are exempt from CIT
• Dividends to non-residents: Mauritius does not impose withholding tax on dividends paid to non-residents (unlike many countries that levy 15–30%)

Interest Taxation — 15% IIT

Interest income is subject to the standard 15% IIT rate. Interest sources include:

• Bank deposits: Interest from Mauritian bank accounts is taxable at 15%
• Bonds and debentures: Interest from corporate or government bonds is taxable at 15%
• Foreign interest: Interest from overseas accounts or investments is taxable at 15%, with FTC relief for foreign withholding taxes
• Interest to non-residents: Withholding tax of 15% applies to interest paid to non-residents (may be reduced under applicable DTT)

Interest income is aggregated with other income. The personal allowance of MUR 390,000 and the 15% rate apply to the total chargeable income.

Capital Gains on Shares — 0%

Mauritius has no capital gains tax on the sale of shares, securities, or other investment assets. This applies to both listed and unlisted shares, and to residents and non-residents. The absence of CGT makes Mauritius particularly attractive for venture capital, private equity, and holding company structures. Whether the holding period is short or long, the gain is not taxable (unless the taxpayer is a share dealer).

Foreign Tax Credits (FTC)

Mauritius residents receiving foreign investment income (dividends, interest) that has been subject to tax in the source country can claim a Foreign Tax Credit (FTC) against their Mauritian tax liability. The FTC is limited to the lower of:

• The actual foreign tax paid on the income
• The Mauritian tax that would be payable on the same income (15% or 10% for pensioners)

Unused foreign tax credits cannot be carried forward or refunded. The FTC is claimed in the annual tax return (Form 1) with supporting documentation (tax certificates, withholding tax statements).

Investment Holding Structures

The favourable treatment of investment income supports several holding structures:

• Domestic holding company: Exempt dividends received from subsidiaries, 0% CGT on share sales, 15% on other income
• GBL1 company: Effective 3% tax rate on foreign-source income via 80% deemed FDC
• Authorised Company: May hold investments and benefit from treaty network
• Private trust: Can hold investment assets with flexible distribution options

FAQs

Are dividends from foreign sources exempt from Mauritian tax?

No, foreign dividends are taxable at 15% IIT. However, if the dividends have been subject to withholding tax abroad, a Foreign Tax Credit is available to reduce or eliminate double taxation. For corporate shareholders, foreign dividends may be exempt under certain conditions.

Is interest from a Mauritian bank account subject to PAYE?

No, interest is not subject to PAYE. It is declared by the individual in their annual tax return. Banks report interest paid to the MRA, so the information is cross-checked.

Do I need to pay tax on foreign exchange gains from investments?

No, foreign exchange gains on currency transactions and investments are capital in nature and not subject to tax (0% CGT). However, if forex trading is carried out as a business, profits may be taxable as business income.

Disclaimer

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