Doing Business in Mauritius

Mauritius IFC- A Jurisdiction of Substance

Mauritius has had an incredible economic track record since its independence in 1968. The development of Mauritius as an international financial centre started in the late 1980’s and today, the financial services industry is a key pillar of the Mauritian economy which contributes more than 12% of the GDP.

Mauritius has built over three decades of expertise across all spheres of the financial services industry and has established itself as a robust, transparent and credible international financial services centre.

Mauritius – A Gateway to Africa

Mauritius plays a pivotal role in channelling foreign direct investment to African countries in a tax efficient manner and has emerged as the premier hub for structuring mergers and acquisitions as well as private equity investments in Africa.

Mauritius is the only financial services centre which is a member of all the major African regional organizations, such as the African Union (AU), Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA) and Indian Ocean Commission (IOC).

Mauritius combines the traditional advantages of an International Financial Centre (favourable tax regime, no capital gains tax, no withholding tax, no capital duty on issued capital, no exchange controls and free repatriation of profits and capital etc.) with the distinct advantages of it being a treaty-based jurisdiction, with a substantial network of Double Taxation Treaties and Investment Promotion and Protection Agreements.

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Mauritius – A Wealth Management Centre of Choice

Mauritius has become a compelling home for wealth planning and management. Established high net worth families and business entrepreneurs are preferring Mauritius as a reputed jurisdiction to structure their business and wealth holdings, as it is tax attractive, stable, and has efficient wealth management, estate and succession planning structures.

Mauritius offers free capital flows and hard currency investment options, a sound regulatory framework, a dynamic estate and succession planning environment and efficient tax structures for wealth placement (no tax on capital gains, dividends, wealth or donations). Furthermore, Mauritius provides a wide range of investment structures with deep expertise in fund administration, and the potential to build greater links with the investor services eco-system that could provide cross-sell opportunities for HNWIs who have already invested in Mauritius.

Non-fiscal Considerations

Proven track record as an IFC of repute and tax efficient gateway to Africa and Europe.
Stable political environment: UK / Westminster model parliamentary democracy.
Blend of British and French legal systems.
Pool of highly qualified and bilingual professionals / bilingualism eases communication with French Speaking European and Western African countries.
Sound and diversified economy: liberal, market-friendly economic policies.
No exchange controls.
Mauritius is the only IFC which is a member of all major African regional blocs (COMESA, SADC, African Union).
Sound, robust and well-regulated banking system.
Simplified listing rules on the Stock Exchange of Mauritius.

Fiscal Considerations

Favourable Tax Regime.
Double Taxation Treaty (DTT) network with 42 countries, 16 of which with African countries.
Under the DTTs, reduced WHT rates applicable on dividends, interests and royalties (generally between 0% to 15%).
No WHT on dividends, interest and royalties paid out by Global Business Companies.
No Capital Gains Tax.
Tax Sparing Provisions under the DTTs.
No inheritance tax, death tax, estate duty or gift taxes.
No wealth tax.

Mauritius has ranked 1st in Africa in the Ease of Doing Business Index during the last 5 years according to the World Bank annual ratings. It has recently been ranked as No. 1 in Africa in the Global Innovation Index 2022.