Tax on property income in Mauritius
Taxation Researcher | April 10, 2022
Effective Tax Rate on Rental Income
|Click here to see a worked example|
Nonresidents are taxed only on their income from sources in Mauritius. Married couples are taxed separately.
Nonresidents can own real property in Mauritius through the Permanent Resident Scheme (PRS).
The tax year is from 01 July of the current year to 30 June of the succeeding year. The tax year 2020-2021 is from 01 July 2020 up to 30 June 2021. The tax year 20121-2022 is from 01 July 2021 up to 30 June 2022.
Income from all sources is taxed at a flat rate of 15%. Taxable income is calculated by deducting expenses, losses, and debts incurred in the production of income from the gross income.
Rental income of nonresidents is taxed at a flat rate of 15%. Income-generating expenses are deductible when computing for the taxable income.
Nonresident individuals earning rental income are subject to withholding tax of 10%. This withholding tax is credited against the individual’s income tax liability.
Nonresident individuals earning rental income are subject to withholding tax of 5%. This withholding tax is credited against the individual´s income tax liability.
Any individual who owns more than one residence or owns a property costing more than MUR2 million (US$54,795), is now required to file an income tax return, whether his income is taxable or not.
No capital gains tax is levied in Mauritius.
National Residential Property Tax (NRPT)
This tax is levied on residential properties in Mauritius. The tax base is the total surface area for residential land, or the floor area for flats and apartments.
NATIONAL RESIDENTIAL PROPERTY TAX
|TAX BASE||TAX, MUR (US$)|
|Per square metre of surface area of land||MUR10 (US$0.27)|
|Per square metre of floor area of flats||MUR30 (US$0.97)|
Income earned by companies is taxed at a flat rate of 15%. Income-generating expenses are deductible when calculating taxable income.