Mauritius has positioned itself as an attractive destination for international residents, offering a blend of economic stability, lifestyle advantages, and targeted residency schemes.

Relocating to Mauritius in 2025: Residency, Real Estate, and New Budget Reforms Explained

This report covers the key conditions, legal implications, and also highlights reforms introduced in the 2025-2026 national budget. So let's examine the prospects of relocating to Mauritius as an expatriate, with a particular focus on retirees to provide up-to-date insights for informed decision-making.

Understanding Mauritius Residency Laws

Mauritius offers several residency options tailored for expatriates, including the Premium Visa, Retirement Permit, and Occupation Permit, administered through the Economic Development Board (EDB). The Retirement Permit is particularly relevant for retirees aged 50 and above, requiring no minimum investment but mandating a monthly transfer of at least USD 1,500 (or USD 18,000 annually) to a local bank account. Holders must not engage in employment or business activities.

For broader expatriate relocation, the Premium Visa allows stays of up to one year (renewable) for remote workers, retirees, or tourists, provided they have a monthly income of at least USD 1,500 and do not enter the local labor market. The Occupation Permit caters to professionals, investors, and self-employed individuals, with minimum salary thresholds of MUR 60,000 (approximately USD 1,300) for professionals in most sectors, or MUR 30,000 for ICT roles.

Conditions generally include proof of health insurance, accommodation, and a clean criminal record. Applications are processed online via the EDB portal.

Moving to Mauritius, What Expatriates Need to Know

Relocating to Mauritius involves compliance with immigration laws under the Immigration Act and Economic Development Board Act. Residency permits grant rights to live and, in some cases, work, but do not confer citizenship automatically—naturalization requires 5-7 years of continuous residence and integration criteria.

Tax implications are significant: Mauritius operates a territorial tax system, taxing only locally sourced income at a flat rate of 15%. Non-residents are exempt from tax on foreign income, but residents (those staying over 183 days annually) may face taxation on worldwide income if remitted to Mauritius. The country has over 40 Double Taxation Avoidance Agreements (DTAAs), reducing withholding taxes on dividends, interest, and royalties for expatriates from treaty countries.

Immigration and Tax Implications

Legal risks include permit revocation for non-compliance, such as failing income transfers or engaging in unauthorized work. Real estate purchases by non-citizens are restricted to approved schemes like Property Development Schemes (PDS), requiring EDB approval and minimum investments starting at USD 375,000 for residency-linked properties. Violations can lead to fines or deportation.

Buying Property in Mauritius: New Purchase Conditions and Costs

Retirees seeking to purchase real estate in Mauritius must adhere to regulations limiting non-citizen acquisitions to government-approved schemes, such as Property Development Schemes (PDS), Integrated Resort Schemes (IRS), Real Estate Schemes (RES), and Smart City Schemes.

These typically include high-end villas, apartments, and townhouses in integrated developments, with no minimum purchase amount explicitly required for the Retirement Permit itself, though investments in such properties can facilitate longer-term residency.

Retiree Buying Rules and Tax Changes

Eligibility requires prior EDB approval, a clean criminal record, and compliance with scheme-specific rules, such as minimum plot sizes or development standards. The 2025-2026 budget introduces stricter conditions, discontinuing the open-purchase scheme for properties valued at USD 500,000 or more outside approved developments, thereby mandating all non-citizen buys within schemes only.

New tax implications include an increase in registration duty from 5% to 10% on the purchase price for non-citizens, and a land transfer tax raised to 10% on resales involving non-citizens, effective from July 1, 2025, with the latter applying to sellers starting July 1, 2026, for properties under EDB schemes.

Notary fees remain standard at approximately 1-2% of the transaction value, with no specific budget changes noted, though overall transaction costs have risen due to the duty hikes. These reforms aim to ensure greater economic contribution while maintaining tax advantages like no capital gains or inheritance taxes, but retirees should factor in the elevated upfront costs and potential resale implications when planning.

Tax Incentives & Key Advantages of Relocating

Mauritius provides a range of benefits that enhance its appeal for expatriates. Tax incentives include no capital gains tax, inheritance tax, or wealth tax, making it favorable for asset preservation. Retirees benefit from access to high-quality healthcare, with public facilities supplemented by private clinics meeting international standards.

Lifestyle advantages are evident in Mauritius's stable political environment, low crime rates, and diverse cultural landscape. The island boasts world-class infrastructure, including connectivity via undersea cables like SAFE and LION2, facilitating remote work. Economic diversification into sectors like financial services and tourism supports job opportunities for accompanying family members.

For retirees, the "Silver Economy" initiative promotes Mauritius as a retirement hub, with incentives such as duty-free imports for personal effects and vehicles. Data from the EDB indicates that over 5,000 expatriates have relocated under various schemes in recent years, contributing to a vibrant international community.

Is Mauritius Right for Retirement?

The viability of relocating to Mauritius is supported by robust economic indicators. Ranked among the top 20 globally for ease of doing business by the World Bank, Mauritius offers strong investor protection and governance. Its economy grew by 7% in 2023, with unemployment at 6.5%, reflecting resilience post-pandemic.

For retirees, cost-of-living data shows Mauritius as affordable compared to Western countries: average monthly expenses for a couple (excluding rent) are around USD 1,200, with housing in expatriate areas costing USD 800-1,500 monthly. The healthcare system ranks highly in Africa, with life expectancy at 75 years. Connectivity includes direct flights to major hubs in Europe, Asia, and Africa.

Challenges include tropical climate risks like cyclones and higher import costs for goods. However, with a population of 1.3 million and English/French as official languages, integration is feasible. EDB data highlights that 80% of permit holders renew, indicating high satisfaction and long-term viability.

What’s New in Mauritius 2025 Budget: Expat Residency and Tax Updates

The 2025-2026 budget introduces reforms to residency and taxation, effective from July 2025, aiming for fiscal consolidation and economic renewal. Residence permits for retirees are reduced from 10 to 5 years, renewable, with new requirements: an annual transfer of USD 24,000 (or USD 2,000 monthly) and a minimum stay of 180 days per year. Dependent children age limits are set at 24 years.

For investors and self-employed expatriates, permits are shortened to 5 years, with stricter criteria: investors need USD 50,000-100,000 initial investment and revenue targets (e.g., MUR 20 million over 5 years), while self-employed require USD 50,000 and MUR 750,000 first-year revenue. Young professionals' permits are reduced to 2 years.

Tax Reforms for Expatriates

Tax reforms include a "Fair Share Contribution" levy: 15% on individual income above MUR 12 million, potentially raising effective rates to 35% for high earners, though temporary until June 2028. Real estate changes raise registration duty for non-citizens to 10% and impose 10% land transfer tax on sales, while discontinuing the USD 500,000 open-purchase scheme and restricting acquisitions on state land.

A simplified work permit system via the EDB aims to fast-track applications, enhancing accessibility. These measures emphasize greater economic contribution from expatriates while maintaining Mauritius's appeal.

The Key Takeaway

Relocating to Mauritius offers retirees and expatriates a compelling mix of tax advantages, quality of life, and economic stability, backed by data showing sustained growth and high renewal rates among residents. However, the 2025 budget reforms introduce stricter conditions and higher costs, particularly in residency durations, real estate transactions, and financial commitments, which may require careful financial planning.

Prospective movers should assess personal circumstances against these facts—consulting with immigration and tax experts is recommended to evaluate fit. Mauritius remains a viable option for those seeking a balanced, island-based retirement, provided they meet the updated requirements.