Relocating to Mauritius from Belgium: Understanding income and corporate tax, and tax benefits

Many Belgians are choosing to relocate to Mauritius, drawn by its favorable tax environment and high quality of life. Magellan, a consultancy specializing in expatriation, provides a detailed comparison of the Belgian and Mauritian tax systems to support your decision-making.

Overview of the Belgian and Mauritian tax systems

The Belgian tax system

Belgium is one of the most heavily taxed countries in Europe. Its system relies on progressive taxation, with rates that vary based on income, family status, and professional activity. Personal income tax (IPP) can rise to 50%, while corporate income tax stands at 25%, with possible exemptions for small and medium-sized enterprises (SMEs). High social security contributions further increase the burden on gross salaries. Although this model supports a strong social protection system, it places significant financial pressure on individuals and businesses.

The Mauritian tax system

Mauritius offers a streamlined tax regime, unlike the Belgian system, designed to attract investors and international talent. Personal income is taxed at a flat rate of 15%, well below European levels. Corporate tax is also set at 15%, with targeted exemptions for sectors such as technology and exports. Value-added tax (VAT), also at 15%, is applied more flexibly than in Europe. A significant advantage for foreigners is that Mauritius does not tax foreign-source income, further strengthening its fiscal appeal.

Major differences in personal income tax

In Belgium

Belgium has a progressive tax system, with income brackets taxed at rates ranging from 25% to 50%. For the year 2025, the personal income tax brackets are as follows:

• From €0 to €13,540: 25%
• From €13,540 to €23,900: 40%
• From €23,900 to €41,360: 45%
• Above €41,360: 50%

This high income tax rate, combined with mandatory social security contributions, can make the Belgian fiscal system heavy, particularly for high-income earners.

In Mauritius

In Mauritius, personal income tax is both simpler and significantly lower. The fixed rate is 15%, regardless of income level—a sharp contrast to Belgium, where rates can climb to 50%. Moreover, income earned abroad by Mauritian tax residents is not taxed locally, offering a considerable benefit to foreigners who work remotely or receive international income.

Similarities and differences in corporate tax

Businesses established in Mauritius also benefit from a more favorable tax regime compared to those in Belgium.

In Belgium

In Belgium, corporate tax is set at 25% for companies with profits exceeding €100,000. A reduced rate of 20% may apply to small businesses earning below this threshold, providing limited flexibility. However, Belgium’s corporate tax burden remains relatively high compared to other European countries. Companies must also contend with substantial employee social security contributions, further increasing overall labor costs.

In Mauritius

In Mauritius, corporate tax is also set at 15%, with further reductions available through targeted exemptions. Companies operating in sectors such as technology, tourism, and exports can benefit from significant tax advantages. Moreover, capital gains and dividends are exempt from taxation, offering another major incentive for international businesses. This favorable tax environment positions Mauritius as an attractive destination for entrepreneurs looking to lower their tax burden while expanding internationally.

Tax exemptions and benefits for expats

One of Mauritius’s key tax advantages is the exemption on foreign-source income. If you work for a company based abroad or earn income from sources outside Mauritius, these earnings are exempt from local taxes.

In Belgium

In Belgium, foreign income is generally subject to taxation, although the country has signed tax treaties with certain countries to prevent double taxation. Despite these agreements, Belgian expatriates often remain liable for taxes on their foreign earnings, which can significantly reduce their net income.

In Mauritius

Conversely, Mauritius’s exemption from taxation on foreign income offers a major advantage for expatriates, particularly those managing online earnings, investments, or foreign businesses.

VAT: Similarities and Differences

The value-added tax (VAT) system is another key point of comparison between the Belgian and Mauritian tax regimes.

In Belgium

Belgium applies a standard VAT rate of 21%, one of the highest in Europe. While reduced rates apply to sectors such as food, pharmaceuticals, and transportation, the overall VAT burden remains relatively high compared to other European countries.

In Mauritius

Mauritius applies a standard VAT rate of 15%, significantly lower than in Belgium. Specific sectors also benefit from VAT exemptions, making VAT management more flexible and less costly for businesses.

The bottom line: How do you choose your tax regime?

Relocating to Mauritius offers clear advantages for Belgians, particularly due to its simplified tax system and lower tax rates. The main strengths of the Mauritian system are its flat 15% personal income tax and the exemption on foreign income, making it especially attractive for expatriates and entrepreneurs.

By contrast, while supporting broader social security coverage, Belgium’s tax system is often viewed as heavy and complex. High income tax rates and significant social security contributions place a substantial burden on individuals and businesses, pushing many Belgians to consider relocation.

Mauritius represents an opportunity for entrepreneurs and self-employed workers to optimize finances while enjoying an exceptional quality of life. However, each situation is unique. Before making a final decision, seeking personalized advice from Magellan is essential.