Mauritius 2025-26 Budget: Tax, Social Measures, and Residence Permits for Foreigners

The Mauritian government has unveiled its 2025-26 budget, introducing a series of reforms affecting entrepreneurs, expatriates, and residents. This comprehensive guide from Magellan.mu explains the impact of these measures on taxation, social policies, real estate, and the range of residence permits available to foreigners.

Taxation in Mauritius 2025-2026

The government aims to broaden the tax base and strengthen the fiscal system, with targeted measures for individuals, businesses, and international investors.

VAT on Digital Services

From 1 January 2026, streaming platforms (audio and video) and web hosting providers must register and remit VAT if their turnover exceeds a certain threshold.

Tourist Accommodation Tax

From 1 October 2025, a tourist levy of €3 per night will apply to all registered accommodations.

VAT Registration Threshold

The VAT registration threshold is lowered from MUR 6 million to MUR 3 million, affecting many small and medium-sized enterprises.

Other Contributions and Taxes

A 15% Fair Share Contribution targets high-income earners, while taxes on conventional, hybrid, and electric vehicles are revised.

Certain real estate incentives are removed, and registration duties for non-citizens acquiring property under IRS, RES, PDS, Smart City, or G+2 schemes increase from 5% to 10%.

These fiscal changes redefine the conditions for investing, working, or living in Mauritius, with direct impacts for expatriates, investors, and entrepreneurs.

Social and Real Estate Measures

Smart Cities Contributions

Owners and developers involved in Smart Cities must contribute between MUR 25,000 and MUR 100,000 per property or serviced plot.

Social Measures

Income Support of MUR 10,000 per month remains available for non-citizens aged 60+, subject to strict income conditions. The legal retirement age will gradually increase from 60 to 65 over five years.

Consolidation and Rationalisation

The government aims to reduce public debt to 60% of GDP and streamline parastatal agencies for improved efficiency.

Residence Permits for Foreigners in 2025

The table below summarises the main residence permits available in Mauritius. For personalised guidance, Magellan helps you save time, secure your applications, and maximise your chances of obtaining the permit that suits your situation. Contact them today to simplify your relocation to Mauritius.

Permit	Target Group	Main Requirements	Duration / Renewal	Fees	Additional Information
Occupation Permit – ProPass	Foreign professionals	Minimum salary: MUR 30,000/month (~€560)	Valid for contract period, up to 10 years	Approx. USD 400–1000 depending on duration	Application submitted by employer via NELS; may invest but cannot manage or work in own company
Occupation Permit – Expert Pass	Highly skilled professionals / experts	Minimum salary: MUR 250,000/month	Valid for contract period, up to 10 years	Same as ProPass	Same procedure as ProPass
Young Professional Occupation Permit (YPOP)	Foreign graduates from Mauritian tertiary institutions	Minimum salary: MUR 25,000/month	Up to 3 years	USD 150–300	Application online via NELS; available only to graduates from local institutions
Self-Employed Occupation Permit	Consultants, freelancers, liberal professions	Initial investment USD 50,000; at least 3 letters of intent (2 from local clients); min. turnover MUR 750,000 in Year 1; cumulative MUR 6M in 5 years; ≥ MUR 1.5M/year from Year 6 onwards	10 years, renewable if conditions met	Application via NELS (only statutory fees payable : 1000 USD)	May hire 1 administrative local employee; PRP eligibility after 5 years if turnover ≥ MUR 3M/year or MUR 15M cumulative
Investor Occupation Permit	Foreign investors	Option 1: USD 50,000 + turnover MUR 1.5M (Year 1) and MUR 20M (5 years). Option 2: USD 100,000 + turnover MUR 1M (Year 1) and MUR 15M (5 years). Option 3: Innovative project approved by EDB or accredited incubator	10 years, renewable subject to meeting turnover targets	Application via NELS (statutory fees: 1000 USD)	Two investment paths: lower capital with higher targets, or higher capital with more accessible targets; residential property acquisition possible
Retired Residence Permit	Foreign retirees (50+)	Initial transfer ≥ USD 2,000 within 60 days; recurring transfers USD 2,000/month or USD 24,000/year; PRP eligibility after cumulative USD 200,000 transferred over 5 years	10 years, renewable	Application via NELS (statutory fees: 1000 USD)	May invest but cannot work or receive salary; eligible for 20-year PRP after 5 years if criteria met
Dependent Permit	Spouse/partner (opposite sex), parents, unmarried children (including step/adopted)	Proof of relationship, clean criminal record (for adults), medical insurance; children must be under 24 and dependent	Same as main permit holder	USD 400 per dependent	Does not allow employment; if working, must apply for own OP (Pro, Self-Employed, Investor)
Permanent Residence Permit (PRP)	Investors, retirees, professionals, self-employed	Eligibility after 5 years with valid OP/Retired Permit + meeting specific thresholds (e.g. salary ≥ MUR 400,000/month for professionals; USD 200,000 transfers for retirees; turnover thresholds for investors/SE)	20 years, renewable	Varies by category	Must apply within 6 months after eligibility; provides long-term residency
Premium Visa	Tourists, retirees, remote workers	Main source of income/business outside Mauritius; travel & medical insurance required	6 month to 1 year, renewable	Free (except insurance & living expenses)	Designed for digital nomads and long-stay visitors without OP
Family Occupation Permit	Families relocating and investing in Mauritius	Non-refundable contribution of USD 250,000 to the COVID-19 Projects Development Fund	10 years	From USD 1,000	Family members may work for the family unit with approval

What is NELS?

The NELS (National Electronic Licensing System) is Mauritius’ online one-stop platform for submitting, paying for, tracking, and obtaining all the permits and licenses required to live or do business on the island.

It is managed by the Economic Development Board (EDB) and brings together over 100 public bodies, enabling:

• Simplified administrative procedures
• Greater transparency
• Faster processing of applications

In practice, whether for an Occupation Permit, an Investor Permit, or other professional licenses, all steps are handled through this platform.

Call on an expert to navigate these changes

For comprehensive guidance and up-to-date information on taxation, residence permits, and investment opportunities in Mauritius, contact Magellan, your trusted expatriation advisor.