How to move to Mauritius
Relocating to Mauritius:
what steps do I need to take?
Do you dream of moving to Mauritius but you’re unsure where to start? With its tropical climate, unspoilt scenery and crystal-clear beaches, this aptly named Paradise Island is attracting increasing numbers of expatriates who want to experience its famous relaxed lifestyle. Whether you plan to work there, enjoy your retirement peacefully under the coconut trees or invest in a property, there are many solutions to make your relocation as smooth as possible.
Relocating to Mauritius: what are the requirements to settle there permanently?
Choosing a visa to suit your personal situation
For anyone intending to move to Mauritius the first step is, of course, to obtain a Visa. There are currently two main types of long-term visa; which one you choose will depend on your personal situation and the nature of your projects and activities in the country:
- The Occupation Permit: this is mainly aimed at working individuals who want to enter the Mauritian labour market. This category is divided into different sub-categories depending on the status of the worker (employee, self-employed or entrepreneur). In principle, the Occupation Permit is issued for a period of 3 years but is renewable under certain conditions. However, it is worth remembering that this permit depends entirely on your occupational activity and therefore expires automatically if you stop working.
- The Resident Permit: this is the equivalent of permanent residence. It is granted for a period of 10 years and can be renewed. This type of visa can be obtained on its own, without going through the Occupation Permit process, but in this case, you will only receive a residence visa and will not be permitted to work in the country. However, those wishing to apply for a 10-year residency whilst working in Mauritius can combine the two permits.
Conditions for obtaining a Resident Permit or permanent residence in Mauritius
If you opt for the Resident Permit because you plan to live in Mauritius for the long term, there are several ways to obtain it which, again, will depend on your personal situation:
- If you are an employee of a company based in Mauritius: you can apply if you earn at least 150,000 Mauritian rupees per month (about £2500) for three consecutive years.
- If you are self-employed or have set up a company in Mauritius, you are eligible for the Resident Permit provided that your annual turnover is at least 3 million rupees (approximately £51,000) for three consecutive years.
- If you are retired: you can apply for a Resident Permit in the “retired” category straight away provided that you are at least 50 years old and that you have a monthly income of at least USD 1,500 to be transferred to a Mauritian bank account (or USD 54,000 over a period of 3 consecutive years).
- If you intend to invest in a property in Mauritiusyou will automatically be granted permanent residence under the PDS (Property Development Scheme) provided that you buy a property with a minimum value of $500,000 (approximately £370,000).
Finally, it is important to bear in mind that once you obtain this type of long-term visa, the members of your household (spouse and children) will also be able to apply for permanent residence under the “dependent” category linked to your own visa.
How does health insurance work for residents of Mauritius?
When you move to Mauritius, you will no longer be covered by the UK social security system but will be subject to the Mauritian system instead.
As in most countries, a distinction is made in Mauritius between the public sector, which is generally free and provides basic care, and the private sector, which is more expensive but also more efficient. Therefore, if you have a residence permit you will not have to pay in advance when you use any of Mauritius’ 14 public hospitals.
Nevertheless, most expatriates opt for private healthcare because of the higher quality of care and quicker turnaround than in the public sector. It is therefore advisable to take out a health insurance policy so you can choose from all the available options. To do so, simply get in touch with a private insurance company that offers various forms of health cover and mutual insurance.
Taxation in Mauritius: everything you need to know
Single tax rate, no varying tax rates: the tax system in Mauritius is considered advantageous compared to that of the UK. However, you can only benefit from it if you have obtained resident status (with a Resident Permit or an Occupation Permit) and provided that you have declared Mauritius as your sole tax residence.
Therefore, if you have chosen to live in Mauritius and are no longer subject to the UK system, you will now pay all your taxes in Mauritius, bearing in mind that the two countries have signed a double taxation convention.
The Mauritian system has adopted a single tax rate of 15% on income, regardless of its nature. This applies to earned income, company turnover, property and rental income, and VAT. If working in Mauritius, you will not have to pay any pension or health insurance contributions, leaving you free to contribute to an insurance scheme of your choice. This will also allow you to take advantage of additional tax reductions.
Apart from income tax, you will not be subject to any other taxes: no property tax, no wealth tax or tax on dividends and capital gains if you sell your property. Your capital is also exempt from inheritance tax for your direct descendants.
Keen to find out more about how to settle in Mauritius permanently? Download our guide “Living or Investing in Mauritius” and find all the information you need to make your dream a reality.
