Key Takeaways
- Mauritius does not levy inheritance, estate, death, succession, or gift tax, a position grounded in its legal framework.
- Transfers to heirs can benefit from land transfer and registration duty exemptions, reducing costs when passing assets to beneficiaries.
- Foreign assets on death are governed by principles such as lex domicilii and lex rei sitae, so non-residents should weigh how their global holdings are treated.
- Investors and companies can plan succession using trusts and foundations while accounting for forced heirship rules and the outlook for any future tax.
Understanding Inheritance & Estate Tax in Mauritius: An Introduction
Mauritius levies no inheritance tax, estate duty, or gift tax. For a foreign owner, investor, or adviser weighing where to hold assets or pass them to the next generation, this places the island among the jurisdictions where the full value of an estate transfers to beneficiaries without a tax charge at death. The position is confirmed by international references including the PwC tax summary.
Succession itself is governed by the Civil Code of Mauritius, a mixed body of rules drawn from French civil law and English common law. This article explains what is and is not charged on death, how foreign assets are treated, the forced heirship rules that affect any plan, and the trust and foundation vehicles available to non-residents.
The material here is most relevant to non-resident high-net-worth individuals and their advisers structuring cross-border wealth, and to foreign business owners holding Mauritian assets or company shares.
Does Mauritius Levy Inheritance or Estate Tax? Confirming the Position
No. There is no inheritance, estate, succession, donation, or gift tax in the country. The zero-rate position is documented consistently across the PwC tax summary, the Chambers Private Wealth guide, and material published by the International Bar Association.
The absence runs wider than death duties. Mauritius imposes no net wealth or net worth tax, and no capital gains tax on the transfer or disposal of assets.
This treatment applies to residents and non-residents alike in respect of Mauritius-situs assets. A foreign national living on the island is subject to the same succession rules as a citizen, with no surcharge or separate regime by nationality.
There is no scaled tariff, exemption threshold, or rate band for inheritance in Mauritius because no inheritance tax exists at all. The only costs at death are administrative, chiefly notarial fees.
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The Legal Basis for the Absence of Inheritance & Estate Tax
The reason no inheritance tax is charged is straightforward: no statute creates one. Mauritius has never enacted an Estate Duty Act or any equivalent succession-duty law, and the absence of such legislation is itself the legal foundation of the zero-tax position.
Succession is instead handled by two distinct sources. The Civil Code (Code Civil Mauricien) sets the substantive rules of inheritance, including forced heirship, while the Succession and Wills Act governs the procedural side of administering an estate.
Neither instrument imposes a tax charge. The Succession and Wills Act deals with how an estate is administered and how wills take effect, not with revenue collection.
Because there is no inheritance tax and no capital gains tax, the question of acquisition cost basis for inherited assets rarely arises in practice. Beneficiaries take the asset without a death-triggered tax computation on the Mauritian side.
The settled nature of this position carries external validation. Mauritius is white-listed by both the OECD and the EU for compliance with BEPS minimum standards, meaning the zero-tax treatment of inheritance is not classified as a harmful regime.
No Death Duty, Succession Tax, or Gift Tax: Scope of What Is (Not) Charged
It helps to be precise about the full list of charges that do not apply, because foreign owners often arrive expecting at least one of them.
| Charge | Status in Mauritius |
|---|---|
| Inheritance tax | Not levied |
| Estate duty / death duty | Not levied |
| Succession tax | Not levied |
| Gift / donation tax | Not levied |
| Wealth / net worth tax | Not levied |
| Capital gains tax | Not levied |
Lifetime transfers are treated the same way as transfers at death for these purposes. A gift made during life attracts no donation or gift tax, so there is no need to time transfers around a tax event.
The contrast with France or the United Kingdom is sharp, where succession duties on the same assets can reach high effective rates. On the island, no specific duty falls on the succession transfer of real estate.
The Mauritius Revenue Authority publishes a tax calendar of return and payment deadlines. It lists no obligation tied to estate or succession duty, which reflects that no such charge exists to declare.
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Land Transfer and Registration Duty Exemptions on Transfers to Heirs
Real property is the one area where foreign owners expect a charge, because land transfer tax and registration duty do apply to ordinary property dealings. Those duties are normally levied on the fair value of immovable property at the time of registration, without discounts for marketability or control.
Succession transfers are carved out. Property passing to the heirs of a deceased individual is exempt from land transfer tax and registration duty, so the transmission of a villa or apartment to children attracts no transfer charge.
This exemption sits within the Land (Duties and Taxes) Act, which governs duties on immovable property generally but levies no succession duty on transfers to heirs. The same Act imposes unrelated charges such as the annual campement site tax, which is not a death-related levy.
One cost does survive. Notarial fees remain payable on real estate succession transfers, since a notary handles the transfer of land titles and the associated formalities.
- Transfer to heirs: exempt from land transfer tax and registration duty
- Notarial fees: still payable on the transfer of land titles
Treatment of Foreign Assets on Death: Lex Domicilii and Lex Rei Sitae
Cross-border estates turn on which law governs which asset, and Mauritius splits the question by asset type. The distinction matters because it determines whether forced heirship and any foreign tax exposure attach to a given holding.
Immovable property follows lex rei sitae, the law of the place where the property is located. A house or land in Mauritius is therefore governed by Mauritian succession rules regardless of where the deceased lived.
Movable property follows lex domicilii, the law of the last domicile or permanent residence of the deceased. These conflict rules apply equally to Mauritian and non-Mauritian nationals.
There is limited room to choose. In certain cases a person may, before death, designate another national law to govern movable property, subject to the mandatory public policy provisions of Mauritian law.
Residence alone does not trigger Mauritian forced heirship. If the deceased is domiciled elsewhere and holds no immovable property on the island, the forced heirship rules may not apply to the estate at all.
The split also shapes tax exposure abroad. A French resident inheriting a Mauritian villa may face duties in France, yet remains outside any Mauritian charge because the island imposes none on the succession.
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What the Absence of Inheritance Tax Means for Investors and Companies
For generational planning, the absence of a death charge means the entire value of an estate can pass to beneficiaries without erosion at the point of succession. There is no reduction for tax on either the asset or any embedded gain.
Investment vehicles benefit in parallel. With no capital gains tax, reinvested growth inside funds and structures is not taxed on realisation, a point that has long drawn hedge funds and investment vehicles to the jurisdiction.
Trusts and foundations extend the effect to distributions. Where all trust parties are non-Mauritian, trust income can be taxed at 0%, no withholding tax applies to distributions to beneficiaries, and dividends from Mauritius companies carry no further charge.
Treaty access adds a second layer for cross-border families. Mauritius-resident trusts and foundations may qualify for benefits under the country's double taxation agreement network, and through a Global Business Company structure a trust can reach a treaty network of 45 or more agreements.
Forced Heirship and Succession Planning Considerations
The element most likely to disrupt a foreign owner's plan is not tax but forced heirship. Inherited from French law and set out in the Civil Code, it reserves a fixed portion of the estate for the children of the deceased.
Forced heirship applies where the deceased was domiciled in Mauritius or in respect of Mauritius-situs assets. The reserved share grows with the number of children, and the testator may freely dispose only of the remainder.
| Number of children | Reserved for children | Freely disposable |
|---|---|---|
| One | One half | One half |
| Two | Two thirds (split equally) | One third |
| Three or more | Three quarters (split equally) | One quarter |
Children cannot be disinherited, since the reserved portion is an automatic right. The link can be biological, covering children born in or out of wedlock, or legal through adoption.
A surviving spouse holds no protected status. A spouse can share only in the freely disposable portion, which often surprises foreign couples who assume the partner inherits first.
Most wealth disputes in the jurisdiction stem from forced heirship and the size of the reserved share, and many people are unaware of how the rules bite. Three forms of will are recognised to record valid wishes within those limits: a holographic will written, dated, and signed by hand; a notarial will drafted by a notary and signed before two witnesses; and a witnessed will signed and attested by at least two people.
Using Trusts and Foundations in Estate Planning
Trusts and foundations are the principal tools for managing both succession and forced heirship exposure. The Trusts Act 2001 and the Foundations Act 2012 set the framework, and foreign trusts are recognised.
Their reach over forced heirship is the key feature for non-citizens. Section 14 of the Trusts Act 2001 provides that Mauritian law governs the trust regardless of foreign forced heirship rules, and a transfer of assets to a trust by a non-citizen cannot be set aside as a breach of the inheritance or succession law of the settlor's domicile or nationality.
Under defined conditions, movable or immovable assets placed into a Mauritius trust by a non-citizen are exempt from forced heirship rules and the succession laws of the settlor's home jurisdiction. This is what makes the structure useful for clients from civil-law countries with rigid reserved-share regimes.
Probate is also avoided. Assets held in a trust or foundation pass to beneficiaries outside the deceased's estate, sidestepping a process that is slow, costly, and open to public inspection.
Structure choice tends to follow legal culture:
- A Mauritius trust rests on common law and the Trusts Act 2001, which tracks UK and other Commonwealth legislation closely.
- A foundation, available under the Foundations Act 2012, can be perpetual and often suits families from a civil-law background.
- French clients sometimes prefer a Société Civile structure.
- A trust may operate for a maximum of 99 years from creation, while a foundation may continue indefinitely.
On the tax side, note one point. Trusts and foundations are treated as companies for tax purposes, so a non-charitable trust or foundation is generally subject to the 15% headline rate on worldwide chargeable income, with a partial exemption available on certain foreign income such as dividends or interest where substance requirements are met.
Outlook: Will Mauritius Introduce an Inheritance or Estate Tax?
No government proposal, consultation, or budget commitment to introduce an inheritance, estate, or gift tax has been identified. The absence of these taxes has been a stable feature of the system for decades, consistent with a policy of attracting foreign capital and high-net-worth individuals.
Recent fiscal reform has moved in other directions. The Budget speech of 5 June 2025 signalled that global tax alignment is no longer optional, but the measures addressed income tax progressivity, Pillar Two, and digital services VAT rather than succession.
Effective from the year of assessment beginning 1 July 2025, the country adopted a Qualified Domestic Minimum Top-Up Tax under the OECD GloBE Rules, applying a 15% minimum effective rate to multinational groups with consolidated annual revenues of at least EUR 750 million. No parallel inheritance measure accompanied it.
A 35% top income tax band introduced in the 2026/27 Budget points to greater income-tax progressivity, again without any succession duty. With the jurisdiction white-listed by the OECD and the EU, there is no external pressure aimed specifically at the absence of inheritance tax, and no credible reform signal appears in the sources reviewed.
Conclusion
The absence of inheritance, estate, and gift tax is real and legally grounded, yet for a non-resident foreign business owner the sharpest practical question is not whether Mauritius taxes the estate but how forced heirship rules and the governing law principles applying to foreign assets interact with holdings kept outside the jurisdiction. That interaction, more than the zero-tax position itself, is what shapes whether a trust or foundation actually delivers the succession outcome intended.
Before treating Mauritius as a solved problem in an estate plan, a non-resident should map which assets fall under lex rei sitae and which under lex domicilii, then stress-test that structure against forced heirship exposure, bearing in mind that the current tax position, while settled, carries a future outlook worth monitoring.
How Expanship Can Help Your Business in Mauritius
Expanship advises foreign owners on holding Mauritian assets in a way that works with forced heirship and uses trust or foundation structures effectively, while keeping the broader entity compliant year to year. The same team handles the practical setup and maintenance work a non-resident business needs on the ground.
- Company formation, including Global Business and Authorised Company structures
- Registered agent and registered office services
- Tax registration and preparation of statutory filings
- Ongoing compliance and corporate secretarial management
- Accounting and bookkeeping for resident entities
- Introductions to banking partners for account opening
To discuss a succession structure or a new entity, contact Expanship Mauritius for a scoped assessment of your requirements.
Frequently Asked Questions
No. There is no inheritance, estate, succession, donation, or gift tax in Mauritius, so assets pass to beneficiaries without a tax charge at death. The only costs that typically arise are administrative, principally notarial fees on real property transfers.
Property transferred to the heirs of a deceased individual is exempt from land transfer tax and registration duty, even though those duties apply to ordinary property transactions. Notarial fees for the transfer of land titles remain payable.
No. The absence of inheritance tax applies equally to residents and non-residents for Mauritius-situs assets, and a foreign national living on the island is subject to the same succession rules as a citizen. Nationality does not create a separate charge or rate.
Forced heirship reserves a fixed share of the estate for children, ranging from one half for one child to three quarters where there are three or more, and a child cannot be disinherited. It applies where the deceased was domiciled in Mauritius or to assets located there, and a spouse is not a protected heir.
For a non-citizen settlor, assets placed into a Mauritius trust are, under defined conditions, exempt from forced heirship and from the succession laws of the settlor's domicile or nationality. Section 14 of the Trusts Act 2001 confirms that Mauritian law governs the trust regardless of foreign forced heirship rules.
No proposal, consultation, or budget commitment to create an inheritance, estate, or gift tax has been identified. Recent reforms have targeted income tax progressivity and Pillar Two rather than succession, and the zero-tax position has held steady for decades.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
