About the Mauritius Jurisdiction: Why the IFC Still Attracts Global Investors in 2025

Mauritius at a glance

Mauritius has established itself as one of the most reputable International Financial Centres (IFCs) in the Africa and Indian Ocean region. Backed by decades of political stability, a hybrid legal system rooted in English common law and French civil law, and a mature financial services sector regulated by the Bank of Mauritius (BoM) and the Financial Services Commission (FSC), the jurisdiction remains a preferred platform for cross-border investment into Africa, Asia and beyond.

The IFC contributes over 13% of GDP and hosts a substantial share of foreign direct investment (FDI) flows into Africa. In 2025 Mauritius continues to be ranked as the top African economy on the Mo Ibrahim Index of African Governance and among the highest globally for ease of doing business in the region.

Key advantages of the Mauritius jurisdiction (2025 update)

• Well-regulated and compliant: removed from the FATF grey list (October 2021), the EU AML high-risk list (January 2022) and the EU Annex II (list of non-cooperative tax jurisdictions) since February 2022. Mauritius has since maintained its OECD 'largely compliant' rating on tax transparency.
• Politically and socially stable multi-party parliamentary democracy — the 2024 general election reinforced continuity in the country's IFC policy.
• Independent, non-EU jurisdiction — not bound by EU-only directives such as the former Savings Directive or DAC frameworks, while voluntarily aligning with OECD standards including CRS and BEPS 2.0.
• OECD BEPS Inclusive Framework member — has signed and ratified the Multilateral Instrument (MLI) and is implementing Pillar Two, with a Qualified Domestic Minimum Top-up Tax (QDMTT) announced in the 2024/25 Budget for MNE groups within scope.
• The Judicial Committee of the Privy Council in London remains the ultimate Court of Appeal — a decisive comfort factor for international investors.
• A preferred domicile for global asset managers, private equity and infrastructure funds structuring investments into India, Africa, South-East Asia and the Middle East.
• Competitive service costs and a resident population of about 1.26 million, with a deep pool of ACCA, ICAEW, CFA and legal professionals fluent in English and French.
• Convenient GMT+4 time zone bridging Asian and European trading hours.
• Extensive tax treaty network — 46 Double Taxation Avoidance Agreements (DTAAs) in force in 2025, including with India (post-2016 protocol), China, South Africa, France, the UK, Singapore, the UAE and Germany, plus additional Investment Promotion and Protection Agreements (IPPAs) with more than 25 African states.
• Modern digital and physical infrastructure — SAFE, LION, METISS and IOX submarine cables give the island Tier-1 international connectivity, and the Mauritius International Financial Centre operates on modernised e-filing and e-registry platforms.
• State-of-the-art legislation: Companies Act 2001, Financial Services Act 2007, Trusts Act 2001, Foundations Act 2012, Limited Partnerships Act 2011, Insolvency Act 2009, Securities Act 2005 and the Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS).

Regulatory and compliance framework

The Financial Services Commission (FSC) regulates non-banking financial services, global business, insurance, capital markets and fintech, while the Bank of Mauritius supervises banking and payment systems. AML/CFT supervision is coordinated by the FSC, BoM, FIU Mauritius and the National AML/CFT Committee, and the framework is anchored on the Financial Intelligence and Anti-Money Laundering Act (FIAMLA) and the United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019.

Mauritius participates fully in the OECD's Common Reporting Standard (CRS) and FATCA information exchange, and hosts a Beneficial Ownership Register maintained by the Registrar of Companies. Following the 2021 reforms, licensees carrying on Global Business must meet enhanced substance requirements — including qualified employees in Mauritius, adequate operating expenditure and core income-generating activities carried out in or from Mauritius.

The modern tax regime

Since 1 January 2019, the old GBL1 / GBC2 distinction has been replaced. A Global Business Corporation (GBC) is now taxed at the headline corporate rate of 15%, but may benefit from an 80% partial exemption on qualifying foreign-source income (including foreign dividends and interest, income from ship and aircraft leasing, and income of collective investment schemes and closed-end funds), provided the substance conditions in the Income Tax Regulations are met. The effective tax rate on such qualifying income is therefore as low as 3%.

Additional features of the 2025 tax landscape include:

• No capital gains tax and no withholding tax on dividends paid by a Mauritius company
• No exchange controls — free repatriation of profits, dividends and capital
• Corporate Social Responsibility (CSR) contribution of 2% of chargeable income for qualifying companies
• Corporate Climate Responsibility (CCR) levy introduced by the Finance Act 2024 at 2% of profit for companies with turnover above MUR 50 million (with sector-specific exclusions)
• Domestic Minimum Top-up Tax being introduced to align with the OECD Pillar Two 15% global minimum for in-scope MNE groups (turnover ≥ EUR 750 million)
• Authorised Company regime for entities managed and controlled outside Mauritius — treated as non-resident and outside the scope of Mauritian tax, with mandatory economic filings only

Available structures

Africa and Asia gateway

Mauritius is a founding member of SADC, COMESA, the African Union, the Indian Ocean Commission (IOC) and the Indian Ocean Rim Association (IORA). It is signatory to the African Continental Free Trade Area (AfCFTA) agreement and has bilateral trade agreements with the United Kingdom (Economic Partnership Agreement) and Turkey, as well as the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) with India — the first such agreement India has signed with an African country.

This positioning, coupled with the IPPA network and the FSC's fund-friendly regime, is why over 70% of the private equity funds targeting African assets are domiciled or administered in Mauritius, and why the island continues to be a leading conduit for Indian Ocean and Sub-Saharan African investment flows.

Human capital and infrastructure

Mauritius has invested heavily in higher education, with the University of Mauritius, the University of Technology and campuses of the Middlesex, Curtin and Paris-Panthéon-Assas universities producing bilingual graduates in law, accountancy, actuarial science and IT. Combined with the FSC's Financial Services Institute (FSI) continuing professional development, this supports a mature talent pipeline for the IFC.

The Mauritius International Airport, the Port Louis harbour redevelopment and the Metro Express network are being complemented by the Ebène CyberCity and the newly launched Uniciti and Moka smart cities, providing modern office, residential and digital infrastructure for domestic and international businesses alike.

Conclusion

In 2025, the case for Mauritius rests on more than tax. It is a compliant, transparent and well-connected jurisdiction with modern legislation, credible regulators, a skilled workforce, an independent judiciary and preferential access to Africa, India and Asia. Whether the objective is to structure a private equity fund, hold cross-border investments, run a captive insurance cell or set up a family office, the Mauritius IFC continues to offer a rare combination of stability, substance and international recognition.

The information above reflects legislation and regulatory practice in Mauritius as at October 2025 and is provided for general guidance only. Speak to a licensed management company or tax adviser for advice tailored to your circumstances.