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UNITED KINGDOM · MAURITIUS · TAX CONSIDERATIONS

UK–Mauritius Tax Considerations 2026

What UK Residents Should Consider Before Relocating to Mauritius

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A person relocating from the UK to Mauritius should not assume that their UK tax obligations end on the date they leave the country.

UK residence is determined under the Statutory Residence Test, which considers days spent in the UK, work patterns, homes and other UK connections. In certain circumstances, the tax year may qualify for split-year treatment, so that part of the year is treated as the UK-resident period and the later part as an overseas period.

Mauritius has separate residence tests. An individual can become Mauritius tax resident through domicile or presence tests including 183 days in an income year or 270 days in aggregate over the relevant three-year period. A Mauritius-resident individual is generally taxable on Mauritius-source income and foreign-source income remitted to Mauritius.

The UK–Mauritius Double Taxation Convention then helps determine taxing rights where income, gains or residence overlap between the two countries.

Does moving to Mauritius automatically make you non-UK resident?

No.

UK tax residence is determined under the Statutory Residence Test — SRT.

The SRT considers factors including:

• days spent in the UK;
• whether the individual works in the UK or overseas;
• UK homes;
• family connections;
• accommodation;
• previous UK residence;
• other UK ties.

An individual spending 183 days or more in the UK during a tax year will normally be UK resident under the automatic UK test, but leaving the UK involves much more than simply staying below 183 days.

The number of days a person can safely spend in the UK can vary substantially depending on their previous residence history and continuing UK ties.

What is the UK Statutory Residence Test?

The Statutory Residence Test determines whether an individual is UK tax resident for a particular UK tax year.

It operates broadly through:

• automatic overseas tests;
• automatic UK tests;
• the sufficient ties test; and
• split-year provisions.

Each UK tax year is considered separately.

This means someone may be UK resident in one year and non-UK resident in the next even though their lifestyle appears broadly similar.

For anyone planning a move to Mauritius, the SRT should ideally be reviewed before departure, because decisions involving the UK home, employment, family location and return visits can affect the outcome.

What is split-year treatment?

The UK normally determines residence for the whole tax year.

However, where an individual leaves the UK or arrives in the UK part way through a tax year, specific conditions may allow the year to be divided into:

• a UK part; and
• an overseas part.

For most purposes, the individual is treated as UK resident during the UK part and non-UK resident during the overseas part.

Split-year treatment is not simply elected because someone moved abroad.

The individual must satisfy one of the statutory split-year cases. HMRC currently recognises eight different split-year situations.

For example, one departure case can apply where an individual ceases to have a UK home and establishes their life abroad subject to detailed conditions.

When does someone become tax resident in Mauritius?

Mauritius applies its own residence tests.

An individual can be resident where he or she:

• has domicile in Mauritius, unless the permanent place of abode is outside Mauritius;
• is present in Mauritius for 183 days or more during an income year; or
• is present in Mauritius for an aggregate 270 days or more during that income year and the two preceding income years.

An individual wishing to evidence Mauritius residence may apply to the Mauritius Revenue Authority for a Tax Residence Certificate, subject to the applicable requirements.

A residence permit and tax residence should therefore be treated as two different concepts.

Does a Mauritius residence permit automatically make you tax resident?

No.

A Mauritius Residence Permit, Occupation Permit, property-based residence permit, Retirement Residence Permit or other immigration status gives the individual a legal basis to reside in Mauritius.

It does not automatically determine tax residence.

Tax residence is determined separately under the Mauritius Income Tax Act.

The MRA has previously confirmed in tax rulings that property ownership and a residence permit alone are not sufficient where the statutory residence conditions are not actually satisfied.

Can someone be tax resident in both the UK and Mauritius?

Potentially, yes.

Domestic law in each country is applied first.

It is therefore possible for an individual to satisfy both the UK and Mauritius residence rules at the same time.

Where this happens, the UK–Mauritius Double Taxation Convention contains a residence “tie-breaker”.

For individuals, the treaty considers in sequence:

• where a permanent home is available;
• where the individual’s centre of vital interests is located;
• habitual abode;
• nationality; and
• if necessary, agreement between the competent authorities.

Treaty residence is a technical assessment and should not be confused with domestic residence status.

How is an individual taxed in Mauritius?

For income years beginning from 1 July 2025, Mauritius currently applies individual income-tax bands of:

• first MUR 500,000 — 0%
• next MUR 500,000 — 10%
• remaining chargeable income — 20%

subject to applicable deductions, exemptions, reliefs and other statutory provisions.

The relevant treatment depends on the nature and source of the particular income.

Is foreign income taxed in Mauritius?

Mauritius distinguishes between Mauritius-source income and foreign-source income.

The MRA states that where an individual is Mauritius resident, the person is subject to tax on income derived in Mauritius and foreign income remitted to Mauritius.

Foreign income can include:

• employment income;
• directors’ fees;
• pensions and annuities;
• business income;
• rental income;
• investment income;
• interest.

This makes the timing, source and movement of funds important when someone relocates with significant overseas income.

Does Mauritius tax foreign income that remains overseas?

For a resident individual, foreign-source income is generally relevant to Mauritius taxation where it is remitted to Mauritius.

The MRA’s published description of the tax system confirms that an individual’s foreign-source income is taxable on a remittance basis.

However, whether a particular transfer constitutes a taxable remittance can depend on the nature of the funds

For example, an individual should distinguish between:

• current-year income;
• accumulated savings;
• capital;
• investment proceeds;
• pension receipts;
• dividends;
• proceeds from asset sales.

Good banking records are therefore important.

What UK income can remain taxable after moving to Mauritius?

Becoming non-UK resident does not necessarily eliminate UK taxation.

Non-residents can continue to be taxed on UK-source income.

Examples may include:

• UK rental income;
• UK employment income for duties carried out in the UK;
• certain pension income;
• business income connected with UK operations;
• certain investment income.

HMRC confirms that individuals living abroad may continue to pay UK tax on UK income even when they are non-resident.

The Double Taxation Convention may then determine whether one country has exclusive taxing rights or whether foreign tax credit relief is available.

What happens if you keep a UK rental property?

A UK property does not cease to be within the UK tax system simply because its owner has moved to Mauritius.

UK rental income generally remains UK-source income and can remain taxable in the United Kingdom.

If the owner is also Mauritius tax resident and the income is remitted to Mauritius, Mauritius tax consequences may also need to be considered.

The treaty and domestic foreign-tax-credit rules are designed to reduce double taxation where the same income is taxable in both countries.

What happens when a Mauritius resident sells UK property?

Non-UK residents remain within the UK Capital Gains Tax regime for disposals of UK land and property.

HMRC requires non-residents to report relevant UK property or land disposals, even though they may be non-resident at the time of sale.

The UK also applies rules to certain indirect disposals involving UK property-rich entities.

So becoming Mauritius resident does not move UK property outside the scope of UK capital gains taxation.

Are gains on UK shares taxable after becoming non-UK resident?

Often, an individual who is genuinely non-UK resident will not be subject to UK Capital Gains Tax on ordinary disposals of UK shares.

However, important exceptions exist.

These include:

• UK property-rich companies; and
• the temporary non-residence rules.

This means someone leaving the UK should not assume that selling shares shortly after departure automatically avoids UK CGT.

What is temporary non-residence?

The UK has anti-avoidance rules for individuals who leave the UK, realise certain income or gains while abroad and then return to the UK within the relevant period.

In broad terms, where the absence is sufficiently short, certain gains realised while non-resident may become taxable when UK residence resumes.

The temporary non-residence rules can therefore apply to certain disposals made during a period abroad.

This is particularly important for individuals planning to move to Mauritius for only a few years.

What happens to UK dividends after moving to Mauritius?

Dividend treatment depends on:

• the residence of the recipient;
• the residence of the company;
• domestic law;
• the Double Taxation Convention; and
• whether the holding is connected with a permanent establishment.

Under the current UK–Mauritius treaty, ordinary dividends paid by a company resident in one state to a beneficial owner resident in the other are generally exempt from tax in the source state, subject to specific exceptions including certain property-investment vehicles.

The recipient may still have taxation to consider in the country of residence.

What happens to UK pensions after moving to Mauritius?

This requires careful distinction

Under Article 18 of the UK–Mauritius treaty, pensions and similar remuneration paid in consideration of past employment to a resident of one country are generally taxable only in the country of residence.

So, where the treaty conditions are met, many private or occupational pensions received by a Mauritius treaty resident may be taxable only in Mauritius.

However, government service pensions have separate treaty rules.

UK government and local-authority pensions generally remain taxable only in the UK unless the recipient falls within the specific Mauritius-nationality exception contained in Article 19.

State Pension, pension lump sums and unusual pension arrangements should be checked separately rather than assumed to follow the same treatment.

What if you continue working for a UK employer from Mauritius?

Tax does not depend solely on where the employer is incorporated.

The treaty generally looks at where the employment is exercised.

Under Article 15, employment income is generally taxable in the residence state unless the employment is exercised in the other state. Specific rules then apply where work is carried out temporarily in the other country.

A UK employee working remotely from Mauritius may therefore create issues involving:

• Mauritius payroll;
• PAYE;
• social contributions;
• employer obligations;
• permanent establishment;
• immigration permission;
• corporate tax.

The employer’s position should be reviewed as well as the employee’s.

What if you continue running a UK company from Mauritius?

This can be more important than the individual’s personal income tax.

Moving the shareholder or director to Mauritius does not automatically move a UK company’s tax residence.

But management activity from Mauritius can create questions involving:

• central management and control;
• place of effective management;
• permanent establishment;
• director duties;
• payroll;
• treaty residence;
• corporate substance.

The UK–Mauritius treaty contains rules for dual-resident entities, and the precise corporate facts therefore matter.

A UK business should not simply be operated from Mauritius without considering the corporate tax consequences.

Does the UK–Mauritius Double Taxation Treaty mean no tax is payable?

No.

A double taxation agreement is not generally a tax exemption agreement.

Its purpose includes allocating taxing rights and preventing the same income or gain from being taxed twice without relief.

Depending on the income concerned, the treaty may:

• give exclusive taxing rights to one country;
• allow both countries to tax;
• limit source-country tax;
• provide foreign-tax-credit relief.

The treaty also contains anti-abuse provisions designed to prevent treaty-shopping and arrangements intended primarily to obtain inappropriate treaty benefits.

How is double taxation normally relieved?

Article 24 of the UK–Mauritius Convention provides a credit mechanism.

Broadly, where income or gains are properly taxable in both countries, tax paid in one country may be credited against tax payable on the same income in the other country, subject to domestic law and the treaty.

The exact credit can depend on:

• source of income;
• treaty classification;
• tax actually paid;
• timing;
• local tax rules.

What changed in the UK from April 2025?

One of the most significant UK changes for internationally mobile individuals was the abolition of the old remittance basis from 6 April 2025.

UK residents are now generally taxed on worldwide income and gains on the arising basis.

A new four-year Foreign Income and Gains — FIG — regime is available to qualifying new UK residents who have been non-UK resident for at least ten consecutive tax years before becoming UK resident.

This is principally relevant if someone later returns to the UK after a sufficiently long period living in Mauritius.

Why does the new UK FIG regime matter to someone moving to Mauritius?

A long-term move can influence the tax position if the individual later returns to Britain.

Where a person has been non-UK resident for at least 10 consecutive tax years and subsequently becomes UK resident again, the current FIG regime may provide qualifying relief on foreign income and gains during the first four years of renewed UK residence.

That makes long-term residence history increasingly important in relocation planning.

Does leaving the UK end UK Inheritance Tax exposure?

Not necessarily.

This is one of the most important changes since April 2025.

The UK replaced the old domicile-based inheritance-tax framework with a long-term residence regime.

A person can remain within the UK inheritance-tax net for overseas assets for a period after leaving the UK, depending on their previous UK residence history. In some cases, that “tail” can continue for up to ten tax years.

Becoming tax resident in Mauritius does not necessarily mean that worldwide assets immediately fall outside UK Inheritance Tax.

Anyone with substantial wealth, trusts or estate-planning structures should review this before departure.

Does owning a home in the UK prevent Mauritius tax residence?

Not necessarily.

But retaining a UK home can be highly relevant to UK residence under the Statutory Residence Test and to treaty residence where both countries consider the individual resident.

The treaty looks first at whether the person has a permanent home available in one or both states, followed by the centre of vital interests and other factors.

So keeping a UK home is not merely a property decision.

It can be a residence-planning issue.

Should you sell UK investments before moving?

There is no universal answer.

The correct timing depends on:

• whether the person will actually become non-UK resident;
• split-year treatment;
• temporary non-residence;
• type of asset;
• unrealised gains;
• UK property exposure;
• Mauritius treatment;
• future plans to return to the UK;
• inheritance-tax considerations.

Selling immediately before departure, immediately after departure and several years after departure can produce very different outcomes.

Tax should therefore be modelled before the transaction.

Should you transfer money to Mauritius before or after becoming resident?

Again, there is no universal answer.

Because Mauritius resident individuals can be taxable on foreign-source income remitted to Mauritius, it can be important to distinguish between:

• original capital;
• historical savings;
• current income;
• accumulated foreign income;
• investment proceeds;
• pension income.

Maintaining separate accounts and clear transaction records can make this considerably easier to demonstrate.

What should you review before leaving the UK?

Before relocating, a UK individual should ideally establish the following:

AREA	QUESTION TO ANSWER
UK residence	On what date will UK residence actually cease?
Split year	Will one of the statutory split-year cases apply?
UK visits	How many UK days will be possible after departure?
UK home	Will a UK home remain available?
Family	Will spouse or children remain in the UK?
Employment	Where will duties actually be performed?
UK company	Will management continue from Mauritius?
Property	Will UK rental property be retained?
Investments	Are disposals planned before or after departure?
Pensions	Which treaty article applies to each pension?
Mauritius residence	When will Mauritius tax residence begin?
Remittances	Which foreign income will be brought to Mauritius?
Inheritance tax	Does the UK long-term-residence tail apply?
Return plans	Could temporary non-residence become relevant?

The planning should take place before the move, not after the first tax return becomes due.

Frequently Asked Questions

If I move to Mauritius, do I stop paying UK tax?

Not necessarily. UK-source income and certain UK assets can remain taxable in the UK even after you become non-UK resident.

Is 183 days outside the UK enough to become non-resident?

Not necessarily. UK residence is determined under the full Statutory Residence Test rather than one simple day-count rule.

How many days do I need in Mauritius to become tax resident?

A principal test is 183 days in an income year, although the 270-day aggregate test and domicile test can also apply.

Does a Mauritius residence permit make me tax resident?

No. Immigration residence and tax residence are separate.

Is foreign income taxed in Mauritius?

A Mauritius-resident individual is generally taxable on foreign-source income remitted to Mauritius.

Will my UK rental property still be taxed in Britain?

Generally yes. UK rental income remains UK-source income.

Can I sell UK shares tax-free after leaving?

Potentially, but temporary non-residence and UK property-rich-company rules can apply.

Where is a UK private pension taxed if I live in Mauritius?

Under the treaty, many pensions arising from past employment are taxable only in the treaty residence state, subject to exceptions and the precise pension type.

Are UK government pensions treated the same way?

No. Government-service pensions are subject to separate treaty rules.

Does Mauritius have a double-tax treaty with the UK?

Yes. The UK–Mauritius convention covers income and capital gains and has been amended by later protocols and the Multilateral Instrument.

Can I still have UK Inheritance Tax exposure after moving?

Yes. Under the post-April-2025 regime, long-term UK residents can remain exposed for a period after departure.

Before You Relocate

A move from the UK to Mauritius should not be treated as simply changing address.

It can affect:

• personal residence
• income tax
• capital gains
• pensions
• company management
• property
• inheritance
• taxcross-border remittances

The correct question is not:

“Is Mauritius lower tax than the UK?”

It is:

“How will each part of my affairs be taxed before, during and after my move?”

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Regulatory & professional disclaimer: This article provides general information only and does not constitute UK or Mauritius tax, legal, investment or immigration advice. Tax residence and treaty outcomes depend on individual facts and can change with legislation. Appropriate UK and Mauritius professional advice should be obtained before acting.