Prime Minister Navin Ramgoolam unveiled Mauritius' 2026-2027 Budget on June 19 against a backdrop of improving economic indicators. Inflation has fallen to 3.7%, foreign exchange reserves have reached a record USD 10.3 billion, tourist arrivals exceeded 1.4 million in 2025, and GDP is expected to grow by 3.2%. While the government's priority is to restore public finances, it also aims to strengthen investment, job creation and long-term competitiveness. For expatriates, prospective residents, international students and foreign investors, the Budget sends a clear message: Mauritius is becoming more selective about who it welcomes, while offering new incentives to the talent, capital and expertise it hopes to attract. Here's what you need to know.
This is probably the most anticipated and demanding measure in the budget.
For investors, the initial investment threshold is now set at USD 100,000. But that's not all: to renew their permits, holders will need to demonstrate genuine economic activity, with a minimum turnover of Rs 5 million from the third year onwards, rising to Rs 8 million from the fifth year. Innovative start-ups, meanwhile, will have specific performance indicators to meet.
For foreign professionals, the landscape is becoming both simpler and stricter. The ProPass and Expert Pass categories will merge into a single permit, and the minimum salary requirement is harmonized at Rs 50,000 per month across all sectors. Transitional arrangements are planned for current permit holders.
For self-employed workers, income requirements are also increasing: Rs 2 million from the third year and Rs 3 million from the fifth year to qualify for renewal.
It's also worth noting that the "Family Occupation Permit" category has been scrapped.
While Occupation Permits are becoming stricter, the Golden Visa is heading in the opposite direction. In fact, it's one of the most eagerly awaited measures among foreign investors since it was announced a few months ago.
According to the government, this program will allow investors who inject at least USD 1 million into strategic sectors such as fintech, artificial intelligence, biotech, and renewable energy to obtain a renewable right of residence. Once the investment has been made, the holder will also be eligible to apply for a permanent residence permit. This is a decisive step that brings Mauritius closer to the world's leading residency-by-investment programs.
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Mauritius opens its doors to international students
The strategy to position Mauritius as a regional university destination takes shape in this budget through several targeted measures: the creation of a centralized "Study in Mauritius" portal, easier entry for prestigious international universities, the introduction of a digital student visa, and an increase in the number of work hours allowed during holidays, from 20 to 30 hours per week.
Another notable change: the creation of post-graduation visas allowing international students to stay and work on the island after completing their studies.
These measures serve a dual purpose: filling skill shortages and boosting the appeal of Mauritian higher education.
More digital and transparent administrative procedures
At the same time, the government is announcing a modernization of its administrative tools, with several reforms designed to make daily life easier for foreigners. These include the introduction of an Electronic Travel Authorization, digital residence permits, and simplified procedures for certain foreign spouses of Mauritian citizens.
The minister's discretionary power in procedures involving the withdrawal of resident status or the cancellation of visas will also be reduced, ensuring greater predictability and transparency.
Mauritius aims high in Tech and AI
Mauritius aims to become a regional hub for artificial intelligence and digital technologies, and the government is equipping itself to do so through the 2026-2027 budget.
On the agenda: a national AI training platform and a program dedicated to innovative start-ups. Another flagship measure: the creation of a high-tech Special Economic Zone (SEZ) at Côte d'Or, designed to host activities linked to AI, digital services and advanced manufacturing.
Companies setting up there will benefit from an attractive package of incentives, including 100% foreign ownership, tax and customs exemptions, VAT recovery on buildings and equipment, preferential rates for data centers, and fast-tracked work permits for foreign experts.
Beyond the SEZ, the government has set out a broader ambition: to turn Mauritius into a genuine playground for entrepreneurs. The budget includes a dedicated Start-Up Act, backed by a range of concrete measures: a specialized hub within the Côte d'Or SEZ, a public-private national council tasked with developing the ecosystem, an acceleration program at the Economic Development Board, a digital patent management system, a specific working framework for start-ups, and a ten-year income tax exemption from the start of operations.
A more progressive tax system with targeted adjustments
The 2026-2027 budget introduces a new tax bracket for individuals. The 20% rate will apply to taxable income between Rs 1 million and Rs 12 million. Above that, a 35% rate will replace the current Fair Share Contribution mechanism.
Several sector-specific measures round out the picture:
Expats working in the manufacture of photovoltaic systems will benefit from a four-year income tax exemption
Manufacturing companies investing in AI, patents or new equipment will be eligible for an enhanced tax credit
A 5% tax will apply to short-term general insurance premiums from 1 January 2027
Real estate: Changes ahead
The 2026-2027 budget plans to revise the duties and taxes applicable to property purchases made under EDB programs. However, the exact details have yet to be announced. Foreign investors and prospective buyers will therefore need to keep a close eye on the publication of the implementing legislation.
A pension reform from 2027
This is one of the most significant structural reforms in the budget, and it directly affects expats settled in Mauritius for the long term. From 1 July 2027, the Generalized Social Contribution (CSG) and the Portable Retirement Gratuity Fund will be replaced by a new National Pensions Fund based on a funded scheme. Contributions will be as follows:
For employees earning up to Rs 50,000: 1.5% from the employee, 7.5% from the employer
For higher incomes: 3% from the employee, 10.5% from the employer
Family-friendly social measures
Expat families living in Mauritius will also find good news in this budget.
Maternity leave is being extended to 12 months: 6 months on full pay and 6 optional months on half pay. Paternity leave is being extended to six weeks.
In addition, one day of paid menstrual leave per month will be introduced for women suffering from severe symptoms.
Finally, when a public holiday falls on a Sunday, the following Monday will automatically be a day off.
A measured impact on the cost of living
A few indirect taxes will change over the coming months, with a limited but real effect on expats' daily lives.
Excise duties on tobacco and spirits are going up by 10%, with no increase planned for wine and beer. On the other hand, the tax on sugary products will rise from 12 to 15 cents per gram and will be extended to new categories, including sweets, biscuits, wafers and chewing gum, among others.
Finally, the Rs 2 tax applied to PET bottles containing drinks will be extended to all plastic bottles from October 2026.
The 2026-2027 budget sends a consistent message: Mauritius is tightening access to certain permits to weed out inactive structures, while strengthening its appeal to the profiles it wants to attract: strategic investors, tech talent, international students and start-up founders.
The strengthening of the Golden Visa, the Start-Up Act and the measures supporting international students could well reshape the landscape of economic immigration in Mauritius for years to come.
A journalist, holder of the DALF C1 and C2 and a diploma from the University of Mauritius, I have nearly twenty years of writing experience. After six years in the Mauritian press, I joined Expat.com, where I have been working for over a decade, including five years as editorial assistant, and now as editorial manager.
