If you live, work, invest, or are planning to relocate to Mauritius, the 2026-2027 Budget deserves your attention. Far from being a routine fiscal update, it marks a significant shift in the country's social and economic policies. From retirement and social contributions to taxation and property, several of the announced measures could directly impact your finances and future plans. Here's what they mean for expats in practical terms.
Retirement: A reform that mainly affects long-term residents
The budget's most significant reform is the replacement of the Basic Retirement Pension (BRP) with a State Age Pension (SAP), effective January 1, 2027. For most expats working in Mauritius, however, this change won't have any immediate impact. The Mauritian state pension is generally not the primary retirement vehicle for foreign workers, who continue to rely mainly on their home country's pension scheme and, going forward, on the future National Pension and Provident Fund (NPPF) for their contributions in Mauritius. That said, if you're planning to settle in Mauritius long-term or retire there and you meet the eligibility criteria for the state pension, this reform deserves your full attention.
The new system introduces greater flexibility: you'll be able to claim your pension between the ages of 60 and 70. Claiming before 65 will result in a permanent reduction of 0.5% for each month you claim early (up to 30% less if you retire at 60), while deferring beyond 65 will earn you an increase of 0.75% per month, up to 45% more at age 70.
From July 1, 2027, the Contribution Sociale Généralisée (CSG) and the Portable Retirement Gratuity Fund (PRGF) will be phased out and replaced by the National Pension and Provident Fund (NPPF).
The underlying logic changes completely. Today, your contributions feed into a collective system. From 2027, they will be credited to an individual account in your name, earmarked for your own retirement. For expats, this is a meaningful distinction: what you contribute belongs to you, at least in principle, under the new scheme. If you're an employee, expect to see changes to your payslip from mid-2027 onwards.
Foreign business owners in Mauritius will need to get ahead of the changes now, updating payroll software, employment contracts, and HR practices accordingly. The employer cost of higher salaries is also worth factoring into your budget sooner rather than later. The authorities have announced specific provisions for certain categories of foreign workers, though no details have been released yet. Will you be subject to the NPPF? Will you be able to reclaim your contributions when you leave the country? These are critical questions for expats, and they remain unanswered.
Unsurprisingly, these changes have not gone down without pushback. Several trade unions have raised concerns since the budget was presented, calling for clarity on how contributions will be calculated, how the system will be funded, and what the implications are for private-sector employees. Notably, no formal position has yet emerged from the employer side.
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If you run a foreign company that does business with Mauritius, here are the key developments to be aware of:
Non-resident companies providing software, licenses, applications, or IT maintenance services to clients in Mauritius will now be subject to Mauritian income tax. If your offshore structure invoices digital services to Mauritian clients, your tax setup is worth reviewing.
At the same time, certain VAT obligations are being simplified for foreign providers of digital services, particularly where those services are supplied exclusively to Mauritian businesses that are already VAT-registered.
The Global Business regime is being adjusted to bring it into closer alignment with international tax standards.
Industry and AI
Manufacturing companies will be able to benefit from a tax credit of up to 45% on certain investments in new machinery and equipment, artificial intelligence solutions, and patents. The scheme has been extended through June 30, 2029.
Expats employed by companies manufacturing photovoltaic systems are set to benefit from a four-year income tax exemption. If you work in renewable energy, or your profile makes you a fit for this sector, this is a genuine tax opportunity. For everyone else, the measure is a clear signal of the government's new approach: concentrating tax incentives on strategically targeted sectors rather than offering broad-based benefits.
Thinking of purchasing property through an Economic Development Board (EDB) scheme? Whether it's a Property Development Scheme (PDS), Smart City, or another scheme open to foreign buyers, the government is planning to revise the duties and taxes that apply to these acquisitions. The details, however, have not yet been published. If your property purchase in Mauritius isn't urgent, it may be worth waiting for the Finance Act and its implementing regulations before signing anything.
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.
