Is Mauritius still useful for India investment?

Less so than before 2016. Capital gains protection on Indian shares was withdrawn, so most India structures now weigh Singapore and Mauritius on other factors.

What is the effective tax rate?

3% on qualifying foreign-source income through the 80% partial exemption, subject to meeting substance conditions.

Was Mauritius removed from the FATF grey list?

Yes, Mauritius exited the FATF grey list in 2021 and the EU list in 2022 after strengthening its AML framework.

Jurisdiction · Africa

Mauritius

The treaty gateway into Africa and India, with a working fund and banking sector.

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Overview

Mauritius is the standard conduit for institutional capital into Africa and, historically, India. Its Global Business Company regime delivers an effective rate as low as 3% on qualifying foreign-source income, backed by more than forty double tax treaties and a fund administration industry with real depth.

The India treaty was renegotiated in 2016 and the abusive routing era ended, but Mauritius has adapted by building genuine substance: licensed management companies, resident directors, local audits and functioning banks.

Typical use-cases

Where Mauritius fits

Africa-focused funds
India investment
Global business companies

Banking

Banking landscape

AfrAsia Bank, SBM, MCB and Absa Mauritius serve international clients, and Mauritius is one of the few offshore-adjacent jurisdictions where a real bank account is reliably obtainable for a properly structured entity. Onboarding runs three to six weeks through a licensed management company.

Tax

Tax & reporting

15% headline corporate tax with an 80% partial exemption on qualifying foreign-source income including dividends, interest and fund income, giving a 3% effective rate. No capital gains tax, no withholding tax on dividends and no inheritance tax. Treaty network covers much of Africa plus India, China and the Gulf.

Substance

Substance & register visibility

Global Business Companies require a licensed management company, at least two Mauritius-resident directors, a local bank account, local accounting records and a local audit, plus core income-generating activities in Mauritius. The Financial Services Commission enforces these; the substance is real, not nominal.

Decision

When to pick this jurisdiction

Pick Mauritius for an Africa-focused fund or holding platform, for investment into treaty partners across the continent, or where an offshore-efficient structure must also have a functioning bank account and audited accounts.

The director's view

Written up as a comparative shortlist.

Every Mauritius recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Mauritius? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

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Frequently asked

Questions we hear on every Mauritius intake.

Is Mauritius still useful for India investment?: Less so than before 2016. Capital gains protection on Indian shares was withdrawn, so most India structures now weigh Singapore and Mauritius on other factors.
What is the effective tax rate?: 3% on qualifying foreign-source income through the 80% partial exemption, subject to meeting substance conditions.
Was Mauritius removed from the FATF grey list?: Yes, Mauritius exited the FATF grey list in 2021 and the EU list in 2022 after strengthening its AML framework.

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