> ## Content Index
> Fetch the complete content index at: https://businessoi.media/llms.txt
> Use this file to discover other available public pages before exploring further.

# [MAURITIUS] Finance Act 2026: New 35% Tax Bracket Enacted as Maurice Rebalances Its Fiscal Model
- URL: https://businessoi.media/en/maurice-finance-act-2026-promulguee-le-12-aout-avec-une-nouvelle-tranche-dimposition-a-35-en/
- Published: 2026-08-30T08:43:06.000Z
- Updated: 2026-08-30T08:43:06.000Z
- Description: Mauritius enacted its Finance Act 2026 on 12 August, introducing a 35% top income tax bracket, abolishing the Fair Share Contribution for individuals and imposing a 10% levy on residential property sold to non-citizens.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Finances publiques, Flash de mi-journée, #en

On 12 August 2026, Mauritius officially enacted the *Finance Act 2026* (Act No. 14 of 2026), giving legal force to the key measures announced in the 2026-2027 Budget. While standard rates remain unchanged, two major reforms reshape the fiscal landscape for high-income earners and foreign real estate investors.

## A 35% Top Tax Bracket

The most significant measure is the introduction of a **35% income tax bracket** on taxable income exceeding Rs 12 million annually, effective retroactively from 1 July 2026\. This marks a meaningful departure from the flat 15% rate that long defined Mauritius' fiscal philosophy.

To offset the impact, the *Fair Share Contribution* — a surcharge on high incomes introduced in previous budgets — is **abolished for individuals**. For companies, however, it is maintained and will apply from 1 January 2027 on taxable income exceeding Rs 24 million.

## Foreign Property Buyers Face New Levy

The law introduces a **10% vendor levy** on residential property transfers to non-citizens. The measure is designed to curb speculative buying by foreign investors and protect local access to housing, particularly in the pressure-hit northern and western coastal zones.

## Corporates: Stability with Sector-Specific Adjustments

The corporate income tax rate stays at **15%**. The insurance sector faces a new *Premium Insurance Tax* of 5% on general insurance contracts, effective 1 January 2027\. The *Corporate Climate Responsibility Levy* is integrated into the advance payment tax system.

## Worker Rights and Talent Attraction

On the labour front, the Finance Act 2026 introduces paid menstrual leave, expanded parental leave entitlements, and streamlined conditions for Golden Visa and work permit applications by skilled foreign workers — a direct response to persistent labour market shortages.

## Why It Matters

The Finance Act 2026 signals a recalibration of Mauritius' fiscal strategy. By reintroducing top-rate progressivity while preserving business competitiveness, the island is adapting its economic model to meet domestic social demands without losing its international appeal. For regional investors across the Indian Ocean, the message is clear: Mauritius remains stable and rules-based, even in a period of fiscal consolidation.