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.