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# [MAURITIUS] 2026-2027 Budget: 10-year startup tax holiday, AI special zone and progressive tax reform
- URL: https://businessoi.media/en/mauritius-budget-2026-2027-startup-tax-holiday-de-10-ans-zone-sez-ia-et-reforme-fiscale-progressive-en/
- Published: 2026-09-03T02:47:59.000Z
- Updated: 2026-09-03T02:47:59.000Z
- Description: 10-year tax holiday for startups, an AI-dedicated special zone and a new progressive 20/35% tax rate: Mauritius's 2026-2027 budget rewrites the rules for businesses.
- Author: Emmanuel TAOCHY
- Tags: Maurice, Économie, finance, Finances publiques, Tech, Startup, Investissement, Revue matinale, #en

Mauritius's 2026-2027 budget, delivered by the Prime Minister, lays the groundwork for an economy pivoting toward artificial intelligence and entrepreneurship. With projected revenues of Rs 235.5 billion and a deficit narrowed to 3.7% of GDP, the island charts a consolidation course while multiplying incentives for innovative businesses.

## A decade of tax relief for startups

The budget's flagship measure: a new **Start-Up Act grants a 10-year income tax holiday from the first day of operations**. This is a clear break from previous frameworks, designed to position Mauritius as the Indian Ocean's premier startup hub. Early-stage companies in tech, fintech and high-value services are the primary beneficiaries.

## Côte d'Or SEZ: a dedicated AI territory

The new Côte d'Or Special Economic Zone allows **100% foreign ownership** and offers preferential electricity tariffs for artificial intelligence and digital businesses. Paired with the stated ambition of making Mauritius a "trusted AI hub for cloud services", the zone is engineered to attract major international technology operators.

## Tax reform: progressive rates arrive

The budget introduces a progressive personal income tax: **20% on chargeable income between Rs 1 and 12 million**, and **35% above that threshold**. This ends the flat-rate model that long defined Mauritius's fiscal identity, under growing international pressure on low-tax jurisdictions.

## Manufacturers, parental leave: more strong signals

Manufacturers will benefit from a **45% investment tax credit over three years**. Maternity leave is extended to **12 months** and paternity leave to **6 weeks** — unprecedented in the region. Foreign digital service providers (streaming platforms, SaaS) will now be required to register for local VAT, opening a new revenue stream for the government.

## Why it matters

Mauritius is consolidating its model by aligning two previously distinct ambitions: attracting foreign investment and upgrading its local entrepreneurial ecosystem. Granting startups a decade of tax exemption while raising pressure on high earners signals a deliberate bet on value creation over offshore status alone. Public debt — projected to fall to 85.5% of GDP by June 2027 — remains the key indicator to watch as this strategy unfolds.

*Sources: EDB Mauritius, KickOff Mauritius, PwC Mauritius, MCCI — Budget 2026-2027.*