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.