Rental Income Tax in Mauritius: What Individuals Pay in 2026-27

Rental income earned by an individual in Mauritius is not taxed at a flat 15%. Net rent is added to the owner’s other taxable income and taxed on the progressive personal income tax scale, which the Finance Act 2026 sets as follows for the income year starting 1 July 2026: 0% on the first Rs 500,000, 10% on the next Rs 500,000, 20% on the next Rs 11 million and 35% on anything above Rs 12 million. The 15% rate still applies to companies.

The difference adds up quickly. An owner whose only taxable income in Mauritius is Rs 900,000 of net rent a year owes Rs 40,000 in tax, or 4.4% of that rent, where a 15% rate would suggest Rs 135,000. Above Rs 3 million of taxable income the logic reverses: from that level on, the scale costs more than the 15% still quoted on many websites.

The tax scale applied to rent from 1 July 2026

The Mauritian income year runs from 1 July to 30 June. The scale below comes from section 7 of the Finance Act 2026, Act No. 14 of 2026, published in the Government Gazette on 13 August 2026. It applies to income from the 2026-27 income year onwards, rent included. The wider tax measures of the Act are covered on our Mauritius Budget 2026-2027 page.

Each rate only applies to the slice of income within its band. Crossing the Rs 1,000,000 threshold does not push all your income into the 20% band: only the rupees above the threshold are taxed at that rate.

The 35% band replaces the Fair Share Contribution, a 15% levy on the part of an individual’s income, dividends included, above Rs 12 million. It was not abolished retroactively: it remains payable for the income year ended 30 June 2026, with that year’s return, and no longer applies from the income year starting 1 July 2026.

Why “15% on rental income” is wrong for individuals

Mauritius did apply a single 15% rate to individuals and companies for years, and many guides still describe the country as a “flat tax” jurisdiction. For individuals, that picture is long out of date: lower-rate bands appeared in the late 2010s, and the personal scale has been progressive, from 0% to 20%, since the 2023-24 income year. In 2025-26 it had three bands, at 0%, 10% and 20%, topped up by the Fair Share Contribution above Rs 12 million. The Finance Act 2026 folds that levy into the scale as a 35% band, with no expiry date.

The 15% rate has not vanished: it is still the standard corporate income tax rate. A property let by a Mauritian company has its profit taxed at 15%, but that is the company’s regime, not that of an owner holding the property in their own name.

How much tax on your rent: worked examples

The figures below apply to the 2026-27 income year. They assume net rent is the owner’s only taxable income in Mauritius, with no deduction for dependants.

The break-even point is Rs 3 million of taxable income a year, or Rs 250,000 of net rent a month. Below it, the scale costs less than 15%; above it, more, and the gap widens fast. An owner letting a high-end villa or several apartments reaches that level more often than they expect.

The same arithmetic applies before you buy: when comparing new developments open to foreign buyers, work from net rent after tax rather than from a gross yield. And to start from a realistic rent rather than a promise, Westimmo can value and let your property in Mauritius.

If you have other taxable income in Mauritius

The scale applies to total taxable income, not to rent in isolation. A Mauritian tax resident whose taxable income, salary or pension included, already reaches Rs 1,500,000 has used up the 0% and 10% bands: every rupee of rent is taxed at 20% on top, up to the Rs 12 million threshold. Rs 600,000 of net rent therefore costs them an extra Rs 120,000 in tax.

From rent received to taxable income

Tax is not charged on gross rent. The Income Tax Act treats rent as part of the owner’s gross income, then allows a deduction for expenses incurred exclusively in producing it, such as repairs or the rates and taxes on the property, as well as interest on a loan used exclusively to produce that income. The result, net rental income, is added to the year’s other income before the scale is applied.

The word “exclusively” matters. An expense that also serves your own use of the property, or a loan that financed something other than the let property, does not meet the condition as it stands. Keep invoices, loan statements and rent receipts: they are what supports the gap between the rent collected and the income declared.

Resident or non-resident: where your rent is taxed

Rent from a property located in Mauritius is Mauritian-source income: it is taxable in Mauritius whether or not the owner lives there. How the tax is collected depends mainly on the tenant.

• If the tenant is a company or another entity rather than an individual, it withholds part of each rent payment and pays it to the MRA: 7.5% where the owner is resident, 10% where the owner is not. This tax deduction at source is not an extra tax: it is credited against the tax due. A non-resident owner can also elect to treat it as their final tax on that rent.
• If the tenant is an individual, nothing is withheld: the owner must declare the rent and pay the tax.

Treating the withholding as final is simple, but not always the best option. On Rs 900,000 of annual rent, 10% comes to Rs 90,000, whereas tax under the scale does not exceed Rs 40,000 if that rent is your only taxable income in Mauritius. The Finance Act 2026 scale draws no distinction between residents and non-residents; if your calculation relies on the 0% band, have it confirmed for your own situation before choosing between final withholding and filing a return.

Tax residence does not change this principle, but it determines what else you must declare in Mauritius. The residence tests are explained in our guide to becoming tax resident in Mauritius.

If you are tax resident in another country, that country may also want to know about this rent. Where a tax treaty exists between Mauritius and your country, it allocates taxing rights and sets out how double taxation is relieved: check its terms, or ask an adviser, before assuming the rent is taxed only once.

Holiday lets: what comes on top of income tax

Net income from letting to tourists is also taxed on the personal income tax scale, but the activity carries two further obligations. Letting to tourists requires a licence from the Tourism Authority, the Tourist Accommodation Certificate. Since 1 October 2025 the operator must also collect a tourist fee of 3 euros per night for each tourist aged 12 or over: the accommodation must be registered with the MRA within 14 days of starting operations, then a monthly return is filed online and the fee paid by the end of the following month. Exemptions include residents of Mauritius, Mauritians living abroad who hold a Mauritian passport, and holders of a valid residence permit or Premium Visa.

These rules, and the check to run with the building’s management before buying for short-term letting, are covered in our guide to short-term rental investment in Mauritius.

Letting through a company: where 15% really applies

A Mauritian company pays corporate income tax at 15% on its profit, rental profit included. Next to a 35% personal band, the gap can look attractive for a large rental income. The comparison does not end there, though: a company carries its own running and filing costs, getting profits out to the shareholder follows its own rules, and acquisition by a foreigner through a company is subject to specific conditions. The benefits and pitfalls are set out in our article on buying property in Mauritius through a company.

Declaring your rent: timetable and obligations

To file, you need a Tax Account Number (TAN) from the MRA. The process is described in our guide to filing a tax return in Mauritius as a new arrival.

• Rent for the 2025-26 income year, from 1 July 2025 to 30 June 2026: the previous three-band scale (0%, 10% and 20%) plus, above Rs 12 million, the 15% Fair Share Contribution. The return must be filed online by 30 September 2026, extended to 15 October 2026 if the tax due is paid electronically.
• Rent for the 2026-27 income year, from 1 July 2026 to 30 June 2027: the new four-band scale, with the return due in 2027 on the usual timetable.

Costly mistakes

• Modelling a yield with 15% tax: the result is wrong both ways, too pessimistic below Rs 3 million of taxable income and too optimistic above it.
• Looking at rent in isolation: for a resident who already earns a salary or pension taxable in Mauritius, rent is taxed at their highest band.
• Assuming a non-resident owner owes nothing in Mauritius: their Mauritian rent remains taxable there, through withholding or a return.
• Mistaking the 7.5% withheld by a corporate tenant for the final tax: for a resident it is only an advance, reconciled in the annual return.
• Running a holiday let without a Tourism Authority licence or without collecting the tourist fee.
• Reading the Fair Share Contribution’s 15% as a tax rate on rent: it only ever applied to income above Rs 12 million, and it no longer applies from the income year starting 1 July 2026.

Frequently asked questions

Does the 0% band apply to each property I let?

No. The scale applies once, to your total taxable income for the year: rent from several properties is added together, and to your other taxable income in Mauritius, before the calculation. Two apartments each bringing in Rs 450,000 of net rent give Rs 900,000 of taxable income, or Rs 40,000 of tax, not zero.

Do I need to file a return if my rent stays below Rs 500,000?

Often, yes. The MRA requires a return as soon as one of these applies: you are already registered with it and hold a TAN, you derive chargeable income, your total net income exceeds Rs 500,000 in the year, or some of your income has been subject to tax deduction at source, as rent paid by a company is. Rent below Rs 500,000 can therefore cost no tax thanks to the 0% band and still have to be declared.

Do I have to pay tax on rent during the year?

Yes, above a certain level. The Current Payment System requires quarterly instalments on rent, unless your gross rental and business income for the previous year did not exceed Rs 4 million, or the tax involved does not exceed Rs 500. Below those thresholds, the tax is settled in one go with the annual return.

Last updated 11 September 2026, based on the text of the Finance Act 2026 and Mauritius Revenue Authority publications. This article provides general information and has not been reviewed by a tax adviser: for a specific situation, such as several properties, ownership through a company or dual tax residence, advice from a tax professional remains essential.

Sources and verification

• National Assembly of Mauritius: Finance Act 2026 (Act No. 14 of 2026), sections 7 and 28
• Mauritius Revenue Authority: Income Tax Act, consolidated version (rental income, deductions, instalments, history of the scale)
• Mauritius Revenue Authority: Tax Deduction at Source guide
• Mauritius Revenue Authority: filing and payment due dates
• Mauritius Revenue Authority: obligation to file a return
• Mauritius Revenue Authority: tourist fee
• Government of Mauritius: tourism licence categories