Treaty signed on 15 February 1995, applicable since 1996, amended by a 2014 protocol and by the MLI
International Taxation & Mauritius
Luxembourg ↔ Mauritius
Who taxes your pension, your rental income, your shareholdings and your estate between Luxembourg and Mauritius.
The 1995 treaty and its protocols, read article by article, and Luxembourg law as in force in 2026: whether you are leaving for Mauritius or buying from Luxembourg.
What Luxembourg keeps,
what Mauritius taxes
what Mauritius taxes
The essentials
Four rules to know before you leave or buy.
Luxembourg statutory pension: taxed in Luxembourg only, even once you are settled in Mauritius
Shareholding of more than 10%: the treaty reserves the capital gain to Mauritius as soon as you live there
Estate: as a Luxembourg resident, your Mauritian property escapes Luxembourg duties; as a non-resident, only Luxembourg real estate remains subject to them
01 In brief
Who taxes what between Luxembourg and Mauritius?
The treaty allocates each item of income to one of the two States, or to both with a correction. Everything depends first on your country of residence: one table for the Luxembourg resident who settles in Mauritius, another for the one who stays in Luxembourg and invests in Mauritius.
You live in Mauritius: what Luxembourg keeps
| Income or asset | Where it is taxed | What you need to know | Source |
|---|---|---|---|
| Luxembourg statutory pension (social security scheme) | In Luxembourg only | Mauritius cannot tax it; the pension fund withholds tax at source | Treaty, art. 18, 3 |
| Occupational supplementary pension, other private pension, annuity | In Mauritius only | In Luxembourg, benefits from a supplementary scheme are in principle exempt: tax was levied on the contributions | Treaty, art. 18, 1; L.I.R., art. 115, 17a |
| Luxembourg public-sector pension | In Luxembourg only | If you are a resident and national of Mauritius: in Mauritius only | Treaty, art. 19, 2 |
| Rent from a property located in Luxembourg | In Luxembourg | As a non-resident: in principle tax class 1, and a rate of at least 15%, unless treated as a resident | Treaty, art. 6; L.I.R., art. 156 and 157 |
| Capital gain on a property located in Luxembourg | In Luxembourg | Progressive rate before 5 years of ownership, half the overall rate thereafter; main residence exempt under conditions | Treaty, art. 13, 1; L.I.R., art. 99bis, 99ter, 156 |
| Dividends from a Luxembourg company | In Luxembourg and in Mauritius | 15% withholding, limited to 10% by the treaty (5% for a company holding 10%) | Treaty, art. 10; L.I.R., art. 148 |
| Interest from Luxembourg sources | In Mauritius only | Luxembourg does not levy withholding tax on ordinary interest | Treaty, art. 11 |
| Capital gain on shares, even a substantial shareholding | In Mauritius only | The Luxembourg “15 years / 5 years” rule yields to the treaty | Treaty, art. 13, 4; L.I.R., art. 156, 8° |
| Salary from work performed in Mauritius | In Mauritius | Even if paid by a Luxembourg employer | Treaty, art. 15 |
| Directors’ fees (tantièmes) from a Luxembourg company | In Luxembourg; in Mauritius too if they are remitted there | 20% withholding tax; Mauritius gives credit for the Luxembourg tax | Treaty, art. 16; ACD |
You live in Luxembourg and invest in Mauritius
| Income or asset | Where it is taxed | What you need to know | Source |
|---|---|---|---|
| Rent from your Mauritian property | In Mauritius | Exempt in Luxembourg, but taken into account to determine the rate on your other income | Treaty, art. 6 and 24, 3, a; L.I.R., art. 134 |
| Capital gain on resale | Allocated to Mauritius, which does not tax it | Luxembourg exempts what Mauritius “may” tax; have the treatment confirmed before you sell | Treaty, art. 13, 1 and 24, 3, a |
| Dividends from a Mauritian company | In Luxembourg | No withholding in Mauritius; Luxembourg scale, with a 50% exemption if the company is fully taxable | Treaty, art. 10; L.I.R., art. 115, 15a |
| Interest from an account in Mauritius | In Luxembourg only | At the scale rates: the 20% final withholding applies only to paying agents in the Union and the EEA | Treaty, art. 11; Guichet.lu |
| Estate on your Mauritian property | Nowhere | Luxembourg does not tax real estate located abroad; Mauritius levies no duty | Law of 27 December 1817; AED |
| Gift of your Mauritian property | Not in Luxembourg | Without a Luxembourg notarial deed, no Luxembourg registration duty | Guichet.lu, “Making a gift” |
02 The treaty
What does the tax treaty between Luxembourg and Mauritius contain?
Signed in Luxembourg on 15 February 1995, with a protocol of the same date, it covers taxes on income and on capital. A protocol signed in Brussels on 28 January 2014 modernised the exchange of information and introduced arbitration; the OECD multilateral instrument (MLI) added an anti-abuse clause.
| Step | Date | Reference |
|---|---|---|
| Signature | 15 February 1995, in Luxembourg, with a protocol of the same date | Mémorial A No. 24 of 1996, page 895 |
| Application in Luxembourg | From 1 January 1996 | ACD, “Conventions en vigueur” |
| Amending protocol | Signed in Brussels on 28 January 2014, with a memorandum of understanding of 10 February 2014; applied from 1 January 2016 | Mémorial A No. 232 and No. 247 of 2015 |
| Multilateral instrument (MLI) | In force on 1 August 2019 for Luxembourg, on 1 February 2020 for Mauritius | Ratifications of 9 April 2019 and 18 October 2019 |
| Effect of the MLI on the treaty | Withholding taxes: 1 January 2021 in Luxembourg, 1 July 2020 in Mauritius; other taxes: periods starting on or after 1 August 2020 | MLI, art. 35 |
| Taxes covered | Luxembourg: personal income tax, corporate income tax, net wealth tax, municipal business tax; Mauritius: income tax | Treaty, art. 2 |
The clause of the 1995 protocol
A Mauritian company that is not subject in Mauritius to a fixed-rate tax equivalent to at least 15%, calculated under Luxembourg law, is not a “resident” within the meaning of the treaty. This clause still appears in the consolidated text.
An anti-abuse clause
Since the MLI, a treaty benefit is denied if obtaining it was one of the principal purposes of an arrangement (MLI, art. 7). A genuine, documented settlement in Mauritius remains the best support.
Disputes and limits
If you are taxed contrary to the treaty, you apply to the competent authority of either State within three years (art. 26, as amended by the MLI); failing agreement, arbitration may be requested. The treaty settles neither estates nor gifts, and contains no article on assistance in the collection of tax.
03 Tax residence
How do you cease to be a Luxembourg tax resident?
You are a Luxembourg resident for as long as you have your tax domicile or habitual abode in the Grand Duchy. Mauritius makes you a resident from 183 days of presence. If both countries regard you as a resident, the treaty decides, step by step.
Counting your days in Mauritius →| Test | Luxembourg | Mauritius |
|---|---|---|
| Legal test | Tax domicile or habitual abode in the Grand Duchy (L.I.R., art. 2) | 183 days in the income year, or 270 days over that year and the two preceding ones |
| Indicator used by the authorities | A centre of vital interests outside Luxembourg in principle makes you a non-resident, whatever your address | Domicile in Mauritius, unless permanently resident abroad |
| Residence permit | A Luxembourg residence permit does not by itself establish tax residence | The residence permit does not replace the day count |
| Scope of the tax | Resident: worldwide income; non-resident: Luxembourg-source income only (L.I.R., art. 2 and 156) | Resident: Mauritian income, and foreign income remitted to Mauritius |
1. The permanent home
You are a resident of the State where you have a permanent home available to you. If you have one in each country, of the State with which your personal and economic ties are closer (art. 4, 2, a).
2. Habitual abode
If this centre of vital interests cannot be determined, or if you have no permanent home, of the State where you habitually live (art. 4, 2, b).
3. Nationality
If you habitually live in both States, or in neither, of the State of which you are a national (art. 4, 2, c).
4. Agreement of the two authorities
If you are a national of both States, or of neither, the authorities of the two States settle the question by mutual agreement (art. 4, 2, d).
A company
Resident in both States, it is deemed resident in the State where its place of effective management is situated (art. 4, 3).
Your home in Mauritius
Buying or renting your residence, obtaining the permit that goes with it: Westimmo organises these steps with you, supporting documents in hand. Residence permits →
04 Double taxation
How does the treaty avoid being taxed twice?
Mauritius grants a credit for Luxembourg tax. Luxembourg exempts the income that the treaty allows Mauritius to tax, while keeping it to calculate its rate; for dividends, it credits the Mauritian tax.
| You reside | Method | Details |
|---|---|---|
| In Mauritius | Credit equal to the Luxembourg tax, set against the Mauritian tax due on the same income | For dividends, only the tax withheld on the dividend counts; a Mauritian company holding at least 10% also obtains a credit for the tax paid by the Luxembourg company (art. 24, 2) |
| In Luxembourg | Exemption, with progression proviso | Except for dividends, for which Mauritian tax is credited (art. 24, 3, b); and except for profits of a permanent establishment taxed in Mauritius at a rate equivalent to less than 15% (art. 24, 3, c) |
“May be taxed”
The treaty exempts in Luxembourg the income which, under its terms, “may be taxed” in Mauritius (art. 24, 3, a). Before counting on the exemption of income that Mauritius does not tax, have the Luxembourg treatment of your case confirmed.
The progression proviso
Exempt income is not taxed in Luxembourg, but it enters a notional base that sets the overall rate applied to your other income (L.I.R., art. 134).
Income that the treaty does not cover
It is taxable only in the State of residence, wherever it arises (art. 22, 1).
05 A property kept in Luxembourg
What happens to a property you keep in Luxembourg?
It remains taxed in Luxembourg: rent as a non-resident, capital gain on resale depending on the holding period. On your death, it will be the only asset subject to Luxembourg duties, through the death transfer duty (droit de mutation par décès): the children’s statutory share and the spouse’s share are exempt, the non-statutory share is taxed.
Rent
Taxable in Luxembourg (treaty, art. 6; L.I.R., art. 156, 7°), by return. As a non-resident, you are in principle placed in class 1, with a rate of at least 15% on this income (L.I.R., art. 157, 5, and 157bis, 6), unless treated as a resident. Mauritius taxes it only if it is remitted there, less the Luxembourg tax (art. 24, 2).
Treatment as a resident
On request, if at least 90% of your worldwide income is taxable in Luxembourg, or if your income not taxable in Luxembourg stays below €13,000: you regain the deductions and the tax class of residents (L.I.R., art. 157ter).
The capital gain
Taxable in Luxembourg (treaty, art. 13, 1; L.I.R., art. 156, 8°). Sold within 5 years of acquisition: speculation gain, at the progressive scale. Beyond that: half the overall rate, after an allowance of €50,000 per ten-year period, €100,000 for a couple taxed jointly.
Five years, not two
Since 2025, the speculation period on a building has been five years (L.I.R., art. 99bis and 99ter). The two-year period applied only to sales from 1 January to 30 June 2025, or until 30 September 2025 if the preliminary sale agreement was registered by 30 June.
The former main residence
Its sale is exempt, for example if you sell it no later than 31 December of the year following your move and had occupied it since acquiring it. The sale must still be declared, with annex 700.
The estate
If you die resident in Mauritius, you are no longer an “inhabitant of the Grand Duchy”: only this property bears the death transfer duty, at the same rate and with the same exemptions as inheritance tax: your children are exempt up to their statutory share, your spouse entirely so.
06 Investing in Mauritius
You buy in Mauritius from Luxembourg: who taxes what?
The property and its rent fall first under Mauritius: 5% registration duty on purchase, rent at the Mauritian scale, no capital gains tax. In Luxembourg, this income is exempt but counts towards your rate, and the property stays outside your Luxembourg estate.
Tax on rent in Mauritius →On purchase
5% registration duty and notary fees in Mauritius. A property of at least USD 375,000 bought under a scheme opens the way to a residence permit. Purchase costs →
Rent
Taxed in Mauritius at the scale, without the residents’ allowances; a tenant that is not an individual withholds 10% at source. In Luxembourg, exempt, but taken into account to set the rate on your other income (art. 24, 3, a).
Net rent of Rs 2,000,000: Rs 250,000
On the 2026-2027 scale, Rs 2,000,000 of net taxable rent, about €37,110, gives Rs 250,000 of Mauritian tax, about €4,640, or 12.5%.
Resale
Mauritius does not tax an individual’s capital gain; the seller pays 5% transfer tax. As the treaty allocates this capital gain to Mauritius (art. 13, 1), Luxembourg exempts it with progression proviso. Reselling →
The estate
Luxembourg inheritance tax does not apply to real estate located abroad: your Mauritian villa is not caught by it. Mauritius levies no inheritance tax.
The bank account
Its interest is taxable only in Luxembourg (art. 11), at the scale: the 20% final withholding is available only for paying agents in the Union or the EEA.
07 Salaries, business activity, companies
Do you work or run a company between the two countries?
A salary is taxed where the work is done; a self-employed person, in the State of residence, unless there is a fixed base in the other; directors’ fees also in the State of the company. A Mauritian company is entitled to the treaty only if it is subject in Mauritius to a tax of at least 15%, calculated the Luxembourg way.
Self-employed or Premium visa →The employee
Taxable in the State where the work is performed. A stay of no more than 183 days in any twelve-month period remains taxed in the State of residence if the employer is not from the other State and does not use a permanent establishment situated there (art. 15).
Teleworking from Mauritius
Working from Mauritius for a Luxembourg employer means working in Mauritius: the salary is taxable there. Also check that your residence permit allows this work.
The self-employed person
Taxed in the State of residence, unless he or she habitually has a fixed base in the other State (art. 14). On departure, the assets of the business are deemed sold (see “On departure”).
Director of a Luxembourg company
Directors’ fees (tantièmes) and attendance fees remain taxable in Luxembourg (art. 16), with a 20% withholding tax according to the ACD.
A Luxembourg company
Its dividends bear a 15% withholding tax (L.I.R., art. 148), limited by the treaty to 10%, or 5% for a company holding at least 10% of the capital (art. 10, 2). It remains subject to corporate net wealth tax.
A Mauritian company
15% corporate tax in Mauritius and no withholding on its dividends. For the treaty, it must be subject to a fixed-rate tax of at least 15% calculated under Luxembourg law (1995 protocol): have this checked if it benefits from a partial exemption. Buying through a company →
08 Dividends and interest
How are your dividends and interest taxed?
Settled in Mauritius, you bear on your Luxembourg dividends a withholding capped at 10%, and none on your interest. As a Luxembourg resident, your Mauritian income arrives without withholding and follows the Luxembourg scale.
Luxembourg dividends
15% withholding (L.I.R., art. 148), reduced to 10% for an individual resident in Mauritius, 5% for a company holding 10% (art. 10, 2). For a non-resident, the withholding is in principle final taxation in Luxembourg (L.I.R., art. 157, 3).
Luxembourg interest
Taxable only in Mauritius (art. 11). Luxembourg law, moreover, provides for no withholding on ordinary interest paid to a non-resident.
Mauritius side
As foreign income, it is taxed there only if remitted, less the Luxembourg tax (art. 24, 2).
Mauritian dividends
No withholding in Mauritius. As a Luxembourg resident, you declare them at the scale; half is exempt if the Mauritian company is fully taxable at a tax corresponding to Luxembourg corporate income tax (L.I.R., art. 115, 15a).
Mauritian interest
Exempt in Mauritius for a non-resident if paid by a licensed bank, and reserved to Luxembourg by the treaty (art. 11): progressive scale, with no final withholding.
The Luxembourg scale
From 0% to 42%, a rate reached above €234,870 of taxable income in class 1 (L.I.R., art. 118), plus the employment fund contribution.
09 Capital gains
Who taxes your capital gains?
On shares, the treaty gives the capital gain to the State of residence alone: Mauritius, which exempts it, once you are settled, even for a substantial shareholding in a Luxembourg company. As a Luxembourg resident, you remain subject to the six-month and 10% rules.
| Capital gain | You reside in Mauritius | You reside in Luxembourg |
|---|---|---|
| Shares, less than 10% of the capital | Mauritius only (art. 13, 4), which exempts these gains | Taxed at the scale if sold within 6 months; exempt beyond |
| Substantial shareholding: more than 10% at any time in the last 5 years | Mauritius only (art. 13, 4), despite the Luxembourg 15 years / 5 years rule | Scale before 6 months; beyond, half the overall rate after an allowance of €50,000 per ten years |
| Real estate in Luxembourg | Luxembourg: scale before 5 years, half the overall rate beyond | Luxembourg, same rules; main residence exempt |
| Real estate in Mauritius | Mauritius, which does not tax an individual’s capital gain | Allocated to Mauritius, exempt in Luxembourg with progression proviso |
The “15 years / 5 years” rule
Domestic law targets the capital gain on a shareholding of more than 10% in a Luxembourg company, realised by a non-resident who was resident for more than fifteen years and became non-resident less than five years before the sale (L.I.R., art. 100 and 156, 8°, b), subject to the treaty.
What the treaty says
Gains from property other than real estate or permanent establishment property are taxable only in the seller’s State of residence (art. 13, 4): as a resident of Mauritius within the meaning of the treaty, you escape this rule.
Provided your residence is genuine
The MLI anti-abuse clause (art. 7) allows the benefit to be denied if the principal purpose of the move was to escape the rule. A lasting, documented settlement in Mauritius before the sale is your best evidence.
10 Pensions
Where is your Luxembourg pension taxed?
The treaty distinguishes three cases: the statutory pension, which only Luxembourg taxes; supplementary and other private pensions, reserved to Mauritius; public pensions, taxed in Luxembourg except for a resident who is a Mauritian national.
| Pension | Examples | Where it is taxed | Source |
|---|---|---|---|
| Statutory pension | Old-age pension from the Caisse nationale d’assurance pension (CNAP, the national pension insurance fund), paid under social security legislation | In Luxembourg only | Art. 18, 3 |
| Occupational supplementary pension | Supplementary scheme set up by an employer (law of 8 June 1999) | In Mauritius only; exempt in Luxembourg in any case | Art. 18, 1; L.I.R., art. 115, 17a |
| Other private pension, annuity | Pension from a previous job outside social security; life annuity bought for a capital sum | In Mauritius only | Art. 18, 1 and 2 |
| Public-sector pension | State, municipality or public body, for services rendered to them | In Luxembourg only; in Mauritius only if you are a resident and national of Mauritius | Art. 19, 2 |
| Pension from a public commercial activity | Services rendered in an industrial or commercial activity of a public body | Rules for private pensions | Art. 19, 3 |
Statutory pension: Luxembourg alone
The treaty says “taxable only”: Mauritius cannot tax your CNAP pension, even if remitted (art. 18, 3). The fund withholds Luxembourg tax at source; for a non-resident, this withholding is in principle final taxation (L.I.R., art. 157, 3).
Supplementary pension: already taxed on the way in
The employer paid 20% tax on its contributions (L.I.R., art. 142); benefits are exempt in Luxembourg (art. 115, 17a), except for certain in-house schemes. The treaty reserves this pension to Mauritius.
Individual retirement savings contract
Luxembourg treats its annuities as Luxembourg income where the payments were deducted (L.I.R., art. 156, 5°, c). Have their classification under the treaty confirmed before you leave.
Treatment as a resident
A pensioner of whom at least 90% of worldwide income is taxable in Luxembourg: you may ask to be taxed as a resident, with its deductions and, for a couple, class 2.
Public-sector pension: nationality matters
Taxed in Luxembourg only, it is taxed only in Mauritius if you are both a resident and a national of Mauritius (art. 19, 2, b).
Mauritius side
As foreign income, the pensions that the treaty reserves to Mauritius are taxed there if remitted, at the Mauritian scale.
11 Estate and gifts
Who taxes the estate of a Luxembourg national settled in Mauritius?
Mauritius levies no inheritance or gift tax, and the treaty does not deal with them. In Luxembourg, everything depends on your status at death: as an inhabitant of the Grand Duchy, your estate is taxed, except for your real estate located abroad; as a non-inhabitant, only your Luxembourg real estate is, through the death transfer duty. In the direct line, the exemption is limited to the statutory share; the spouse, and the partner whose declaration has been registered for more than three years, are exempt on everything they receive.
Estate: Mauritius compared with Europe →What Luxembourg taxes
| Situation | Duty levied | Assets covered |
|---|---|---|
| Deceased an inhabitant of the Grand Duchy: domicile or seat of wealth in Luxembourg | Inheritance tax | Everything received in the estate, except real estate located abroad and, under conditions, movable property located abroad |
| Deceased a non-inhabitant, for example a resident of Mauritius | Death transfer duty, at the same rate and with the same exemptions | Only his or her real estate located in Luxembourg, received in full ownership or usufruct |
| Gift of a property located in Luxembourg | Registration duty and 1% transcription duty | Deed necessarily executed before a Luxembourg notary |
| Gift of a property located abroad | No Luxembourg registration duty | No notarial deed in Luxembourg; the country where it is situated applies its own rules |
Exemptions and rate, heir by heir
| Heir | Statutory share | Non-statutory share |
|---|---|---|
| Direct line: children, grandchildren, parents, grandparents | Exempt | 2.5% on the disposable portion bequeathed by preciput and outside the share, 5% on the remainder |
| Spouse | Exempt | Exempt for estates opened since 1 January 2018; previously 5% with no child or joint descendant |
| Partner whose declaration has been registered for more than three years | Exempt | Exempt |
| Brothers and sisters | 6% | 15% |
| Uncles, aunts, nephews, nieces | 9% | 15% |
| Other persons | 15% | 15% |
Gifts
| Beneficiary | Rate | Details |
|---|---|---|
| Direct line | 1.8% | 2.4% if the gift is made with exemption from collation |
| Spouse; partner registered for more than three years | 4.8% | — |
| Brothers and sisters | 6% | — |
| Other persons | 8.4% to 14.4% depending on the relationship | Real estate in Luxembourg: 1% transcription duty in addition |
No estate treaty
The 1995 treaty covers only taxes on income and on capital: no text settles double taxation of estates between Luxembourg and Mauritius, which the absence of Mauritian duties makes less of an issue.
Becoming a non-inhabitant changes everything
Once resident in Mauritius, your accounts and securities escape Luxembourg duties; only Luxembourg real estate remains caught. You must also keep neither domicile nor seat of wealth in Luxembourg. For a death in Mauritius, the declaration must in principle be filed within twenty-four months (law of 27 December 1817).
Preparing the transfer
With a notary in Mauritius and a notary in Luxembourg. A gift of real estate in Luxembourg City also bears a municipal tax equal to 50% of the registration duties. Westimmo works with notaries who comply with Mauritian law.
12 Wealth
Is there a wealth tax?
Not for an individual: Luxembourg abolished the net wealth tax for individuals, resident or not, on 1 January 2006, and Mauritius levies none. It does remain for Luxembourg companies.
Individuals
No wealth tax in Luxembourg since 2006 (ACD), nor in Mauritius.
Companies
A Luxembourg company remains subject to corporate net wealth tax; the treaty covers it (art. 2) and governs its allocation (art. 23).
A Mauritian subsidiary
Shares in a Mauritian company held at 10% or more since the start of the financial year are exempt from Luxembourg net wealth tax, if it is subject in Mauritius to a tax equivalent to at least 15% calculated under Luxembourg law (art. 24, 3, d).
13 On departure
Does leaving Luxembourg trigger taxation?
For business assets, yes: their transfer abroad is treated as a disposal (L.I.R., art. 38). For private assets, Luxembourg law does not provide here for immediate general taxation of all your assets on the sole ground of departure. Some capital gains may nevertheless remain taxable after departure, notably those on a substantial shareholding where the conditions of article 156 L.I.R. are met, subject to the applicable tax treaty.
A. Business assets
The transfer abroad of assets that make up a business, a permanent establishment or individual assets of the invested net assets is treated as a disposal, notably when the operator moves his or her tax domicile or habitual abode to another State; assets that remain attached to a permanent establishment in Luxembourg, at their book value, are excepted. Price used: the estimated realisable value (L.I.R., art. 38, 1 and 2).
B. Private assets
Departure does not, by itself, trigger taxation of all your private unrealised capital gains. What the law targets are gains realised after departure, under the precise conditions of article 156, 8°, of the L.I.R.
The conditions of article 156, 8°, b
Substantial shareholding: more than 10% of the capital, alone or with your spouse or partner and minor children, directly or indirectly, at any time in the five years preceding the sale (art. 100, 2); in a company whose registered office or central administration is in Luxembourg; residence in Luxembourg for more than fifteen years; departure less than five years before the sale. Units of UCIs in corporate form, SICARs and SPFs are excluded (art. 156, 8°, c).
And within six months
A substantial shareholding in a Luxembourg company sold within six months of acquisition is also caught by domestic law, whatever the length of residence (art. 156, 8°, a).
The effect of the Luxembourg–Mauritius treaty
These domestic rules apply subject to the treaty. Gains on shares are taxable only in the seller’s State of residence (art. 13, 4): as a resident of Mauritius within the meaning of article 4, you are no longer taxable in Luxembourg on this capital gain, and Mauritius does not tax it. Assets attached to a permanent establishment in Luxembourg remain taxable there (art. 13, 2). The MLI anti-abuse clause (art. 7) may deny the benefit if the principal purpose of the departure was to obtain it.
The year of departure
Taxation may be assessed during the year (L.I.R., art. 117, 2) and a business’s profit is closed off on the day of the change (art. 16, 2). Take stock before leaving: the departure date, the sale date and the proof of your residence in Mauritius decide the tax.
14 Transferring your money
How do you transfer your assets and manage your accounts?
No exchange controls in Mauritius since July 1994: money moves freely, but the bank and the notary check its origin. As a Luxembourg resident, the income from your Mauritian accounts is declared in Luxembourg.
Opening an account in Mauritius →No exchange controls
According to the Bank of Mauritius, they were abolished in July 1994. Prepare evidence of the origin of the funds: sale of a property, savings, inheritance.
Your accounts in Mauritius
As a Luxembourg resident, you declare their interest and dividends in your tax return (form 100), under income from movable capital. Their data are also transmitted under the CRS.
Your Luxembourg accounts
You may keep them. Once you are a non-resident, the 20% final withholding on interest no longer applies to you; this interest falls to Mauritius (art. 11).
15 Returns
Which returns in the year of departure, then every year?
In Luxembourg, you declare your income for the year of departure, then, as a non-resident, income not subject to withholding: rent, real estate capital gains. In Mauritius, you declare your income to the MRA by 15 October.
Filing when you arrive in Mauritius →| When | In Luxembourg | In Mauritius |
|---|---|---|
| The year of departure | Income for the year; taxation may be assessed during the year (art. 117, 2) | Tax account number (TAN) with the MRA; income year from 1 July to 30 June |
| Following years | Non-resident return (form 100) if you have rent, a capital gain or other income without withholding, by 31 December of the following year at the latest | Return and payment by 15 October at the latest |
| Sale of a property in Luxembourg | Return with annex 700, even for an exempt main residence | — |
Pension and dividends
Subject to withholding at source, they in principle require no return from a non-resident: the withholding is final taxation (L.I.R., art. 157, 3), unless treatment as a resident is requested.
Proof of your residence
To benefit from the treaty, prepare proof of your Mauritian residence: MRA tax residence certificate, lease or deed, residence permit.
In Mauritius
A new arrival obtains a tax account number (TAN) from the MRA; the return for the year ended 30 June is due by 15 October at the latest, payment included.
16 Exchange of information
What do the Luxembourg and Mauritian authorities share?
On request, any information that is foreseeably relevant, bank secrecy included, under article 27 arising from the 2014 protocol. And automatically, financial account data under the OECD CRS.
On request
Article 27: information foreseeably relevant to the treaty or to taxes of every kind; a State may not refuse on the ground that it is held by a bank or a fiduciary (art. 27, 5).
Automatically
Luxembourg applies the CRS (law of 18 December 2015) and counts Mauritius among its partner jurisdictions (Grand-Ducal regulation of 6 June 2025). Mauritian banks report non-residents’ accounts to the MRA every year.
What this changes
The Mauritian account of a Luxembourg resident is known to the Luxembourg authorities: its income must appear in the return.
17 Practical cases
Three common situations
The rules above applied to three profiles we often meet: a retiree settled in Mauritius, a couple who stayed in Luxembourg and let their villa, an entrepreneur who leaves with his shareholding.
Private-sector retiree settled in Tamarin
Her CNAP pension remains taxed in Luxembourg only, by withholding; her occupational supplementary pension falls to Mauritius. Her flat in Luxembourg City, let out, remains taxed in Luxembourg; on her death, her children receive their statutory share of that flat without death transfer duty; whatever a will gave them in addition would be taxed at 2.5% or 5%, before surcharge.
Luxembourg couple, villa let in Grand Baie
Net rent of Rs 2,000,000: Rs 250,000 of tax in Mauritius. In Luxembourg, rent exempt but taken into account for the rate. On their death, the villa does not enter the Luxembourg estate, and Mauritius levies no duty.
30% partner in a Luxembourg SARL, resident for twenty years
Genuinely settled in Mauritius, he sells his shares three years later: the “15 years / 5 years” rule would catch the sale, but the treaty reserves the gain to Mauritius (art. 13, 4), which does not tax it. A move whose only purpose was to avoid tax would fall under the anti-abuse clause.
18 Related guides
Going further
The main guide and the pages that detail each subject.
International Taxation & MauritiusThe main guide, country by country→
Estate: Mauritius compared with EuropeThe rules of succession and transfer→
Purchase costsThe real cost of a purchase, line by line→
Tax on rentThe scale applied, worked examples→
Visas, permits and residenceEvery route to living in Mauritius→
Living in MauritiusPreparing your departure and your first year→19 Sources & methodology
Reliable, up-to-date information
Each rule comes from the treaty, a legal text or an official page of the Luxembourg or Mauritian authorities, read on 28 September 2026.
ACDDirect taxation, LuxembourgAEDRegistration and estatesMRAMauritius Revenue AuthorityTreatyLuxembourg–Mauritius, 1995
- Luxembourg–Mauritius Treaty of 15 February 1995 and protocol of the same date: Government Notices 1995 (Mauritius), text published by the MRA
- Protocol signed in Brussels on 28 January 2014: taxes covered, arbitration, exchange of information (MRA; Mémorial A No. 232 and No. 247 of 2015)
- MRA — consolidated text of the treaty as amended by the MLI, prepared with the competent authorities of both States (30 November 2020); list of treaties in force
- Administration des contributions directes (ACD) — “Conventions en vigueur”: publication in Mémorial A No. 24 of 1996, applicable from 1 January 1996
- Amended law of 4 December 1967 on income tax (L.I.R.), consolidated text in force on 1 January 2026 published by the ACD: art. 2, 16, 38, 99bis, 99ter, 100, 115, 117, 118, 134, 142, 148, 156 and 157
- ACD — “Résident / non-résident”, non-resident FAQ, tax assimilation (art. 157ter), exemption method, withholding tax rates, net wealth tax
- Guichet.lu — capital gains on shares and shareholdings, sale of a property, interest and final withholding, dividends, statutory pension, gifts
- Indirect taxation portal (AED) — estates, exemptions and rates; law of 27 December 1817 on the collection of inheritance tax; registration duty rates
- Law of 18 December 2015 on the Common Reporting Standard and Grand-Ducal regulation of 6 June 2025 (Legilux): partner jurisdictions
- Finance Act 2026 (Mauritius), art. 7(v); Income Tax Act, Second Schedule, Part II; MRA: Foreign Income, Exempt Income, Tax Deduction at Source
- Bank of Mauritius: exchange controls abolished in July 1994; indicative rates of 21 September 2026: €1 = Rs 53.8912 buying by transfer
Texts read and checked on 28 September 2026. This guide sets out the rules of both countries; it does not replace the advice of a tax adviser, in Luxembourg as in Mauritius, on your situation.
20 Frequently asked questions
Your questions on taxation between Luxembourg and Mauritius
Short answers, backed by official texts.
Frequently asked questions: Luxembourg ↔ Mauritius
Yes. Signed in Luxembourg on 15 February 1995, it has applied since 1996 to taxes on income and on capital. A 2014 protocol modernised the exchange of information and introduced arbitration; the MLI added an anti-abuse clause.
It depends on its nature. The CNAP statutory pension is taxable only in Luxembourg. An occupational supplementary pension or another private pension is taxable only in Mauritius. A public-sector pension remains taxed in Luxembourg, unless you are a resident and national of Mauritius.
By having neither tax domicile nor habitual abode in the Grand Duchy; a centre of vital interests abroad in principle makes you a non-resident. Mauritius regards you as a resident from 183 days; in the event of a conflict, the treaty decides by the permanent home, then the centre of vital interests.
For business assets, yes: their transfer abroad is treated as a disposal (L.I.R., art. 38). For private assets, Luxembourg law does not provide for immediate general taxation on the sole ground of departure. It may, however, tax after departure the capital gain on a shareholding of more than 10% in a Luxembourg company, sold less than five years after departure by a former resident of more than fifteen years (art. 156); the treaty nevertheless reserves this gain to Mauritius once you live there (art. 13, 4).
Yes (art. 6 of the treaty). As a non-resident, you are in principle taxed in class 1, with a rate of at least 15%, unless treated as a resident if at least 90% of your worldwide income is taxable in Luxembourg.
The capital gain remains taxable in Luxembourg: at the scale within five years of acquisition, at half the overall rate beyond, after an allowance of €50,000. The former main residence is exempt under conditions, for example if it is sold by 31 December of the year following the move.
In Mauritius, at the scale, without the residents’ allowances. Luxembourg exempts this rent, but takes it into account to calculate the rate on your other income.
No. Luxembourg inheritance tax does not apply to real estate located abroad, and Mauritius levies no inheritance tax. Your other assets remain subject to Luxembourg duties if you are an inhabitant of the Grand Duchy: your children are exempt up to their statutory share, your spouse entirely so.
Only on your real estate located in Luxembourg, through the death transfer duty. Your children are exempt up to their statutory share; what they receive in addition by will is taxed at 2.5% or 5%, before surcharge. Your spouse, and your partner whose declaration has been registered for more than three years, are exempt.
Yes: the Luxembourg 15% withholding is reduced to 10% by the treaty. If they are remitted to Mauritius, they are taxable there, less the Luxembourg tax.
No longer for individuals: it was abolished on 1 January 2006, for residents and non-residents alike. It remains for companies. Mauritius levies none.
Yes: on request, under article 27 arising from the 2014 protocol, bank secrecy included, and automatically for financial accounts under the CRS; Mauritius is among Luxembourg’s partner jurisdictions.