Treaty signed in Maputo on 17 May 2013, applied since 2016 and amended by the MLI since 2023; it replaces the 1996 treaty
International Taxation & Mauritius
South Africa ↔ Mauritius
Who taxes your pensions, rents, investments and estate between South Africa and Mauritius.
The 2013 treaty, as amended by the OECD multilateral instrument, read in its authentic text, and South African law as consolidated in 2026: whether you are leaving South Africa or investing in Mauritius while remaining South African resident.
Leaving is not
ceasing to be resident
ceasing to be resident
The essentials
Four rules to know before leaving or buying.
Ceasing to be South African resident triggers a deemed disposal of your assets at market value (section 9H); South African immovable property and retirement funds are excluded
Pension from a South African fund: taxable in South Africa and, if you receive it in Mauritius, in Mauritius, with South African tax deducted; public-service pension: in South Africa only
Estate: South Africa taxes the worldwide estate of anyone who remains “ordinarily resident”, and always their South African assets; no treaty settles this with Mauritius
01 In brief
Who taxes what between South Africa and Mauritius?
It all depends on your tax residence: one table for the South African who has become resident in Mauritius, another for the one who remains South African resident and invests in Mauritius. R denotes the rand.
You have become resident in Mauritius: what South Africa keeps
| Income or asset | Where it is taxed | What you need to know | Text |
|---|---|---|---|
| Unrealised capital gains on departure: shares, funds, company shares, assets outside South Africa | In South Africa, once | Deemed disposal at market value on the day before residence ends | ITA, s. 9H |
| Rent from South African immovable property | In South Africa; in Mauritius if received there | Mauritius deducts the South African tax from its own tax | Treaty, art. 6 and 22, 1, a |
| Sale of that property | In South Africa | The buyer withholds 7.5% of the price above R 2 million, as an advance on the tax | Treaty, art. 13, 1; ITA, s. 35A |
| Dividends from a South African company | In South Africa and in Mauritius | Dividends tax of 20%, reduced to 10% on a declaration made before payment | Treaty, art. 10; ITA, s. 64G |
| Interest from a South African bank | In Mauritius, if received there | Exempt in South Africa, unless present for more than 183 days in twelve months | ITA, s. 10(1)(h) and 50D |
| Subsequent sale of shares in a South African company | In Mauritius only, which does not tax capital gains | Except a South African property-rich company | Treaty, art. 13, 4 and 5 |
| Pension from a pension, provident or preservation fund | In South Africa, and in Mauritius if received there | Mauritius deducts the South African tax | Treaty, art. 17, 1; ITA, s. 9(2)(i) |
| South African public-service pension | In South Africa only | In Mauritius only for a resident who is a Mauritian national | Treaty, art. 18, 2 |
| Retirement lump sums | In South Africa, at the lump-sum rates | Preservation and retirement annuity funds: withdrawal after three years of non-residence | ITA, s. 1; Second Schedule |
| Estate | In South Africa: South African assets; the entire estate if you remain “ordinarily resident” | No estate tax treaty; Mauritius levies no duty | Estate Duty Act, s. 3 |
You remain South African resident and invest in Mauritius
| Income or asset | Where it is taxed | What you need to know | Text |
|---|---|---|---|
| Rent from your Mauritian property | In Mauritius, then in South Africa | South Africa deducts the Mauritian tax, up to the amount of its own share | Treaty, art. 6 and 22, 1, b |
| Capital gain on resale | In South Africa | Mauritius does not tax it; its transfer tax is not a covered tax | Treaty, art. 2 and 13; Eighth Schedule |
| Dividends from a Mauritian company | In South Africa | Exempt for a holding of at least 10%; otherwise taxed at 20% at most | ITA, s. 10B |
| Mauritian interest | In South Africa | Without the annual exemption, which is reserved for South African interest | ITA, s. 10(1)(i) |
| Estate and gifts | In South Africa | On the entire estate, Mauritian villa included | Estate Duty Act, s. 3; ITA, s. 54 |
| Transfer of funds | South African exchange control | R 2 million a year without a tax certificate; up to R 10 million with a TCS PIN | SARB, Circular 6/2026 |
02 The treaty
What does the tax treaty between South Africa and Mauritius contain?
Signed in Maputo on 17 May 2013, it replaces the 1996 treaty and covers only taxes on income, capital gains included. Since 2023, the OECD multilateral instrument (MLI) amends it directly: both States have ratified it and listed the treaty.
| Step | Date or content | Reference |
|---|---|---|
| Signature | 17 May 2013, in Maputo, with a protocol of the same day | Treaty and protocol |
| Entry into force | 28 May 2015; applied in 2016: South African withholding taxes from 1 January 2016, other South African taxes from the year beginning on 1 March 2016, Mauritian tax from the income year beginning on 1 July 2016 | Art. 28 |
| Previous treaty | Signed in Pretoria on 5 July 1996, replaced | Art. 28, 3 |
| Multilateral instrument (MLI) | In force for Mauritius on 1 February 2020, for South Africa on 1 January 2023; withholding taxes covered from 1 January 2023, other taxes for periods beginning on or after 1 July 2023 | MLI, art. 34 and 35; positions of both States |
| What the MLI changes | A preamble against non-taxation and avoidance (art. 6), a general anti-abuse rule (art. 7, 1) and corresponding adjustments between associated enterprises (art. 17, which replaces art. 9, 2) | Synthesised texts |
| Taxes covered | Mauritian income tax; South African normal tax and similar taxes created since; no estate duty, no gift tax, no registration duty, no transfer tax | Art. 2 |
| Cooperation | Exchange of information on taxes “of every kind”, bank secrecy included; assistance in the collection of tax claims | Art. 25 and 26 |
The synthesised texts are not authoritative
SARS and the MRA each publish a text incorporating the MLI: mere reading aids. The MRA’s names Belgium instead of South Africa in one passage and omits article 17 of the MLI, which SARS’s includes.
The anti-abuse clause
A treaty benefit is denied if obtaining it was one of the principal purposes of an arrangement, unless granting it remains in accordance with the object and purpose of the treaty (MLI, art. 7, 1). An arrangement designed to reduce a withholding tax is caught.
The dividends protocol
If South Africa ever grants another State lower rates on dividends, it must open negotiations with Mauritius (protocol, No. 1). This is not an automatic alignment.
03 Tax residence
Who is South African tax resident, and who is resident in Mauritius?
South Africa applies two independent tests: “ordinary” residence, which is a question of fact, and physical presence, which is a day count. Mauritius counts days. If both States regard you as resident, article 4 of the treaty settles the matter.
Counting days in Mauritius →| Test | What must be met | What you need to know |
|---|---|---|
| South Africa: “ordinarily resident” | The country where you have your real home, the one you naturally return to after your travels | Assessed on the facts: intention, housing, family, economic interests, assets, residence permits; distinct from nationality and domicile |
| South Africa: physical presence | More than 91 days in the tax year and in each of the five preceding years, and more than 915 days in total over those five years | Applies only to a person who is not “ordinarily resident” |
| South Africa: 330 days outside the country | A continuous absence of at least 330 full days | Ends residence by physical presence from the day of departure; never ordinary residence |
| South Africa: treaty exclusion | Being deemed resident exclusively of another State under a treaty | You then cease to be a “resident” within the meaning of the ITA |
| Mauritius | 183 days in the income year, or 270 days over the year and the two preceding years | An individual’s foreign income is taxed only if received in Mauritius |
If both States regard you as resident
| Step | Question | If it does not settle the matter |
|---|---|---|
| 1 | Where do you have a permanent home? | Home in both States: move on to the centre of vital interests |
| 2 | With which State are your personal and economic ties closest? | Cannot be determined, or no home: habitual abode |
| 3 | Where do you habitually live? | In both or in neither: nationality |
| 4 | Of which State are you a national? | Of both or neither: agreement between the authorities |
Physically leaving is not enough
Neither departure, nor a Mauritian permit, nor closing accounts, on their own, ends ordinary residence: as long as South Africa remains your real home, you remain resident there, however long the absence (Note No. 4). All the facts count, and the burden of proof is on you.
The home you keep in South Africa
A home kept at your disposal is a permanent home within the meaning of article 4: with a home in Mauritius, the question moves to the centre of vital interests, as indicated by family, activity and assets. Let long-term to a third party, it is no longer at your disposal.
Resident of Mauritius within the meaning of the treaty
A resident of Mauritius is a person whom Mauritian law makes liable to tax there by reason of domicile or residence (art. 4, 1). The MRA tax residence certificate is the usual proof, with SARS and South African payers alike.
04 Leaving South Africa
How do you cease to be South African tax resident?
Residence ends on a specific day: the day the facts show that South Africa is no longer your home, or the day the treaty makes you exclusively resident of Mauritius. On that day, your South African tax year is cut in two and the deemed disposal of section 9H applies.
| Step | What to do | Why |
|---|---|---|
| Fix the date | The day you cease to be resident, by the facts or by the treaty | You are non-resident from that day (ITA, s. 1) |
| Declare it to SARS | State the date of cessation on eFiling, using the taxpayer record update form (RAV01) | SARS treats that date as the first day of non-residence and opens a verification file |
| Prove it | Signed declaration, letter setting out the facts, passport and travel; as applicable, visa or residence abroad, or MRA tax residence certificate | The burden of proof is on you |
| File the cut-off year | Return for the year ending the day before, deemed-disposal gains included | ITA, s. 9H, 2, b |
| Certificate for transfers | Ask SARS for a tax compliance status (TCS) for cessation of residence | Required by banks to transfer your assets abroad |
The end of “financial emigration”
The Reserve Bank’s emigration procedure has no longer existed since 1 March 2021. Exit now goes through the end of tax residence, recorded with SARS, then through the tax verification that precedes the transfer of assets. Any resource that still speaks of “financial emigration” or blocked accounts describes the former regime.
Coming back on holiday
Once ordinary residence is lost, your stays in South Africa can make you resident by physical presence: more than 91 days each year for six years, including more than 915 days over the first five. Keep a record of your days.
What does not change
The end of residence is a tax matter: it affects neither South African nationality nor your South African passport.
05 On departure
Section 9H: what South Africa taxes when you cease to be resident
It is often called an “exit tax”; it is in fact a deemed disposal. On the day before you cease to be resident, you are deemed to have sold each of your assets at market value, then to have bought them back the next day at the same price. Unrealised capital gains become taxable in your last year as a resident.
The mechanism, word for word
| Element | Rule | Consequence |
|---|---|---|
| When | The day before you cease to be resident | You are still resident: South Africa taxes your worldwide capital gains |
| What | Each of your assets, except the exclusions in paragraph 4 | Asset by asset, gains and losses |
| At what price | The market value on that date | The gain taxed is unrealised: no price has been received |
| Afterwards | Deemed reacquisition on the day of cessation, at the same price | That value becomes your new base cost |
| Tax year | Deemed to end the day before; the next one begins on the day of cessation | One return for a shortened year |
| Calculation | Net gain, less the annual exclusion, then 40% included in taxable income | At the marginal rate of 45%, at most 18% of the gain |
What is excluded, and what is not
| Asset | Section 9H? | What applies next |
|---|---|---|
| Immovable property located in South Africa, held by you | Excluded (4, a) | Taxed when you actually sell it, as a non-resident |
| Asset attributable to a permanent establishment in South Africa | Excluded (4, c) | Remains within the South African net |
| Interests in a pension, provident, preservation or retirement annuity fund | Excluded (4, g) | Taxed when the lump sums are paid |
| Employee share incentive shares not yet vested | Excluded (4, d to f) | Taxed under their own rules |
| Shares in a company whose assets are mainly immovable property | Not excluded: only property held directly is | Deemed disposal, then South Africa keeps the right to tax the actual sale |
| Listed shares, funds, shares in your company, crypto-assets | Not excluded | Deemed disposal |
| Asset located outside South Africa, Mauritian villa already bought included | Not excluded | Deemed disposal; Mauritius does not tax the capital gain |
Why the treaty does not prevent it
The deemed disposal takes place on the day before residence ends, in a tax year deemed to end that day, while you are still South African resident: the treaty leaves the State of residence the right to tax its residents. It also applies where it is article 4 that makes you exclusively resident of Mauritius.
Thresholds, between law and budget
Annual exclusion of R 40,000 in the law consolidated at 19 August 2026; R 50,000 published by SARS for the year beginning on 1 March 2026, announced by the budget of 25 February subject to a vote by Parliament, and absent from the consolidated law. Have the amount applicable on your departure date confirmed.
Preparing the calculation
Have each non-excluded asset valued at the planned date: unlisted securities, shares in your company, assets abroad. The tax is due without any cash being received: plan your liquidity before the departure date.
06 A property kept in South Africa
What happens to the property you keep in South Africa?
It escapes the deemed disposal, but not the tax: its rent remains taxed in South Africa, so does its sale, with a withholding on the price, and it remains in your South African estate whatever your country of residence.
| Event | South African taxation | Mauritian side |
|---|---|---|
| Rent | Declared in South Africa, at the scale rates, expenses deductible | Taxed if received in Mauritius, South African tax deducted |
| Sale | Taxable capital gain: a non-resident remains taxable on South African immovable property (para 2) | No capital gains tax |
| Withholding on the price | Above R 2 million, the buyer withholds 7.5% of the price for an individual seller, 10% for a company, 15% for a trust; it is an advance payment | Nothing to deduct |
| Former main residence | Capital gain exclusion reduced pro rata to the periods when you did not live there (para 47) | — |
| Death | The property enters the South African estate, even if you are no longer “ordinarily resident” | Mauritius levies no duty |
The section 35A withholding
The buyer pays it to SARS within 14 days, 28 if non-resident. If the actual tax is lower, ask SARS for a reduced-withholding directive. The withholding is credited against the tax for the year of sale.
The main-residence exclusion
R 2 million of capital gain in the consolidated text, R 3 million published by SARS for the year beginning on 1 March 2026 after the 2026 budget, pro rata to the years of main residence only.
Letting or keeping available
Kept ready to receive you, the home weighs in the assessment of your residence; let long-term, it produces rent taxable in South Africa.
07 Investing in Mauritius
You buy in Mauritius while remaining South African resident: who taxes what?
Two separate questions: what Mauritius may tax, as the State where the property is located; and what South Africa, as the State of residence, then taxes while taking the Mauritian tax into account. The treaty removes neither: it organises a deduction.
Tax on rent in Mauritius →What Mauritius may tax
On purchase
5% registration duty and notary fees; a property of at least USD 375,000 bought under a scheme opens a residence permit. These duties are not taxes on income: the treaty does not cover them (art. 2) and South Africa gives no credit for them. Purchase costs →
Rent
It is taxable in Mauritius (art. 6), at the scale rates, without the residents’ allowances; a tenant that is not an individual withholds 10% at source. Rs 2,000,000 of net rent gives Rs 250,000 of tax, or 12.5%.
Resale
The treaty allows Mauritius to tax the capital gain (art. 13, 1), but Mauritius does not tax an individual’s capital gains. The seller pays 5% transfer tax, outside the treaty. Reselling →
What South Africa must take into account
Rent in your return
Converted into rand, Mauritian rent enters your worldwide income. South Africa deducts the Mauritian tax, capped at its total tax multiplied by the Mauritian rent and divided by total income (art. 22, 1, b). The excess is lost; below the cap, you pay the difference.
The capital gain
40% of the net gain enters South African taxable income. As Mauritius has levied nothing on this gain, nothing is deducted; the transfer tax is not creditable.
The property in your estate
The villa enters your South African estate and falls within the scope of gift tax if you give it away. If you later leave South Africa, it is subject to the deemed disposal: an asset outside South Africa is not excluded.
08 Investments
Dividends, interest and capital gains: who taxes what?
There is no single rate: a South African withholding of 20% on dividends, reduced to 10% for a Mauritian resident who declares in time; no withholding on bank interest paid to a non-resident; and, for a South African resident, foreign dividends partly exempt.
| Income | You live in Mauritius | You live in South Africa |
|---|---|---|
| Dividends from a South African company | Dividends tax of 20%, reduced to 10% (5% for a company holding at least 10%); in Mauritius if received there | Dividends tax of 20% withheld by the company |
| Interest from a South African bank | Exempt from South African tax, unless present for more than 183 days in twelve months; no 15% withholding on bank interest | Taxed at the scale rates after the annual exemption of R 23,800, R 34,500 from age 65 |
| Dividends from a Mauritian company | In Mauritius if received there; no Mauritian withholding | Exempt for a holding of at least 10%; otherwise 25/45 exempt, i.e. 20% tax at most |
| Mauritian interest | Outside the South African net | Taxed at the scale rates, without the annual exemption |
| Capital gain on an ordinary South African company | Outside the South African net after the deemed disposal; Mauritius does not tax it | 40% of the gain taxable |
| Capital gain on a South African property-rich company | Taxed in South Africa if at least 80% of its value comes from South African immovable property and you hold at least 20% | 40% of the gain taxable |
Obtaining the 10% rate
Give the paying company, or your intermediary, the beneficial-owner declaration and undertaking required by section 64G, before payment. Without it, the company withholds 20%.
Two thresholds for indirect property
The treaty would allow South Africa to tax shares in a company deriving more than 50% of its value from South African immovable property (art. 13, 4); its law does so only from 80% and a 20% holding (para 2, 2). A treaty does not create a tax: the threshold in the law applies.
Your South African accounts
You can keep them: their interest is not taxed in South Africa for a non-resident. Tell the bank of your status; Mauritius taxes that interest if received there.
09 Companies and trusts
Do you keep a company or a trust in South Africa?
Shares in a South African company go through the deemed disposal, and managing it from Mauritius can make it resident in both States. A trust follows its own rules. A Mauritian company held by a South African resident falls under the South African controlled foreign company rules, which this guide does not analyse: have them reviewed before structuring.
Buying through a company in Mauritius →Shares in your (Pty) Ltd
They enter the deemed disposal on departure, at their market value. Afterwards, if the company is not property-rich, their sale falls to Mauritius alone (art. 13, 5), which does not tax it.
Managing the company from Mauritius
Managed from Mauritius, a South African company may be resident in both States; the treaty then refers to an agreement between the authorities, failing which it loses the benefits of the treaty (art. 4, 3). Your salary is taxed where you work (art. 14), your directors’ fees in South Africa (art. 15).
Trusts
A resident trust that ceases to be so is subject to the deemed disposal: section 9H applies to any person other than a company. Giving assets to a trust is a donation, taxed if the donor is resident. A trust selling South African immovable property is subject to a 15% withholding on the price.
10 Retirement and pensions
Where is your South African retirement income taxed?
There is no single “South African pension”, but several schemes. A pension paid by a pension, provident or preservation fund is taxable in South Africa, and in Mauritius if received there. A public-service pension remains South African. An annuity bought with a lump sum must be characterised.
| Pension | Article | South Africa | Mauritius |
|---|---|---|---|
| Pension from a pension or provident fund for work done in South Africa | Art. 17, 1 | May tax it: the law makes it South African-source income, pro rata to the work done in South Africa | Taxes it if received in Mauritius, deducting the South African tax |
| Pension from a preservation fund | Art. 17, 1 | Same: South African source by law | Same |
| Annuity from a retirement annuity fund | Art. 17, 1 | The law does not list it among South African-source income: SARS sets the withholding by directive, to be confirmed | Taxes it if received in Mauritius |
| Life annuity or “living annuity” bought with retirement capital | Art. 17, 1 or 21, depending on its characterisation | Depending on characterisation: annuity within the meaning of art. 17, 2, or other income | If art. 21 applies, Mauritius alone |
| Public-service pension: services rendered to the State, a province or a local authority | Art. 18, 2 | Sole right to tax | Only if you are resident and a Mauritian national |
| Benefit from a public social security scheme | Art. 17, 3 | Sole right to tax, as the paying State | No tax |
| Pension from a public enterprise carrying on a commercial activity | Art. 18, 3 refers to art. 17 | Like a fund pension | Like a fund pension |
Why “if received in Mauritius”
Mauritius taxes the foreign income of a resident individual when it is received or used in Mauritius (s. 5(3)); a pension is part of it. It is then taxed there at the scale rates, with a credit for South African tax up to the corresponding Mauritian tax (art. 22, 1, a; s. 77). The credit exists only if the pension is taxable in Mauritius.
The pro rata of work done in South Africa
Only the part of the pension corresponding to work done in South Africa is of South African source (s. 9(2)(i)): ask the fund for the apportionment it applies.
Characterise before leaving
For each pension, ask the fund in writing for its exact nature: pension, provident, preservation or retirement annuity fund, or an annuity bought from an insurer. The answer determines the applicable article; the word “retirement” is not enough.
11 Retirement lump sums
Withdrawing a retirement lump sum after you leave
Lump sums have their own scale, cumulative over a lifetime, distinct from that for pensions. Preservation and retirement annuity funds can be withdrawn only after three years of uninterrupted non-residence. On the Mauritian side, a lump sum is not income merely because it is transferred.
| Band of cumulative lump sum | Withdrawal lump sum, before retirement | Band of cumulative lump sum | Retirement lump sum, or severance benefit |
|---|---|---|---|
| Up to R 27,500 | 0% | Up to R 550,000 | 0% |
| R 27,501 to R 726,000 | 18% above R 27,500 | R 550,001 to R 770,000 | 18% above R 550,000 |
| R 726,001 to R 1,089,000 | R 125,730 plus 27% above R 726,000 | R 770,001 to R 1,155,000 | R 39,600 plus 27% above R 770,000 |
| Above R 1,089,000 | R 223,740 plus 36% above R 1,089,000 | Above R 1,155,000 | R 143,550 plus 36% above R 1,155,000 |
The three-year rule
A member of a preservation or retirement annuity fund can withdraw the “retirement” and “vested” components if no longer resident for at least three uninterrupted years, a period counted from 1 March 2021 at the earliest (ITA, s. 1, definitions of the funds). Since 1 September 2024, the withdrawal covers the entire value of the “vested” and “retirement” components (vested and retirement components). The Reserve Bank authorises payment abroad only on that condition.
The SARS directive
The fund pays the lump sum only on production of a SARS tax directive, which sets the tax to be withheld; SARS then verifies the date and reality of the end of residence (guide IT-AE-33-G01).
Do not carry over the conclusions of another country
The treaty does not expressly mention lump sums: depending on their nature, article 17 or article 21 applies, to be settled for your contract. On the Mauritian side, taxation targets income (s. 5(3)): a lump sum does not become taxable because it is transferred to Mauritius. The Mauritian exemption of Rs 3,000,000 targets a lump sum from an approved pension fund (Second Schedule, Part II, Sub-Part A, item 6): it is not automatic for a South African fund. The Mauritian credit exists only if the amount is taxable in Mauritius.
12 Estate
Can South Africa still tax your estate after you leave?
Yes. South African estate duty applies to the entire estate of a person “ordinarily resident” at death, and always to their South African assets otherwise. Mauritius levies no estate duty, and no estate tax treaty binds the two countries.
| Asset | Deceased “ordinarily resident” | Deceased who no longer is |
|---|---|---|
| Immovable property in South Africa | Included | Included |
| Bank account in South Africa, shares registered in South Africa | Included | Included |
| Villa in Mauritius | Included; deducted if acquired before first becoming “ordinarily resident”, or received from a non-resident | Excluded |
| Movables located in Mauritius; account in Mauritius, claim that cannot be recovered before a South African court | Included | Excluded |
| Shares whose transfer is not registered in South Africa | Included | Excluded |
| Retirement fund benefits payable on death | Excluded | Excluded |
Rate and abatement
20% up to R 30 million, 25% above, after an abatement of R 3.5 million (s. 4A). The surviving spouse’s share is deducted (s. 4(q)), except by a discretionary trust. On death, the annual capital gains exclusion is R 300,000 in the consolidated text, R 440,000 published by SARS for the year beginning on 1 March 2026.
The ordinary-residence trap
Exclusion by the treaty applies only to income tax: settled in Mauritius but keeping your real home in South Africa, you can be taxed on your entire estate.
Nothing to credit
As Mauritius levies no estate duty, the South African credit for foreign duties (s. 16(c)) has nothing to deduct. A Mauritian asset is transferred through a notary in Mauritius.
13 Gifts
South African gift tax: a separate regime
Gift tax is not the estate rule applied during one’s lifetime: it falls under the Income Tax Act, not the Estate Duty Act, targets the “resident” within the meaning of income tax, and has neither the same abatement nor the same exclusions.
| Point | Gift tax | Estate duty |
|---|---|---|
| Law | Income Tax Act, s. 54 to 64 | Estate Duty Act 45 of 1955 |
| Who is covered | The donor “resident” within the meaning of the ITA; a non-resident is not subject to it | The deceased “ordinarily resident”, on everything; otherwise their South African assets |
| Exclusive residence in Mauritius under the treaty | You are no longer “resident”: no more tax on your gifts | No effect: only ordinary residence counts |
| Exemption | R 100,000 a year in the consolidated text, R 150,000 published by SARS for the year beginning on 1 March 2026 | Abatement of R 3.5 million |
| Rate | 20% up to R 30 million of cumulative gifts since 1 March 2018, 25% above | 20% up to R 30 million, 25% above |
| Spouse | Gift exempt | Surviving spouse’s share deducted |
| Foreign assets acquired before arriving in South Africa | Exempt if acquired before first residence, or received from a non-resident | Deducted if acquired before first ordinary residence |
| Who pays | The donor; failing which, the donee, jointly and severally | The estate |
Giving before or after departure
As a resident, you are taxed above the exemption, whatever the beneficiary’s country; as a non-resident, you no longer are. The date residence ends decides the regime of each gift.
Donor other than an individual
R 10,000 of casual gifts exempt in the consolidated text, R 20,000 published by SARS for the year beginning on 1 March 2026: thresholds raised by the 2026 budget, not yet in the consolidated law.
Mauritius
No gift tax; a gift of Mauritian immovable property goes through a notarial deed in Mauritius, with its own duties.
14 Transfers and wealth
Exchange control, transfers and wealth tax
South Africa keeps exchange control, relaxed in 2026; Mauritius has had none since 1994. Neither country levies an annual wealth tax, which does not mean that wealth escapes tax.
Opening an account in Mauritius →| Allowance | Amount | Condition |
|---|---|---|
| Single discretionary allowance (SDA) | R 2 million per calendar year (R 1 million before the circular) | Resident aged 18 or over, without a tax certificate |
| Foreign capital allowance | R 10 million per calendar year | SARS TCS PIN for an investment abroad (AIT) |
| Above R 10 million | On authorisation | Enhanced SARS verification, Reserve Bank authorisation (source of funds, anti-money laundering) |
| The year you cease to be resident | R 2 million, once, without a TCS PIN | Then transfer of assets with the TCS for cessation of residence |
| Personal effects and furniture | R 2 million per household | Exported in the year of cessation, under a customs declaration |
No wealth tax, but taxed wealth
South African wealth remains taxed: deemed disposal on departure, capital gains, withholding on the sale of a property, estate duty, gifts, municipal property rates. In Mauritius: registration duty on purchase, transfer tax on resale.
The transfer of a lifetime
To transfer all your assets, the bank requires the TCS for cessation of residence, issued after verification by SARS, deemed disposal included.
In Mauritius
No exchange control since July 1994, according to the Bank of Mauritius; the bank and the notary check the source of funds, to be wired from an account in your name.
15 Returns and exchanges
Which returns, and what do the authorities exchange?
In South Africa: the return declaring cessation, the cut-off year return, then those for your South African income. In Mauritius: a tax number and the return by 15 October. Between the two, your account data circulate automatically.
Filing on arrival in Mauritius →| When | In South Africa (year from 1 March to 28 February) | In Mauritius (year from 1 July to 30 June) |
|---|---|---|
| On departure | Date of cessation by the RAV01; return for the year closed the day before, deemed disposal included; TCS for cessation for transfers | Tax number (TAN) from the MRA |
| Every year thereafter | South African income: rent, property capital gains; dividends tax return up to date | Return and payment by 15 October at the latest |
| For a treaty benefit | Beneficial-owner declaration for dividends; residence certificate for SARS | MRA tax residence certificate, issued in seven days if your returns are up to date |
| South African resident investing in Mauritius | Mauritian rent and capital gains, Mauritian tax paid; TCS PIN for the transfer | Return of Mauritian rent |
On request and automatically
On request, any information foreseeably relevant, for taxes of every kind, bank secrecy included (art. 25). Automatically, financial account data: South Africa appears on the MRA list of reportable jurisdictions for the 2026 reporting year, and Mauritian banks report South African residents’ accounts every year.
A Mauritian account is not invisible
SARS knows the Mauritian account of a South African resident: its income must appear in the return. A tax debt can be recovered in the other State (art. 26).
Proof of your residence
MRA tax residence certificate, lease or deed, residence permit, evidence of your life in Mauritius.
16 Practical cases
Four common situations
The rules above applied to four profiles we often meet. Fictitious amounts, in rand or rupees, calculated with the scales published by SARS for 2027 and the Mauritian scale of the Finance Act 2026.
| Situation | What applies |
|---|---|
| A Cape Town family settles in Tamarin and keeps its house | No deemed disposal on the house. Let, its rent remains taxed in South Africa. Sold for R 6,000,000, the buyer withholds R 450,000 (7.5%), an advance on the capital gains tax, with a main-residence exclusion reduced pro rata. It remains in their South African estate. |
| A Johannesburg entrepreneur leaves with his portfolio and his company | Portfolio of R 10,000,000 acquired for R 4,000,000; shares in his (Pty) Ltd worth R 15,000,000, subscribed for R 100,000. The deemed disposal produces a capital gain of R 20,900,000, of which R 8,344,000 is taxable: at most R 3,754,800 at the marginal rate of 45%, due for the year closed the day before departure, without any cash received. The later sale of the shares falls to Mauritius alone. |
| A Durban retiree receives a pension, an annuity and lump sums | Her pension from a pension fund is taxed in South Africa, and in Mauritius for the part she has transferred there, South African tax deducted; her life annuity must be characterised. A retirement lump sum of R 1,000,000 would have borne R 101,700 of tax. Her retirement annuity fund can be withdrawn three years after departure: R 2,000,000 gives R 551,700 of South African tax, with no Mauritian tax merely because of the transfer. |
| A Pretoria couple buys a villa in Grand Baie without leaving South Africa | Each transfers R 2 million a year without a certificate, then up to R 10 million with a TCS PIN. Rs 2,000,000 of net rent gives Rs 250,000 of Mauritian tax, credited in South Africa within the limit of article 22. The resale capital gain is taxed only in South Africa. |
17 Related guides
Going further
The main guide and the pages detailing each topic on the Mauritian side.
International Taxation & MauritiusThe main guide, country by country→
Purchase costsThe real cost of a purchase, line by line→
Tax on rentThe scale applied, with worked examples→
Reselling from abroadTransfer tax and procedures→
Visas, permits and residenceAll the routes to living in Mauritius→
Living in MauritiusPreparing your departure and your first year→18 Sources & methodology
Reliable, up-to-date information
Each rule comes from the treaty, the MLI, a consolidated statute or an official publication of the South African or Mauritian authorities, read on 1 October 2026. The synthesised texts were used only as a reading aid.
SARSSouth African Revenue ServiceSARBSouth African Reserve BankMRAMauritius Revenue AuthorityTreatySouth Africa–Mauritius, 2013
- South Africa–Mauritius Treaty signed in Maputo on 17 May 2013 and protocol of the same day (Government Gazette No. 38862; MRA, Government Notice No. 113 of 2015), in force on 28 May 2015; treaty of 5 July 1996, replaced
- OECD multilateral instrument (MLI): positions of South Africa (deposited on 30 September 2022, in force on 1 January 2023) and of Mauritius (deposited on 18 October 2019, in force on 1 February 2020); synthesised texts from SARS and the MRA, read as reading aids
- Income Tax Act 58 of 1962, consolidated at Government Gazette No. 55220 of 19 August 2026: s. 1 (resident, retirement funds), 9(2)(i), 9H, 10(1)(gC), 10(1)(h), 10(1)(i), 10B, 35A, 50D, 54, 56, 59, 64G; Second and Eighth Schedules
- Estate Duty Act 45 of 1955: s. 3(2), 4(e), 4(q), 4A and 16(c)
- SARS: 2027 scales (income tax, capital gains, retirement lump sums, dividends and interest, gifts, estate); Interpretation Notes No. 3 and No. 4; “Cease to be a tax resident”; guide IT-AE-33-G01; list of estate tax treaties of 4 June 2021
- South African Reserve Bank (SARB): guidelines for individuals of 7 January 2026; Circulars No. 3/2026 and No. 6/2026 (8 April 2026)
- Mauritius: Finance Act 2026, art. 7(v); Income Tax Act, s. 5(3), 10(1), 73 and 77, Second Schedule; MRA, list of treaties in force and list of CRS jurisdictions for the 2026 reporting year; Bank of Mauritius: exchange control abolished in July 1994
Texts read and verified on 1 October 2026. The thresholds raised by the South African budget of 25 February 2026, which SARS publishes for the year beginning on 1 March 2026 subject to a vote by Parliament, are shown alongside those of the text consolidated at 19 August 2026, which does not yet contain them. This guide sets out the rules of both countries; it does not replace the advice of a tax adviser, in South Africa as in Mauritius, on your situation.
19 Frequently asked questions
Your questions on taxation between South Africa and Mauritius
Short answers, backed by official texts.
Frequently asked questions: South Africa ↔ Mauritius
Yes: signed on 17 May 2013, applied since 2016, it replaced the 1996 treaty and the MLI has amended it since 2023. It covers only taxes on income.
No. You remain resident as long as South Africa remains your real home, however long the absence. The date residence ends must be proved and declared to SARS.
It is in effect, not in form: a deemed sale of your assets at market value on the day before residence ends, which makes your unrealised capital gains taxable.
No, if you hold it yourself; shares in a company that holds it are. Its sale remains taxed in South Africa, with a withholding on the price.
No: interests in a pension, provident, preservation or retirement annuity fund are excluded from the deemed disposal. The tax will come on payment.
After three years of uninterrupted tax non-residence, on production of a SARS directive, at the withdrawal lump-sum scale.
No. A fund pension is taxed in South Africa, then in Mauritius if you receive it there, South African tax deducted. A public-service pension remains South African.
10% instead of 20%, if the beneficial-owner declaration is submitted before payment. South African bank interest, for its part, is not taxed in South Africa.
First in Mauritius, at the scale rates; then in South Africa, which deducts the Mauritian tax up to the part of its own tax corresponding to that rent.
On your South African assets, always; on your entire estate if you are still “ordinarily resident” at death. Mauritius levies none.
R 2 million per calendar year and per adult without a tax certificate, then up to R 10 million with a TCS PIN. Beyond that, on Reserve Bank authorisation.
Yes, if you are South African resident: Mauritian banks report these accounts and the MRA passes the data to SARS under the CRS standard.