Treaty signed on 18 September 2006, in force since 2007, modified by the MLI: dividends, interest and royalties are taxable only in the State of residence; it covers neither inheritances nor registration duties
International Taxation & Mauritius
United Arab Emirates ↔ Mauritius
Residence, tax treaty, corporate tax, free zones, property and inheritance between the United Arab Emirates and Mauritius.
The 2006 treaty, as modified by the OECD multilateral instrument, and the federal Emirati law in force in 2026, read in their official text: for leaving the Emirates to settle in Mauritius, and for investing in Mauritius while remaining an Emirati resident. Without confusing Dubai with the federation, or the absence of income tax with “0% everywhere”.
An Emirati visa
is not tax residence
is not tax residence
The essentials
Four rules to know before leaving or buying.
An Emirati visa or residence permit does not make you a tax resident: tax residence follows three criteria set in 2022 (days, home, centre of interests), proved by an FTA certificate
No federal income tax on individuals, but a 9% corporate tax above AED 375,000 since 2023, which also targets the sole trader above one million dirhams of turnover
As a resident of Mauritius, you are taxed there at the progressive scale on the Emirati income you receive there; a credit exists only for Emirati tax actually paid, for example by your company
01 In brief
Who taxes what between the United Arab Emirates and Mauritius?
Short answer: the United Arab Emirates (UAE) has no federal income tax on individuals; Mauritius taxes its residents on the foreign income they receive there; the treaty allocates the right to tax, but a right to tax is not a tax collected. Everything therefore depends on your tax residence. Profile A: you leave the UAE to settle in Mauritius. Profile B: you remain a UAE resident and invest in Mauritius.
Profile A — you have become a resident of Mauritius
| Income or asset | Who may tax | What is actually levied | Text |
|---|---|---|---|
| Unrealised capital gains on leaving the UAE | — | No Emirati exit tax for an individual | Federal Corporate Tax Law: no provision of this kind |
| Rent from a property in the UAE | The UAE, then Mauritius | In the UAE, real estate investment income is excluded from corporate tax if the activity is carried on without a licence and does not require one; in Mauritius, taxed if received there | Treaty, Arts 6 and 23; FTA guide for individuals |
| Sale of that property | The UAE (Art. 13, 1) | Gain excluded from Emirati corporate tax on the same conditions; the emirate’s registration duties and fees remain payable; no Mauritian tax on the capital gain | Treaty, Art. 13; DLD in Dubai |
| Dividends from an Emirati company | Mauritius only | Mauritian scale if received in Mauritius | Treaty, Art. 10; ITA, s. 5(3) |
| Interest from an account in the UAE | Mauritius only | Same | Treaty, Art. 11 |
| Shares in an Emirati company sold | Mauritius only | Mauritius does not tax the capital gain of an individual managing their own assets | Treaty, Art. 13, 4 |
| Emirati company managed from Mauritius | According to the place of effective management | Risk of dual residence and loss of free zone regime (sections 11 and 12) | Treaty, Art. 4, 4; ITA, s. 73 |
| Inheritance | No treaty | No general inheritance tax in either country; registration or transfer duties possible on real estate; the country of origin may tax | Section 13 |
Profile B — you remain a UAE resident and invest in Mauritius
| Income or asset | Who may tax | What is actually levied | Text |
|---|---|---|---|
| Purchase of a property in Mauritius | Mauritius | 5% registration duty; residence permit from USD 375,000 under a scheme | Outside the treaty |
| Rent from that property | Mauritius, then the UAE | Mauritian scale; the UAE exempts this income | Treaty, Arts 6 and 23, 2 |
| Resale | Mauritius | No capital gains tax for an individual; 5% transfer tax payable by the seller | Treaty, Art. 13, 1 |
| Dividends from a Mauritian company | The UAE only | Nothing: Mauritius does not withhold, the UAE does not tax an individual | Treaty, Art. 10 |
| Interest paid in Mauritius | The UAE only | Nothing in Mauritius on presentation of the Emirati residence certificate | Treaty, Art. 11 |
| Purchase by an Emirati company | Mauritius, then the UAE | Mauritian corporate tax on the rent; Emirati corporate tax according to the treaty | Section 08 |
02 The treaty
What does the tax treaty between the Emirates and Mauritius contain?
Signed in 2006, it has never been modified by an amending protocol: only the OECD multilateral instrument (MLI) has changed its text, on three points. It was written when the UAE had no general corporate tax; it now applies to that of 2023.
| Step | Date or content | Reference |
|---|---|---|
| Signature | 18 September 2006, in Singapore, with a protocol signed the same day | GN 14 of 2007 |
| Entry into force | 31 July 2007 | Art. 28 |
| Effect | UAE: from 1 January 2008; Mauritius: from the income year beginning on 1 July 2008 | Art. 28 |
| Amending protocol | None, as at 2 October 2026 | MRA list of treaties |
| Multilateral instrument (MLI) | In force for the UAE on 1 September 2019, for Mauritius on 1 February 2020; on the Mauritian side, effective from 1 July 2020 for withholding taxes, and for years beginning on or after 1 July 2021 for the rest | MRA notes on the MLI |
| What the MLI changes | Preamble against non-taxation and avoidance (Art. 6), general anti-abuse rule (Art. 7, 1), referral to the authority of either State in mutual agreement procedure (Art. 16, 1) | MRA synthesised text |
| Taxes covered | UAE: income tax and corporate tax; Mauritius: income tax; and any identical or similar tax subsequently introduced | Art. 2 |
| Assistance in collection, arbitration, inheritances | Absent from the treaty | — |
Resident of the UAE within the meaning of the treaty
The treaty does not refer to Emirati tax residence: a resident of the UAE is an individual who is an Emirati national or has their domicile in the UAE, and a company incorporated in the UAE (Art. 4, 1, b). The Emirati State, its local governments and its public bodies are also residents. An Emirati national settled in Mauritius may therefore be resident in both States: Article 4, 3 decides.
What the treaty gives, and what it does not
Dividends, interest and royalties are taxable only in the State of residence of the beneficial owner (Arts 10, 11 and 12). Immovable property remains taxable where it is situated (Arts 6 and 13, 1). There is no clause on property-rich companies: the sale of their shares falls to the seller’s State of residence.
A sentence that has become false
The protocol states that “in the present state of the law of both States”, no tax is levied on capital gains. That was true in 2006; since 2023, an Emirati business is taxed on its capital gains under corporate tax. Do not cite this sentence as a rule any more.
The anti-abuse clause
A benefit is denied if obtaining it was one of the principal purposes of an arrangement (MLI, Art. 7, 1): a company interposed in the UAE to receive Mauritian dividends tax-free is targeted.
Salaries and pensions
A salary is taxable where the work is performed, except for an assignment of less than 183 days in twelve months paid by an employer not established in the other State (Art. 15). A private pension is taxable in the State of residence; a social security benefit, in the State that pays it (Art. 18).
A typo in the synthesised text
The MRA synthesised text refers by mistake to the file of the treaty with Guernsey; only the 2007 Government Notice and the MLI are authoritative.
03 Emirati residence
Who is a tax resident of the Emirates?
Since 1 March 2023, a Cabinet decision sets, for the whole federation, three criteria of tax residence for individuals. Meeting one is enough. None boils down to the visa: the residence permit comes into play only in the third, and only with other conditions.
| Criterion | Condition | What must be proved |
|---|---|---|
| 1. Usual residence | Usual or principal place of residence AND centre of financial and personal interests in the UAE | Home, family, activity, assets: a body of evidence, not a number of days |
| 2. Presence of 183 days | 183 days or more in the UAE in a 12-month period | Days or parts of days, not necessarily consecutive |
| 3. Presence of 90 days, with ties | 90 days or more in 12 months AND Emirati nationality, a valid residence permit or nationality of a Gulf State AND a permanent home or employment or business in the UAE | All three conditions together |
The visa is not enough
The FTA states it in its guide: holding a residence permit does not automatically make you a tax resident. The reverse is also true: one can be tax resident without a permit, under the first or second criterion. A ten-year “golden visa” changes nothing about this rule.
The residence certificate (TRC)
Issued by the Federal Tax Authority (FTA), on online application and for a fee, for a given period; you must prove the criterion relied on: record of entries and exits, lease or title deed, employment contract or licence. It is the document the MRA and Mauritian banks ask for in order to apply the treaty.
A federal rule, which the treaty supplements
These criteria apply in all seven emirates: one is a tax resident of the UAE, never “of Dubai”. The 2022 decision itself provides that an international treaty setting its own residence conditions applies (Art. 6). For the treaty with Mauritius, what counts is nationality or domicile in the UAE (section 02); the FTA certificate is the usual proof.
04 Mauritian residence
Resident of Mauritius, of the UAE, or of both: how Article 4 decides
Mauritius counts days in its income year, from 1 July to 30 June. The UAE applies its three criteria over twelve months. In the year of the move, you may meet both: it is then Article 4, 3 of the treaty that designates a single State of residence.
Counting days in Mauritius →| Point | Mauritius | UAE |
|---|---|---|
| Reference year | Income year from 1 July to 30 June | Any 12-month period, calendar year for the certificate |
| Days test | 183 days in the year, or 270 days over the year and the two preceding years | 183 days, or 90 days with ties |
| Other test | Domicile in Mauritius, unless a permanent home outside Mauritius | Usual residence and centre of interests |
| Foreign income | Taxed if received in Mauritius | No income tax on individuals |
| Certificate | Issued by the MRA within 7 days, return filed | Issued by the FTA |
The order of Article 4, 3
1. The permanent home
A home permanently available, rented or owned. Keeping the Dubai apartment available and having a villa in Mauritius leads to the next test.
2. The centre of vital interests
Family, activity, assets, social ties: where your personal and economic relations are closest. A company managed from Dubai and children at school in Mauritius pull in two directions: this is the most disputed case.
3. Habitual abode, then nationality
If the centre of interests cannot be determined, the State where you habitually live; then the one of which you are a national; failing that, an agreement between the two administrations. As a resident of Mauritius within the meaning of the treaty, you are no longer a resident of the UAE for its purposes, even if the UAE still issues you a certificate. Keep a record of each step: date of arrival, lease, school enrolment, transfer of the business.
05 The “0%”
Does an individual really pay no tax in the Emirates?
There is no federal income tax on individuals. That is not “0% on everything”: since 1 June 2023, federal corporate tax also targets the individual who carries on a business in the UAE above a threshold, 5% VAT has applied since 2018, and each emirate collects its own duties. Everything depends on the nature of the income.
| Income or transaction | Federal tax | What may apply |
|---|---|---|
| Salary | None | Salary is excluded from corporate tax, whatever the amount |
| Personal investments: dividends, interest, gains on securities | None | As long as it is a matter of managing one’s own assets, without a licence; no withholding tax (0%) |
| Rent and sales of property held in one’s own name | No income tax | Real estate investment income is excluded from federal corporate tax when it arises from a real estate activity carried on without a licence and not requiring a licence under the FTA rules; this exclusion covers neither VAT (residential exempt, commercial at 5%) nor the emirate’s registration duties and fees |
| Business carried on in one’s own name (trade, consulting, profession) | Corporate tax | As soon as turnover exceeds AED 1,000,000 in the calendar year: 0% up to AED 375,000 of taxable profit, 9% above |
| Business carried on by a company | Corporate tax | Same rates; 0% only on the qualifying income of a free zone company that meets all the conditions (section 11) |
| Consumption | 5% VAT | With zero rates and exemptions provided by law |
| Purchase or sale of a property | — | Duties specific to each emirate: 4% of the value at the Dubai Land Department; a different scale elsewhere |
Why you should not write “Dubai = 0%”
Corporate tax and VAT are federal: they apply in Dubai as in Abu Dhabi or Sharjah. Property duties are specific to each emirate.
The one-million-dirham threshold
It relates to the turnover of all of the person’s activities in the UAE, excluding salaries, personal investments and excluded real estate income (activity carried on without a licence and not requiring one). Above it, the entrepreneur registers with the FTA.
What this is worth in Mauritius
The Emirati “0%” is that of the Emirati resident: once you are a resident of Mauritius, your Emirati income received there is taxed there at the progressive scale, with no credit for a tax that nobody has paid.
06 Leaving the Emirates
What happens when you leave the Emirates for Mauritius?
As the UAE has no income tax on individuals, it does not tax the unrealised capital gains of an individual who leaves either: we found no exit tax in federal law. The departure is played out elsewhere: in the end of your Emirati activity, in the fate of your company, and in the date from which Mauritius regards you as resident.
| Topic | UAE side | Mauritius side |
|---|---|---|
| Unrealised capital gains of an individual | No exit tax | No taxation on arrival; Mauritius does not tax the capital gain of an individual |
| Sole-trader business registered for corporate tax | Cessation: deregistration with the FTA, final return | A business continued from Mauritius becomes taxable there |
| Emirati company | It remains an Emirati resident, incorporated in the UAE, wherever its founder lives | If managed from Mauritius, it may become resident there (section 12) |
| Free zone company | Its status requires real substance in the zone: the manager’s departure may cause it to be lost | — |
| Restructuring before departure | Reliefs for contributions and intra-group transfers, under conditions | — |
| Tax residence | Lost when none of the three criteria is met any more | Acquired by 183 days in the income year, or by domicile |
The year of departure
The two years overlap: count your days in both countries and date the transfer of your home; in case of dual residence, Article 4, 3 decides (section 04).
What you take with you
Sale price, savings, your company’s capital: transferred to Mauritius, they are capital, not income (section 14).
Your former country
If you left Europe for the UAE, that departure may have produced effects specific to that country (deferred exit tax, monitoring of capital gains, inheritance rules). Changing country a second time does not erase them automatically: have them checked on the European side, for example with our page France ↔ Mauritius.
07 A property kept in the Emirates
What becomes of the apartment you keep in Dubai or Abu Dhabi?
The treaty leaves the UAE the right to tax its immovable property (Arts 6 and 13, 1). For an individual, real estate investment income is excluded from federal corporate tax when it arises from a real estate activity carried on without a licence and not requiring a licence under the FTA rules. But once you are a resident of Mauritius, you are taxed there on the rent you receive there. And property costs are not federal: each emirate has its own.
| Event | In the UAE | In Mauritius |
|---|---|---|
| Rent received in one’s own name | Excluded from corporate tax if the letting is carried on without a licence and does not require one; 0% withholding tax | Taxed at the progressive scale if received in Mauritius, with no credit |
| VAT on the rent | Residential letting exempt; commercial premises at 5% | — |
| Service charges | Subject to 5% VAT | — |
| Sale | Gain excluded from corporate tax on the same conditions; the emirate’s registration duties and fees remain payable | No capital gains tax; the repatriated price is capital |
| Property held by an Emirati company | Corporate tax: 9% above AED 375,000 of profit | Dividends taxed if received in Mauritius |
| Income from Emirati real estate earned by a foreign company, Mauritian included | This income creates a nexus: the company comes within the scope of Emirati corporate tax for that income; the tax due depends on its taxable income | Mauritian corporate tax, with credit for Emirati tax actually paid (Art. 23, 1) |
| Death | Devolution under the law applicable in the UAE; no general federal inheritance tax, but transfer costs and formalities for the title specific to the emirate | No general inheritance tax in Mauritius |
Dubai is not Abu Dhabi
In Dubai, the Dubai Land Department collects 4% of the value on registration of a sale, plus fixed fees: AED 80,000 for an apartment of AED 2,000,000. Abu Dhabi, Sharjah and the other emirates have their own land authority, their zones open to foreigners and their own scale: never transpose Dubai’s figures.
The foreign company earning income from Emirati real estate
Since 2025, a legal person incorporated abroad that earns income from property located in the UAE has a nexus with the UAE, even without being established there (Cabinet Decision No. 35 of 2025): it comes within the scope of Emirati corporate tax for that income. Mere ownership does not mean that tax is actually due: the amount depends on taxable income. Placing the Dubai apartment in a Mauritian company therefore does not take it outside the scope of Emirati tax.
Repatriating rent
Mauritius taxes the foreign income of an individual when it is received there (ITA, s. 5(3)): transferred, used or spent in Mauritius, in whatever form. Rent “left in Dubai” does not stay there for long.
08 Investing in Mauritius
You buy in Mauritius while remaining an Emirati resident: who taxes what?
Mauritius taxes its immovable property, as State of situation; the UAE, as State of residence, then exempts that income (Art. 23, 2). For an individual, the total tax is therefore the Mauritian tax. For an Emirati company, the question changes: one must distinguish what the company pays from what its shareholder pays.
Tax on rent in Mauritius →You buy in your own name
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 income taxes: the treaty does not cover them. Purchase costs →
Rent
Taxable in Mauritius (Art. 6), at the progressive scale; a tenant that is not an individual withholds 10% at source. Net rent of Rs 2,000,000 gives Rs 250,000 of tax, i.e. 12.5%. Return and payment by 15 October at the latest; the UAE adds nothing.
Resale
Mauritius does not tax the capital gains of an individual. The seller pays 5% transfer tax, outside the treaty. On the UAE side, the treaty makes it exempt this income (Art. 23, 2). Reselling →
You buy through an Emirati company
| Step | The individual resident in the UAE | The Emirati company |
|---|---|---|
| Mauritian rent | Mauritian scale; nothing in the UAE | Mauritian corporate tax (15%); the UAE exempts this income (Art. 23, 2) |
| Resale | 5% transfer tax; no capital gains tax | 5% transfer tax; the capital gain enters the company’s accounts |
| What the shareholder receives | Nothing more: the rent is already theirs | A dividend from the Emirati company: no Emirati withholding tax; taxable in Mauritius only if the shareholder becomes a resident of Mauritius |
| Obligations | Mauritian rent return | Mauritian and Emirati returns of the company, accounts, transfer pricing where applicable |
The company is not a screen
An Emirati company without substance, created to hold a villa, is exposed to the MLI anti-abuse clause and to that of Emirati law (Art. 50). It must be justified by a business project.
The Emirati certificate
For Mauritius to apply the treaty, to interest as to rent, you must prove your Emirati residence: FTA certificate for the period, and for a company, its licence and its own certificate. Without it, Mauritius applies its domestic law.
The residence permit
The permit linked to the purchase is aimed at the person who settles. If your company buys, have it checked, before signing, how the permit file will be put together. Buying through a company →
09 Investments
Dividends, interest and capital gains: who taxes what?
The treaty reserves dividends and interest to the State of residence (Arts 10 and 11), and gains on securities too (Art. 13, 4). Do not confuse this right to tax with an actual tax: the State that has the right may levy nothing (the UAE for an individual), and the State that has lost it can no longer levy anything, even if its domestic law provides for it.
| Income | Profile A: you reside in Mauritius | Profile B: you reside in the UAE |
|---|---|---|
| Dividends from an Emirati company | Mauritian scale if received in Mauritius; credit for Emirati tax paid by the company if you hold at least 5% of it (Art. 23, 1, b) | Nothing |
| Dividends from a Mauritian company | Exempt (Second Schedule) | Nothing: Mauritius does not withhold, the UAE does not tax |
| Interest from an account or a loan in the UAE | Mauritian scale if received in Mauritius | Nothing |
| Interest paid by a Mauritian debtor | According to Mauritian law | Taxable in the UAE only: no Mauritian tax, supported by a residence certificate |
| Capital gains on securities of an individual | Mauritius alone, which does not tax them when it is a matter of managing assets | Nothing |
| Funds, listed shares, crypto-assets | A yield received is income; a capital gain is not taxed, except for trading activity | Excluded from corporate tax as personal investments, except for activity subject to a licence |
The partial 80% exemption
It targets foreign dividends received by a Mauritian company, subject to substance conditions (Second Schedule, Part II, Sub-Part B, item 6). It does not apply to individuals: your Emirati dividends received in Mauritius enter your income in full.
The tax sparing credit
The treaty deems paid the Emirati tax “reduced or relieved to promote economic development” (Art. 23, 3). Its application to a specific regime, free zones included, is not settled: have it confirmed by the MRA before relying on it.
Trading or managing assets
Buying and reselling often, on credit, with a business organisation, can turn a capital gain into business income, in Mauritius as in the UAE (where a licence is then required). The boundary is judged case by case.
10 Corporate tax
Emirati corporate tax in 2026: what you need to know
Created by a federal decree-law of 2022, it applies to financial years beginning on or after 1 June 2023. It targets resident companies on their worldwide income, foreign businesses on their Emirati income, and individuals who carry on a business in the UAE above the threshold. This page is not the place to detail it: here is what matters for a Mauritian project.
| Rule | Content | Text |
|---|---|---|
| Rate | 0% up to AED 375,000 of taxable income, 9% above; top-up tax to reach 15% in the multinational groups concerned | Art. 3; CD 116/2022 |
| Resident companies | Incorporated in the UAE, free zones included, or foreign but effectively managed and controlled in the UAE | Art. 11, 3 |
| Individuals | Taxable if their business in the UAE exceeds AED 1,000,000 of turnover in the calendar year | Art. 11, 3, c; CD 49/2023 |
| Non-residents | Taxable on the income of a permanent establishment in the UAE; a foreign legal person, on the income it earns from Emirati real estate (nexus) | Arts 11, 4 and 14; CD 35/2025 |
| Small business relief | Option to be treated as having no taxable income if turnover remains below AED 3,000,000; periods ending no later than 31 December 2029; excluded: qualifying free zone companies and multinational groups | Art. 21; MD 73/2023; MD 131/2026 |
| Withholding tax | 0% on Emirati income paid to a non-resident | Art. 45 |
| Anti-abuse clause | Recharacterisation of arrangements without economic purpose, strengthened in 2025 | Art. 50 |
A worked example
A mainland company with AED 1,000,000 of taxable profit owes AED 56,250 of tax: 0% on the first AED 375,000, 9% on the rest. The threshold applies once per taxpayer: splitting it between several companies is neutralised by law (CD 116/2022, Art. 2, 2).
Emirati dividends
Dividends received from a resident company are exempt for the Emirati company receiving them (Art. 22); withholding tax on dividends paid abroad is 0%. The tax is therefore played out at the shareholder’s level, according to their country of residence.
What Mauritius makes of it
The 9% tax is covered by the treaty (Art. 2, 4): paid by an Emirati company in which you hold at least 5%, it gives a credit against the Mauritian tax on your dividends, within the limit of that tax (Art. 23, 1, b).
11 Free zones
Does a free zone company really pay 0%?
Only on part of its income, and only if it meets all the conditions. The law creates the “qualifying free zone person” (QFZP): 0% on its qualifying income, 9% on the rest, without the AED 375,000 threshold. A free zone licence alone therefore gives no rate.
| Condition | What it requires |
|---|---|
| Substance | Sufficient assets, employees and expenditure in the free zone, for the activities that produce the income |
| Qualifying income | Transactions with other free zone persons (excluding excluded activities); with other customers, only for qualifying activities; certain intellectual property income |
| De minimis threshold | Non-qualifying income no greater than 5% of turnover or AED 5,000,000, whichever is lower |
| No election to the contrary | Not having chosen the standard regime |
| Transfer pricing | Arm’s length and documentation |
| Accounts | Audited financial statements |
| Income | Treatment |
|---|---|
| Income of a permanent establishment in the UAE outside the zone, or abroad | Non-qualifying: 9% |
| Income from real estate, except limited cases between free zone persons | Non-qualifying |
| Excluded activities (including most transactions with individuals) | Non-qualifying |
If a condition is missing
The company loses the regime from the start of the period concerned and for the following four periods: at least five years of standard taxation, 0% up to AED 375,000 then 9%. On AED 2,000,000 of profit, that is AED 146,250 a year.
And in Mauritius?
The 0% does not cross the border: as a resident of Mauritius, you are taxed there at the progressive scale on the dividends received from the company, with no Emirati tax to credit, except a tax sparing credit accepted by the MRA (section 09).
Managing from Mauritius
Work done from Mauritius for the company may constitute a permanent establishment in Mauritius: its income is not qualifying, and it quickly exceeds the de minimis threshold. This is the first risk for the founder who settles in Mauritius (section 12).
12 Company managed from Mauritius
Does your Emirati company remain Emirati if you manage it from Mauritius?
Not necessarily for tax purposes. Under Emirati law, a company incorporated in the UAE remains resident, wherever its manager is (Art. 11, 3, a). For Mauritius, a company is resident if it is incorporated there or if its central management and control are there (ITA, s. 73). Managed from Mauritius, it may be resident in both States; the treaty then decides by the place of effective management (Art. 4, 4).
| Risk | What triggers it | Consequence |
|---|---|---|
| Permanent establishment in Mauritius | A fixed place of business in Mauritius, for example an office from which you conclude contracts | The profits of that establishment are taxable in Mauritius (Art. 7); for a free zone company, they are not qualifying |
| Loss of the free zone regime | Insufficient substance in the zone, non-qualifying income above the threshold | 9% over at least five periods |
| Dual residence | Central management and control exercised from Mauritius: boards, strategic decisions, signatures | The company becomes a resident of Mauritius if its place of effective management is there: Mauritian corporate tax of 15% on its income |
The licence decides nothing
An Emirati licence, address and account are not enough: what counts is where decisions are taken and the work is done.
Organise rather than endure
A board that sits and decides in the UAE, Emirati-resident managers, real local substance: or, conversely, a deliberate transfer of the company to Mauritius. Both are prepared before departure, with an adviser in each country.
In case of disagreement
If both administrations claim the company, the mutual agreement procedure may be opened with either (Art. 25, as modified by the MLI), within three years of the first notification. The treaty provides no arbitration: nothing obliges the two States to agree.
13 Inheritance, gifts, wealth
Inheritance, gifts and wealth: what the absence of tax does not settle
There is no general tax on inheritances, gifts or wealth in Mauritius, nor a federal tax of this kind in the UAE, and the treaty does not deal with inheritances. That does not mean that the transfer of a real estate asset is free of all duties: a gift or transfer of property may be subject to the registration duties and transfer taxes provided for by Mauritian legislation, subject to applicable exemptions; in the UAE, the transfer of a title deed follows the emirate’s fees and formalities. Three things must not be confused: the absence of a general tax, the absence of formalities, which exists in neither country, and the absence of civil-law rules, which does not exist either.
| Question | In the UAE | In Mauritius |
|---|---|---|
| General inheritance or gift tax | No general federal tax of this kind | No general inheritance or gift tax |
| Duties linked to the transfer of a property | Registration and title transfer fees set by each emirate | Registration duties and transfer tax possible on a gift or transfer of property, subject to applicable exemptions |
| Formalities | Opening of the estate before the courts or by a registered will; transfer of property titles and accounts | Affidavit of succession and declaration at a notary’s; a gift of property goes through a notarial deed |
| Civil-law rules | Devolution according to religion, nationality and emirate: civil personal status for non-Muslims (federal decree-law of 2022, in force on 1 February 2023), Abu Dhabi’s own law | Property located in Mauritius follows Mauritian law |
| Wealth tax | None | None |
The country of origin may still tax
Settling in the UAE or Mauritius does not erase the inheritance tax of the country of origin. France, Belgium, the United Kingdom or Germany may tax according to their own criteria: nationality, past residence, location of assets, residence of heirs. Each country guide in this section details these rules; this is often where the only real inheritance tax lies.
A will in each country
An Emirati property and a Mauritian villa come under two laws and two procedures: a will registered in the UAE and arrangements made with a Mauritian notary avoid frozen accounts and titles.
Wealth: not “0% on everything”
Neither has a wealth tax, but an asset located elsewhere remains subject to its own State: a property kept in France may remain within the real estate wealth tax.
14 Transfers and exchanges
Transferring your capital, declaring, and what the administrations exchange
Neither country has exchange controls. A transfer of capital is not income: it is the nature of the funds that decides the tax. And an account opened in one of the two countries is not invisible to the other.
Declaring on arrival in Mauritius →| Mechanism | What it provides | Consequence for you |
|---|---|---|
| Common Reporting Standard (CRS), UAE → Mauritius direction | Emirati banks report the accounts of Mauritian residents; the Ministry of Finance forwards them | Your account in Dubai or Abu Dhabi is known to the MRA as soon as you are a resident of Mauritius |
| CRS, Mauritius → UAE direction | The UAE appears on the MRA’s list of reportable jurisdictions | The Mauritian account of an Emirati resident is reported to the UAE |
| Exchange on request | Any information foreseeably relevant, in the earlier wording of Article 26 | A specific request from either administration remains possible |
| Exchange controls | Abolished in Mauritius in July 1994; no exchange controls in the UAE | Banks check the origin of funds for anti-money-laundering purposes |
Capital or income
The sale price of an apartment, savings built up before arrival, your company’s capital: transferred to Mauritius, they are capital. Rent, a dividend or interest of the year received in Mauritius is taxable income. Keep the statements that date the origin of the funds: they make the difference.
Returns
In Mauritius: tax number with the MRA, return and payment by 15 October at the latest for the year ended 30 June. In the UAE: an individual has no income tax return; the entrepreneur or company registered for corporate tax files its own.
No assistance in collection
The treaty provides none; this erases no tax debt, Emirati or Mauritian.
15 Case studies
Four common situations
The rules above applied to four profiles we often meet. Fictitious amounts, in dirhams, dollars or rupees, without conversion; Mauritian tax calculated with the Finance Act 2026 scale, with no other income or deduction.
| Situation | What applies |
|---|---|
| A French entrepreneur, resident in Dubai for four years, settles in Mauritius | He keeps the shares of his Emirati mainland company, which pays the 9% Emirati tax. As a resident of Mauritius, he receives Rs 6,000,000 of dividends there: Rs 1,050,000 of Mauritian tax, less the credit for the Emirati tax paid by his company on those profits, since he holds more than 5% (Art. 23, 1, b). If he sells his shares, neither the UAE nor Mauritius taxes an individual’s capital gain. What relates to his departure from France four years ago is dealt with separately, on the French side. |
| A UAE resident keeps her Dubai apartment and buys a villa in Mauritius | She remains an Emirati resident. Villa of USD 600,000: USD 30,000 of registration duty, residence permit possible. Let at Rs 2,000,000 a year, the villa gives Rs 250,000 of Mauritian tax, which the UAE does not increase. If she lets her Dubai apartment without a licence and without an activity requiring one, this real estate investment income is excluded from Emirati corporate tax; VAT (exempt on residential) and the emirate’s fees remain separate. On her death, each property will follow the law and procedure of its country. |
| The founder of a free zone company settles in Mauritius | If he manages it from Grand Baie, he risks a permanent establishment in Mauritius and the loss of the free zone regime: on AED 2,000,000 of profit, AED 146,250 of Emirati tax a year for at least five years; if effective management moves to Mauritius, the company becomes resident there. A board sitting in the UAE and a real local team are arranged before departure. |
| A UAE resident invests in Mauritius without leaving Abu Dhabi | He takes shares in a Mauritian company and places funds in a Mauritian bank. Dividends and interest are reserved to the UAE, which does not tax them; Mauritius levies nothing, on presentation of an Emirati certificate. His account is reported to the UAE under the CRS. |
16 Related guides
Going further
The main guide and the pages that detail 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→17 Sources & methodology
Reliable, up-to-date information
Each rule comes from the treaty, the MLI, a legal text or an official publication of the Emirati or Mauritian administrations, read on 2 October 2026. No former page of this site was used as a source. Synthesised texts were used only as a reading aid.
MRAMauritius Revenue AuthorityMoFUAE Ministry of FinanceFTAFederal Tax AuthorityTreatyUAE–Mauritius, 2006
- Convention between Mauritius and the United Arab Emirates signed in Singapore on 18 September 2006, and its protocol: Government Notice No. 14 of 2007, published by the MRA; MRA synthesised text incorporating the MLI, read as a reading aid
- OECD multilateral instrument (MLI): in force for the UAE on 1 September 2019, for Mauritius on 1 February 2020; MRA notes on the MLI (June 2024)
- UAE, tax residence: Cabinet Decision No. 85 of 2022; Ministerial Decision No. 27 of 2023; FTA guide on the tax residence certificate
- UAE, corporate tax: Federal Decree-Law No. 47 of 2022, consolidated text published by the Ministry of Finance (2026), amended notably by Federal Decree-Law No. 28 of 2025; Cabinet Decisions No. 116 of 2022, No. 49 of 2023, No. 100 of 2023 and No. 35 of 2025; Ministerial Decisions No. 73 of 2023, No. 229 of 2025 and No. 131 of 2026; Ministry of Finance press releases on small business relief (2023 and 7 August 2026); FTA guides on natural persons and free zone persons
- UAE, VAT and real estate: FTA guide on VAT on real estate (VATGRE1); Dubai Land Department, registration of sales
- UAE, information exchange: Cabinet Resolution No. 93 of 2021; Ministry of Finance, list of jurisdictions participating in the CRS
- UAE, personal status: Federal Decree-Law No. 41 of 2022 on civil personal status; Law No. 14 of 2021 of the Emirate of Abu Dhabi, cited for their existence and scope
- Mauritius: Finance Act 2026, s. 7(v); Income Tax Act, ss. 2, 5(3), 73, 73A and 77, Second Schedule; MRA, list of treaties in force and list of CRS jurisdictions; Bank of Mauritius: exchange controls abolished in July 1994
Texts read and checked on 2 October 2026. The Emirati rules cited are federal, except property duties, which are specific to each emirate: the 4% rate cited is that of Dubai. The corporate tax thresholds are those in force on 2 October 2026. This guide sets out the rules of both countries; it does not replace the advice of a tax adviser, in the UAE as in Mauritius, on your situation.
18 Frequently asked questions
Your questions on taxation between the United Arab Emirates and Mauritius
Short answers, backed by official texts.
Frequently asked questions: United Arab Emirates ↔ Mauritius
Yes: signed on 18 September 2006, in force since 31 July 2007, modified by the MLI. It covers neither inheritances nor registration duties, and provides neither arbitration nor assistance in collection.
No. Tax residence follows three criteria set in 2022: usual residence and centre of interests, 183 days, or 90 days with a permit and ties. The permit comes into play only in the last, with other conditions.
With a tax residence certificate issued by the FTA for the period concerned. It is the document the MRA and Mauritian banks ask for in order to apply the treaty.
No. There is no federal income tax on individuals, but the 9% corporate tax also targets the sole trader above one million dirhams of turnover, VAT is 5%, and each emirate collects its own property duties.
Only on its qualifying income, if it meets all the conditions, including real substance in the zone. The rest is taxed at 9%, and a single failure loses the regime for at least five periods.
We found none for an individual: with no income tax on individuals, nothing taxes their unrealised gains. A business registered for corporate tax must, however, be deregistered.
Yes, if it is received in Mauritius, at the Mauritian scale, with no credit since the UAE has levied nothing. The treaty leaves the UAE free to tax that rent; its corporate tax excludes the real estate income of an individual from an activity carried on without a licence and not requiring one.
In Mauritius, at the scale, with 10% withholding if the tenant is not an individual. The UAE exempts this income: Mauritian tax is the only one.
Yes, if you are a resident of Mauritius and they are received there: the treaty reserves them to Mauritius. If your company has paid Emirati tax and you hold at least 5% of it, that tax is credited.
No. You risk a permanent establishment in Mauritius, the loss of the free zone regime, and Mauritian residence of the company if its effective management moves there. The Emirati licence does not protect it.
No general inheritance or gift tax, in Mauritius as in the UAE. The transfer of a property may nonetheless be subject to registration duties or transfer taxes in Mauritius, and to the emirate’s fees in the UAE; there are also formalities and civil-law rules in each, and your country of origin may still tax the inheritance according to its own criteria.
Yes, if you are a resident of Mauritius: Mauritius is on the list of jurisdictions with which the UAE exchanges under the CRS. In the other direction, the MRA reports to the UAE the accounts of its residents.