Over the past thirty years, Mauritius has emerged as a reputable and reliable jurisdiction in the global business sector.

Several factors contribute to this success, including:

  • A network of double taxation avoidance agreements with 46 countries
  • A robust legal and regulatory framework
  • Political stability
  • International-standard infrastructure
  • Presence of international banks and law firms
  • Availability of skilled professionals

Additionally, the cost-effectiveness of Mauritius is a significant attraction for many clients.

The jurisdiction has successfully attracted numerous fund managers to structure funds in Mauritius. The variety of fund vehicles available offers fund managers and promoters the flexibility to tailor funds to their requirements and investor preferences.



Funds can be established as a company limited by shares, a limited partnership,  a protected cell company or a unit trust. To provide a a modern and flexible framework for incorporating funds, the following legislations have been enacted :

  1. Protected Cell Companies Act 1999
  2. Companies Act 2001
  3. Financial Intelligence & Anti-money Laundering Act 2002
  4. Prevention of Corruption Act 2002
  5. Securities Act 2005
  6. Financial Services Act 2007
  7. Securities Act 2008
  8. Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008
  9. Limited Partnership Act 2011



Types of Funds

Professional Collective Investment Schemes: Funds in Mauritius are registered as collective investment schemes under the Securities Act 2005. These vehicles can be structured as either open-ended or closed-ended entities. One option is to register funds as professional collective investment schemes, which offer shares exclusively to sophisticated investors via private placement. These schemes are exempt from many provisions of the Securities Regulations because their shares are not resold to the public, and investors are aware of this restriction. Additionally, these schemes are not listed on any stock exchange.

Besides professional collective investment schemes, other types of funds that can be established in Mauritius include specialised collective investment schemes, expert funds, and self-managed schemes. These funds differ from retail funds as they are exempt from many of the regulations applicable to retail funds. They are intended for sophisticated investors and high net-worth individuals, often requiring a minimum level of investment from their investors.

Specialised Collective Investment Schemes: These  schemes invest in real estate, derivatives, commodities and other products which may be authorised by the Financial Services Commission (“FSC”) of Mauritius.

Expert Funds: Expert funds are designed for investors capable of making an initial investment of at least US$100,000. These funds target sophisticated investors who understand the associated risks and returns. An expert fund is typically structured as an open-ended fund, offering an exit mechanism to allow investors to withdraw from the fund.

Self-Managed Schemes: A self-managed scheme is one in which the board of directors assumes the role of the collective investment scheme manager, eliminating the need for an external manager. To authorize such a scheme, the FSC requires satisfactory proof that the fund's governing body can independently perform these management functions.


Benefits of using Mauritius

  • A fund can take advantage of double taxation avoidance agreements.
  • There is no capital gains tax in Mauritius.
  • There is no withholding tax on dividend and interest in Mauritius.
  • There is no exchange control in force and funds can be repatriated freely.
  • The maximum income tax liability on a fund which is tax resident in Mauritius is 3%.
  • A fund can claim underlying taxes and benefit from tax sparing provisions.
  • It is now possible to incorporate an exempt fund in Mauritius as a company up under the Mauritius Companies Act 2001.  Such corporate funds will be exempt from tax but do not benefit from tax treaty advantages. 


Taxation of Funds in Mauritius

A fund holding a global business license is subject to a 15% tax rate on its net chargeable income in Mauritius. However, since the abolition of the deemed foreign tax credit regime for Global Business Companies, a partial exemption regime has been in place since January 1, 2019. This new regime offers an 80% income tax exemption on income earned by a Collective Investment Scheme, Closed-end fund, CIS manager, CIS administrator, investment adviser, or asset manager licensed or approved by the FSC, provided they meet the substance requirements.

The exemption applies to the following income:

  • Foreign dividend, subject to amount not allowed as deduction in source country.
  • Foreign-source interest income.
  • Profit attributable to a PE of a resident company in a foreign country.
  • Foreign-source income derived by a CIS, Closed End Funds, CIS manager, CIS administrator, investment adviser or asset manager licensed or approved by the FSC.
  • Income derived by companies engaged in ship and aircraft leasing.
  • Interest derived by a person from money lent through a peer-to-peer lending platform operated under a license issued by the FSC.


To be eligible for the partial exemption, investment funds holding a global business license shall, at all times carry out their core generating activities in, or from Mauritius, by:

  • employing, directly or indirectly, a reasonable number of suitably qualified persons to carry out the core activities; and
  • having a minimum level of expenditure proportionate to its level of activities.


The minimum employment requirements and minimum annual expenditure with respect to the different licenses are detailed in the table below.

License Type Minimum Annual Expenditure (USD) Minimum Employment in Mauritius
CIS Manager/Asset Manager 30,000 If assets under management:
<USD100m: Min 1
USD100m-USD500m: Min 2
>USD500m: Min 3
Investment Adviser 30,000 1
Collective Investment Scheme Not Specified Not Specified
Close Ended Funds Not Specified Not Specified
Others 25,000 1


There is no capital gains tax in Mauritius and there is no withholding tax payable in Mauritius in respect of payments of dividends and interest to investors or in respect of exchange of shares. However, the recipient may be subject to taxation in the jurisdiction in which he is resident or domiciled for tax purposes and a fund may be subject to taxation in countries where investments are made.


This briefing is for informational purposes only and should not be construed as legal advice.