Mauritius Premium Visa

Local tax regime and what it means for you

Mauritius applies a resident tax regime, and the Premium Visa sits awkwardly between visitor and resident status. Public EDB guidance clarifies that Mauritian-sourced income of a Premium Visa holder (for example, salary for work actually performed in Mauritius) is taxable, while foreign earnings spent in Mauritius via foreign debit/credit cards are not treated as remitted. VISA FACTS, however, flags the regime simply as “resident,” meaning that once you are a tax resident, Mauritius can tax your worldwide income, with specific carve-outs like the card-spend treatment.

For a remote salary paid by a US, Canadian, or European employer into an offshore account, the core question is whether you cross the tax-residence day threshold and whether you formally remit those funds into a Mauritian bank. ETF dividends, US brokerage interest, and rental income from property abroad are foreign-source; under the published Premium Visa FAQ, those become taxable in Mauritius when you bring them into a local bank account, unless you declare that tax has already been paid in your country of origin or residence. Pension and Social Security-type income is not recognized for visa qualification purposes in VISA FACTS, but once you are a resident, those inflows can be taxable if remitted.

On capital gains from foreign investments (for example, selling index funds or ETFs in a US brokerage), Mauritius historically does not impose a separate capital gains tax; gains are generally not taxed as such. For Premium Visa holders who are tax-resident, the controlling concept is remittance and characterization: gains kept abroad and accessed by card spend fall outside the remittance rule, while lump sums wired into a Mauritian bank could be scrutinized. The precise treatment of foreign portfolio gains is not publicly specified for Premium Visa holders beyond the general income-tax and remittance principles.

Tax residency is mainly day-count based. The Premium Visa FAQ states that anyone staying more than 180 days in a calendar year needs a Premium Visa rather than a mere tourist visa, and Mauritius uses a 183-day threshold in many contexts to determine residency. Practically, if you spend over about 183 days in Mauritius in a tax year, you should assume tax residency, with registration at the Mauritius Revenue Authority, a local Tax Account Number, and annual filing obligations. Local filing deadlines and registration steps for Premium Visa holders are not specified in VISA FACTS, so you need to align with general individual taxpayer rules.

Tax treaty status with the US is listed as unknown in VISA FACTS. That means you cannot assume a double tax treaty or totalization agreement will eliminate US tax on your Mauritian income streams or protect US Social Security and dividends; you have to plan as if there may be no treaty relief until you verify a current treaty via official US and Mauritian sources.

For US Citizens and Green Card Holders

US tax obligations continue regardless of your Mauritius immigration status. A Premium Visa and even Mauritian tax residency do not disconnect you from the IRS. Three main US tools matter: the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit (FTC), and foreign asset reporting.

FEIE (Form 2555) applies only to earned income (remote salary, self-employment, consulting) up to USD 126,500 for 2024. It does not cover ETF dividends, capital gains, IRA/401(k) distributions, rental income, or Social Security. Given that the Premium Visa encourages you to live in Mauritius for 6–12 months, the Physical Presence Test (330 full days abroad in any 12‑month period) is workable if you spend almost the whole year outside the US and do some travel beyond Mauritius; the Bona Fide Residence Test is harder to rely on because the Premium Visa is explicitly temporary and does not lead to PR.

The Foreign Tax Credit (Form 1116) is valuable only if Mauritius actually taxes a given income stream at a meaningful rate. If you structure your affairs so foreign income stays offshore and is spent via cards, your Mauritian effective rate on that income can be close to 0%. In that case, the FTC gives you little or no relief; you will owe full US tax on that income. Conversely, if you become Mauritian tax-resident, wire income into a local bank, and pay Mauritian income tax, those payments can generate FTCs to offset US tax on the same income, subject to Form 1116 limitations.

FBAR (FinCEN 114) kicks in if the aggregate value of all non-US accounts (including any Mauritian bank accounts you open, plus foreign brokerage or fintech accounts) exceeds USD 10,000 at any point in the year. This is separate from FATCA Form 8938, which has higher thresholds but overlaps in scope. The Premium Visa does not require a Mauritian bank account, but many long-stayers open one for convenience; that alone is enough to trigger FBAR if combined balances cross USD 10,000, with non-willful penalties starting at USD 10,000 per violation.

For sustainable tax planning, you need two professionals: a US CPA who specializes in expat taxation and understands FEIE, FTC, FBAR, and FATCA in the context of remittance-style jurisdictions, and a Mauritius tax advisor who can guide you on residency status, remittance planning, and local filings. The USD 1,500–3,000 you spend in year one on this combined advice often pays for itself through avoided penalties, correct elections, and a structure that aligns Mauritian rules with your US obligations.