Mauritius Economy Overview

Currency

Mauritian Rupee (MUR)

Working hours

45 hours/week

Public/bank holidays

15 public holidays

Capital

Port Louis

Languages

Mauritian Creole, English, French

Population

1.261 million

Minimum hourly salary

103.13 MUR p/h MUR

Tax year

1st Jan – 31st Dec

Date format

YYYY/MM/DD

Misclassification penalties

Penalties for misclassification may include back-payment of minimum wage, overtime, paid vacation, pension, and employment insurance contributions. Interest of 10% or 20% may be applied, as well as punitive damages in serious cases.

Fun fact

Mauritius has one of the highest population densities in the world.

A small island nation, the Republic of Mauritius, with its capital of Port Louis, is located east of Madagascar and roughly 1,240 miles from the African coast. Its islands have been settled by a diverse range of people coming from India, Africa, Asia, and Europe.

The country was a French and then British possession before becoming independent in 1968, leaving English and French, including Mauritian Creole, as the country’s most commonly spoken languages. After decades of continual development, Mauritius is now considered an upper-middle-income country.

Mauritius functions as a gateway to Africa from the Asian market. Its stable economy and business-friendly environment have allowed this country of just 1.26 million people to grow and develop. The nominal GDP reached $15.89 billion in 2024 and is projected to grow by 4.0% in 2025.

Now is a great time to get into this growing market, and if you’re interested in doing business in Mauritius, this article will take you through the regulations and opportunities you need to know all about.

Overview of Mauritius' Economy

Mauritius uses its own currency called the Mauritian Rupee (MUR), which is valued at about 1 USD = 46.5 MUR. In 2025, the GDP of this small country is expected to reach 16.52 billion USD or around 768 billion MUR, positioning it as the 134th-largest economy in the world. This represents a healthy and diversified economy based on tourism, fisheries, ICT, manufacturing, and especially financial services. 

The country’s economy was previously based almost entirely on sugarcane growing and sugar production. In the late 1970s, agriculture still contributed 23% of the country’s GDP, while currently, this sector’s contribution has reduced to just 3.4%, and it only employs 5.1% of the total workforce. Industry contributes 18.4% of GDP and employs 23.6% of workers.

The economy is therefore dominated by the service sector, which contributes 65.8% of GDP and employs 71.2% of the workforce. Mauritius still produces mainly sugarcane, though tea and tobacco are significant crops as well and fishing is also important. Industrial is focused on electricity, water, and gas supply as well as the production of sugar and textiles.

Finally, the country’s critically important services include financial services and tourism, which is now rebounding from a drastic pandemic downturn. Mauritius exports fish, sugar, diamonds, and textiles to Zimbabwe, South Africa, France, Madagascar, and the US. The country’s main imports are refined petroleum, coal briquettes, cars, frozen fish, and medications.

These come from partners in China, South Africa, the UAE, India, and Oman. Mauritius has a moderate per capita GDP of $13,100/year. Unsurprisingly, hiring workers in this country can be affordable for employers coming from other, more developed countries.

The minimum wage is 17,110 MUR/month or roughly 374 USD/month, which is relatively low. Employers also need to contribute an additional 7-10% of their workers’ salaries for social schemes and are obliged to pay workers a 13th-month bonus. However, even with these additions, Mauritian workers remain relatively inexpensive.

Taxes

Employer Tax: 3% – 15%

National Savings Fund (NSF)

2.5% levy

Employment insurance

1.58% (max earnings limit)

Employee Tax:

National Savings Fund (NSF)

1% levy

Income tax

A progressive income tax is applied in Mauritius. The annual chargeable income of an individual will be taxed as follows:

Chargeable income (MUR*)

0-390,000

390,001-430,000

430,001-470,000

470,001-530,000

530,001- 590,000

590,001-890,000

890,001-1,190,000

1,190,001-1,490,000

1,490,001-1,890,000

1,890,001-2,390,000

2,390,001-and above

Basis of computation (MUR)

First 390,000

Next 40,000

Next 40,000

Next 60,000

Next 60,000

Next 300,000

Next 300,000

Next 300,000

Next 400,000

Next 500,000

Remainder

Tax Rate (%)

 0

 2

 4

 6

 8

 10

 12

 14

 16

 18

 20

Business Regulation in Mauritius

Mauritius has a dynamic economy and works hard to attract foreign investment by offering business incentives and Special Economic Zones (SEZs). However, there are also many rules and regulations to be aware of if you plan to move into this market.

Some of the most important are given here:

Registration and Compliance

When investors from other countries choose to incorporate entities in Mauritius, they normally select the forms of either limited liability companies (LLCs) or global business license companies (GBLs). An LLC can be opened with just one shareholder and one director who must be resident in the country, but can be a foreign national.

The minimum paid-in share capital for an LLC is only 1 USD. If you wish to incorporate in Mauritius but do business offshore, you can incorporate a GBL, a type of private limited company. To obtain a global business license, you’ll need to have an office in Mauritius, employ at least one person resident in the country, and hold assets in Mauritius worth at least 100,000 USD.

According to the World Bank, it’s extremely quick and easy to incorporate an entity in Mauritius. This country is rated as the 20th-easiest country for registration in the world. To incorporate an LLC, for example, takes just 4-5 days and requires only these three steps:

  • Registering the company with a unique name through the Companies and Business Registration Department (CBRD)
  • Having premises inspected by local authorities in the city where the business is located
  • Obtaining an exemption certificate for trade fees from the Municipal City Council

Corporate Income Tax in Mauritius

In Mauritius, the corporate income tax (CIT) rate is a modest 15% for most companies, though freeport and export companies pay only 3%. GBL companies can also qualify for an 80% exemption on foreign-sourced income, effectively lowering their CIT rate to 3% as well. VAT in Mauritius is 15% on most goods and services.

Employers need to pay 3% of worker’s salaries to social security if they make less than 50,000 MUR (about 1,080 USD) and 6% if they make more. They also contribute 2.5% to the National Savings Fund (NSF) and 1% toward a training levy.

Employees are deducted 1.5% or 3% of their salaries for social security and 1% for the NSF. Companies also have to set up corporate social responsibility (CSR) funds and pay 2% of their chargeable income into them and use these funds to implement socially beneficial programs.

In Mauritius’ five SEZs, however, companies receive a CIT reduction to just 3% for their first eight years. They’re also exempt from customs duties on the import of raw materials, machinery, and equipment and on the export of services and finished goods.

Employment Laws

Mauritians generally work 45 hours a week, and if they perform more hours of work, it’s considered overtime and should be paid at 1.5 times their normal wages. Employees are limited to working a maximum of 12 hours per day. They must receive 22 days of annual leave as well as 14 paid public holidays per year.

Maternity leave lasts 14 weeks and is fully paid through social security. Fathers are entitled to five days of paid paternity leave. Terminated workers normally receive 30 days’ notice, but if they’ve worked more than three years for their employer, they receive three months’ notice. Three months’ wages are paid for every year of service in severance pay.

Intellectual Property

Copyrights in Mauritius last for the author’s lifetime and another 70 years. Trademarks can be registered for an initial ten years and renewed for ten-year periods. Patents are protected for 20 years and can’t be renewed.

What Are the Benefits of Doing Business in Mauritius?

Any investor thinking about doing business in Mauritius is looking to gain advantages, and the following are some they should expect to encounter:

  • Strategic location
  • Low tax rates
  • compensation insurance
  • Robust legal framework
  • Affordable workers
  • Diverse labor force
  • Quick and easy incorporation
  • 100% foreign ownership possible
  • Special Economic Zones with incentives for business

What Are the Downsides of Doing Business in Mauritius?

Not everything about doing in Mauritius is positive, however, and investors should carefully consider the following potential negatives:

  • Limited domestic market 
  • Reliance on external trade
  • Distance from trading partners
  • Costly and time-consuming border compliance for imports and exports

Business Expansion Options in Mauritius

You have a wide range of entity choices if you decide to move into the Mauritian market. An array of service providers is also available to help you source, hire, and manage your local staff. Some of these options include:

Mauritius Employer of Record (EOR)

An Employer of Record is similar to a PEO, except it first hires local workers on your behalf and then manages their HR needs if you don’t own an entity in Mauritius. This can help you quickly get employees on your team and enter the local market.

LEARN MORE

Recruitment Agencies

If you need assistance sourcing local and skilled talent, you can engage a recruitment agency to help you. It will assess your needs and provide you with well-matched candidates. Some agencies will also help you with the interviewing and selecting stages if required.

LEARN MORE

Mauritius Professional Employer Organization (PEO)

A Professional Employment Organization manages HR for employees you hire through your own entity in Mauritius. This normally includes the management of payroll, benefits, leaves, and administrative activities.

LEARN MORE

Subsidiary Incorporation

Mauritius is one of the easiest companies to incorporate an entity in. Most investors choose to set up LLCs or GBL companies, and an LLC registration can take as few as four days. With your own entity, you can start trading in the local market and legally hire local employees on your own. SEZ companies are also possible and can receive some attractive tax incentives.

Branch Registration

Companies that are already established in other countries can open branches in Mauritius. To do so, they must have a registered office address and elect a local representative. Branches are limited to the business activities of their parent companies, who are fully liable for them but are tax residents in Mauritius.

Business Opportunities in Mauritius

Mauritius is known for its political stability, investor-friendly climate, and strategic location between Africa and Asia. With strong infrastructure, a skilled bilingual workforce, and a robust financial sector, the country has positioned itself as a regional hub for trade, finance, and innovation.

Entrepreneurs and investors can benefit from favorable tax policies, streamlined company registration, and access to regional markets through trade agreements.

Business OpportunityReason
Financial ServicesMauritius is a well-established offshore financial hub with strong legal and banking frameworks, making it ideal for investment funds, wealth management, and fintech.
Information and Communication Technology (ICT)Supported by government incentives and a growing talent pool, Mauritius is becoming a regional ICT and BPO center, offering high margins and export potential.
Tourism and HospitalityKnown for its world-class resorts and beaches, the tourism sector remains one of the most profitable industries with ongoing demand for niche experiences and eco-tourism.
Real Estate and Property DevelopmentHigh interest from foreign buyers and demand for luxury housing and commercial spaces make real estate a lucrative investment area.
Agro-processing and Specialty FoodsWith growing global interest in organic and value-added food exports, Mauritius offers good potential in agro-processing and sustainable agriculture.

Mauritius continues to attract international businesses looking for stable growth, regional access, and a pro-business environment. Whether you’re in finance, tech, or tourism, the country offers a strong foundation to build and scale.

With a high population density, reasonable cost of labor, and a business-friendly regulatory environment, Mauritius is a popular location for international business expansion and hiring.

For more information on Mauritius hiring and expansion, get in touch with one of our Mauritius hiring experts.