Owner of a real estate property in Mauritius: How to fill your income tax form?

Owner of a real estate property in Mauritius: How to fill your income tax form?

A growing number of French nationals are choosing expatriation. This decision is most of the time motivated by a desire to enjoy a better lifestyle and to take advantage of favorable tax policies. The main issue remaining for owners of a property in Mauritius is usually knowing what exactly to state on their tax return documents.

One should know that have been granted a residence permit and/or a work permit in Mauritius does not automatically make one a Mauritian fiscal citizen as per the French administration. In fact, the property owner will be required to reside more than six months per year on the island to enjoy the status of Mauritian resident and all the attached tax benefits.

IN order not to be considered as having his fiscal domiciliation in France anymore, one should satisfy the following criteria:

  • Not working (anymore) in France. If one has several professional activities, it is the one yielding the majority of the income which will be taken into account.
  • Your main residence is not found in France. You might need to adduce evidence such as visa stamps on your passport to prove this element.

If these criterions are satisfied, you will then be considered as a Mauritian citizen as regards to the fiscal legislation. You will need to show that he has been granted a residence permit and prove that he or she has stayed on the island or outside of the French territory for more than 183 days. On the other hand, if the above criterion are not complied with, you will still have to pay his tax on all his earnings in France. This will include any money perceived from any rental activity in Mauritius. It should be remembered that the owner will not be required to pay tax in Mauritius.

On the other hand, if you manage to shift your fiscal domiciliation to Mauritius, you will be considered by the French administration as having acquired the non-fiscal resident status. In this case, you will need, before leaving France, to communicate your new address to the tax authority.

During the year following your departure, you will need to fill in your tax declaration online on the following address: impots.gouv.fr. This declaration must include your income from the 1st January to your departure date. All income generated on the French territory must be stated on the document No 2042. All income earned from abroad will have to be stated on the document No 2047.

During the following years, you will only need to declare to your non-resident tax authority all incomes earned in France, if any, and all real property related tax in France.

For more information on the various investment opportunities in the residential real estate sector in Mauritius, contact Diamond Estates who will guide you in your project implementation.