In France, tax exemption offers the possibility of investing in rental property and obtaining income tax reductions. However, this does not prevent the application of certain tax rules and, taxes in particular. And these are often quite constraining. The greater the assets, the higher they will be. This is why it may be more interesting to invest outside France, in Mauritius in particular. Indeed, this destination offers a lighter tax regime, less restrictive and therefore attractive to investors. In addition, the State has developed programs for foreign buyers wishing to acquire property on the Island that offer several advantages, including full ownership.
A more favorable tax regime for buyers than in France
While the French tax burden is reputed to be one of the highest in the world, this is not the case in Mauritius where it is less high and more bearable for investors. Buying a property in Mauritian territory allows you to benefit from some tax advantages:
- no inheritance tax;
- no property tax;
- no housing tax;
- for the French, total exemption from property tax for goods purchased in Mauritius;
- no taxation on dividends;
- in the event of resale, there is no capital gains tax.
Moreover, income from the rental of an apartment or villa is subject to a single tax: 15% (up to 3.5 million per year, beyond that the rate is 20%). All these advantages are absolutely not available in France and therefore make it possible to reduce taxes.
Double taxation, a very attractive condition
Choosing Mauritius is a wise choice to invest in real estate, especially when you live in France because both countries have signed a double taxation treaty. Under this tax treaty, the buyer of a Mauritian property that generates income will not be taxed twice. He will not pay taxes in both countries but only in one. And financially, it makes a big difference. This will prevent him from being taxed twice, probably at different rates, and therefore from seeing his income decrease. This agreement provides a kind of exemption.
Consequently, the income received by a foreign investor following his property purchase in Mauritius will only be taxed on the spot, at the rate set by the government (the 15% mentioned above). This agreement therefore helps to reduce its taxes while investing in an apartment or villa.
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