Moving to Mauritius: Benefits, challenges, and business realities

For many years, Mauritius has attracted entrepreneurs and expatriates with its favorable tax policies, tropical climate, and high quality of life. Yet behind this idyllic image lies a more complex reality. Mauritius is not a land of opportunity for everyone. It is neither a constraint-free tax haven nor a guaranteed solution for launching a business, nor a postcard-perfect destination for an effortless relocation. Strafin, an international provider of corporate, trust, and fund administration services, offers a clear, grounded analysis of the real challenges involved in moving to Mauritius to start a business.

Is Mauritius a tax haven? The reality is more nuanced

Mauritius is often labeled a tax haven due to its attractive tax system: a corporate and personal income tax rate of 15%, with mechanisms enabling some international businesses to lower their effective tax rate to 3%. This environment has long attracted multinationals and offshore companies, particularly in the financial services sector.

Today, however, the landscape is more complex. After implementing financial transparency reforms and strengthening cooperation with the OECD, Mauritius was removed from the European Union’s blacklist in 2019. The country has since introduced “economic substance” requirements, requiring companies to establish a genuine local presence through physical offices, full-time employees, and local operational expenses.

While Mauritius continues to offer a favorable tax environment, it now operates within a stricter regulatory framework. Companies must meet heightened reporting, compliance, and auditing obligations.

It’s safe to say that Mauritius is no longer a traditional tax haven. In fact, it has evolved into a competitive, well-regulated tax jurisdiction.

Starting a business in Mauritius isn’t that easy

Mauritius is known for its political stability, its hybrid legal system shaped by both French and English law, and its strategic location between Africa, Asia, and Europe. The country positions itself as an investment platform and a regional hub. Yet in practice, the reality is often more nuanced.

Limited access to financing

Access to financing is one of the main hurdles for entrepreneurs, particularly for foreigners. Local banks remain cautious and are reluctant to fund newly established businesses without strong guarantees. Lending conditions are strict, and interest rates can be discouraging. At the same time, venture capital and business angel networks are scarce and relatively inactive, especially for early-stage ventures.

Intense competition within a small market

With a population of around 1.3 million, Mauritius offers a small domestic market. Several sectors — including restaurants, e-commerce, and real estate — are already saturated. Local businesses often have the advantage of established networks, deeper market knowledge, and easier access to talent.

To succeed, entrepreneurs must either target specific niches or focus on export markets. Both approaches demand a carefully considered strategy, significant investment, and deep integration into the local economy.

Administrative complexity

Although the government has introduced measures to streamline business processes — including one-stop shops, online platforms, and integrated permits — the administrative journey remains demanding. Delays can be lengthy, requirements may vary between authorities, and coordination between services is often inconsistent.

Support from local professionals — accountants, lawyers, and consultants — is often essential to navigate tax filings, legal obligations, and sector-specific regulations.

Moving to Mauritius: A lifestyle that needs perspective

It’s easy to understand why so many people dream of moving to Mauritius: year-round sunshine, turquoise lagoons, and a slower pace of life. But while many foreigners do find their balance on the island, others are met with realities they had not fully anticipated.

Constantly rising cost of living

In recent years, the cost of living has risen sharply, especially in areas popular with foreigners. For a family of four, for instance, monthly expenses typically range from MUR 80,000 to 120,000 (around €1,500 to €2,200), excluding extras. Rental prices can reach MUR 130,000 a month in premium areas such as Tamarin, Grand Baie, and Moka.

High import costs also drive up the price of European goods and daily necessities.

Education and healthcare are accessible but pricey

Expat families often turn to international schools such as IPS, Le Bocage, or Northfields, where annual fees can amount to several thousand euros per child.

In terms of healthcare, public hospitals offer mixed standards, prompting many expatriates to prefer private facilities.

Comprehensive international health insurance is strongly recommended, although it often comes at a significant cost.

Integration can be lengthy

Mauritius is a multicultural society, home to Hindu, Muslim, Creole, Chinese, and European communities. Despite the peaceful coexistence, foreigners may find that integration takes time. Developing a sense of belonging can be slow, particularly as Creole — the most widely spoken language on the island — can present a barrier.

Geographic isolation, different professional rhythms, and the challenge of building local connections can all make settling in more difficult.

Moving to Mauritius: A step that requires a pragmatic approach

Overall, Mauritius remains an appealing destination, although it does not meet everyone’s expectations.

Its many advantages are undeniable, yet they must not obscure the on-the-ground realities: administrative hurdles, hidden costs, a limited domestic market, institutional sluggishness, and integration challenges.

Before making the move, it is essential to ask the right questions, conduct a thorough market study, visit the island outside of a tourist context, and seek appropriate professional advice.

While Mauritius can be an excellent choice for the right profiles, there is no miracle solution. One thing is certain: the island does not simply sell dreams — it demands real effort to make them a reality.

Contact Strafin for expert guidance on successfully establishing your company in Mauritius.