The France–Mauritius tax treaty

After a move to Mauritius, some income may remain taxable in France. A pension, rent from an apartment and portfolio dividends may each follow different rules. The tax treaty determines which country may tax each type of income and how double taxation is relieved.

The French tax authority’s BOFiP entry records the treaty’s origins: signed in 1980 and amended in 2011. For a current situation, also consult the synthesised text published by the MRA, which incorporates the effects of the Multilateral Instrument. This version is a reading aid; the authentic legal instruments remain authoritative.

Start with your tax residence

Before comparing tax rates, establish where you are tax resident. A residence permit concerns immigration. It does not, by itself, settle your tax position between the two countries.

France considers factors including your family home, professional activity and main economic interests. Part of the year spent abroad does not always end French tax residence. Residence is also assessed individually within a couple. DGFiP, non-residents of France.

If both countries treat you as resident, Article 4 sets out successive tests: a permanent home, closer personal and economic ties, habitual abode, then nationality. If those tests do not resolve the position, the authorities must reach an agreement. Applied in turn, these tests determine your residence for the purposes of the treaty.

Different income, different rules

The situations below concern an individual who is resident in Mauritius for treaty purposes. Each category still has its own conditions to examine.

Your situation	What matters
You rent out an apartment in France	France retains the right to tax the rent. French obligations relating to the property continue after a move abroad.
You receive dividends from a French company	French taxation may still apply. The treaty ceiling and domestic rules need to be compared for your situation.
You receive French-source interest	The treaty also permits taxation in the source country. It does not provide a general exemption for individuals.
You work in both countries	Where you actually perform the work matters. Your employer’s registered office or the account receiving your salary does not settle the question alone.

These distinctions follow Articles 6, 10, 11 and 15 of the treaty. For rent, the DGFiP also distinguishes furnished and unfurnished lettings, which have different reporting requirements.

A private-sector career does not always mean a “private pension”

A pension earned through private-sector employment may be classified as a social-security pension for tax purposes.

Basic and compulsory supplementary pensions

French social-security pensions are taxable only in France under Article 18(2). The DGFiP includes statutory basic schemes and compulsory supplementary schemes, notably Agirc-Arrco, in this category. DGFiP, pension categories.

The MRA confirmed this treatment in ruling TR 219: the taxpayer’s French social-security pensions were not taxable in Mauritius, including when remitted there.

Other private pensions and public-service pensions

Other private pensions are generally taxed in the country of residence. However, Article 18(3) permits taxation in the source country where the recipient is not subject to tax on that pension in their country of residence. The tax treatment of the pension is therefore examined in both countries, including when it remains in a French account.

Public-service pensions follow Article 19, with provisions involving nationality. Annex 1 of the French 2041-E guidance distinguishes the three categories. Ask each pension provider to confirm the nature of its payments before agreeing the treatment with your tax adviser.

How is double taxation relieved?

The treaty does not use one method for every category. Depending on the income, it provides an exemption in one country or a credit for tax paid in the other. The credit is capped; it is not an automatic refund of all foreign tax. Treaty, Article 24.

In TR 219, the MRA confirmed exemption for the taxpayer’s French property income, provided it had been taxed in France, while retaining the requirement to file an annual Mauritius return. You may still need to file in both countries even if you are not taxed twice.

Practical steps to prepare

Gather residence evidence, pension-provider statements, income statements and proof of tax already withheld.

The MRA issues a Tax Residence Certificate for the relevant income year, following an application and assessment. For certain treaty benefits on French income, the DGFiP provides residence certificate form 5000, with supporting forms depending on the income and procedure. Check the applicable process and deadlines with the paying institution.

The treaty covers taxes on income and capital. It does not govern inheritance or gift taxes. Treaty benefits remain subject to its conditions of application and its anti-abuse rules.

These tax rules need to be taken into account when organising your accounts and investments. Our Mauritius page explains the broader setting; the tax treaty directory links to agreements with other countries.