The France-Mauritius tax treaty, article by article

The convention between France and Mauritius was signed in Port Louis on December 11, 1980. The administrative list classifies it under "IR – IF" and makes no mention of inheritance tax. Article 10, paragraph 2, caps the tax on dividends at 5 % or 15 % of the gross amount, while paragraph 3 separately governs dividends paid by a Mauritian company to a resident of France. The text sets no ceiling on interest and provides France with a tax credit of 25 % on dividends from Mauritian sources. This page reads the official text article by article and explains what it does not cover.

A 1980 text, an amendment limited to the exchange of information

The convention. Signed on December 11, 1980 with a protocol which forms an integral part thereof, it was approved by law no. 82-483 of June 10, 1982 and entered into force on September 17, 1982. The administrative list of conventions (BOI-ANNX-000306, of April 29, 2026) classifies it in «IR – IF» (income tax and wealth tax) and makes no mention of inheritance or donation.

The amendment of June 23, 2011. It replaces only one article, Article 27, which deals with the exchange of information. Paragraph 5 prohibits refusing to disclose information on the grounds that it is held by a bank or other financial institution. It entered into force on May 1, 2012.

The multilateral convention (MLI). According to the BOI-ANNX-000511 list, it takes effect for France on January 1, 2021, for taxes withheld at source, and on August 1, 2020, for other taxes. The dates for Mauritius are not published here. The consolidated text places a clause entitled "Right to the Benefits of the Convention" before Article 1: a benefit is not granted if it is reasonable to conclude that obtaining it was one of the principal objectives of an arrangement, unless granting it is consistent with the object and purpose of the convention.

Maximum deductions and key rules

Who is a resident?

Article 4 applies to a person resident in both States. Paragraph 2 of this article considers such a person to be resident, in the following order: the State in which they have a permanent home; if they have such a home in both, the State with which their personal and economic relations are closest (centre of vital interests); if this centre cannot be determined or if they have no home in either State, the State in which they habitually reside; if they habitually reside in both or in neither, the State of which they are a national; if they are a national of both or of neither, the competent authorities of both States shall decide by mutual agreement. For a company, the criterion is the place of effective management (paragraph 3).

Dividends: 5 %, 15 % and the clause specific to Mauritian companies

Paragraph 2 of Article 10 sets out the two rates in the table. The condition for the 5 % rate relates to the beneficiary (a company), the ownership (at least 10 % of the capital) and its direct nature.

Paragraph 3, which begins with "Notwithstanding the provisions of paragraph 2," deals separately with dividends paid by a company resident in Mauritius to a resident of France. These dividends are taxable in Mauritius under its legislation, provided that the dividends paid by Mauritian companies are deductible for the purpose of determining their taxable profits. The tax thus established may not exceed the Mauritian corporate income tax rate. The remainder of this clause is governed by Mauritian legislation, which we have not reviewed.

Interest, royalties, capital gains

Paragraph 3 of Article 11 reserves for the State of residence interest payments where the beneficial owner is a resident of that State, when such payments are made "to that State, to a public body of that State or to a banking institution of that State." Outside of these cases, the text refers to the legislation of the source, without a ceiling. Royalties are capped at 15 %.

For capital gains, Article 13 imposes taxation on real estate in the State where it is located (paragraph 1), on ships and aircraft in international traffic in the State of the seat of effective management (paragraph 3) and on all other property in the State of residence of the transferor (paragraph 4).

Salaries: 183 days in the calendar year

Paragraph 2 of Article 15 excludes taxation in the State of employment if three conditions are met: the stay does not exceed 183 days in total during the relevant calendar year, the employer is not a resident of the State of employment, and the remuneration is not borne by a permanent establishment or fixed base. The convention calculates the tax year based on the calendar year; however, the Mauritian tax administration's page on tax residency refers to tax years.

Pensions: Article 18

Paragraph 1 makes pensions and other similar remuneration paid in respect of previous employment taxable only in the State of residence, subject to paragraph 2 of Article 19. Paragraph 3 sets aside paragraph 1 where the recipient is not subject to tax on such income in the State of which they are a resident, according to the laws of that State: such income is then taxable in the State from which it arises. Social security pensions fall under paragraph 2: only the State whose laws govern their payment are taxable.

Eliminating double taxation: Article 24 and the 25 % credit

For residents of France (Article 24, paragraph 2):

• General case. Income other than that referred to in paragraphs b and c is exempt from French taxes.
• Interest, royalties and other income from paragraph b. Income from Mauritius, as defined in Articles 11, 12, 14, 16, and 17, is taxable in France. Mauritian tax paid entitles the taxpayer to a tax credit equal to its amount.
• Mauritian dividends. Income from Mauritius referred to in Article 10 is taxable in France on its gross amount. Residents of France are entitled to a tax credit "equal to 25 percent of the amount of these dividends".

According to paragraph (d), the credits under paragraphs (b) and (c) may not exceed the amount of French tax due on the income in question. According to paragraph (e), French tax on income taxable in France under the convention is calculated at the rate applicable to the total income taxable under French law. Further details can be found in the text and in relevant legal commentary.

Inheritance, wealth and anti-abuse clause

The text contains no article on inheritance, and the administrative list makes no mention of either inheritance or gifts. Article 2, paragraph 1, mentions income and wealth taxes; paragraph 3 refers to income tax and corporation tax for France, and to income tax for Mauritius, but does not mention any wealth tax.

Article 23, entitled "Wealth," stipulates that real estate assets referred to in Article 6 are taxable in the State where the property is situated (paragraph 1), that the same applies to the assets of a permanent establishment or fixed base situated in the other State (paragraph 2), that ships and aircraft engaged in international traffic are taxable only in the State of the place of effective management (paragraph 3), and that "All other elements of the wealth of a resident of a State shall be taxable only in that State" (paragraph 4). The application of the convention to the French wealth tax (IFI) is not established.

What this page does not cover

Paragraph 4 of Article 10 (payment from the French Treasury equal to the tax credit, for certain beneficiaries residing in Mauritius) is not detailed. The articles concerning self-employed professions (14), profit-sharing bonuses (16), artists and athletes (17), civil servants (19), students (20), and professors and researchers (21) are also not detailed. The same applies to the provisions of the MLI other than the right to benefits. Mauritian dividend law and social security are not addressed.

Dividend of €40,000: numerical example (fictitious profile)

Situation. A French company pays a gross dividend of €40,000 to a fictitious resident of Mauritius. In the first scenario, the beneficiary is a Mauritian company that directly holds 12,130 shares of the capital. In the second scenario, it is an individual.

Issue. The manager wants to know the withholding tax ceiling according to the beneficiary.

Strategy. He reads paragraph 2 of Article 10 and compares the two ceilings. For individuals, he also compares them with the withholding tax of 12.80 % as of January 1, 2026, which the tax authority's page for individuals indicates for non-resident taxpayers, subject to any more favorable provisions in tax treaties. Assumptions: the dividend is paid by a French company (Article 10, paragraph 2); the entitlement to tax benefits is not affected.

Result. For a company holding 12 % of capital, the limit is 5 %, or €2,000. For an individual, it is 15 %, or €6,000. For an individual only, by way of comparison, 12.80 % of €40,000 represents €5,120. The law applicable to your case depends on the nature of the beneficiary and the clause governing entitlement to benefits.

What changes depending on your situation

• Your residence as defined in Article 4.
• The nature of the income: dividend, interest, royalty, capital gain, salary, pension.
• The form of the beneficiary (company or natural person) and their ownership percentage.
• The number of days spent in each state during the calendar year.
• The effect of the right to benefits clause.

An article should be read in light of the facts in your case. No outcome is guaranteed.