Over the past ten years, Mauritius has transformed its financial services sector from a tax-driven offshore jurisdiction into a transparent, innovation-led International Financial Centre (IFC). Once known primarily for its offshore structures and tax treaties, Mauritius has repositioned itself as a compliant, resilient, and forward-looking destination for global investors. This evolution is the result of bold reforms, strategic regulation, and legislative innovation — culminating in the ambitious 2025–2026 Budget that sets the stage for the next chapter of growth.
The turning point came in 2018–2019, when Mauritius abolished the Category 1 and 2 Global Business Licences in response to OECD, EU, and FATF scrutiny. These were replaced with a single Global Business Licence (GBL) requiring real economic substance in Mauritius. This helped the country exit the FATF Grey List in 2021 and signaled a philosophical shift from tax arbitrage toward value-added financial services.
The Financial Services Commission (FSC) evolved from a licensing authority into a proactive, strategic regulator. It introduced the Regulatory Sandbox Authorisation (RSA) to promote fintech innovation and launched FSC One, a unified e-licensing and compliance platform. The FSC also enhanced its enforcement capabilities through an updated Enforcement Manual and embraced greater transparency in handling breaches. These initiatives improved regulatory oversight while reducing compliance friction.
Mauritius diversified its financial products as well. The introduction of Variable Capital Companies (VCCs) in 2022 enabled multi-fund structures under a single legal entity. Legalization of bullion banking, growing adoption of digital trade finance, and new frameworks for wealth management and family offices have expanded its appeal to sophisticated investors and high-net-worth individuals.
Tax reforms were equally transformative. The Partial Exemption Regime was aligned with BEPS principles, while the Qualified Domestic Minimum Top-Up Tax (QDMTT) is set to apply from July 2025. Amendments to the VAT Act brought foreign digital service providers into the tax net and streamlined input credit rules. To facilitate legacy compliance, the Tax Dispute Settlement Scheme (TDSS) and Tax Arrears Settlement Scheme (TASS) were introduced. These measures widened the tax base and improved efficiency.
Mauritius also strengthened its defenses against financial crime and enhanced data protection. The Data Protection Act is being harmonized with EU GDPR standards, and targeted AML/CFT training is being delivered ahead of the 2027 ESAAMLG evaluation. These steps reinforce investor confidence and support Mauritius’ vision as a secure, digital-ready jurisdiction.
The 2025–2026 Budget consolidates this decade of reform by introducing a central KYC repository, further digitizing licensing and trade documentation, and expanding the regulatory powers of the Bank of Mauritius. These forward-thinking measures aim to attract global talent, reduce administrative burdens, and position Mauritius as a smart, inclusive, and green IFC.
For firms like Aurevya Wealth, these reforms offer a stable, transparent platform to serve clients globally. Mauritius’ journey over the past decade demonstrates its resilience and commitment to building an IFC that balances innovation, compliance, and opportunity. The next decade promises even deeper integration, transparency, and global relevance.
2 Comments
Fatima Peerally
It’s impressive how Mauritius turned international scrutiny into an opportunity to modernize its financial sector. The FSC One platform is a game-changer for compliance.
ReplyDavid Mensah
The way Mauritius diversified into VCCs, fintech, and digital finance while meeting global standards is truly inspiring. A model for other IFCs to follow.
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