Introduction: Two Island Giants in the Indian Ocean Investment Scene
Seychelles and Mauritius — two names that evoke images of tropical beauty, azure waters, and luxury tourism. But in 2025, these Indian Ocean islands are also fierce competitors in a new arena: foreign investment.
With favorable tax regimes, political stability, and global reputations as offshore financial hubs, both nations have transformed from tourism-heavy economies into diversified, reform-driven, investor-friendly jurisdictions.
But which one is the better bet for international investors? This guide offers a detailed, side-by-side comparison of Seychelles and Mauritius based on business climate, tax systems, foreign ownership rules, regulatory reforms, and sector incentives.
Corporate Tax Systems: Seychelles vs Mauritius
Seychelles:
- 15% on the first SCR 1 million of taxable income
- 25% on income exceeding that
- 5-year tax holiday for priority sectors (manufacturing, digital, energy)
- Offshore IBCs pay 0% corporate tax on foreign income
Mauritius:
- 15% flat corporate tax rate
- Effective tax rate often reduced to 3% or lower through rebates
- Partial exemption regime: 80% exemption on certain income (foreign dividends, interest, etc.)
- Global Business Companies (GBCs) benefit from treaty access and low tax exposure
Verdict:
Seychelles offers straightforward offshore zero-tax opportunities, while Mauritius delivers greater treaty network benefits and lower effective tax rates through partial exemptions. Mauritius may be better for large multinationals; Seychelles for lean, offshore-focused businesses.
Ease of Doing Business
Seychelles:
- Simplified licensing through Seychelles Investment Board (SIB)
- New Commercial Court launching in 2025 for faster dispute resolution
- Digital Tax Management System (TMS) for online filings
- Transparent rules for foreign investment and repatriation
Mauritius:
- Consistently ranked among Africa’s top three easiest places to do business
- Streamlined company registration in under 2 days
- Strong judicial independence and dispute arbitration frameworks
- Integrated online platforms for tax, customs, and company filings
Verdict:
Both countries score high, but Mauritius remains the benchmark for administrative efficiency. Seychelles is catching up fast, especially with new digital reforms.
VAT and Indirect Tax Comparison
Seychelles:
- 15% VAT on goods and services
- Zero-rated for exports, education, and essential items
- Input VAT credit available for registered businesses
Mauritius:
- 15% VAT with similar exemptions
- No capital gains tax, inheritance tax, or wealth tax
- Special Economic Zones (SEZs) allow VAT deferral and duty exemptions
Verdict:
Both offer investor-friendly VAT systems, but Mauritius has a slight edge due to SEZ policies and broader indirect tax incentives.
Offshore and Financial Services Sector
Seychelles:
- Popular for International Business Companies (IBCs) with:
- 0% tax on foreign income
- No capital gains tax
- No withholding tax
- Improved compliance with OECD and FATF standards
- Economic Substance Requirements (ESR) apply
Mauritius:
- Global Business Company (GBC) structure offers:
- Treaty access with 40+ countries
- 80% exemption on qualifying income
- Robust ESR rules in line with EU and OECD
- Internationally trusted as a compliant financial hub
Verdict:
Both countries are offshore leaders, but Mauritius is better for sophisticated financial structures due to treaty access and mature compliance systems. Seychelles remains ideal for simpler, cost-effective offshore setups.
Sector-Specific Investment Incentives
Seychelles:
Sector
Incentives
Renewable Energy
5-year tax holiday, import duty exemptions
Blue Economy
Tax holidays, fuel duty waivers
Manufacturing
VAT refunds, access to industrial land
Tourism
Duty-free construction inputs, fast licensing
Mauritius:
Sector
Incentives
ICT & BPO
Income tax holidays, training subsidies
Real Estate (RES/IRS)
Residency-by-investment for property buyers
Finance
Access to Africa-focused investment funds
Agro-Industry
Land and water subsidies, tax holidays
Verdict:
Mauritius offers broader sector incentives and strategic access to continental Africa. Seychelles targets niche sectors like marine biotech and renewable energy.
Personal Income and Payroll Tax
Seychelles:
- Income up to SCR 8,555/month is tax-free
- Flat 15% personal income tax
- 5% surcharge on high incomes
- PAYE system with employer filing responsibilities
Mauritius:
- Graduated tax rates: 10% up to MUR 700,000/year, 15% beyond
- Solid tax residency framework with treaty benefits
- No capital gains or inheritance tax
Verdict:
Both offer low personal income tax burdens. Seychelles is more transparent and flat-rated, while Mauritius has more tiered efficiency.
Foreign Ownership Rules and Property Investment
Seychelles:
- 100% foreign ownership allowed in most sectors
- Certain restrictions in fisheries and utilities
- Foreigners need approval to purchase land, with exceptions for business purposes
Mauritius:
- 100% foreign ownership allowed, including in real estate under specific schemes
- RES/IRS/PDS schemes allow foreigners to buy property and gain residency
- Land acquisition in smart cities and industrial zones encouraged
Verdict:
Mauritius provides clearer property investment pathways for foreigners with residency perks. Seychelles is more business-sector focused.
Strategic Location and Market Access
Feature
Seychelles
Mauritius
Location
Between East Africa and Asia
Closer to Africa’s eastern seaboard
Port Access
Freeport zone, container port
Freeport with global logistics access
Trade Access
COMESA, SADC, WTO
COMESA, SADC, African Continental Free Trade Area (AfCFTA)
Air & Sea Connectivity
Limited but growing
Strong airline, banking, and cargo links
Verdict:
Mauritius is better positioned for large-scale trade with Africa and Asia, though Seychelles is rapidly enhancing its connectivity and shipping potential.
Final Verdict: Which Is Better for Your Investment?
Choose Seychelles if:
- You want offshore confidentiality and low-cost IBCs
- You’re investing in marine industries, digital services, or energy
- You prefer a flat tax system and lean regulatory setup
- You operate an export business or remote service company
Choose Mauritius if:
- You’re a multinational or fund looking for treaty advantages
- You want to tap into African markets and SEZ benefits
- You’re investing in fintech, BPO, or real estate
- You value a highly structured and digitally mature business environment
Conclusion: A Win-Win for Investors — With Different Strengths
Seychelles and Mauritius are not just holiday destinations — they are gateways to regional and global markets. Both offer investor-friendly tax regimes, political stability, and supportive business infrastructure.
- Mauritius is ideal for structured, high-volume, treaty-driven investments.
- Seychelles offers flexibility, niche sector opportunities, and ease of entry for leaner operations.
In 2025, your choice depends on your sector, scale, and strategic goals. For many investors, setting up in both jurisdictions may provide the best of both worlds
