Premium visa & taxes

Interesting point and I am not an expert. The purpose of a double tax agreement is to avoid paying tax on the same income in both countries. If I use the DTA between the UK and Mauritius as an example, my interpretation is:

(a) A UK government pension from either government employment e.g. Teacher or old age state pension would be taxed in the UK.

(b) A private employment pension for passed employment carried outside of Mauritius would only be taxed in Mauritius, subject to you being a tax resident of Mauritius.

You probably need to review the specific DTA.

I am always interested in ideas of minimising tax liability:)

Chris

If you above 50, it's better to have a retirement visa instead of a premium visa.

@karibi

Again, I am also not an expert. However, it depends on whether you are tax resident in Mauritius or not.

I think the Premium Visa is for those who will reside in Mauritius for a fixed term, are employed by a foreign company/entity but are not tax-resident in Mauritius. Hence they will be taxed in the country of origin, which hopefully has a tax agreement with Mauritius.

I do not know if retirement income is sufficient to get a Premium Visa.

If I was to retire in Mauritus from the UK, I would definitely apply to become resident for tax purposes. The UK govt is happy for pensions to be paid abroad -- and that will be the pension before tax deductions. That pension will rise with rate of inflation in the UK. I would then pay taxes in Mauritius.

Also, for someone who is above 50, it is probably easier to get a Retirement permit. This does not allow you to WORK in Mauritius and get a salary, but I have no idea if I can work remotely for a foreign company and get paid by them abroad while I am living in Mauritius. I think I would still need to declare my world-wide income to the tax authorities in Mauritius.

Hmmmmmmmmm........

@karibi

Yes, definitely would prefer to pay taxes in two countries. After doing some research on Internet,  i understood that you might need to pay taxes in Mauritius for money that is remitted to Mauritius,  for example a to a bank account.  Money used through credit card or debit, does not count as remitted to Mauritius,  so thats what ill do.

@Macmac0065

Would not*

@Macmac0065

you had me worried for a minute!

Taxes are lower in Mauritus as compared to the UK, if you are a higher rate tax payer in the UK.

@Tookays

Yes, & even higher in Sweden,  where i currently live. Problem was just that i missed the part about money being remitted to Mauritius & the definition of it. As i see it, im safe & it isnt an issue anymore.  I was also worried if i needed to change my relocation plans later this year,  but now ill go for my dream.

From what I understand... for Premium Visa holders, any foreign earnings are taxed in Mauritius on a remittance-basis only.  This means that anything you remit to Mauritius is taxable in Mauritius, unless you can prove that taxes have already been paid on it in the country where you received it. 

Dual Taxation Agreements (DTAs) are not really in place to protect you from paying tax twice, although they do perform this function, they are in place to ensure that you pay the highest taxes due of the 2 countries involved. This is so your home country, for example, doesn't lose out financially by you being in the host country, if your home country's taxes are higher.

In the case of the UK, again, for Premium Visa holders, you can tell the UK tax authorities that you are tax resident in Mauritius, and get a non-taxable (NT) tax-code from them to stop your UK employer deducting tax on your payroll. You can then pay Mauritian taxes on any of the UK income that you remit to Mauritius. As you would physically be working remotely from Mauritius, it is Mauritius-generated income anyway, even if for a UK employer. Getting this NT tax-code isn't the easiest thing in the world - you need to have no real remaining ties to the UK, such as property or close family, but otherwise it's possible.   

I'm fairly certain that this is possible for other countries also. The key is to formally get your home tax-authority to accept that you are tax-resident elsewhere, and to stop taxing you. Then declare the income in Mauritius and pay the (lower) taxes there instead.

Note: I am not a tax-expert, please verify anything I have said with a professional. This is just based on my own research.

@KC_

Thanks for your valuable information