Comparison
Mauritius vs Seychelles โ Indian Ocean Offshore
Mauritius is the serious offshore choice โ a regulated GBC with 3% effective CT, extensive Africa/India treaty access, and FSC oversight. Seychelles is the cheap offshore choice โ USD 400โ700/year,...
March 2026 3 min read
The Indian Ocean pair
| Factor | Mauritius (GBC) | Seychelles (IBC) |
|---|---|---|
| Effective CT | 3% | 0% |
| Treaty network | 45+ (including India, Africa) | Very limited |
| FSC/FSA regulation | FSC (credible regulator) | FSA (less prominent) |
| Substance required | Yes (2 Mauritian directors) | No |
| Audit required | Yes | No |
| Year 1 cost | USD 6,950โ13,950 | USD 400โ700 |
| Banking | Via Mauritius bank (accessible) | Very difficult (standalone) |
| International reputation | Respected for treaty structures | Lower |
| EU grey/blacklist risk | Periodically appears | Periodically appears |
| India FDI gateway | Historically key | No |
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The cost-benefit analysis
- Mauritius GBC: USD 7,000โ14,000/year but provides:
- 45+ bilateral treaties reducing withholding taxes on Indian and African flows
- Regulated FSC entity recognised by institutional investors
- 3% effective CT rate (legally and structurally sound)
- Audit and compliance creates documentation trail for investment positions
- Seychelles IBC: USD 400โ700/year but provides:
- 0% tax (but no treaty access, so source-country WHT applies at full rates)
- No banking capability as standalone entity
- Minimal substance โ increasing scrutiny from partner jurisdictions
- Appropriate only as a non-banking holding layer
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Choose Mauritius if: โ India investment structure (India-Mauritius DTAA still partially effective) โ African subsidiaries requiring treaty-efficient dividend repatriation โ Institutional investors require regulated, audited entity โ You need actual banking access in Mauritius
Choose Seychelles if: โ Pure holding layer above a company that does the banking โ Maximum cost minimisation โ You understand and accept limited treaty access
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.