Trusts in Mauritius are governed by the Trusts Act, 2001. A trust can only be created by an instrument in writing which should state its object, subject, intention and duties and powers of the trustees. A trust may therefore be defined as a binding obligation on the Trustee to hold and deal with the Trust’s Assets for the benefit of the Beneficiaries in accordance with the terms of the Trust. The Trustee administers the assets and may distribute them to the beneficiaries in accordance with the terms of the trust deed and the proper law of the trust.
Types of Trust
Generally speaking offshore trusts fall into four broad categories:
- Discretionary Trust
- Purpose Trust
- Charitable Trust
- Corporate Trust which includes pension and employee benefit trusts.
The most common and flexible type of offshore Trust is the Discretionary trust.
Trusts are an important tool in estate planning and private wealth management. Through the use of trusts it is possible to protect and preserve family assets to pass over future generations in a tax efficient manner. There is no requirement in Mauritius to register trusts, thereby maintaining confidentiality. A corporate structure allows its shareholders to have business conducted, own assets and limit liability. The ability to manage assets through a combination of trusts and companies is proving increasingly valuable and the legislation in force in Mauritius provides an effective framework for the conduct of international fiduciary activities and providing services in that respect.
Our Trust Services include:
- Setting up and administration of non-resident trusts in Mauritius.
- Acting as Corporate Trustee on a variety of trust structures
- Setting up and administration of Private Trust Companies (PTC)
- Trust Accounting Services
Trusts in Mauritius
Mauritian legislation allows for the creation of various types of Trusts, including fixed, discretionary, protective, purpose and charitable trusts.
Key Features of Trusts in Mauritius:
- No registration requirements
- Anti-avoidance provisions in relation to forced heirship rule.
- Trustee must be licensed by the Financial Services Commission
- A non-resident Trust is taxed on its Mauritius source income (foreign source income are exempt)
- Trusts may apply for a GBC I license
- Confidentiality enshrined in the law
- Maximum duration of 99 years