Trusts

Trusts set up under the Trusts Act 2001 provide an effective and legitimate means of sheltering assets. The legal rights of the settlor (the party settling the assets) are vested in the Trustee/Trustees. The Trustee then legally administers all the assets of the Trust for the benefit of the Beneficiary/ies. The Trustee administers the trust under the Mauritius Trust Act 2001 and in accordance with the terms of the trust deed.

Various types of trusts may be set up by residents and non residents in Mauritius, such as charitable, asset protection, discretionary, purpose and trading trusts, but in all cases with the details being clearly defined - its object, subject and intention.

Registration of the trust is optional. Flexibility is provided under the Trusts Act in terms of determining the governing law applicable to a trust. Accumulation of income for any period within the duration of the trust is also possible. With regards to trusts set up by non- citizens, the forced heirship rule does not apply.

Tax Resident Trust Features

  • A trust is resident for tax purposes and is taxed at the flat rate of 15%.
  • A trust may make use of the DTT.
  • A trust may carry on global business after obtaining a Category 1 Global Business Licence
  • A trust holding a GBLC1 licence will be entitled to the tax credit available thereby being taxed at an effective rate of 3% or lower
  • The trust vehicle is important for the long term management of wealth and may span several generations.
  • Strict confidentiality lies with the Trustee(s) and is maintained by the management company, and the disclosure of any information or documents is only authorised to legally-entitled persons.

Non-Resident Trust Features

A non-resident trust will be exempt from income tax only if a declaration of non-residence to the relevant authorities has been made within 3 months after the expiry of the income year.

Mauritius and Other Investment Opportunities

Mauritius is committed to providing an internationally recognized financial services centre offering competitive and sustainable services and products. Concurrently, Mauritius has provided exciting new developments in the real estate and property development market from which potential investors can further develop their business in or through Mauritius.

Commencing business in Mauritius is now a hassle-free process with the systems set up to provide Work Permits (called Occupation Permits) or the corresponding Permit eg. Self-Employed; Investor or Retired within the briefest delay provided all the relevant documentation is in place.