Setting Up a Trust in Mauritius

One of the best ways of protecting one’s assets is through the creation of a trust. From this point of view, Mauritius can be a great destination for foreign citizens seeking not only to protect their estate, but also to secure various assets or looking for a long-term investment solution.

There are various reasons for creating a trust in Mauritius and if you are exploring this possibility, our specialists can offer more information on your options. You can rely on our company formation agents in Mauritius for guidance in setting up a trust or any other type of business entity.

Trust legislation in Mauritius

Compared to other jurisdictions, Mauritius has a specific law that provides for the creation of trusts. This is the Trusts Law of 2001, which covers various aspects associated with the establishment of such a structure.

Under the Trusts Act, there are several types of trusts that can be created in Mauritius and two ways of establishing them. The law also provides for the appointment of trustees, their powers and duties.

If you want to set up a trust in Mauritius, you can rely on the expertise of our local advisors. We can also assist if you want to open a company in Mauritius.

Types of trusts in Mauritius

As mentioned above, the creation of a trust in Mauritius implies choosing one of the available types of structure. Here are the options:

  1. the charitable trust which can be created with the purpose of helping a charitable organization;
  2. the purpose trust which focuses on the reasons for creation of the trust and not its beneficiaries;
  3. the corporate trust which has as a main purpose corporate services related pension and employment benefits;
  4. the private trust which is one of the most employed types of trusts in Mauritius as it relies on the accumulation and protection of assets.

The private trust in Mauritius is further divided into the discretionary, asset protection and fixed trust.

If you want to set up a trust in Mauritius, there are various steps to consider, however, these are easy and fast to complete.

With the help of our company registration consultants in Mauritius, the creation of such a structure is even simpler.

The procedure of creating a trust in Mauritius

As mentioned above, there are two ways of setting up a Mauritius trust. The first one implies drafting a document, called declaration of trust that is signed by the trustee and that states the terms under which the trustee will administer the assets in custody. Through the declaration of trust, the trustee also agrees for his/her particular assets to be verified and recorded, so that they do not mix with the ones held into management on behalf of the beneficiaries.

The second way of setting up a trust in Mauritius is by settlement. This procedure implies drafting an agreement that is signed by the settlor (investor) and the trustee. In this document, the settlor provides clear instructions on the administration of assets, the obligations of each party, as well as any other details with respect to the object and intention of the trust.

If you are interested in business registration in Mauritius, you can rely on our tailored solutions. We can also assist with the creation of an offshore company here.

Why create a trust in Mauritius?

Even if Mauritius is mostly known as an offshore destination, those who want to set up trusts here can also take advantage of various benefits. Some of them are mentioned below:

  • they are an efficient tax planning and asset protection tool;
  • they can also be used for holding various investment and property assets;
  • they can also be used as vehicles for setting up investment funds;
  • they are efficient tools against forced heirship rules;
  • they can be employed for charitable and philanthropic purposes, case in which they are exempt from taxation.

Our Mauritius company formation advisors can provide more information on the benefits of setting up a trust in this country.

Taxation of a trust in Mauritius

As mentioned above, there are also some tax advantages related to the creation of a trust in Mauritius. For this purpose, we have made a comparison between the tax regulations imposed by the Mauritius Revenue Authority on individuals and companies and the taxation of trusts:

  • it applies a 15% rate on corporate income of businesses in Mauritius;
  • individuals are also imposed with the personal income tax at a rate of 15%, however, a lower rate of 10% is also available;
  • by comparison, trusts are exempt from taxation when created for charitable purposes;
  • trusts can also benefit from Mauritius network of more than 30 double tax treaties.

If you are interested in setting up a trust in Mauritius, please contact our local representatives.