Mauritius Trust

Trusts in Mauritius are governed by the Trusts Act 2001. A trust is created when an individual or a legal entity (Settlor) gratuitously transfers the legal ownership of assets (Trust Property) to another person or persons (Trustees) to hold for the benefit of other person(s) termed as the Beneficiaries or for a specific purpose.

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.


FEATURES OF A TRUST

  • Tax Exempt (non-residence trust) or a lower rate of income tax with access to Double Taxation Avoidance Agreements (resident trust)
  • Confidentiality guaranteed
  • Mitigation of effects of forced heir-ship
  • There is no requirement to register a trust nor to file accounts or annual returns
  • It may have a protector
  • It can be managed through a Trustee in Mauritius and is eligible to have a custodian trustee in another country

ADVANTAGES OF CREATING A TRUST

  • Give the settlor confidence in how assets will be used in the future
  • Preserve the ownership of, and allow for succession planning for highly regarded assets such as family companies
  • Simplify succession in the event of death
  • Provide clear, structured ownership of an asset or assets by multiple investors
  • Allow an element of control over the distributions to beneficiaries
  • Provide for management of assets where the beneficiaries are not in a position to manage the assets themselves
  • Protect assets in the event of family or marital breakdown

LETTER OF WISHES

A Settlor, Beneficiary, a member of a class of Beneficiaries or a Trustee may give to the Trustees a letter which sets out their wishes on the exercise of any functions conferred on the Trustees of the trust.


TYPE OF TRUSTS

  • Discretionary Trust
  • Purpose Trust
  • Protective Trust
  • Charitable Trust

TAXATION

A Mauritius Trust can elect to be non-resident by the Trustee filing a declaration to that effect with the Director General of the Mauritius Revenue Authority and be exempted from all income tax. All distribution made to non-resident beneficiaries of the Trust are also exempt from income tax.