Trusts in Mauritius
The trust is a versatile and powerful legal instrument, widely used for asset protection, estate planning, and investment management. In Mauritius, trusts are governed by the Trusts Act 2001, a modern and comprehensive piece of legislation based on English common law principles.
Mauritius has established itself as a reference jurisdiction for international trusts thanks to the quality of its legislation, tax advantages, and the presence of qualified professional trustees. The island offers a unique combination of legal certainty, fiscal efficiency, and operational flexibility that appeals to high-net-worth individuals and families worldwide.
How a Trust Works
A trust involves three main parties:
- Settlor — The person who creates the trust and transfers assets to the trustee
- Trustee — The person or entity that manages the trust assets for the benefit of the beneficiaries
- Beneficiaries — The persons or entities that benefit from the trust
The settlor may also appoint a protector, who has the power to oversee the trustee's actions and intervene in certain circumstances. The protector acts as a safeguard, ensuring the trust is administered in accordance with the settlor's wishes while providing an additional layer of governance.
Under Mauritian law, the trustee holds legal title to the trust assets, while the beneficiaries hold the equitable or beneficial interest. This separation of legal and beneficial ownership is the fundamental characteristic that makes trusts such a powerful planning tool.
Types of Trusts
Discretionary Trust
The trustee has full discretion over distributions to beneficiaries: amounts, timing, and conditions are at the trustee's sole discretion. This provides maximum flexibility for tax planning and asset protection.
Fixed Trust
Distributions are predetermined in the trust deed. Each beneficiary is entitled to a specific share, providing certainty and predictability in wealth distribution.
Asset Protection
Trusts specifically structured to protect wealth from creditors, litigation, and professional risks. Mauritius law provides strong protections against fraudulent transfer claims.
Estate Planning
Trusts designed for the orderly transfer of wealth to future generations, avoiding the complications and costs of probate proceedings.
Advantages of a Trust in Mauritius
- Asset protection — Trust assets are separated from the settlor's personal estate, providing protection against creditors and legal claims
- Estate planning — Wealth transfer without complex probate or inheritance procedures across multiple jurisdictions
- Confidentiality — Trusts are not public records; only the Master's Office maintains a register of resident trusts
- Tax advantages — Non-resident trusts are not subject to taxation in Mauritius
- Flexibility — Wide freedom in structuring trust terms, including letter of wishes for guidance
- Duration — Up to 99 years (or unlimited for charitable trusts)
- International recognition — Mauritius is a signatory to the Hague Convention on Trusts, ensuring recognition in civil law jurisdictions
Tax Regime for Trusts
| Trust type | Taxation in Mauritius |
|---|---|
| Non-resident trust | 0% (no taxation) |
| Resident trust (foreign income) | 15% (with possible partial exemption) |
| Resident trust (local income) | 15% |
| Charitable trust | Exempt |
Requirements for Establishment
- Trust Deed — A trust deed drafted in compliance with the Trusts Act 2001, setting out the terms and conditions of the trust
- Qualified Trustee — For trusts with a GBC license, the trustee must be an FSC-licensed company
- Beneficiary Identification — Clear identification of beneficiaries or the class of beneficiaries
- Registration — Registration with the Master's Office of the Supreme Court (for resident trusts)
- KYC/AML Due Diligence — Comprehensive due diligence on all parties involved, including the settlor, trustee, protector, and beneficiaries
The Role of the Trustee
The trustee is the cornerstone of any trust structure. In Mauritius, trustees acting in a professional capacity must hold the appropriate license from the Financial Services Commission (FSC). The trustee's responsibilities include:
- Managing and investing trust assets prudently and in accordance with the trust deed
- Maintaining proper books and records of all trust transactions
- Distributing income and capital to beneficiaries as directed by the trust deed
- Filing annual returns and maintaining compliance with regulatory requirements
- Acting in the best interests of the beneficiaries at all times
Sunibel Corporate Services Ltd, as an FSC-licensed Management Company and member of the Swiss Probus Pleion Group, provides professional trustee services ensuring the highest standards of governance and compliance.
Trust vs Foundation
Choosing Between a Trust and a Foundation
Mauritius also offers the possibility of establishing foundations, which may represent an alternative to trusts for investors from civil law jurisdictions. While trusts are based on common law concepts, foundations have separate legal personality and may be more familiar to clients from continental European, Latin American, or Asian backgrounds. See our detailed foundation vs trust comparison.
Common Uses of Mauritian Trusts
Trusts in Mauritius are used for a wide range of purposes across international wealth planning:
- Holding company structures — Trusts holding shares in GBCs to benefit from the DTA network
- Family wealth planning — Multi-generational wealth preservation and orderly transfer
- Charitable purposes — Philanthropic activities through charitable trusts with unlimited duration
- Employee benefit schemes — Share option plans and retirement benefits for corporate groups
- Investment fund structures — As part of fund structures for regulated asset management
- Real estate holding — Trusts holding property in Mauritius for foreign investors
Sunibel Trust Services
Sunibel Corporate Services Ltd provides comprehensive trustee services for trusts established in Mauritius. Our team of professionals manages every aspect of the trust, from establishment to ongoing administration, ensuring regulatory compliance and the protection of beneficiaries' interests. Contact us for a free consultation.