Introduction to the Mauritian trust
The trust is one of the most sophisticated and versatile legal instruments in international wealth management. In Mauritius, the Trusts Act 2001 provides a modern, robust legislative framework, compliant with the best international standards, for the formation and administration of trusts of all kinds.
Whether you are an international entrepreneur, an investor, a family office or a wealth professional, the Mauritian trust offers solutions tailored to your objectives of asset protection, estate planning and tax optimisation. Mauritius has established itself as a leading jurisdiction thanks to the unique combination of its transparent regulatory framework, its competitive taxation and its extensive network of double taxation agreements covering more than 45 countries.
What is a trust? Definition and parties
A trust is a legal arrangement whereby one person, the settlor, transfers legal ownership of assets to another person, the trustee, who undertakes to hold, manage and administer them for the benefit of one or more designated persons, the beneficiaries.
The trust rests on a fundamental separation between legal ownership (held by the trustee) and beneficial ownership (belonging to the beneficiaries). The four main parties to the trust are:
The settlor
The person who creates the trust and transfers assets to it. They define the terms of the trust in a trust deed and may draft a letter of wishes to guide the trustee.
The trustee
The person or entity responsible for administering the assets in accordance with the terms of the trust deed and the law. In Mauritius, the trustee must hold a licence issued by the Financial Services Commission (FSC).
The beneficiaries
The individuals or legal entities who benefit from the assets or income of the trust. Their rights may be precisely defined (fixed trust) or left to the trustee's discretion (discretionary trust).
The protector
An optional but recommended party: a trusted person appointed to oversee the trustee and hold certain oversight powers (veto over distributions, power to remove/appoint the trustee).
The legal framework: the Trusts Act 2001
The Trusts Act 2001 is the cornerstone of trust law in Mauritius. This legislation, inspired by the best practices of common law jurisdictions (Jersey, Guernsey, Cayman Islands), provides a comprehensive and modern legal framework governing:
- The formation, registration and duration of trusts (maximum duration of 99 years, renewable for purpose trusts)
- The fiduciary rights and duties of trustees (duty of loyalty, prudence, impartiality and to account)
- The powers and role of the protector
- The rights of beneficiaries and the mechanisms protecting their interests
- The taxation applicable to resident and non-resident trusts
- Firewall provisions protecting trusts against the application of foreign laws (forced heirship, matrimonial claims)
- Dispute resolution mechanisms and judicial recourse
The Trusts Act 2001 contains important firewall provisions: a trust governed by Mauritian law cannot be invalidated or challenged on the grounds that it is contrary to the succession, matrimonial or confiscation laws of another country. This protection is a major advantage for settlors from countries applying forced heirship rules.
The Trusts Act 2001 has been regularly amended to maintain its compliance with international regulatory developments, particularly regarding anti-money laundering (AML), tax transparency (FATCA/CRS) and BEPS compliance.
Types of trusts in Mauritius
The Mauritian legal framework allows for the formation of different types of trusts, each addressing specific wealth planning objectives:
Discretionary trust
The discretionary trust gives the trustee extensive decision-making power over the distribution of income and capital among the beneficiaries. The trustee determines when, how and to whom to make distributions. It is the most common form for family wealth management, offering the best asset protection since beneficiaries have no vested rights.
Fixed trust
The fixed trust (fixed interest trust) precisely defines each beneficiary's rights. Shares and distribution conditions are determined in advance in the trust deed. The trustee has no discretion regarding the distribution. Ideal for equitable estate distributions and collective investment structures.
Charitable trust
The charitable trust is set up for philanthropic purposes and pursues objectives of general interest: education, health, poverty alleviation, environmental protection, advancement of science and the arts. It benefits from a special tax regime and may have unlimited duration (not subject to the 99-year limit).
Purpose trust
The purpose trust is set up to accomplish a specific objective, without designated beneficiaries. It is frequently used in financing structures (orphan structures), the holding of shares of special purpose vehicles (SPVs), securitisation structures and private equity arrangements. An "enforcer" is appointed to ensure the purpose of the trust is respected.
STAR trust (Special Trust Alternative Regime)
Certain jurisdictions offer STAR trusts combining the features of a beneficiary trust and a purpose trust. In Mauritius, similar hybrid structures can be set up using the flexibility of the Trusts Act 2001, allowing both beneficiaries and specific objectives to be designated at the same time.
Resident trust vs non-resident trust
The distinction between resident and non-resident trusts is fundamental from a tax perspective:
| Criterion | Resident trust | Non-resident trust |
|---|---|---|
| Trustee | Tax resident in Mauritius (FSC-licensed management company) | Non-resident or main administration outside Mauritius |
| Taxation of income | 15% on worldwide income | 0% on foreign-source income |
| Access to tax treaties (DTAs) | Yes — access to the network of 45 DTAs in force (MRA, 2026) with a Tax Residence Certificate | No — no TRC available to invoke DTAs |
| Regulatory oversight | FSC | FSC (if trustee licensed in Mauritius) |
| Reporting obligations | Annual tax return to the MRA | Limited obligations if no local-source income |
| Main use | Structures requiring DTAs (holding, investments) | Wealth structuring, asset protection, estate planning |
Strategic applications of the Mauritian trust
Asset protection
The trust is an effective tool for asset protection against business risks, litigation, creditors and divorce-related risks. Transferred assets are legally separated from the settlor's personal estate.
Estate planning
Estate planning through a trust avoids probate procedures, ensures confidentiality and enables a smooth transition of wealth across several generations, with protection for vulnerable beneficiaries.
Wealth structuring
Centralised holding of international assets: multi-country real estate, investment portfolios, shareholdings in companies arising from company formation in Mauritius, intellectual property rights.
Tax planning
Thanks to Mauritius's competitive tax regime (0% for non-resident trusts, 15% with DTA access for resident trusts), the trust enables effective tax planning that complies with international regulations. Discover our tax optimisation strategies to maximise these benefits.
Why choose Mauritius for your trust?
- Modern legal framework: the Trusts Act 2001, regularly updated, with firewall provisions protecting against foreign succession and matrimonial laws
- Competitive taxation: tax exemption for non-resident trusts on foreign-source income (0%); no inheritance tax or gift tax
- Tax treaty network: 45 DTAs in force (MRA, 2026) for resident trusts, facilitating international operations and reducing withholding taxes
- International reputation: Mauritius is on the EU whitelist and complies with FATF and OECD standards
- Professional expertise: an ecosystem of qualified FSC-licensed trustees, lawyers specialising in trust law, accountants and tax advisers
- Bilingualism: Mauritian professionals operate in French and English, facilitating exchanges with French-speaking clients
- Political and economic stability: more than 50 years of uninterrupted democracy, a diversified economy, a legal system inherited from British and French law
- Managed confidentiality: trust details are not public, while complying with FATCA/CRS transparency obligations
Process for setting up a trust in Mauritius
Consultation and analysis
In-depth analysis of your wealth objectives, tax residence, the nature of your assets and the jurisdictions involved. Determination of the most suitable type of trust.
Drafting the trust deed
Preparation of the trust deed defining the terms, conditions, powers of the trustee, class of beneficiaries, role of the protector and amendment mechanisms.
Regulatory compliance (KYC/AML)
Collection of compliance documents for the settlor, beneficiaries, protector and source of funds/source of wealth.
Appointment of the trustee and registration
Selection of an FSC-licensed trustee, registration of the trust with the competent authorities.
Transfer of assets and setup
Transfer of assets from the settlor to the trust, opening of the trust's bank accounts, setting up investment management.
The entire process generally takes between 2 and 4 weeks, depending on the complexity of the structure and the speed of KYC/AML document collection.
Trust or foundation: which to choose?
Mauritius also offers the possibility of setting up a foundation, a structure with its own legal personality, governed by the Foundations Act 2012. The foundation is particularly suited to families from civil law jurisdictions (France, Belgium, Luxembourg, Switzerland, French-speaking Africa) who are more familiar with the concept of a legal entity.
For a detailed comparison of these two structures, see our guide Foundation vs Trust.
In summary
The Mauritian trust, governed by the Trusts Act 2001, offers a modern legal framework with firewall provisions, competitive taxation (0% for non-residents), access to 45 DTAs in force (MRA, 2026) and a bilingual professional ecosystem. Whether for asset protection, estate planning or international wealth structuring, Mauritius stands out as one of the best jurisdictions in the world for trusts.
Disclaimer: The information presented is provided for informational purposes only and does not constitute legal or tax advice. Setting up a trust involves complex considerations that vary according to your personal situation and country of residence. Consult a qualified legal and tax adviser before making any decision.