Succession planning in Mauritius

Mauritius has emerged as a trusted jurisdiction for setting up private, charitable, and corporate trusts due to its robust legal framework, confidentiality provisions, and attractive tax regime. Positioned as a gateway between Africa and Asia, Mauritius offers international investors and high-net-worth individuals (HNWIs) a flexible and secure environment to preserve wealth, plan succession, and protect assets. Trusts established under the Mauritian Trusts Act 2001 benefit from legal recognition of both common law and civil law features, ensuring international compatibility.

Why having a Trust in Mauritius?

Wealth Preservation

Protect and manage assets across generations with legal structures that secure family wealth and reduce exposure to external risks such as economic instability or legal disputes.

Succession Planning

Ensure a smooth and confidential transfer of assets to future generations, avoiding lengthy probate procedures and maintaining control over how assets are distributed.

Strategic International Jurisdiction

Mauritius offers a politically stable, investor-friendly jurisdiction positioned between Africa and Asia - ideal for cross-border wealth planning and trust structures targeting emerging and mature markets alike.

Confidentiality

Maintain privacy as the trust deed, settlor, and beneficiaries are not required to be registered or publicly disclosed, unless otherwise necessary by law.

Legal Flexibility

The Trusts Act 2001 supports various trust types - discretionary, fixed, charitable, or purpose - providing adaptability to personal, family, or business needs.

International Credibility

Mauritius is a reputable international financial center with a stable legal system, professional trustee services, and alignment with global compliance standards.

Tax Efficiency

Benefit from Mauritius’ favorable tax regime with no capital gains tax, no estate duty, and no withholding tax on distributions to non-residents.

Asset Protection

Shield assets from potential creditors, political uncertainty, or legal claims by separating legal ownership from beneficial ownership under a Mauritian trust.

Modern and Flexible Trust Law

The Mauritius Trusts Act 2001 supports a wide range of trust types, allowing for customized structures that cater to personal, corporate, and philanthropic needs.

Regulatory need for a Trust in Mauritius

Trusts in Mauritius are governed primarily by the Trusts Act 2001, offering a modern and flexible legal framework. While registration is not mandatory unless the trust holds immovable property in Mauritius or opts for a Global Business License (GBL), professional trustees must be licensed by the Financial Services Commission (FSC).

Key regulatory highlights include:

The trust deed must be in writing and compliance with the Trusts Act.
Trustees must act with fiduciary responsibility and loyalty.
Anti-money laundering (AML) and Know Your Customer (KYC) regulations apply to all trusts with international exposure.

Taxation for a Trust in Mauritius

Mauritius offers an advantageous tax environment for trusts:

Liability to Tax

Resident Trusts are subject to income tax at the rate of 15%. Non-resident Trust which throughout an income year, is non-resident, shall be liable to tax only on its chargeable income attributable to its Mauritian source income at the rate of 15%.
As such, non-resident Trust can be subject to tax on rental income derives from properties located in Mauritius or interests’ income derives from Mauritius bank account.

Determination of Central Management and Control

The Central Management and Control of a Mauritius Trust will be considered to be in Mauritius only if all of the below three conditions are met: -

The Trust is administered in Mauritius and a majority of the trustees are resident in Mauritius.
The settlor of the Trust was resident in Mauritius at the time the instrument creating the Trust was executed or at such time the settlor adds new property to the Trust; and
Most of the beneficiaries or the class of beneficiaries appointed under the Terms of the Trust are resident in Mauritius.

Key features of setting a Trust in Mauritius?

Flexible Trust Law

Adaptable to a wide range of trust types (discretionary, fixed, purpose).

Confidentiality

Names of settlors and beneficiaries are not publicly disclosed.

Asset Protection

Protection from forced heirship and foreign judgments.

Duration

A trust can exist for up to 99 years or in perpetuity for charitable trusts.

Control Mechanisms

Possibility to appoint a Protector to oversee the trustee.

Global Compatibility

Ideal for international estate planning and cross-border investment.

Dual Legal System Compatibility

Mauritian trust law blends common law and civil law concepts, making it familiar to international clients from various legal backgrounds and adaptable to global estate planning requirements.

No Requirement for Local Beneficiaries

There is no obligation to have Mauritian beneficiaries or settlors, making it attractive for fully international structures serving families and clients globally.

Protector Role for Oversight

The trust deed may include a Protector to supervise or veto trustee decisions, adding an extra layer of control and peace of mind for settlors.

Possibility of Purpose Trusts

Mauritius allows for non-charitable purpose trusts, which can be used for holding shares in private companies, special investment vehicles, or for specific business objectives.

Recognition of Foreign Trusts

Mauritius recognizes and can manage foreign law trusts, enabling re-domiciliation or cross-border administration within a compliant and well-regulated environment.

Availability of Licensed Corporate Trustees

A pool of licensed and experienced trust and fiduciary service providers regulated by the FSC ensures professional management and administration of trusts.

FAQs about a Trust in Mauritius

Can a settlor also be a beneficiary?

Yes, under Mauritian law, a settlor can also be a beneficiary provided the trust is not a charitable one and the settlor is not the sole beneficiary.

Is it mandatory to register a trust in Mauritius?

No, registration is only required if the trust owns immovable property in Mauritius or opts for a Global Business License.

Are trust assets protected from creditors?

Yes, provided the trust is not set up to defraud creditors, Mauritian law offers strong asset protection features.

What is a Protector, and is it required?

A Protector is a person appointed to oversee the actions of the trustee. While not mandatory, it adds an extra layer of governance.

Can trusts be used for international investment purposes?

Absolutely. Trusts can hold international assets, including shares, real estate, and bank accounts.

How Renesis Financials can help in a Trust in Mauritius?

At Renesis Financials, we offer end-to-end solutions for setting up and administering trusts in Mauritius. Our services include:

Trust Structuring: Tailored trust solutions to meet personal, family, or business needs.
Licensed Trustee Services: Acting as or appointing a licensed professional trustee in Mauritius.
Regulatory Compliance: Ensuring full compliance with local laws and international standards.
Tax Planning: Optimising your trust structure for tax efficiency and asset protection.
Ongoing Administration: Accounting, reporting, and fiduciary management of the trust.

Whether for legacy planning, global investment holding, or philanthropic purposes, our team of experts ensures your trust in Mauritius is secure, compliant, and aligned with your long-term goals.