In 2025, Mauritius continues to be a preferred jurisdiction for establishing trusts due to its robust legal framework, favorable tax regime, and business-friendly environment.
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This post explores the key aspects of setting up a trust in Mauritius, focusing on their functioning, types, costs, taxation, and establishment procedures as of 2025.
How does a trust work in Mauritius?
A trust in Mauritius is a legal arrangement governed by the Trusts Act 2001, which provides a comprehensive framework for their creation and administration. This is also known by the name “Mauritius Trust Act” or “Mauritius Trust Law”.
A Mauritian trust can only be established through a written document called a trust deed. This deed defines the trust’s objective, purpose, and intention and outlines the duties and powers of the trustees. This formal documentation ensures clarity regarding the trust’s operations and the responsibilities of all parties involved.
One of the notable features of Mauritian trusts is their flexibility regarding the parties involved.
A Mauritian trust may be established by either a resident or non-resident of Mauritius, expanding its accessibility to international settlors.
Additionally, the settlor can also be one of the trust’s beneficiaries, allowing the creator of the trust to potentially benefit from the arrangement.
When creating a trust in Mauritius, up to four trustees may be appointed.
There is, however, the requirement that one of them must be a qualified trustee approved by the Financial Services Commission (FSC). This ensures proper oversight and compliance with Mauritian regulations.
The terms of the trust may provide for specialized trustee roles.
Another important feature is the possible appointment of a “protector” who has a fiduciary duty towards the beneficiaries. This adds an extra layer of security and oversight to the trust arrangement.
The confidentiality of Mauritian trusts is a significant advantage, guaranteed by Section 64 of the Banking Act.
This confidentiality protection makes Mauritius an attractive jurisdiction for high-net-worth individuals seeking privacy in their gestión de patrimonios structures.
Types of Trust in Mauritius
Mauritius offers several types of trusts to accommodate different objectives and requirements of settlors.
Each type serves specific purposes and comes with its own set of advantages.
Discretionary Trust
A discretionary trust gives trustees considerable flexibility and decision-making authority.
This form of trust empowers trustees to determine how much the beneficiaries will receive from the trust and when distributions will occur.
Protective or Spendthrift Trust
A protective trust is a trust whereby the beneficiary is granted an absolute right to the income of the trust until the right is terminated by a pre-defined event.
Excluded Property Trust
An excluded property trust is derived from a discretionary trust.
This trust is a recognized structure in UK inheritance tax planning. It is a standard discretionary trust where assets are settled while the settlor is a non-UK-domicile.
Once the settlor becomes a UK-domicile, they are unable to benefit from the trust property without it falling into the UK inheritance tax bracket.
Employee Benefit Trust
The employee benefit trust is specifically designed to hold assets that provide benefits to employees of a company or group of companies.
Charitable Trusts
Charitable trusts in Mauritius are established specifically for charitable purposes.
These irrevocable trusts benefit from certain tax advantages in many countries, making them an attractive option for philanthropic initiatives.
Special-Purpose Trust
Unlike conventional trusts, a special-purpose trust doesn’t have specified beneficiaries but is created to promote a specific non-charitable purpose.
Under Mauritian law, these trusts must have an executor in Mauritius.
Cost of Setting Up a Trust in Mauritius
Understanding the cost implications is essential when considering opening a trust in Mauritius.
Initial Setup Costs
The initial costs of setting up a trust in Mauritius include professional fees for drafting the trust deed by a Mauritian lawyer or notary.
For trusts that opt to hold a Global Business License (GBL), additional costs apply.
Administrative and Ongoing Costs
The ongoing administration of a trust involves various costs.
For entities holding licenses, annual fees are payable to the FSC.
These fees are typically payable in advance of incorporation on a pro-rate basis up to June 30 and annually thereafter by the same date.
Professional services costs represent another significant expense category. These include:
- Annual administration fees
- Accounting services
- Due diligence on investors
Additional Services and Documentation
Various additional services may be required during the life of a trust, each with associated costs (approximately):
- Notarization and Apostillation (USD 330)
- Certificate of Good Standing (USD 260-300)
- Certificate of Incumbency (USD 200)
- Trust Registration Certificate renewal (USD 750)
- Power of Attorney services (USD 200/hr)
- Standard charge for disbursements (USD 130)
Professional fees for drafting deeds, notarization, apostilles, etc., are set by service providers, not by statute.
Government fees (e.g., FSC annual fees for GBLs) follow the Financial Services (Consolidated Licensing & Fees) Rules 2024.
It’s important to note that all fees mentioned are subject to an annual indexation of 2%, and most fees and hourly rates are exclusive of VAT and disbursements.
Additionally, late payment of annual fees to the FSC may result in penalties and eventually cause the license to lapse.
How are Trusts Taxed in Mauritius?
The taxation of trust in Mauritius has undergone significant changes following the Finance (Miscellaneous Provisions) Act 2021, with implications continuing into 2025.
Trust Residency for Tax Purposes
Any trust established is deemed to be a tax resident in Mauritius if it meets any of the following conditions:
- The trust is administered in Mauritius
- The settlor/beneficiaries are Mauritian residents
Important: By 2025, all trusts will be subject to these new residency rules with a tax rate of 15% unless charitable.
Tax Rates and Exemptions
Resident trusts are liable to tax in Mauritius on their worldwide income at the headline rate of 15%.
However, several partial exemptions and benefits are available:
- Dividends: Dividends received in Mauritius from a domestic company or global business are tax-exempt. However, foreign dividends are subject to an 80% partial exemption, resulting in a maximum effective tax rate of 3%.
- Capital Gains: Nil
- Interest Income: Interest received by a trust is subject to an 80% partial exemption, resulting in a maximum effective tax rate of 3%.
- Charitable Trusts: Trusts whose exclusive purpose is charitable and are approved by the Mauritius Revenue Authority are exempt from tax in Mauritius.
How to Set Up a Trust in Mauritius
Opening a trust in Mauritius involves several key steps. The process is designed to be straightforward while ensuring compliance with all legal requirements.
1. Initial Planning and Consultation
The first step involves consulting with legal and financial professionals experienced in Mauritian trust law.
2. Drafting the Trust Deed
A Mauritius trust can only be established through a written document – the trust deed. This must be drafted by a Mauritian lawyer or notary. The deed defines:
- The trust’s objective and purpose
- The powers and duties of the trustees
- The rights of the beneficiaries
- Any specific provisions relevant to the particular trust arrangement
The trust deed is the foundational document of the trust and must be carefully drafted to ensure it reflects the settlor’s intentions and complies with Mauritian law.
3. Appointment of Trustees
Up to four trustees may be appointed for a Mauritian trust, with the requirement that one must be a qualified trustee approved by the Financial Services Commission (FSC).
The qualified trustee ensures compliance with Mauritian regulations and proper administration of the trust.
The terms of the trust may also provide for specialized roles such as:
- A custodian trustee (responsible for holding the trust assets)
- A managing trustee (responsible for managing the assets)
Additionally, the settlor may choose to appoint a “protector” who has oversight authority and can replace trustees if necessary.
4. Registration and Documentation
Under the Trusts Act 2001, a trust comes into existence when a valid written deed is executed.
Additional documentation (like KYC) and registration with the FSC are necessary, including detailed due diligence on all parties involved.
Unlike many jurisdictions, a Mauritian trust is not registered with any governmental body unless it proposes to hold a Global Business License (GBL).
Optionally, the registration with Registrar General is also advantageous for legal matters and tax purposes.
The following process typically applies to GBL trusts:
- Depositing the trust deed in the FSC trust register
- Publication of the trust deed in an official Mauritian newspaper
5. Compliance Requirements
After establishment, trusts in Mauritius must maintain compliance with various requirements:
- Trusts considered tax residents must file annual tax returns six months after the financial year-end
- Proper accounting records must be maintained
- Any changes to the trust structure or parties must be properly documented
- For trusts with a GBL, ongoing compliance with FSC regulations is required
Conclusión
Setting up a trust in Mauritius in 2025 offers significant advantages for wealth management, protección de activos, and succession planning.
The tax landscape has evolved with the implementation of the Finance Act 2021. Yet, Mauritius still offers attractive tax benefits through partial exemptions on various types of income.
The process of establishing a trust in Mauritius is straightforward, although proper professional guidance is essential.
For anyone considering international wealth structuring, Mauritius remains a competitive jurisdiction.
Consulting with legal and tax professionals experienced in Mauritian trust law is advisable to ensure the trust structure aligns with your specific objectives and circumstances.
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