Trusts

Trusts are used worldwide for asset protection and estate planning. In Mauritius, Trusts are governed by the Trust Act 2001.
There are various types of trusts which can be set up such as:

  • Protective or spendthrift trust
  • Charitable trust
  • Purpose trust
  • Discretionary trust

The duration of a trust other than a purpose trust shall not exceed ninety nine years from the date of its coming into existence, unless it is earlier terminated. Trustees have a strict duty of confidentiality as imposed by the Trust Act 2001.

They have a duty to keep confidential and unless ordered by the Court of Judge in Chambers, they are not allowed to disclose information or documents relating to a trust to any person not legally entitled to it.
Salient Features

  • Registration a trust is optional
  • Possibility to appoint a protector and/or Enforcer
  • Choice of foreign laws as proper law of Trust
  • Possible to have custodian trustee
  • Anti forced heirship rule exists
  • Possible for tracing of trust assets in case of breach of trust
  • May accumulate all or part of the income of the trust for a period not exceeding the maximum duration of the trust

From a tax perspective, there is a flexibility of election as either a resident or a non-resident trust. Where the trust opt to be resident in Mauritius, it will be taxed at 15% after distribution and may benefit from the extensive treaty network. A trust can also apply for a GBC 1 license.