Why Mauritius is a strategic destination for asset protection and management

Mauritius stands out as a leading jurisdiction for the establishment of trusts at a time when asset protection and management are of paramount importance in a fast-developing world. Renowned for its robust legal framework under the Mauritius Trusts Act, the island is particularly sought-after by foreign investors for the efficient management, preservation, and transfer of assets. Let’s take a closer look at why Mauritius is the ideal place to set up a trust and the key benefits and different trust structures on offer.

What are the main benefits of establishing a trust in Mauritius?

Mauritian trusts provide an effective and flexible wealth management solution for different needs, for instance:

Tax efficiency

Mauritius is known for its very favorable tax regime for trusts. Trusts established on the island are fully exempt from capital gains tax, inheritance tax and withholding tax on foreign income.

Asset protection

Trusts are guaranteed greater protection in the event of the settlor’s bankruptcy, ensuring the safety of your assets. It’s worth noting that trust assets are not part of the settlor’s estate and are, therefore, protected from creditors and litigation.

Fixed tax rate

Income generated by trusts is subject to a minimum tax rate of 15%, with no additional fees when distributed to beneficiaries – which is a unique and competitive rate.

Inheritance rules

Thanks to flexible inheritance rules, trusts established in Mauritius are free from the restrictions of forced heirship. This ensures that your assets reach the beneficiaries of your choice, regardless of their nationality or place of residence.

Confidentiality

Trusts established in Mauritius enjoy a high degree of confidentiality thanks to strict restrictions on the disclosure of trust details, including the identity of the settlor, beneficiaries and trust assets.

A variety of trust structures

Mauritius offers a wide range of trust structures to suit different needs and purposes. You can, therefore, choose from discretionary trusts for asset protection, charitable trusts for public benefit, protective trusts for family members, and many more.

Tax outlook

Trusts established in Mauritius enjoy residency if managed locally and are subject to a 15% income tax on worldwide income. Moreover, certain types of income are eligible for an 80% tax exemption. Meanwhile, non-resident trusts are subject to tax only on income received in Mauritius.

Establishing a trust in Mauritius

Establishing a trust in Mauritius is a quite straightforward process involving executing a trust deed, providing KYC (Know Your Customer) documentation, and transferring the initial funds to the trustee.

How StraFin can help you

StraFin possesses proven expertise in trust registration in Mauritius. Our team will guide you through every step of the process to guarantee asset protection and tax efficiency. We provide comprehensive assistance in the establishment of trusts to ensure the management of your assets according to your needs.

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FAQ on Registering a trust in Mauritius

Who is the settlor?

The settlor is the person or entity who creates a trust by transferring assets to a trustee. This can be an individual, a family, a company or a charity.

Who is the trustee?

The trustee is the person or entity who has the legal responsibility for the trust assets and is in charge of managing them for the benefit of the beneficiaries.

Who are the beneficiaries?

Beneficiaries are the persons or groups for whom the trust is created and who are entitled to receive income or property from the trust. They may be named by the settlor or the trustee, depending on the terms of the trust.

Who is the protector?

The protector is a person appointed by the settlor to ensure that the trustee follows the terms of the trust and the “>settlor‘s wishes. They act as a “watchdog” for the beneficiaries to ensure the protection of their interests.

What is the trust deed?

The trust deed is the legal document that governs the way the trust operates. It describes the terms and conditions of the trust, including the rights and obligations of the different parties involved:

The settlor: the person who creates the trust and transfers assets to it;

The trustee: the person who holds legal title to the trust assets and is responsible for managing them;

Beneficiaries: the persons entitled to receive the income or assets of the trust.

Summing up

Mauritius is a trusted jurisdiction with a long tradition and recognized expertise in trusts, as explained in our LinkedIn post<. Mauritian trusts are a powerful tool for estate planning, asset protection and wealth management. Contact us now to benefit from our in-depth expertise in trust registration in Mauritius and ensure the optimal protection and management of your assets.