Setting Up a Trust in Mauritius
Establish a trust under the Trusts Act 2001 for asset protection and wealth planning.
Mauritius trusts are established under the Trusts Act 2001, which provides a modern, common law-based framework for trust creation and administration. This legislation offers a high degree of flexibility, enabling settlors to design structures tailored to their wealth planning, asset protection, and succession objectives. A Mauritius trust is not a separate legal entity — instead, it is a fiduciary relationship under which a licensed trustee holds assets for the benefit of beneficiaries or for a defined purpose.
Trusts can hold virtually any asset class: shares in companies, real estate, cash, investment portfolios, intellectual property, and more. The trustee must be licensed by the Financial Services Commission (FSC), ensuring professional, regulated management. Mauritius recognises discretionary trusts, fixed trusts, purpose trusts, charitable trusts, and trading trusts, providing a vehicle for virtually every legitimate wealth management need.
The jurisdiction does not impose inheritance tax, estate duty, or gift tax, making it particularly attractive for cross-border estate planning. With a maximum trust duration of 99 years for private trusts (and perpetual duration for charitable trusts), a Mauritius trust can serve multiple generations. Our licensed trustee team manages the full setup process — from drafting the trust deed and letter of wishes to conducting KYC, transferring assets, and providing ongoing administration.
Key Features of a Trust in Mauritius
Trusts Act 2001 Framework
Mauritius trust law is based on established common law principles, codified in the Trusts Act 2001. This provides legal certainty, flexibility, and international recognisability for structures serving wealth management, succession, and commercial purposes.
Licensed FSC Trustee
All Mauritius trusts must have at least one trustee licensed by the Financial Services Commission. This ensures professional management, regulatory accountability, and adherence to fiduciary duties of care and loyalty.
Asset Protection
Properly structured trusts separate assets from the settlor's personal estate, providing protection from future creditors, litigation, and political or economic instability in the settlor's home jurisdiction.
Estate Planning & Succession
Trusts enable orderly, private transfer of wealth across generations, bypassing the delays and publicity of probate proceedings and offering potential protection from forced heirship rules in civil law jurisdictions.
Discretionary Flexibility
In a discretionary trust, the trustee has power to decide which beneficiaries receive distributions and in what amount, guided by the settlor's non-binding letter of wishes. This flexibility allows adaptation to changing family circumstances.
Confidentiality
Trust details are not entered on any public register. The trust deed, letter of wishes, and beneficiary information are held privately by the trustee and the FSC, providing a high degree of confidentiality.
No Inheritance or Gift Tax
Mauritius does not impose inheritance tax, estate duty, or gift tax. Assets transferred into a properly structured Mauritius trust are not subject to these levies, subject to the laws of other relevant jurisdictions.
Multi-Asset Capability
A Mauritius trust can hold diverse asset classes including company shares, real estate, cash and investments, intellectual property, and other personal or commercial property, held and managed by the trustee.
Protector Mechanism
The settlor may appoint a protector with defined powers to oversee the trustee, approve significant distributions, or consent to changes in trust terms — providing an additional layer of governance and settler comfort.
Duration up to 99 Years
Private trusts in Mauritius can subsist for up to 99 years, enabling multi-generational wealth planning. Charitable trusts may be established in perpetuity, supporting long-term philanthropic missions.
How to Set Up a Trust in Mauritius
Initial Consultation
We discuss your objectives, asset profile, family circumstances, and jurisdiction considerations to determine the most appropriate trust type — discretionary, fixed, purpose, or charitable — and the optimal governance structure.
Trust Deed Drafting
Our legal team drafts the trust deed, tailoring provisions on beneficiary classes, distribution powers, investment powers, protector roles, and duration to reflect the settlor's specific wishes and objectives.
Letter of Wishes
We prepare a non-binding letter of wishes that guides the trustee on the settlor's intentions regarding distributions, asset management, and long-term succession goals. This document is confidential and can be updated over time.
KYC & Due Diligence
We conduct comprehensive KYC on the settlor, all named beneficiaries, and any appointed protector, in compliance with the FSC's AML/CFT guidelines and the Financial Intelligence and Anti-Money Laundering Act.
Trust Execution
The trust deed is executed by the settlor and trustee. The trust comes into existence upon execution and, where applicable, registration with the FSC or the relevant registry.
Asset Transfer
We coordinate the transfer of assets from the settlor to the trustee — whether shares, cash, real property, or other assets — ensuring proper documentation, valuation, and legal transfer in each relevant jurisdiction.
Bank Account & Investment Setup
Where required, we open trust bank accounts and coordinate with investment managers or custodians to establish custody and investment management arrangements for the trust's assets.
Ongoing Administration
We provide ongoing trustee services, including distribution management, regulatory filings, annual accounting, CRS/FATCA reporting where applicable, and periodic review of the trust structure and letter of wishes.
Requirements for a Trust in Mauritius
- Full details of the proposed settlor, including certified passport and proof of address
- Details of all intended beneficiaries (names, dates of birth, relationship to settlor)
- KYC documentation for any proposed protector or advisory committee member
- Comprehensive source of funds and source of wealth declaration for the settlor
- Description and valuation of all assets proposed to be settled into the trust
- Title documents or share certificates for assets to be transferred
- Settlor's wishes regarding distributions, investment strategy, and succession (for letter of wishes)
- Details of any existing structures (companies, foundations, other trusts) related to the assets
- Bank reference letters for the settlor (required by certain banks and regulatory frameworks)
- Details of any existing or anticipated litigation, creditor claims, or insolvency proceedings
Estimated Costs of a Trust in Mauritius
| Item | Estimated Range |
|---|---|
| Trust deed drafting & establishment | USD 2,500 – 5,000 |
| KYC & due diligence (per party) | USD 300 – 600 |
| Annual trustee & administration fee | USD 3,000 – 8,000 |
| Annual accounting & financial statements | USD 1,500 – 4,000 |
| Asset transfer coordination (per asset class) | USD 500 – 2,000 |
| Letter of wishes drafting / update | USD 500 – 1,000 |
Frequently Asked Questions About Setting Up a Trust in Mauritius
What types of trusts can be established in Mauritius?
The Trusts Act 2001 recognises discretionary trusts, fixed trusts, purpose trusts, charitable trusts, and trading trusts. Discretionary trusts are the most common for wealth planning, as they give the trustee flexibility to adapt distributions to the needs of beneficiaries over time. Fixed trusts specify exact entitlements, while purpose trusts serve defined objectives rather than named individuals.
Is a Mauritius trust recognised internationally?
Yes. Mauritius is a common law jurisdiction and its trust legislation is based on well-established trust principles, making Mauritius trusts widely recognised across common law countries. Many civil law jurisdictions also recognise Mauritius trusts, though recognition varies and local legal advice is recommended before settling assets in multiple jurisdictions.
How long can a Mauritius trust last?
A private Mauritius trust can have a maximum duration of 99 years from the date of creation. Charitable trusts, by contrast, may be established in perpetuity. The trust deed specifies the duration, which can be shorter than the maximum if preferred by the settlor.
Can the settlor retain any control over the trust?
The settlor can appoint a protector with specified powers — such as approving major distributions or replacing the trustee — and can express wishes through a non-binding letter of wishes. However, the settlor should not retain direct control over trust assets, as excessive retained control may be used by courts to challenge the validity of the trust settlement.
What happens to the trust on the death of the settlor?
The trust continues in existence after the settlor's death. Assets held in trust do not form part of the deceased settlor's estate and are therefore not subject to probate. The trustee continues to manage the trust in accordance with the trust deed and letter of wishes, with distributions to beneficiaries as specified.
Can a Mauritius trust hold shares in companies?
Yes. Trusts can hold shares in Mauritius companies (including GBCs), foreign companies, and other investment structures. Holding company shares through a trust is a common estate planning technique, enabling the orderly succession of business interests across generations.
What are the tax implications of a Mauritius trust?
The tax treatment of a Mauritius trust depends on the residency of the settlor, trustees, and beneficiaries, and the nature of the trust assets. Mauritius does not impose inheritance tax, estate duty, or gift tax. Trusts may be subject to Mauritius income tax on Mauritius-source income. Each situation is unique and professional tax advice should be obtained.
How is the trust regulated and supervised?
The trustee must hold a licence issued by the Financial Services Commission (FSC). The FSC supervises trustees under the Financial Services Act 2007 and applicable regulations, including AML/CFT requirements. Trustees are subject to periodic inspections and must maintain proper records and compliance programmes.