Trust Mauritius
Trust Mauritius: Trusts and Foundations for Families
Trust Mauritius is an information site on how a trust in Mauritius or a foundation serves a family: the governing law, who does what, inheritance, asset protection and tax. It gives general information, not advice.
What a trust in Mauritius does for a family
A trust in Mauritius separates the ownership of assets from the benefit drawn from them. The settlor transfers assets to a trustee, who holds them under a deed for named beneficiaries or for a stated purpose. A family trust is the everyday use of that mechanism: keeping a household's wealth together, steering it to the right people and setting rules for when and how it is passed on.
Mauritius regulates the subject by statute. The Trusts Act explained page covers the framework for trusts, and Foundations Act covers the alternative for families who prefer an entity with its own legal personality. If you are new to the vocabulary, start with what a trust is or the glossary.
This site looks at these structures from the family's side. It does not walk through incorporation, fees or paperwork, and it does not deal with company structures.
The foundations of the law
Two statutes carry most of the weight: the Trusts Act 2001 and the Foundations Act 2012. The first deals with trusts; the second came into force on 1 July 2012 and created the private foundation.
The two instruments differ on one basic point. A foundation has legal personality only once it is registered with the Registrar and holds a certificate of registration (section 5 of the Foundations Act 2012). A trust is not a legal person: the trustee holds the assets. Our overview of Mauritius trust law puts the pieces side by side, and the trust vs foundation comparison helps when you are choosing between them.
Who does what
Under section 8 of the Trusts Act 2001, the settlor may also be a trustee, a beneficiary, a protector or an enforcer, but cannot be the sole beneficiary of the trust they created. The protector, provided for in section 24, advises the trustee and, unless the deed says otherwise, may remove and appoint trustees and change the governing law.
How far the settlor may keep control, and what that does to the structure, is a recurring question. Read about the settlor's role and limits and the trust protector before drafting anything.
Succession and forced heirship
For many families the real question is inheritance. Mauritian succession rules reserve part of an estate to certain heirs, and a trust interacts with those rules in ways that depend on the facts. Both the Trusts Act 2001 (section 8) and the Foundations Act 2012 (sections 3 and 4) provide that the transfer of a non-citizen settlor or founder cannot be annulled under the succession rules of that person's domicile or nationality.
That protection has conditions and limits, and it does not answer every case. The page on forced heirship and trusts explains where the boundaries lie.
Asset protection
A trust can sometimes put assets out of reach of a future claim, but only within the limits the law sets. Section 18 of the Trusts Act 2001 recognises protective or spendthrift trusts, under which a beneficiary's interest can be restricted if the beneficiary becomes insolvent or has assets seized. Courts can also set aside arrangements that are not genuine. See asset protection with a trust for what the law allows and what it does not.
Tax: what the Income Tax Act says
Tax treatment depends on the structure and on the people involved, so this is a summary only.
| Point | Rule in the consolidated Income Tax Act |
|---|---|
| Trust | Taxable on its taxable income at the Part IV rate of 15% (First Schedule) |
| Foundation | Taxable at the same Part IV rate of 15% (section 49A) |
| Distribution to a beneficiary | Treated as a dividend for the beneficiary |
| Former non-resident exemptions | The non-resident declaration exemptions for trusts and foundations were repealed with effect from 1 July 2021 |
Individual circumstances change the outcome, so take advice on your own case. The page on how trusts are taxed in Mauritius goes further.
Where to go next
- Choose a structure: family trust or foundation.
- Understand the law: Trusts Act, Foundations Act.
- Protect and pass on: forced heirship, asset protection.
- Quick answers: frequently asked questions.
If you want your situation looked at by a FSC-licensed corporate service provider (Management Licence), use the form on the contact page.
FAQ
Is a trust in Mauritius only for non-residents?
No. Families living in Mauritius and families living abroad can both use one. Tax and succession consequences differ with residence, which is why the analysis of your own position matters.
Is a family trust in Mauritius a legal person?
No. The trustee holds the assets under the deed. A foundation, by contrast, acquires legal personality on registration.
Does this site give legal or tax advice?
No. It provides general information. Whether a structure suits you depends on your family, assets and residence, and should be assessed by a qualified adviser.
Sources
Guides on this site
Key topics
Structures
Guides
- What is a trust
- Types of trust
- Trust deed clauses
- Offshore trust explained
- Trust register
- Trust fund explained
- Foundation basics
- The settlor
- Trustee duties
- Beneficiary rights
- Guardian role
- Letter of wishes
- Protector powers
- Protector eligibility
- Settlor as protector
- Protector fees
- Is a protector necessary?
- Affidavit of succession
- Inheritance tax
- Trusts and divorce
- Alternatives to a trust
- Trusts and tax
- Trust tax rate
- Trust tax returns
- Beneficiary tax
- Governing law of a trust
- Trust firewall rules
- Foreign trust recognition
- Hague Trusts Convention
- Settlor reserved powers
- Sham trusts
- Trust variation
- Breach of trust
- Trusts and creditors
- Inheritance without a will
- Wills for foreigners
- Surviving spouse rights
- Children born outside marriage
- Matrimonial regimes
- Charter and rules
- Foundation council
- Founder powers and limits
- Foundation taxation
- Tax on transfers
- Foreign beneficiary tax