Tax When You Transfer Assets Into a Trust

Why the answer depends on the asset

Tax on transferring assets to a trust in Mauritius is not a single charge. There is no one "entry tax" that applies to every settlement. What you pay, if anything, depends on the nature of the asset, who the parties are, where the asset sits and how the transfer is documented.

A cash gift to a trustee, a block of shares and a house on a residential estate raise different questions. Land and buildings are the area where Mauritian duties are most visible, because transfers of immovable property are formal acts that attract specific levies. Movable assets are usually handled differently, but may still raise income tax or gains questions in the hands of the person transferring.

This page sets out the categories of cost to look at. It does not give advice: the result for your family depends on your residence, the asset and the terms of the deed. A tax adviser should confirm the position before anything moves.

The main charges to review

The table is a map of questions, not a rate card. Where a figure is quoted below, it comes from an official text and carries its own conditions.

Property: registration duty and land transfer tax

Real estate is where most of the cost can arise. Guidelines published by the Economic Development Board (EDB) on the acquisition of residences by non-citizens describe, for an apartment (G+2), a registration duty of 5% of the value paid by the buyer and a land transfer tax of 5% paid by the seller. Those documents date from 2022-2023 and relate to property acquisitions under the relevant schemes, so they are a reference point rather than a ready answer for a settlement into trust.

For a property of at least USD 500,000 on a plot of more than 0.5276 hectare, the same guidelines mention an additional duty of 10% of the value, payable by the buyer.

Two points matter for a family settling property into a trust:

• A transfer to a trustee is still a deed. Whether it is treated like a sale, a gift or something else for duty purposes depends on how the deed is drafted and on the notary's analysis. Ask for that analysis in writing before signing.
• Who bears the cost can differ. In the guidelines above, one charge falls on the buyer and one on the seller. In a settlement, the parties often agree who pays what, but the law may fix the liability irrespective of the agreement.

For the ownership side of the question, see Can a Trust Own Property in Mauritius?.

The 2026 additional duty on certain State land and Pas Géométriques

The Finance Act 2026 (Act No. 14 of 2026, assented to on 12 August 2026) adds to the Land (Duties and Taxes) Act an additional duty of 10% on any deed transferring a dwelling situated on State land or on Pas Géométriques to a non-citizen (section 4(11), Seventh Schedule Part IV). The reference to non-citizens is to section 3(3)(c)(v) of the Non-Citizens (Property Restriction) Act.

Features worth noting:

• the duty is paid by the transferor, not by the acquirer;
• it does not apply where a promise of sale or a notarised reservation contract was signed before 19 June 2026.

If the family home sits on this type of land and the intended trustee or beneficiary is a non-citizen, ask the notary specifically whether this duty is engaged. The answer turns on the exact wording of the statute and the deed.

Shares, cash and other movable assets

Shares are common settlement assets. Transferring them to a trustee changes the registered holder, and the company must update its records. A company must identify its beneficial owner at all times and keep a separate register with the name, address, national identity card or passport details, nationality and ownership structure; this is filed through CBRIS on incorporation, with the annual return and on any share transfer or issue (section 91 of the Companies Act, in the text updated to 15 May 2026). A trust settlement of shares therefore leads to a filing, even where no duty is charged.

On the tax side, the questions are about the transferor:

• whether the transfer is treated as a disposal producing a taxable gain or income;
• whether the shares' value at the date of transfer matters later;
• whether any dividend or income arising before or after the transfer is allocated to the trust.

Capital gains transfer to trust is a frequent search term, and the honest answer is that it depends on the asset, the transferor's residence and the characterisation of the transaction. The sourced material for this page does not set out a general rule, and this guide does not invent one. Take written advice for each asset class.

Cash is simpler on the duty side, but not on the compliance side. A trustee will ask where the funds come from, and the bank will do the same. Keep the paper trail.

What does not change the entry cost, but still matters

Several rules shape the transfer without adding a duty.

The settlor can keep a role. 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. A transfer by a non-citizen settlor cannot be set aside under the succession rules of their domicile or nationality. See The Settlor: Role and Limits and How Much Control Can a Settlor Keep?.

The trust is presumed irrevocable. Section 11 of the Trusts Act 2001 presumes that a trust is irrevocable by the settlor and the settlor's legal representative unless the deed expressly provides for revocation. That affects how a tax authority and a court may see the transfer. For the contrast, read Revocable vs Irrevocable Trust.

Records and registers. Section 38(3) of the Trusts Act 2001 obliges the trustee to keep up-to-date accounts and documents, and an alphabetical register of the names and last known addresses of each beneficiary and settlor. Accounting records are kept for at least 5 years after completion of the transactions concerned. Section 26A of the Financial Services Act 2007 requires the FSC to keep a register of trusts, including domestic trusts and foreign trusts with at least one qualified trustee; the qualified trustee must supply the information and documents the FSC requires, in the time and form it sets. See Is There a Register of Trusts in Mauritius?.

Accumulation limits. Under section 10 of the Trusts Act 2001, income may be accumulated for the whole maximum life of the trust, but not beyond 25 years where the trust holds immovable property in Mauritius. That is relevant when you choose what to put in.

A quick route through the questions

Step by step before you sign

Key figures quoted from official texts

What this page does not cover

Once assets are in the trust, income is taxed under separate rules, covered in How Trusts Are Taxed in Mauritius. Payments out to beneficiaries are treated separately in Tax on Distributions to Beneficiaries. Non-resident beneficiaries are addressed in Tax for Non-Resident Beneficiaries of a Mauritius Trust.

For the practical set-up of a trust, including costs and paperwork, a separate resource exists; this site concentrates on the legal and tax framework. If you want a licensed provider to review your situation, use the contact form.

Practical points for families

• Match the asset to the purpose. Putting in an asset that triggers a duty is sometimes worth it, sometimes not. Compare with Trust or Will for Passing On Assets or Gift to Children or Trust: Which Protects More?.
• Check the effect of tax residence. A company is tax resident in Mauritius if it is incorporated there or if its central management and control is there (section 73(1)(b) of the Income Tax Act). That matters where a company is among the assets and will be held by the trustee.
• Keep the deed and the transfer documents aligned. See What a Trust Deed Contains.
• Do not assume a trust saves tax. Whether a structure reduces any charge is a separate question, discussed in Can a Trust Reduce Tax?.