Case Study: 5 Highlights of Enabling Wealth Management through Trust Structures in Mauritius

This case study covers the financial solutions that we have provided to a South African national who is a long-standing client of our management company. The client aimed to establish a robust wealth management structure for their business and personal investments in Mauritius, leveraging the island’s status as an International Financial Centre (IFC).

Mauritius was strategically chosen due to its Double Taxation Avoidance Agreements (DTAAs) with South Africa and the UK, and was relevant for optimisation purposes for the client. The client also used a Mauritius trust structure to acquire a property within Villas Valriche, in Bel Ombre, in the South of the island. Their choice was influenced by various factors, including the island’s high quality of life and international schooling options available for their children. With guidance from our management company, the client embarked on a journey of wealth and succession planning while being compliant with all prevailing regulations.

Setting up of a Trust

The trust was established as a discretionary trust with the primary objectives of asset protection and to hold a property investment. Our management company acts as the Qualified Trustee, providing a range of services including trusteeship, registered office provision, administration, accounting, compliance and tax services.

The legal framework for the trust was formalised through a Trust Deed, which does not require registration with the Registrar of Companies (ROC) or the Financial Services Commission (FSC).

Property Acquisition and Management

Acquiring a villa at Heritage Villas Valriche, in Bel Ombre was a significant step for our client. The government of Mauritius has established several schemes to facilitate property ownership for non-residents and our client was able to acquire their dream property under the Property Development Scheme (‘PDS’), with which they were also entitled to a residency permit. We facilitated the entire acquisition process, ensuring that all legal and regulatory requirements were met and providing our client with peace of mind.

Compliance and Regulation

Our management company places a strong emphasis on compliance with all relevant legal and regulatory frameworks. We understand the complexities associated with trust structures and property acquisitions and we have implemented robust measures to address potential compliance risks. This proactive approach allows that the trust and its underlying investments be managed in a seamless manner. Our team stays up to date with changes in legislation to ensure that our clients remain informed and compliant.

Long-term Planning and Succession

The trust and underlying investments are vital components of our client’s long-term planning and succession strategy. Provisions within the trust facilitate a smooth succession and transition of assets, aligning with the client’s overarching wealth management goals. By establishing a trust, they are not only protecting their assets but also ensuring that their family’s financial legacy is preserved for generations to come.

Our team collaborates closely with clients to develop tailored succession plans that reflect their values and objectives.

Value-added Services

In addition to our trust and property-related offerings, our management company provides a range of value-added services tailored for high-net-worth individuals (HNWIs), including:

· Application for Resident and Occupational Permits

· Establishment of Family Offices

· Opening of personal bank accounts in Mauritius

· Assistance with physical relocation

This extensive suite of services ensures our clients receive holistic support for their financial and lifestyle needs while residing in Mauritius.

Conclusion

Through strategic planning, compliance and a commitment to client satisfaction, our management company has allowed the client to achieve their goals in terms of wealth management and property acquisition in Mauritius effectively. The establishment of a discretionary trust not only serves to protect and grow their assets but also aligns seamlessly with their long-term vision for family legacy and financial stability.

Reach out to us on contact@rogerscapital,mu