Trusts Mauritius 2026: Residency, MRA Tax, Trustee AML/CTF & Registration Rules

Last updated: 11 May 2026, includes AML/CTF guidance of 24 March 2026 and 2025–26 legislative activity.

Trusts Mauritius practitioners face a compliance landscape that shifted materially during 2025 and the first quarter of 2026, driven by updated AML/CTF guidance published on 24 March 2026 and a series of bills proposing amendments to the financial-services regulatory framework. For professional trustees, corporate service providers (CSPs) and private-client advisors, the practical consequences centre on three areas: how a trust’s tax residency is tested and documented, how the Mauritius Revenue Authority (MRA) will treat resident and non-resident trusts for income-tax purposes, and what enhanced trustee AML/CTF obligations now apply under the latest Financial Services Commission (FSC) guidance.

This article provides a neutral, lawyer-authored compliance guide covering each of those areas, together with actionable checklists, comparison tables and remediation timelines designed for practitioners who manage or advise on trusts in Mauritius.

What to do now, 5-point checklist for busy trustees:

1. Audit the residency position of every trust under administration against the central-management-and-control test set out below.
2. Confirm that MRA filings are up to date and that the correct resident or non-resident treatment has been applied.
3. Update AML/CTF policies and procedures to reflect the 24 March 2026 guidance, paying particular attention to enhanced due diligence for politically exposed persons (PEPs) and cross-border beneficiaries.
4. Review trust instruments for any governance gaps, especially powers of removal, replacement of trustees and conflict-of-interest provisions.
5. Document all decisions, evidence and professional advice relied upon; retain records for the periods specified in the guidance.

Legal Framework and Recent Legislative Activity Affecting Trusts Mauritius

The primary statute governing trusts in Mauritius is the Trusts Act 2001. It establishes the rules for the creation, validity and administration of trusts, the duties and powers of trustees, the rights of beneficiaries, and the jurisdiction of the Mauritian courts over trust disputes. Sections 4 through 7 address the essential elements of a valid trust, while Part IV sets out trustees’ duties, including the duty of care, impartiality, duty to account and the obligation to act in accordance with the trust instrument. Part V deals with the variation and revocation of trusts, and Part VI covers the removal, retirement and appointment of trustees.

Key Statutes and Guidance

• Trusts Act 2001 (as amended). Published by the FSC, this remains the cornerstone statute. Successive amendments have refined trustee obligations and aligned the Act with international standards on beneficial-ownership transparency.
• Income Tax Act 1995 (as amended). Governs the tax treatment of trusts, including the test for tax residency, applicable rates and partial-exemption regimes administered by the MRA.
• Financial Intelligence and Anti-Money Laundering Act (FIAMLA) 2002 (as amended). Imposes AML/CTF obligations on trustees who are regulated persons, reinforced by subsidiary codes of practice.
• FSC AML/CTF Guidance, 24 March 2026. Updated sector-specific guidance addressing trustee-focused customer due diligence (CDD), beneficial-ownership verification, suspicious-transaction reporting (STR) and enhanced due diligence for higher-risk trust structures.
• 2025–26 Financial Services Amendment Bills. A package of bills introduced during the 2025–26 legislative session proposes changes to beneficial-ownership register requirements, penalty frameworks for AML non-compliance and enhanced powers for the FSC in respect of licensed trustees and CSPs.

Legislative Timeline

How Mauritius Determines a Trust’s Tax Residency

A trust’s tax residency in Mauritius is determined primarily by reference to where its central management and control is exercised. Under the Income Tax Act 1995 (as amended), a trust is treated as resident in Mauritius for a year of assessment if, at any time during that year, its trustee is resident in Mauritius or its central management and control is situated in Mauritius. This test mirrors the approach used for companies but must be applied with reference to the specific facts of trust administration, particularly where there are multiple trustees in different jurisdictions.

Industry observers expect that the 2025–26 amendment bills, once enacted, will reinforce the substance requirements for trust residency by requiring additional documentary evidence to be maintained on file. Even before those changes come into force, best practice for trustees already demands robust evidence of where key decisions are taken.

The Central Management and Control Test, Decision Checklist

The following factors are relevant to establishing whether a trust is resident for MRA tax-residence purposes:

• Location of trustee meetings. Where do formal trustee meetings take place? Minutes should record the physical (or virtual) location and the jurisdiction from which each trustee participates.
• Residency of majority of trustees. If a majority of trustees are individually resident in Mauritius, this is a strong indicator that central management and control rests in the jurisdiction.
• Place where key decisions are made. Investment decisions, distributions, appointments and other material exercises of discretion should demonstrably occur in Mauritius if residency is intended, or outside if it is not.
• Location of books, records and administration. Where are trust accounts, correspondence and compliance records maintained?
• Delegation and advisory arrangements. If an investment manager or advisor outside Mauritius exercises significant autonomy, this may shift effective management outside the jurisdiction.
• Protector or settlor influence. The MRA will look at whether a protector or settlor resident outside Mauritius effectively dictates trustee decisions, which could undermine a claim to Mauritius residency.

Trustees who wish to establish, or to rebut, trust residency in Mauritius should document each of the factors above at or before the beginning of each year of assessment and retain the evidence for the statutory retention period. Where the position is marginal (for example, an equal number of resident and non-resident trustees), obtaining a formal advance ruling from the MRA is advisable.

MRA Tax Treatment of Trusts Mauritius: Resident vs Non-Resident

Yes, trusts are taxed in Mauritius, but the scope of the charge depends on whether the trust is classified as resident or non-resident for the relevant year of assessment. A resident trust is subject to income tax at the standard rate of 15 % on its worldwide chargeable income. A non-resident trust is taxable only on income derived from Mauritius sources.

Partial exemption regimes may be available to qualifying trusts. Under the current partial-exemption system administered by the MRA, an 80 % exemption may apply to certain categories of income, such as foreign-source dividends or interest, where the trust holds a Global Business Licence (GBL) and meets the prescribed substance conditions. The practical effect is an effective tax rate of 3 % on qualifying income, which has made Mauritius an attractive jurisdiction for international trust structures.

Charitable trusts in Mauritius receive separate treatment. The MRA provides specific guidance on charitable trusts and foundations, and trusts established exclusively for charitable purposes and approved under the relevant provisions may be exempt from income tax on their charitable income.

Tax Outcome Examples

Common structuring pitfalls. Trustees should be alert to situations where a trust intended to be non-resident inadvertently becomes resident, for example, through the appointment of a replacement Mauritius-resident trustee, the relocation of decision-making during a crisis, or the migration of books and records. Any change in residency status triggers MRA filing obligations and may create unexpected tax liabilities. Proactive annual residency reviews (as outlined in the checklist above) are the most effective safeguard.

Trustee AML/CTF Obligations Under Trusts Mauritius Law, 2026 Guidance

Trustees who are regulated persons under FIAMLA and the FSC framework must comply with comprehensive AML/CTF obligations. The updated FSC AML/CTF guidance published on 24 March 2026 reinforces and expands these duties, with particular attention to trust-specific risks such as opaque beneficial-ownership structures, cross-border settlors and beneficiaries, and the use of trusts as conduits for layering or integration of illicit funds.

The core trustee AML obligations under the 2026 framework can be grouped into four categories: customer due diligence (CDD), ongoing monitoring, suspicious-transaction reporting and record retention.

Practical Trustee Checklist, Onboarding, Monitoring and Reporting

At onboarding (before accepting a trust appointment):

1. Identify and verify the identity of the settlor, each beneficiary (including discretionary objects), any protector and any other person exercising effective control over the trust.
2. Obtain certified copies of identification documents, proof of address and, for corporate or institutional parties, constitutional documents and board resolutions.
3. Establish the source of funds and source of wealth for the trust assets.
4. Screen all relevant parties against sanctions lists, PEP databases and adverse-media sources.
5. Apply enhanced due diligence (EDD) where the trust involves PEPs, high-risk jurisdictions, complex multi-layered structures or unusually large or unusual transactions.
6. Document the risk assessment for the trust relationship, assign a risk rating and obtain senior-management approval for higher-risk relationships.

Ongoing monitoring:

1. Review the trust’s risk profile at least annually or whenever a material change occurs (e.g., change of beneficiary, large distribution, change of trustee).
2. Monitor transactions against the established risk profile and investigate any transaction that is inconsistent with the trust’s stated purpose or the known profile of its parties.
3. Update CDD records whenever new information becomes available, and carry out periodic re-verification of identity documents, particularly for PEPs and higher-risk parties.
4. Maintain a documented record of every monitoring review, including the date, reviewer and conclusions reached.

Suspicious-activity reporting:

1. If a trustee knows or suspects that a transaction or attempted transaction involves proceeds of crime, terrorist financing or any other offence, a suspicious-transaction report (STR) must be filed with the Financial Intelligence Unit (FIU).
2. The STR must be filed promptly, the 24 March 2026 guidance emphasises that delay is itself a compliance failing. The standard expectation is that an STR is submitted as soon as practicable after the suspicion is formed.
3. Do not tip off the settlor, beneficiary or any other party that an STR has been or may be filed.

Reporting Timelines and Obligations

Penalties. Breaches of trustee AML obligations can result in administrative sanctions imposed by the FSC (including fines and licence conditions), civil penalties and, for the most serious or wilful breaches, criminal prosecution under FIAMLA. The 2025–26 amendment bills propose increasing the maximum fines available to the FSC and expanding its power to disqualify individuals from acting as trustees or officers of licensed entities. Early indications suggest these enhanced penalty provisions will be in force before the end of 2026.

Trust Registration and Reporting Rules in Mauritius

Mauritius does not maintain a publicly accessible register of private trusts. However, this does not mean that trusts in Mauritius operate without oversight. Registration and reporting obligations arise in several situations, and the likely practical effect of the 2025–26 amendment bills will be to broaden these requirements further.

When trust registration Mauritius obligations are triggered:

• Licensed trustee or management company. A trust administered by a licensed management company or qualified trustee must be recorded in the books of that licensee, and the FSC has the power to require production of trust details during inspections and audits.
• Beneficial-ownership reporting. Under the current beneficial-ownership framework, information about the beneficial owners of trusts must be collected, verified and made available to the FSC and FIU upon request. The 2025–26 bills propose extending this to a central beneficial-ownership register accessible to competent authorities.
• Charitable trusts. Charitable trusts seeking tax exemption must register with the MRA and comply with ongoing reporting requirements, including the filing of annual accounts and activity reports.
• Tax returns. A resident trust must file an annual income-tax return with the MRA. A non-resident trust with Mauritius-source income must likewise file.

Cross-Border Information Exchange, AEOI/CRS Implications

Mauritius has committed to the Common Reporting Standard (CRS) under the Automatic Exchange of Information (AEOI) framework. Financial institutions, including licensed trust administrators, must identify reportable accounts and transmit information to the MRA, which then exchanges it with partner jurisdictions. For trusts Mauritius practitioners, this means that beneficiary and settlor details may be shared with tax authorities in the jurisdictions where those persons are resident. Trustees should ensure that trust parties are informed of these reporting obligations at the outset of the relationship and that CRS classification (including entity type and controlling-person identification) is accurately completed and kept up to date.

Trustees’ Duties, Governance and Risk Management

Under the Trusts Act 2001, a trustee owes fiduciary duties to the beneficiaries of the trust. These include the duty of care and skill expected of a reasonable and prudent trustee, the duty to act impartially as between beneficiaries, the duty to account and provide information, and the duty to invest prudently and in accordance with the trust instrument. Part IV of the Act codifies these obligations and provides the framework against which trustee conduct is assessed by the Mauritian courts.

The interplay between trustees’ duties and the AML/CTF and tax-residency obligations discussed above is critical. A trustee who fails to maintain adequate AML records, who allows the trust’s residency status to shift inadvertently, or who does not file required tax returns may be in breach of fiduciary duty, quite apart from any regulatory or criminal liability.

Can a settlor remove a trustee under Mauritian law? Yes, in most cases, if the trust instrument contains a power of removal vested in the settlor, that power may be exercised in accordance with its terms. Where the trust instrument is silent, the Trusts Act 2001 provides for the removal of a trustee by the court on the application of a beneficiary or another trustee, on grounds including incapacity, unfitness or breach of duty. Part VI of the Act sets out the procedural requirements.

Steps to limit trustee liability:

• Maintain comprehensive minutes of all trustee meetings and decisions, recording the reasons for each decision and the advice relied upon.
• Implement a documented conflict-of-interest policy and declare all potential conflicts before participating in a decision.
• Obtain independent professional advice (legal, tax, investment) on material decisions and retain evidence of that advice.
• Carry adequate professional-indemnity insurance.
• Conduct regular internal reviews of governance and compliance procedures.

Practical Remediation and Checklist for Trustees, What to Do in the Next 30, 90 and 180 Days

For trustees and CSPs administering trusts in Mauritius, the following time-bound action plan addresses the most pressing compliance needs arising from the 2026 changes:

Within 30 days:

1. Circulate the 24 March 2026 AML/CTF guidance to all compliance and trust-administration staff and confirm understanding.
2. Conduct a gap analysis of current AML/CTF policies against the updated guidance requirements.
3. Identify any trust relationships where the residency position has not been reviewed in the past 12 months.

Within 90 days:

1. Update written AML/CTF policies, procedures and risk-assessment templates to reflect the new guidance.
2. Complete a full residency review for every trust under administration and document the outcome (resident/non-resident) with supporting evidence.
3. File or amend any outstanding MRA returns where the residency classification has changed.

Within 180 days:

1. Deliver refresher training to all relevant staff on the updated AML/CTF framework and trust residency tests.
2. Review trust instruments for governance gaps (removal powers, conflict-of-interest provisions, investment mandates) and recommend amendments where necessary.
3. Engage with external legal counsel to assess the impact of the 2025–26 amendment bills, once enacted, on the trust portfolio and prepare for any transitional requirements.

Foundations vs Trusts in Mauritius, A Brief Comparison

Mauritius offers both trusts and foundations as structuring vehicles. The choice between them depends on the specific objectives of the settlor or founder, the intended governance model, and the applicable tax and regulatory considerations. For a deeper analysis, see the detailed comparison of trusts vs foundations.

Conclusion and Recommended Next Steps

The regulatory environment for trusts Mauritius has entered a phase of active reform. The 24 March 2026 AML/CTF guidance, coupled with pending legislative amendments, means that trustees and advisors cannot afford to rely on legacy compliance frameworks. The priorities are clear: verify the residency position of every trust under administration, align AML/CTF policies with the updated guidance, and prepare for enhanced registration and penalty regimes. Practitioners who act promptly will safeguard both their clients and their own regulatory standing. Those seeking specialist guidance on trusts Mauritius compliance can find a Mauritian trusts lawyer through the Global Law Experts directory.

Sources

1. Financial Services Commission, The Trusts Act 2001 (amended)
2. Mauritius International Financial Centre, Trusts & Foundations
3. Mauritius Revenue Authority, Charitable Trust / Foundations
4. IQ-EQ, Mauritius Trust (technical brief)
5. Trident Trust, Key Facts: Trusts (Mauritius)
6. Sovereign Group, Trust and Trustee Services (Mauritius)