Why high net worth individuals choose Mauritius for global wealth structuring.
Written by Acclime Global Business,
The primary goal for High-Net-Worth Individuals (HNWIs) is to preserve and grow accumulated wealth in a constantly changing financial environment involving shifting tax laws, governance issues, beneficial ownership legislation, risk mitigation and cross border transactions.
Their main objective remains that their wealth is well-managed in a stable, secure and well-regulated jurisdiction with a robust corporate governance framework. Mauritius, attractive for its strategic location, can be a trusted partner in this context.
Why Mauritius is a preferred hub for global wealth structuring
Reasons for using Mauritius for global wealth structuring include:
- Investor friendly tax regime; no capital gains, no inheritance tax, no withholding tax on dividends, interests or royalties for global business vehicles. A competitive corporate tax rate of 3% for international trading and a flat corporate tax of up to 15%, and individual tax rate to a maximum of 20%
- No exchange control allowing free repatriation of profits and capital
- Network of 46 Double Taxation Avoidance Agreements and 29 Investment Promotion and Protection Agreements
- Well regulated, sophisticated, transparent and reputable financial sector
- Residency options for HNWIs wishing to settle down on the island
- Excellent infrastructure, reliable communication network and a well-established banking system.
- Access to skilled professionals in law, finance, corporate services, investment funds and private equity funds
- Legal protection for privacy while also ensuring transparency in financial transactions
- Ease of doing business and politically stable environment to conduct business
- High quality of life with good infrastructure, international schooling options and high-quality private healthcare for those choosing residency options
Furthermore, Mauritius is compliant with all OECD norms including the Global Forum on Transparency and Exchange of Information for Tax Purposes, the Base Erosion and Profit Shifting project and the Common Reporting Standards (CRS). It is also a member of the Eastern and Southern Africa Anti-Money Laundering Group to implement FATF recommendations.
Mauritius offerings for global wealth structuring
Mauritius offers the following vehicles for global wealth structuring:
- Cross-border investments vehicles, such as Global Business Companies, which are ideal for holding companies, international trading, IP management, consulting, Collective Investment Schemes and fund management, and Authorised Companies, which are used for international trading and private asset holding.
- Structured vehicles, mainly trusts, foundations and Private Trust Companies which can be customised to client’s diverse business needs. These vehicles can be used for better estate planning and succession planning, asset protection, wealth management, holding assets, tax planning, pensions schemes and holding intellectual property.
- A diversified range of banking products including portfolio investments, trading in stocks, bonds and funds, investment into structured products, mutual funds, Forex and Treasury solutions, custody services and online platforms to view and monitor assets.
- Variable Capital Company (VCC), which is a company carrying activities through its sub-funds (SFs) and Special Purpose Vehicles (SPVs). A VCC can accommodate many types of investment funds, Collective Investment Schemes (CIS), Closed Ended Funds (CEF), private funds or real estate funds under one structure. There is no restriction in the number of sub-entities that can be created under the VCC structure.
These structures allow HNWIs to manage international wealth, plan succession while at the same time retain control and maintain confidentiality.
The Overseas Family Office Scheme (OFOS), regulated by the Financial Services Commission (FSC), has also been introduced to attract high net worth families seeking a stable and compliant base for managing their global affairs. This scheme offers licences for both single-family (SFO) and multi-family offices (MFOs).
To be eligible for a licence under the OFOS, each family is required to domicile and actively manage a prescribed investible and liquid wealth base, maintain its physical establishment in Mauritius and hold minimum unimpaired capital.
Benefits of OFOS include Mauritius tax residency, work and residence permit for family members and 10-year corporate tax holiday subject to certain conditions.
Mauritius is constantly updating its legal and regulatory framework in line with global market demand to enhance investor confidence and trust in the jurisdiction. It is a strategic addition to a broader family wealth strategy.
Why choose Acclime for global wealth and family solutions?
Acclime provides a unique combination of local insight and international experience. We understand that every client is different, which is why we deliver bespoke solutions that meet your unique family, financial and business needs.
Our client-centric approach ensures transparency, flexibility and peace of mind. From initial planning to ongoing management, Acclime is your dedicated partner in securing your legacy.
