Tag Archive for: International Financial Centre

For many successful African families, wealth today isn’t just about financial performance. It’s about building something that lasts. Families are increasingly looking for ways to future-proof their legacy, manage cross-border investments, and create a structure that reflects both their values and aspirations. That’s where Mauritius is stepping in—not as a replacement for their home country, but as a trusted partner in building international resilience and flexibility.

Mauritius: An International Financial Centre Built for Families

Mauritius began positioning itself as an International Financial Centre (IFC) in the early 1990s. Since then, it has developed into one of the most respected financial hubs in the region, offering a strong legal and regulatory framework, a diversified product range, and deep global connectivity. The IFC has earned recognition from the EU, OECD, FATF and G20 for its adherence to international standards. Notably, Mauritius is one of only six jurisdictions globally rated as fully or largely compliant with the FATF’s 40 recommendations on anti-money laundering.

What makes Mauritius attractive to families from South Africa and the broader African continent is its practical, business-friendly environment:

• No capital gains tax
• No exchange controls
• 15% corporate tax rate with tax credits and exemptions available. Global Business Licence entities remain exempt from most temporary tax measures
• No withholding tax on dividends, interests, or royalties for Global Business vehicles
• A broad network of around 45 Double Taxation Avoidance Treaties
• Legal protection of investments possible through the Investment Promotion & Protection Agreements that Mauritius has with 30 countries which are in force
• Legal and legitimate protection of confidentiality – in the case of Global Business entities and Authorised Companies, limited information is available to public, including non-disclosure of shareholder details, although such information is shared with the Financial Services Commission.

Its proximity to Africa and historical ties to India, Francophone, and Anglophone countries make it a culturally comfortable and strategically located hub.

Structuring a Family Office in Mauritius

A Mauritius family office can be structured through various vehicles:

• Private companies
• Trusts and Private Trust Companies
• Foundations
• Limited Partnerships or Limited Liability Partnerships
• Protected Cell Companies
• Société (partnership equivalent)

These structures allow families to manage international wealth, plan succession across generations, and achieve greater confidentiality and control.

For families with multiple trusts, a Private Trust Company (PTC) can be used to oversee them, giving senior family members a voice in trust governance. This enables tailored decision-making and continuity, while ensuring alignment with the family’s broader wealth strategy.

Traditionally, South African and African families have set up their structures across multiple jurisdictions—such as an International Business Company (IBC) in the BVI and a trust in the Channel Islands like Jersey, Guernsey or Isle of Man. In the past, this may have worked. However, with the advent of the OECD’s Base Erosion and Profit Shifting (BEPS) initiative and the resulting changes in global tax treaties, structuring must now be approached far more carefully.

It is virtually impossible to build meaningful economic substance in rock jurisdictions like the Channel Islands or BVI, while Mauritius makes it practical and feasible to demonstrate substance—including attending board meetings in person. The metaphor of “the tail wagging the dog” is more relevant than ever: the first consideration in structuring should be the commercial and personal rationale—not just taxation (the tail), even if that is a key motivation.

It is far easier to justify and explain why your family office or trust is based in Mauritius than to defend scattered, uncoordinated structures driven solely by tax arbitrage. Increasingly, heads of families are becoming more conscious about the need for simplicity, transparency, and the ease of succession. Mauritius offers a coherent, balanced, and future-ready solution that ticks all the boxes.

The Overseas Family Office Scheme (OFOS)

Mauritius introduced the Overseas Family Office Scheme (OFOS) to attract high-net-worth families seeking a stable and compliant base for managing their global affairs. The scheme offers licenses for both single-family and multi-family offices, with tailor-made support for their establishment and administration.

Single Family Office Requirements:

• Minimum USD 5 million in investible, liquid assets
• A physical office in Mauritius
• Minimum USD 35,000 unimpaired capital
• A minimum of 1 professional employee resident in Mauritius
• Employment of at least two full-time officers in Mauritius, including an MLRO and deputy
• A Designated Officer must be appointed

Multi-Family Office Requirements:

• Minimum USD 5 million per family
• A minimum of 3 professional employees resident in Mauritius
• Employment of at least two full-time officers in Mauritius, including an MLRO and deputy
• A physical office in Mauritius
• Minimum USD 70,000 unimpaired capital
• A Designated Officer must be appointed

Benefits of OFOS:

• Mauritius tax residency
• Work and residence permit for family members
• 10-year corporate tax holiday for qualifying income
• Right to acquire immovable property in Mauritius

Family offices licensed under OFOS can be structured using a wide range of legal forms approved by the Financial Services Commission (FSC).

Global Business Vehicles

To support cross-border investments, Mauritius offers two business structures, amongst others:

• Global Business Licence Company (GBC): Tax resident in Mauritius; several types of licences for various types of business activities may be applied for; ideal for holding companies, international trading, IP management, consulting, Collective Investment Schemes and fund management, amongst several others. It benefits from the tax treaty network.
• Authorised Company (AC): Not tax resident in Mauritius; used for international trading and private wealth holding. Taxed at 0% on foreign income and does not benefit from tax treaties.

These vehicles offer African families a legitimate, well-regulated way to manage international wealth while maintaining operational flexibility.

The GWMS Advantage

GWMS Ltd, a licensed Management Company & Fund Administrator, offers a complete solution for setting up and managing Mauritius-based family offices under the OFOS regime. Our services include:

• Structuring advice tailored to the family’s objectives
• Assistance with license applications and compliance
• Establishment of the physical office
• Day-to-day administration, statutory, tax, accounting, and reporting support
• Family relocation support and property sourcing
• Compliance solutions on par with global FATF requirements
• Ongoing governance and reporting to family principals

We understand that families are not moving away from South Africa or their home country in Africa. Instead, they are expanding their footprint, building resilience, and ensuring that their legacy is protected for future generations. Mauritius is also an African country member of the African Union and offers a nearby, familiar, and well-regulated environment to do just that.

Final Thoughts

Mauritius is not merely a “Plan B”. It’s a strategic addition to a broader family wealth strategy. Whether it’s preserving generational wealth, managing cross-border holdings, or simply creating peace of mind through good governance and flexibility, Mauritius has quietly become one of the most compelling jurisdictions for African families.

For those considering the next step in their journey, it may be time to take a closer look at what Mauritius and GWMS can offer. Reach out to us today.