Seychelles International Trust
Seychelles International Trusts are set up under the International Trust Act, 1994. A Trust is a private legal agreement (Trust Deed) between the individual who places his/her assets in the Trust (Settler) and the individual or corporation entrusted with the protection, management, and ultimate distribution of the assets (Trustee) for the persons entitled to benefit from the capital assets and/or income held under the agreement (Beneficiaries). Trusts are mostly used for the benefits of strong asset protection and tax planning incentives. Seychelles Trusts are completely exempt from business tax, withholding tax, capital gains tax and Stamp Duty in Seychelles.
Benefits:
- Wealth protection
- Charitable purposes
- Flexibility
- Can be part of business company structure
- Investment and Real Estate ownership and administration
- Efficient Tax Planning
- Privacy
- Substitution of Wills and Testaments
- Tax minimization
Wealth Protection
Trusts are widely used for the protection of assets from the claims of creditors. The International Trust Act, 1994 makes specific provision that protects the structure from other jurisdictions. Seychelles Court has jurisdiction for all matters relating to a Seychelles Trust. Neither a trust nor any transfers of property to a Seychelles trust may be voided or invalidated due to any foreign rule of forced heirship nor because the trust concept in not recognized or not admitted to the laws of the foreign jurisdiction. A Trust shall not be void by reason of the settlor’s bankruptcy or liquidation of the settlor’s property or in any legal action against the settlor by the settlor’s creditors except where the Seychelles Supreme Court finds beyond reasonable doubt that the Trust was made with the intent to defraud creditors or that the settlor was in-solvent at the time when the property was transferred to the trustee. The onus of proof of intent rests on the creditor claimant. A legal claim of a creditor of a settlor shall not be permitted against a trustee of a trust after a period of 2 years from the date of the transfer.
Flexibility
A trust provides a confidential and flexible way in which an individual can decide how their assets are to pass on death. Many countries have laws which govern how assets pass to relatives on death. A trust is a good way of overcoming forced heirship laws thus permitting the settlor to dispose of his assets in the way he chooses in utmost confidentiality. In Seychelles, provision is made in the 1994 International Trusts Act that the Inheritance Law of any country shall in no way affect any transfer or disposition made to a Seychelles International Trust and the validity of such transfer shall not be challenged.
Tax Planning
Another benefit of the trust to be used in a way of mitigating income, capital gains tax and inheritance tax. In Seychelles the International Trusts Act 1994 provides that the income and gains of an international trust derived from sources outside Seychelles shall be exempted from all kinds of tax in Seychelles and no estate duty shall be chargeable in respect of assets belonging to an international trust. In fact the only charge payable to the Registry in respect of an international trust is a one-off stamp duty payable when the trust is created.
| Trust Summary | |
|---|---|
| Political Stability | Very Good |
| Legal System | Common Law/Civil Law Hybrid |
| Trust Legislation | International Trust Act 1994 |
| Taxation | Exempt |
| Double Taxation Treaty | No |
| Change of domicile | Permitted |
| Limitation period for action against trustee | 2yrs |
| Duration | 100 years (Standard trust) |
| Restriction on investment of trust assets | No |
| Succession | As per trust deed |
| Settlor | None resident of Seychelles |
| Property | No property in Seychelles |
| Time to setup | 2 weeks |
| Trustee | |
| Minimum | One if corporate and two or more if not corporate |
| Qualification | Minimum one Seychellois resident |
| Accounts | |
| Requirment to file | No |
| Publicly accessible | No |
| Privacy | |
| Filing of Trust Deed | No |
| Trust register | Not accessible to public |
| Disclosure of names | Not unless by court order |
Process to setup
- Consultation if required
- Complete our online form
- Name approval within 24hrs
- Draft or review Trust Deed
- All parties sign the Trust Deed
- Registration of Trust submitted to the FSA with government fee (usually registered within 48hrs
