Seychelles allows for the creation of various types of structures through which foreign individuals can reduce their taxes. Apart from the Seychelles offshore company, foreigners can also establish several types of trusts. Among these, the international trust is one of the most common estate planning tools in Seychelles. Below, our company formation agents in Seychelles explain how to create an international trust in the insular state. Those who want to operate in Seychelles by opening a trust can rely on our local advisors.
| Quick Facts | |
|---|---|
| Legal framework | Seyechelles Trusts Act, 2021 |
|
Parties participating in the international trust |
– settlor, – trustee, – beneficiary, – protector |
|
Residency requirements for settlor |
Must be a foreign citizen, maintaining this status throughout the trust’s duration. |
| Requirements for trustees | At least one of the trustees must be a Seychelles company with an international corporate service provider license. |
| Requirements for trust assets |
Must not be located within Seychelles |
| Maximum duration for trust establishment |
100 years |
| Types of international trusts |
– discretionary, – charitable, – purpose |
| Confidentiality of Trust Deed |
The Trust Deed is not publicly filed and disclosure of any information is prohibited by law, unless for specific legal purposes. |
| Asset protection against foreign laws |
Assets are protected against foreign laws, especially those related to inheritance. |
| Protection against settlor bankruptcy, property liquidations and creditors | Seychelles offshore trusts remain intact and protected even in these situations. |
| Process of establishing an international trust fund |
Draft the Trust Deed; Trustee files a declaration to Financial Services Authority; Pay registration fee |
| Tax exemption |
If the income is generated from sources outside Seychelles. |
| Annual financial summary |
Must be completed within six months after the end of the trust’s financial year. |
| Advantages of an international trust |
– asset protection, – tax minimization tool, – confidentiality, – tax exemptions, etc. |
| Assistance |
We can help you establish an international trust. We also offer support for company formation if you are interested. |
Table of Contents
Registering an international trust in Seychelles
Registering a Seychelles international trust is a simple and straightforward process. The trustee must file a brief declaration with the Financial Services Authority that includes:
- Confirmation that the settlor is not a resident of Seychelles;
- Confirmation that no trust assets include land or real estate located in Seychelles;
- Trust name and date of trust establishment.
Additionally, a one-time registration fee of USD 150 is required. Please note this fee may be subject to changes.
Once the declaration is properly completed, signed, and submitted with the fee, your international trust in Seychelles will receive a numbered certificate of registration.
Our specialists in company incorporation in Seychelles are qualified to act as trustees and can help you with trust registration.
The International Trusts Law in Seychelles
International trusts in Seychelles are governed under the Trusts Act, 2021. Under this law, an international trust is a non-corporate entity created through a legal agreement which stipulates the relation between the settlor, the trustee, and the beneficiaries.
In order to be considered an international trust, the entity must comply with the following requirements:
- the settlor must be a foreign citizen – this condition is imposed for the entire duration of the Seychelles international trust;
- the assets covered by the international trust must not be located in Seychelles;
- one of the trustees must a be a Seychelles company holding an international corporate service provider license;
- the international trust is created for a duration of maximum 100 years.
Our local consultants can offer more information on the conditions related to creating a Seychelles international trust. We can also assist those who want to set up an offshore company in Seychelles.
The Seychelles trust – main features
In Seychelles, the trust is not a legal entity. However, it falls under the jurisdiction of the Civil Law, like in other countries. The main principle under which a trust is created is the separation of ownership of assets from the rights over the respective assets of the beneficiary. The settlor will transfer the administration of the estate or other instruments as provided in the trust agreement to a third party called a trustee. This legal entity or natural person will maintain and manage them for the benefit of the beneficiary or beneficiaries.
The trust is seen as a tool that separates legal title over certain assets from control over them. This separation allows the settlor and beneficiaries to benefit from the estate without directly managing it.
In Seychelles, the international trust is one of the most appreciated legal tools through which various types of assets can be protected through an agreement. Another important aspect about an international trust in Seychelles is that it is accessible to foreign citizens.
A Seychelles trust can also be created for one of the following purposes:
- for trading purposes, when it takes the form of a commercial trust;
- for offering insurance services, when it is set up as a life insurance trust;
- for managing various funds, such as pension or employment funds;
- for administering cash deposits, when created as a cash deposit trust.
The international trust, however, can be created for the original purpose it was designed for.
In Seychelles, international trusts are used together with offshore companies. If you are interested in setting up an offshore company in Seychelles, our specialists are at your service.
Types of international trusts in Seychelles
There are several types of international trusts that can be created in Seychelles, and they can be irrevocable or revocable. However, this is just a criterion under which a Seychelles trust can be set up.
The Seychelles Trust Law provides for the following types of international trusts:
- discretionary trusts;
- charitable trusts;
- purpose trusts.
An important aspect to consider is that a Seychelles international trust can also be created or adapted to the needs of the settlor.
Seychelles is a very appealing destination for the establishment of an international trust. Our company formation agents can fully assist you in this matter.
The parties participating in a trust
In both cases of Seychelles national and international trusts, the parties participating in its establishment are the same. These are the settlor, the trustee and the beneficiary or beneficiaries, as it can have multiple.
It is also possible to appoint a protector when creating an international trust in Seychelles. However, this is a facultative measure of protection the settlor can make.
With respect to the relations between the parties involved in the creation of the Seychelles trust, there are several aspects to consider.
In the case of a Seychelles international trust, the settlor is the person who creates the trust by offering a property or other assets for administration to the trustee. He or she will transfer the goods through the trust agreement. However, the trustee will also receive clear instructions on how they will be managed.
The trustee is the person or legal entity in charge of administering the assets entrusted through the agreement. The creation of a Seychelles trust implies that the trustee will hold the legal title of the assets to be managed which comes with a fiduciary duty of care. The trustee must be licensed by the Revenue Commission.
The beneficiary of a Seychelles international trust will benefit from the assets managed by the trustee when the conditions of the agreement come to an end. It is possible to name each beneficiary or define them as a group upon the creation of the trust deed.
Our lawyers in Seychelles can help you draft a trust deed and can also provide other solutions in accordance with your needs and requests.
Confidentiality of Seychelles international trusts
An important feature of the international trust in Seychelles is its confidentiality provisions. The Trust Act ensures that all information about a trust remains confidential. This includes information about the state and amount of the trust property and the details of the trust administration.
Another important matter is that the Trust Deed itself is not filed publicly. No information about the trust’s assets, or the identities of the settlors, beneficiaries, or other involved parties, is available to the public or any regulatory authority. All such information is kept confidential and is only held by the trustee.
Disclosure of trust-related information is strictly regulated and can only occur under specific circumstances. This includes legal proceedings related to narcotics and arms trafficking, or money laundering. This makes establishing international trusts in Seychelles an attractive option for those seeking a high level of privacy.
Our specialists in company formation in Seychelles can act as trustees and ensure confidentiality.
Taxation of Seychelles international trusts
The favorable taxation system is one of the reasons why offshore companies in Seychelles are popular. International trusts also benefit from various tax exemptions.
Seychelles international trusts are exempt from corporate income tax, estate tax, inheritance tax, succession tax, gift tax, and stamp duty. These exemptions apply if the trust’s income is sourced outside of Seychelles.
As for accounting, trustees are required to maintain accurate and complete accounting records to ensure transparency and accountability. These records must be kept for at least seven years. If the records are kept outside of Seychelles, they must be submitted to the trustee’s principal place of business in Seychelles and be available to local authorities upon request.
Additionally, trustees must prepare an annual financial summary within six months after the end of the trust’s financial year.
Our team can help you open a company in Seychelles or a trust. We will accurately handle the accounting records for your legal entity.
Why open an international trust in Seychelles?
There are many benefits related to the creation of an international trust in Seychelles. Among these we remind the following:
- the international tax is exempt from several taxes applied in Seychelles;
- the costs associated with the creation and administration of the Seychelles international trust are quite low;
- the settlor has the right to appoint a protector of the trust who will ensure the supervision of the trustee;
- Seychelles is a very sought destination for the creation of international trusts thanks to the comprehensive laws.
We invite you to watch a short video presenting the main steps on how to establish the international trust in Seychelles:
The 4 most important advantages of trusts in Seychelles
The creation of an international trust in Seychelles offers the following 4 benefits:
- the protection of assets which can be used as an estate planning tool;
- the enhanced confidentiality of the settlor’s identity and assets held in the trust;
- the possibility of using the Seychelles trust as a tax minimization solution;
- international trusts benefit from several tax advantages in Seychelles.
Our company formation agents in Seychelles can help foreign citizens who want to create international or charitable trusts here. We can also assist you in opening an IBC in Seychelles.
How to protect one’s assets through a trust in Seychelles
One of the greatest advantages of setting up a trust in Seychelles is the enhanced protection of the settlor’s assets or whole estate. Through a trust registered in Seychelles, the assets of the settlor will pass on to the trusts, therefore they will no longer be part of his or her estate. This way, in case of bankruptcy, creditors will not have access to the assets held by the Seychelles trust.
Facts on Seychelles’ economy
According to recent statistics, Seychelles:
- Has Africa’s highest GDP per capita, at 29,837 dollars in 2022;
- Tourism contributed 31% of the GDP;
- Foreign Direct Investment is equivalent to 13.8% of GDP;
- As of 2023, Seychelles had 681 million U.S. dollars in foreign exchange reserves.
For assistance at company incorporation in Seychelles, please contact our local representatives.