Trusts and Foundations

Seychelles Trusts

Seychelles trusts are governed by the International Trusts Act, 1994.

Advantages of Seychelles trusts include tax exemption in Seychelles, low costs of trust formation and administration (when compared with for example The Channel Islands and the Isle of Man) and geographically and culturally the Seychelles is an ideal trust platform for the Afro-Asian international markets. Under Seychelles law, foreign law trusts (e.g. trusts subject to the laws of Jersey), may be managed and administered from Seychelles with full exemption from Seychelles taxation.

Seychelles trusts are governed by the International Trusts Act, 1994. Under Seychelles law, an international trust is defined as a trust of which:
1.    The settlor is not at any time during the duration of the trust a resident of Seychelles.
2.    At least one trustee shall be a company licensed under the International Corporate Service Providers Act to provide international trustee services, at all times.
3.    The trust property does not include property situated in Seychelles (although trustee investment in Seychelles IBCs and other Seychelles international trusts is permitted; and with the approval of the FSA, a Seychelles international trust may hold other securities or investments in Seychelles).

Under Seychelles law, a Seychelles international trust is exempt from taxation on income, assets, capital gains or stamp duties. This tax exemption also applies to income or gains arising from distributions from Seychelles IBCs or other Seychelles offshore vehicles authorised by the FSA.

A Seychelles international trust may continue for 100 years from the date on which it came into existence.

Creditor protection
A Seychelles international trust shall not be void or voidable in the event of the settlor's bankruptcy or liquidation, or in any action or proceedings against the settlor at the suit of the settlor's creditors. However where it is proved beyond reasonable doubt that a Seychelles international trust was made to defraud creditors of the settlor; or if the settlor was insolvent at the time when the trust property was settled into trust, the trust may be set aside to satisfy creditor claims. The burden of proof is on the creditor. Notwithstanding the above, the Seychelles courts will not entertain an action against the trustees after more than two years from the date of the transfer of assets to the Seychelles international trust.

Vistra Trust Company (Seychelles) Limited is licensed and regulated by the Seychelles Financial Services Commission.

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