Tax optimization allows private investors to realize substantial tax savings in a legal way. The investor may use a tax treaty in force with its country of residence and live abroad for half of the year. In such as, the investor will pay a reduced rate in the alternative country of residence, on the income from the financial products and royalties. The alternative is a life insurance contract to shelter the assets and so far, the profits.

Tax treaty between France and other European countries (UK, Belgium, Germany, Italy, Luxembourg, and Sweden) and Mauritius is available with the formation of a resident Mauritius company and the transfer of financial assets on this structure, which could be managed in Switzerland. Financial earnings, capital gains and capital will be taxed at 3% after a 6 month period, and a Tax Certificate will be delivered. The investor should relocate in Mauritius for six months every year to benefit from the tax treaty.

Other tax planning options like the Mauritius IRS (Integrated Resort Scheme) consists to buy a property in a real estate residence showing the IRS agreement. A residence permit is available upon purchasing of the property, from EUR500, 000 minimum. Residential taxation is 15% on the revenues in Mauritius, less 80% for the citizen of the countries with a tax treaty in force. No taxation is levied on income outside Mauritius.

Life insurance of EU jurisdiction is an option to outsource financial assets and profit of tax savings. A contract is subscribed and the assets are sheltered in it. Therefore, there is compliance with the authorities, in association with legal protection and tax benefits. Financial assets as well as real estate assets are acceptable in this tax planning process which does not need relocation. This will apply from EUR250, 000 of assets.