Important information - Seychelles Real Estate

What a buyer pays :

Guidelines for Seychellois

Land Transfer Tax ( stamp duty ) on Property Cost, paid to Government , via Notary :
5 % of property cost.

Notarial Fees : range between 1-2 % on the property cost and include ( marginal ) registration fees.

Foreigners acquiring real estate in the Seychelles.

The law requires that any non- citizen of Seychelles, buying an immovable property, or buying shares in any company which holds any immovable property as assets, must obtain Government sanction. Granting of sanction requires that the foreign applicant deposits an equivalent of Seychelles Rupees 2 million ( US $ 390,000 ) in foreign exchange with the Central Bank of Seychelles, deliverable to the applicant in Seychelles Rupees for his / her local use, including the purchase of real estate.

Tax and Fees payable : For a citizen, the tax is set at 5 % of the property cost. For a non-citizen, it is set by the Cabinet of Ministers at the time of consideration of the application for sanction. It is set depending on the sort of development proposed by the applicant, between 10-30 % of the stated transfer value. The Notary fee is between 1-2 % of the transfer value. For high transfer values, the fee is negotiable. The registration fee is a nominal sum.

A foreigner may acquire a real estate without much ado by not holding the title directly, but by holding security to the title. This is the common legal practice. A local holding company is formed and registered to purchase and hold the title of the property in the holding company’s name with a charge ( mortgage ) on the property in favour of the foreign purchaser. This permits the foreign owner to secure the property in good time. He / she can enjoy the property, and after sometime apply to purchase all the shares of the holding company. Of course, the company owns him / her the full amount of the value of the property.

Forming such a holding company can be done without any difficulty. When the property is acquired this way, there is no need for government sanction and tax applicable is the same as that applicable to a citizen of Seychelles.