Seychelles Property Investment GuideHospitality Edition | 2014

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SEYCHELLES

Property Tenure/OwnershipTwo types of tenure exist for ownership of immovable property in Seychelles:

• freehold title; and • leasehold title.Under the Immovable Property (Transfer Restriction) Act, a non-Seychellois may not, without first obtaining the sanction from the relevant minister:

• purchase any immovable property or right to the property; • lease any property or rights in the property; or • enter into any agreement that includes an option to purchase or

lease any such property or right. A non-Seychellois is a person who is:

• not a Seychellois national or is a company; • an overseas company; or• a corporate body by whatever name called that is under non-

Seychellois control.A company is deemed to be under non-Seychellois control if:

• it is an overseas company;• any of its directors are non-Seychellois;• more than one-third of the votes exercisable at meeting are

vested in non-Seychellois;• more than one-third of the nominal amount of its issued shares

are held by non-Seychellois;• the amount paid as dividends to non-Seychellois members in a

12-month period exceeds one-third of the total amount paid as dividends by the company in the same period;

• more than one-third of the nominal value of debentures or charges of the company are held by non-Seychellois; or

• annual interest on debentures or charges held by non-Seychellois exceeds one third of the annual interest on all debentures or charges of the company that are outstanding.

Foreign individuals and companies with any foreign participation are required to submit an application to the Ministry of Land Use for sanction to:

• purchase or hold an option to purchase an immovable property; or • acquire or hold an option to acquire shares in a company that

owns an immovable property.In considering an application, the Minister will have regard to:

• the character of the applicant (or directors, if a company); • whether the declared purpose is consistent with the government’s

policy on land use and development in Seychelles; and

• whether the acquisition is in the interest of the country. The Minister may impose any conditions or restrictions on the grant of sanction. Any sanction granted is valid for one year from the date it is granted. If the property is later resold to a non-Seychellois purchaser, a new sanction application is required.

Major Property LegislationCivil Code of Seychelles 1975 Cap. 33

Condominium Property Act 1992 Cap. 41A

Immovable Property (Judicial Sales) Act Cap. 94

Immovable Property (Transfer Restriction Act) Cap. 95

Land Registration Act 1967 Cap. 107

Land Settlement (Perpetual Leases of State Land) Act 1966 Cap. 108

Town and Country Planning Act Cap. 237

Operational Requirements for Foreign CorporationsUnder the Companies Ordinance 1972 (‘CA 72’), an overseas company seeking to carry on business in Seychelles is required to lodge with the Registrar of Companies:

• a certified copy of its charter, statutes, memorandum and articles of association or other instrument that constitutes the overseas company or contains the regulations that govern it;

• a list of its directors and secretary;• the name of the person(s) appointed as managing agent or

agents of the company in Seychelles; and• the name of two or more persons appointed to accept on behalf of

the company service of process and any notices to be served on the overseas company.

An overseas company is considered to be carrying on business in Seychelles if it:

• enters into two or more contracts with residents in Seychelles, or with companies formed or incorporated there, being contracts which: - are entered into in connection with the business or objects

which the overseas company carries on or pursues; and - by their expressed or implied terms are to be wholly or

substantially performed in Seychelles;• appoints an agent who resides, or has a place of business, in

Seychelles to represent the overseas company in connection with the making or performance of two or more contracts that fall within the above paragraph, or in connection with the transactions of the overseas company in Seychelles generally, whether the appointment is made for a fixed period of time or not;

Seychelles Property Investment Guide 2014 3

• owns, possesses or uses assets situated in Seychelles for the purpose of carrying on or pursuing its business or objects, if it obtains or seeks to obtain from those assets directly or indirectly, any revenue, profit or gain, whether realized in Seychelles or not; or

• issues, or is deemed under section 48 of CA 72 to issue, in Seychelles a prospectus offering its shares or debentures for subscription or purchase.

‘International business companies’, being companies incorporated in Seychelles under the International Business Companies Act 1994, are permitted to carry on business outside Seychelles but are restricted from owning or leasing immovable property situated in Seychelles.

Foreign Exchange Controls

There are no foreign exchange restrictions.

Taxation

Taxes on acquisition and transfer of real estate and stamp duty on land transfers:

• Sanction application: 1.5% of the purchase price; and• Stamp duty (transfer tax): 5% of the purchase price.Tax on rental income:

• No specific property income tax, but business tax is payable on rental income.

Business tax is levied on the taxable income of a business (less any allowable deductions). The rates of business tax payable are:

• Sole Trader and Partnership: 0% on the first SCR 150,000 (USD 12,396) of taxable income, 15% on the next SCR 850,000 (USD 70,242) and 33% on the remainder; and

• Companies: 25% on the first SCR 1,000,000 (USD 82,637) and 33% on the remainder.

Income tax and non-monetary benefits tax:

• Both Seychellois and non-Seychellois employees pay 15% of gross emolument; and

• Non-monetary benefits tax – employers are liable to pay 20% on the value of the non-monetary benefits provided to an employee.

Value added tax (‘VAT’):

• There are two rates of VAT – a standard rate of 15% on most supplies of goods and services and 0% on a specific list of transactions. Certain goods and services are exempt from VAT.

Excise tax:

• Excise tax is levied on four excisable goods (cigarettes or tobacco, alcohol, motor vehicles and petroleum products) imported into the Seychelles or manufactured locally.

Trades tax:

• Trades tax is levied on imported goods. Taxation Treaties:

• Double Taxation Avoidance Agreements (‘DTAA’) have been signed with the following countries and are in force: - Bahrain - date of entry into force: 3 February 2012 - Barbados - date of entry into force: 28 February 2008 - Botswana - date of entry into force: 22 June 2005 - China - date of entry into force: 17 January 2000 - Cyprus - date of entry into force: 2 November 2006 - Indonesia - date of entry into force: 16 May 2000 - Malaysia - date of entry into force: 10 July 2006 - Mauritius - date of entry into force: 22 June 2005 - Oman - date of entry into force: 20 January 2004 - Qatar - date of entry into force: 1 January 2008 - South Africa - date of entry into force: 3 July 2002 - Thailand - date of entry into force: 14 April 2006 - UAE - date of entry into force: 23 April 2007 - Vietnam - date of entry into force: 7 July 2006 - Zambia - date of entry into force: 4 June 2012

• DTAAs have been signed with the following countries, but are not yet in force: - Belgium - Bermuda - Ethiopia - Isle of Man - Kuwait - Lesotho - Luxembourg - Malawi - Monaco - Swaziland - Sri Lanka - Zimbabwe

• Tax Information Exchange Agreements have been signed with the following countries and are in force: - Denmark - date of entry into force: 14 May 2012 - Guernsey - date of entry into force: 14 May 2012 - Iceland - date of entry into force: 14 May 2012

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- The Netherlands - date of entry into force: 14 May 201 - Norway - date of entry into force: 14 May 2012 - Sweden - date of entry into force: 14 May 2012 - The Faroes - date of entry into force: 14 May 2012

Real Estate Investment Trusts

Real estate investment trusts (‘REITS’) have not been established in Seychelles, and there are no REIT-specific regulations in the country.

Links

For more information on property investment in Seychelles, please visit the following websites:

• Seychelles International Business Authority: www.siba.net• Seychelles Investment Bureau: www.sib.gov.sc• Seychelles Revenue Commission: www.src.gov.sc

Jones Lang LaSalle9 Raffles Place Republic Plaza Level 39 Singapore 048619 tel +65 6220 3888

www.joneslanglasalle.com.sg

Seychelles Property Investment Guide 2014 5

ApplebyMalcolm Moller - Managing Partner tel +248 429 5283 seychelles@applebyglobal.com

Level 2B, Caravelle House Manglier Street Victoria, Mahé Seychelles fax +248 422 5282 www.applebyglobal.com/locations/seychelles.aspx

© 2014 Jones Lang LaSalle. All rights reserved.All information contained herein is intended as guide only and does not constitute advice. It does not constitute any offer or part of any contract for sale, lease or otherwise. All details are approximate and have not been independently verified. Users should make their own enquiries to verify and satisfy themselves of all aspects of the information (including without limitation, any income, rentals, dimensions, areas, zoning and permits). While the information has been prepared in good faith and with due care, no representations or warranties are made (express or implied) as to the accuracy, currency, completeness, suitability or otherwise of such information. Jones Lang LaSalle, its officers, employees, subcontractors, agents and clients shall not be liable to any person for any loss, liability, damage or expense arising directly or indirectly from or connected in any way with any use or reliance on such information. The whole or any part of this document must not be reproduced without written consent from Jones Lang LaSalle.

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