Real Estate

Investors can lease land from the government and/or buy land from the private sector. Investors wishing to lease land from the government have to submit a project concept to the SIB. As such, it is advisable to identify a site before a project proposal is submitted.

Purchase of land or property from an individual

When the seller is a private individual, the investor should contact a notary or attorney who will manage the transfer of ownership of the plot which will then be registered at the Registration Division. The cost of registration is set at SCR100 per parcel and the duty payable is a 5% Stamp Duty plus a 1.5% Sanction processing fee and 11%. Sanction Duty based on the value of the property in the case of residential properties only. The Policy on alienation of land and management of State land, the Villas Policy and guidelines for submission of an application for sanction under the Immovable Property (Transfer Restriction) Act can be downloaded HERE.

Lease of state land

The government leases out tourism, commercial or industrial land for a term ranging from 60 to 99 years depending on the type and scale of the development. Commercial and industrial lands are leased at different rates, between SCR30 per m2 to SCR300 per m2 depending on the location and topography of the land. However, these rates can change depending on prevailing circumstances.

Upon signing the lease, an initial premium equivalent to one year’s rent needs to be paid. After which, a grace period will come into effect for a period of 18 or 24 months depending on the scale of the development. Once the grace period has elapsed, the annual ground rent will be payable on a bi-annual basis to the Ministry of Habitat, Infrastructure and Land Transport (MHILT) accounts section.

The rent will be reviewed upwards only every 5 years, at a rate of between 15% and 25% of the current rent and can also be reviewed on the open market rate. Upon transfer, the developer will be liable for Stamp Duty and Registration Fees. The development must be in accordance with plans submitted to and approved by the Seychelles Planning Authority.

Purchase of immovable property

All non-Seychellois and foreign companies or Seychellois companies of which any shares are held by a non-Seychellois that wish to purchase immovable property in Seychelles require sanction from the Government. Applications for sanctions to purchase immovable property are available at the Land Division of the MHILT or can be downloaded from: www.luh.gov.sc. Following approval, investors will register ownership of their property at the Registration Division. Registration costs include normal registration fees plus any duties that may be set up to a maximum of 1% of the purchase price. In the case of purchase of shares in a company owning an interest in immovable property, a processing fee of SCR1, 000 per application is payable.

Property Leasing for international investors

It is preferable that the terms of the lease agreement be determined before submission of the project to the SIB.

Rental for a period of less than 2 years

Any non-Seychellois who wishes to rent offices or commercial premises necessary for its business operations can do so without applying for a sanction from the Government under the Immovable Property (Transfer Action) Act. Rental for a period of over 2 years Any non-Seychellois who wishes to rent a plot or building owned privately or by the Government, for a period of 2 years or more, is required to apply for a sanction under the Immovable Property (Transfer Restriction) Act. Application forms are available at the Land Division of the MHILT or can be downloaded from www.luh.gov.sc .The processing fee is 1.5% of the annual rent.

Sanction

If a foreigner wishes to purchase immovable property for a commercial project they will be subject to 5% stamp Duty and 1.5% processing fee of the cost of the land. In the case of purchase of immovable property for a holiday home or residential development for private use only, a Sanction duty (currently 11%) of the market value of the property is payable to the Government of Seychelles over and above the applicable Stamp Duty (currently 5%) of the market value of the property.