Seychelles Corporate Taxation: A Practical Guide

Published on October 1, 2025 and written by Cyril Jarnias

The Seychelles, an idyllic archipelago in the Indian Ocean, is not just a dream destination for tourists. This island nation has established itself as one of the world’s most attractive offshore jurisdictions, offering a particularly advantageous tax environment for international businesses. Let’s dive into the nuances of Seychelles taxation and discover why more and more entrepreneurs are choosing to set up their companies there.

An Enticing Tax Regime: Welcome to the Business Paradise

The Seychelles has implemented a tax system extremely favorable to foreign companies, making the archipelago a true El Dorado for international investors. The Seychelles tax regime is based on the principle of total exemption from taxes on foreign income. Practically, this means that offshore companies (called “International Business Companies” or IBCs) pay no tax on profits, dividends, or capital gains generated outside Seychelles territory.

This attractive tax policy comes with other significant benefits:

• No capital gains tax
• No wealth tax
• No withholding tax on dividends, interest, and royalties paid abroad
• Exemption from inheritance and gift taxes

It’s important to note that this advantageous tax regime applies only to income generated abroad. Companies with local activities in the Seychelles are subject to a 15% tax rate on profits made within the territory.

Registering with the Seychelles Tax Authority: A Simplified Formality

Creating an offshore company in the Seychelles is a relatively simple and quick process. Registration with the tax authority happens automatically during company formation. Here are the main steps to follow:

1. Choose a local registered agent licensed by the Seychelles Financial Services Authority (FSA). This agent will be your mandatory intermediary for all administrative procedures.

2. Provide the necessary documents for company formation, including the articles of association and information on shareholders and directors.

3. Pay in the share capital (no minimum amount is required for IBCs).

4. Obtain the certificate of incorporation issued by the Registrar of International Business Companies.

Once these steps are completed, your company is officially registered and can begin operations. The average time to create an IBC in the Seychelles is about 24 to 48 hours, making it one of the fastest jurisdictions in the world for company incorporation.

Tax Obligations: Minimal but Essential

Although the Seychelles tax regime is extremely favorable, offshore companies are not exempt from all obligations. IBCs must comply with certain formalities to maintain their status and benefit from tax advantages:

• Payment of an annual flat fee of $100 to the FSA
• Maintenance of up-to-date accounting records (without requirement to file with authorities)
• Keeping registers of shareholders and directors
• Appointment of a local registered agent
• Annual compliance declaration to the FSA

It’s crucial to note that the Seychelles has strengthened its regulatory framework in recent years to comply with international standards on tax transparency. Thus, IBCs are now required to:

• Declare their ultimate beneficial owner to the central register
• Comply with anti-money laundering and counter-terrorism financing obligations
• Adhere to automatic exchange of tax information standards (OECD CRS)

Despite these new requirements, the tax obligations of offshore companies in the Seychelles remain relatively light compared to other jurisdictions.

Double Taxation Agreements: An Expanding Network

The Seychelles has developed a growing network of Double Taxation Agreements (DTAs) with other countries, thereby enhancing its attractiveness to international investors. These agreements prevent income generated in a signatory country from being taxed both in that country and in the Seychelles.

To date, the Seychelles has concluded DTAs with more than 25 countries, including:

• China
• United Arab Emirates
• Mauritius
• Singapore
• Thailand
• Cyprus
• Luxembourg

These agreements offer interesting opportunities for international tax structuring, particularly for companies operating in signatory countries. They can help reduce withholding tax rates on dividends, interest, and royalties, or benefit from favorable provisions regarding permanent establishments.

It’s important to note that the Seychelles’ DTA network is constantly expanding, with new negotiations underway. This active policy of concluding tax agreements demonstrates the Seychelles’ commitment to further integrating into the global economy while preserving its tax attractiveness.

Comparison with Other Offshore Jurisdictions: The Seychelles Stands Out

In the landscape of offshore jurisdictions, the Seychelles stands out with an attractive balance between tax benefits, ease of creation, and compliance with international standards. Here’s how they position themselves compared to other popular destinations:

Seychelles vs British Virgin Islands (BVI): Both jurisdictions offer total tax exemption on foreign income. However, the Seychelles generally has lower creation and maintenance costs than the BVI. Furthermore, the Seychelles has a more developed DTA network.

Seychelles vs Panama: Although Panama also offers an advantageous territorial tax regime, the Seychelles stands out with a faster creation process and less restrictive minimum capital requirements. The Seychelles also benefits from a better international reputation.

Seychelles vs Hong Kong: Hong Kong applies a 16.5% tax rate on profits, compared to total exemption in the Seychelles for foreign income. However, Hong Kong offers more direct access to Asian markets and a more developed financial infrastructure.

Seychelles vs Mauritius: Mauritius offers a 15% tax rate with possibilities for exemptions, while the Seychelles offers total exemption for foreign income. Both jurisdictions have good DTA networks, but the Seychelles generally has lower operating costs.

This comparison highlights the specific strengths of the Seychelles: ultra-competitive taxation, simplified procedures, controlled costs, and increasing compliance with international standards. These characteristics make it a top choice for many entrepreneurs and international investors.

Conclusion: The Seychelles, a Strategic Choice for Your Offshore Company

The Seychelles is establishing itself as a premier destination for creating offshore companies. Its extremely advantageous tax regime, combined with simplified administrative procedures and increasing compliance with international standards, makes it a particularly attractive option for international entrepreneurs and investors.

However, it’s crucial to emphasize that creating an offshore company in the Seychelles, as in any other jurisdiction, requires thorough analysis of your specific situation and objectives. Tax benefits must be weighed against compliance requirements and legal implications in your home country.

The key to success lies in meticulous planning and expert guidance. By relying on the advice of professionals specialized in setting up companies abroad, you can navigate the sometimes complex waters of international taxation with confidence and fully leverage the opportunities offered by the Seychelles.