Seychelles Taxation: Expat Income and Property Taxes

Published on October 23, 2025 and written by Cyril Jarnias

The Seychelles, a paradise archipelago in the Indian Ocean, is attracting more and more expatriates drawn by its exceptional living environment and advantageous tax regime. Whether you’re considering moving there or already residing there, understanding the Seychellois tax system is essential for optimizing your financial situation. In this article, we provide a comprehensive overview of taxation in the Seychelles for expatriates, covering the main taxes, filing obligations, and practical advice for navigating this new tax context with confidence.

The Seychelles tax haven: myth or reality?

The Seychelles has long been considered a tax haven, but the reality is more nuanced. While the country does offer interesting tax benefits, it has also undertaken reforms to comply with international standards on tax transparency.

An attractive but evolving tax regime

Since 2010, the Seychelles has implemented a territorial tax system. This means that only income from Seychelles sources is taxable, offering a significant advantage to expatriates who receive income from abroad. However, it’s important to note that the country has signed automatic exchange of tax information agreements with many countries, including France, as part of the fight against tax evasion.

Competitive taxation to attract investors

The Seychelles government has implemented a tax policy aimed at attracting foreign investors and qualified expatriates. This strategy translates into relatively low tax rates and simplified procedures for creating offshore companies. Nevertheless, it’s important to remain vigilant about regulatory developments, as the country is gradually adapting its legislation to meet international requirements for combating aggressive tax optimization.

Diving into the Seychelles tax system

Income tax: an advantageous flat tax

In the Seychelles, personal income tax is characterized by its simplicity and single rate, commonly called a “flat tax.” In 2025, this rate is set at 15% for tax residents, applying to all Seychelles-source income above a certain threshold.

A generous allowance

The first 8,555.50 Seychelles rupees (SCR) of monthly income are tax-exempt, representing an annual allowance of 102,666 SCR (approximately 7,000 euros). This measure significantly reduces the tax burden for taxpayers, particularly those with modest incomes.

Taxation of foreign income

One of the main advantages of the Seychelles tax system for expatriates lies in the fact that foreign-source income is not taxable in the Seychelles. This includes salaries received for work performed abroad, rental income from property located outside the Seychelles, or dividends from foreign companies.

Seychelles VAT: a single rate of 15%

The Value Added Tax (VAT) in the Seychelles, locally called “Goods and Services Tax” (GST), is set at a single rate of 15%. It applies to most goods and services, with some notable exceptions:

• Basic food products are exempt from VAT to ensure accessibility for the entire population.
• Financial and insurance services also benefit from an exemption.
• Exports are subject to a zero rate, thus promoting the competitiveness of Seychellois companies internationally.

Corporate tax: an attractive regime for businesses

The standard corporate tax rate in the Seychelles is 25% in 2025. However, the country offers special regimes for certain types of businesses:

• International Business Companies (IBCs) benefit from a reduced rate of 1.5% on their profits up to 1 million dollars, and 3% beyond that.
• Companies in the tourism sector can benefit from tax incentives, with temporary corporate tax exemptions for new investments.
• Wealth management companies and investment funds benefit from specific tax regimes, with rates that can go as low as 0% under certain conditions.

Local taxes: light taxation

Unlike many countries, the Seychelles does not impose significant property taxes. Property owners are subject to a symbolic annual tax, generally less than 100 SCR per year. This policy aims to encourage real estate investment, particularly in the tourism sector.

Filing obligations: simplified but unavoidable

Annual income declaration: a simplified process

In the Seychelles, all tax residents are required to submit an annual income declaration. The process has been significantly simplified in recent years, with the possibility of filing online via the Seychelles tax administration portal.

Deadlines to respect

The declaration must be submitted by March 31 of the year following the income year. For example, for income received in 2024, the declaration must be filed by March 31, 2025 at the latest. An additional deadline may be granted upon justified request.

Required documents

• Pay slips or employer certificates
• Proof of rental income (for properties located in the Seychelles)
• Bank statements for Seychelles accounts
• Proof of deductible expenses (charitable donations, pension contributions, etc.)

Declaration of foreign income: a transparency obligation

Although foreign-source income is not taxable in the Seychelles, it is nevertheless recommended to declare it for the sake of transparency. This practice helps avoid any suspicion of tax evasion and facilitates information exchanges between tax administrations under international agreements.

Foreign bank accounts

Seychelles tax residents must declare the existence of their foreign bank accounts, even if the income generated by these accounts is not taxable locally. This obligation is part of the international commitments made by the Seychelles in the fight against money laundering.

VAT: specific obligations for businesses

Companies with annual turnover exceeding 2 million SCR are required to register with the tax administration for VAT. They must then submit quarterly declarations and remit the VAT collected, minus the deductible VAT on their purchases.

Expert advice to optimize your tax situation

Tax planning: anticipate to maximize your benefits

Good tax planning is essential to make the most of the Seychelles tax regime. Here are some strategies to consider:

Income structuring

If you have the option to choose the source of your income, prioritize foreign-source income that will not be taxed in the Seychelles. For example, if you’re an independent consultant, you might consider billing your services through a foreign company rather than directly in the Seychelles.

Real estate investments

Investment in Seychelles real estate can be tax advantageous, particularly due to the absence of significant property tax. Additionally, rental income generated locally benefits from the single 15% tax rate, which can be interesting compared to other jurisdictions.

Legal tax optimization: opportunities to seize

Creating an International Business Company (IBC)

For entrepreneurs and investors, creating an International Business Company (IBC) in the Seychelles can offer considerable tax advantages. With a profit tax rate that can go as low as 1.5%, this structure can be particularly interesting for international activities.

Special regimes for investors

The Seychelles offers tax incentive programs for foreign investors in certain key sectors such as tourism, renewable energy, or information technology. These programs can include temporary corporate tax exemptions or tax deductions for capital investments.

Tax compliance: stay vigilant about regulatory developments

The international tax landscape is constantly evolving, and the Seychelles is gradually adapting to international standards. It’s crucial to stay informed about regulatory changes to avoid any risk of non-compliance.

Automatic exchange of information

The Seychelles participates in the automatic exchange of tax information with many countries. Ensure that your declarations in the Seychelles are consistent with those made in your country of origin or in other jurisdictions where you have financial interests.

Economic substance

To fully benefit from Seychelles tax advantages, particularly for companies, it’s increasingly important to demonstrate real economic substance on site. This may involve having local employees, physical offices, or making strategic decisions in the Seychelles.

Conclusion: The Seychelles, a tax haven to explore with caution

The Seychelles tax regime offers attractive opportunities for expatriates and international investors. With its single-rate income tax, absence of taxation on foreign income, and tax benefits for businesses, the archipelago positions itself as a competitive tax destination.

However, it’s essential to approach this opportunity with caution and professionalism. Compliance with local and international regulations, as well as rigorous tax planning, are crucial to sustainably benefit from the advantages offered by the Seychelles.

As an expatriate or potential investor, it’s recommended to surround yourself with qualified professionals to navigate the subtleties of the Seychelles tax system and ensure you maximize benefits while remaining compliant with current laws.