Tax Benefits For Real Estate Investors In Seychelles

Published on October 2, 2025 and written by Cyril Jarnias

The Seychelles, an idyllic archipelago in the Indian Ocean, are not only famous for their white sand beaches and crystal-clear waters. They also offer a particularly attractive tax environment for international real estate investors. With a favorable regulatory framework and significant tax benefits, the Seychelles position themselves as a prime destination for those looking to optimize their real estate investments while enjoying an exceptional living environment.

An Advantageous Local Tax Regime

The Seychelles tax system is designed to attract foreign investors, particularly in the real estate sector. Both residents and non-residents benefit from favorable tax treatment, with competitive tax rates and strategic exemptions.

For individuals, income tax in the Seychelles follows a progressive scale ranging from 0% to a maximum of 15%, which is significantly lower than many Western countries. Rental income is subject to this same scale, thus offering attractive taxation for property owners.

Real estate companies also benefit from an advantageous tax regime. The corporate tax rate is set at 25%, but significant reductions can be obtained for companies that meet certain investment or local employment criteria. Additionally, real estate companies can benefit from temporary tax exemptions during the development phase of their projects.

A particularly interesting aspect of the Seychellois tax system is the absence of capital gains tax on real estate. This provision allows investors to realize substantial profits when reselling their properties without being penalized by heavy taxation.

Advantageous International Taxation

The Seychelles have signed numerous double taxation avoidance agreements (DTA) with various countries, strengthening their position as an international investment hub. These agreements allow foreign investors to avoid being taxed twice on the same income, once in their country of residence and once in the Seychelles.

Among the countries with which the Seychelles have concluded DTAs are notably:

• China
• The United Arab Emirates
• South Africa
• Singapore
• Malaysia

These agreements generally cover real estate income, business profits, dividends, interest, and royalties. For real estate investors, this means that rental income generated in the Seychelles can benefit from reduced tax rates or exemptions in their country of residence.

Furthermore, the Seychelles have established a particularly advantageous International Business Company (IBC) regime. IBCs benefit from a total exemption from tax on profits earned abroad, making them an ideal vehicle for international real estate investors looking to structure their investments optimally.

Minimal Property Taxes

One of the most attractive aspects of real estate investment in the Seychelles is the near absence of recurring property taxes. Unlike many countries where property owners are subject to substantial annual property taxes, the Seychelles do not impose property tax or council tax per se.

The only recurring fees related to real estate ownership are:

• An annual sanitation tax, of a relatively low amount
• Condominium fees for properties in residences, which vary depending on the services offered

This light tax policy regarding real estate ownership allows investors to maximize their rental returns and significantly reduce the long-term holding costs of their properties.

It should be noted, however, that when purchasing a property, transfer duties are applicable. These duties generally amount to 5% of the property value for non-residents. Although this rate is not negligible, it remains competitive compared to many other popular real estate investment destinations.

Advantageous Comparison with Other Destinations

To better appreciate the tax attractiveness of the Seychelles for real estate investors, it is useful to compare this regime with that of other popular destinations.

Seychelles vs Mauritius

Mauritius, another Indian Ocean island, is often considered a direct competitor of the Seychelles in terms of real estate investment. Although Mauritius also offers an advantageous tax regime, with a corporate tax rate of 15%, the Seychelles stand out due to:

• The absence of capital gains tax on real estate
• A broader network of double taxation avoidance agreements
• The absence of recurring property taxes

Seychelles vs Dubai

Dubai is renowned for its attractive tax regime, particularly the absence of personal income tax. However, the Seychelles offer several comparative advantages:

• Generally lower real estate acquisition costs
• A more preserved and exclusive natural environment
• Recognized political and economic stability

Seychelles vs the Caribbean

Many Caribbean islands, such as the Bahamas or the Cayman Islands, are known for their tax advantages. Nevertheless, the Seychelles distinguish themselves by:

• Better connectivity with Asia and the Middle East
• A more modern and transparent regulatory framework
• A more diversified economy, less dependent on tourism

This comparison highlights the unique position of the Seychelles in the international real estate investment market. The archipelago combines substantial tax benefits with an exceptional living environment and enviable political and economic stability.

Prospects and Opportunities for Investors

The Seychelles real estate market presents promising prospects for savvy investors. The growing demand for luxury properties, combined with limited supply due to the small size of the archipelago, creates favorable conditions for property appreciation.

The Seychellois government continues to actively promote foreign investment in the real estate sector. Large-scale development projects, such as luxury hotel complexes and high-end residences, offer attractive investment opportunities.

Furthermore, the potential for seasonal rental is particularly interesting in the Seychelles. The growing popularity of the archipelago as a luxury tourist destination allows property owners to generate substantial rental income, benefiting from the advantageous tax regime on this income.

It is important to note that the Seychelles have made considerable efforts in recent years to improve their international image regarding financial transparency. These efforts have strengthened the confidence of international investors and have contributed to stabilizing the country’s regulatory and tax framework.

Conclusion: A Tax and Natural Paradise for Real Estate Investors

The Seychelles position themselves as a prime destination for real estate investors seeking significant tax benefits in an idyllic setting. The combination of advantageous local taxation, favorable international agreements, minimal property taxes, and attractive growth potential makes the Seychelles a serious option to consider in any international real estate investment strategy.

However, as with any foreign investment, it is crucial to research thoroughly and surround oneself with competent professionals to navigate the specifics of the local market and optimize one’s investment strategy. Tax benefits, although substantial, should not be the only decision criterion. The quality of the properties, their appreciation potential, and the overall economic prospects of the country must also be taken into account.

Ultimately, the Seychelles offer a rare opportunity to combine tax optimization, attractive returns, and exceptional quality of life. For investors willing to explore beyond traditional destinations, the Seychelles archipelago could well be the key to a successful and tax-advantaged real estate investment.