Investors can lease land from the government and buy / lease land from the private sector. If investors want to lease land from the government, they have to submit a project proposal to the Seychelles Investment Bureau (SIB). It is advisable to identify a site before a project proposal is submitted.

Land is at a premium given the topography and environmental constraints. All foreign nationals or companies with any foreign participation who wish to acquire property are required to obtain permission from the Ministry of National Development, Department of Land Use. All construction projects must be submitted to the Planning Authority for consideration.

The purchase of a plot or a building from private individual or the Government

The following possibilities are based on the understanding that the owner is willing to sell the property concerned and assuming that sanction has been granted by government.

Before purchasing any particular plot for the development of an economic activity, the investor is advised to complete an application for Outline Planning Permission (Should have SIB approval first).

The purchaser is non Seychellois and the owner is private or the Government

Ref: Immovable Property (Transfer Restriction) Act Cap 96 and Amendments

All foreign nationals, 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 sanction to purchase immovable property are first made to the Lands Section at the Ministry of National Development, either directly or through a notary or an Attorney in Seychelles.

An application fee equivalent to 1.5 percent of the purchase price of the property is charged for the processing of the application.

A notice published in the national daily newspaper “The Nation” will first make an offer of the property to Seychellois citizens.

If no Seychellois is interested, the application goes forward and investors will receive a decision on their request to purchase the immovable property. Following approval, investors will register their ownership of the property at the Registration Office.

Registration costs include normal registration fees plus any duties that may be fixed up to a maximum of 30 percent of the value of the purchase price. In the case of purchase of shares in a company owning an interest in immovable property, a processing fee of SR1,000 per application is payable.

b) The purchase of a plot or a building from:

i) The Government
When the seller is the Government, the Lands Division will make arrangements for the transfer with the Attorney General’s Office, which is responsible for transferring all State properties. The cost of the stamp duty and registration is borne by the buyer.

ii) The private individuals
When the seller is private, the investor will contact a notary or attorney who will manage the transfer of ownership of the plot which will then be registered at the Registration Office. The cost of registration fees will be SR 25 per parcel and duty payable shall be 5% stamp duty.

Lease of State Land

The government does not sell land for commercial or industrial activities but lease out for a term ranging from 60 years to 99 years depending on the type and scale of the development. Commercial and industrial lands are leased at a rate of between SR30m2 – SR 80m2 depending on the location and the topography of the land. However, the rate can change depending on prevailing circumstances.

Upon signing of the lease a grace period will come into effect for a period of 18 months or 24 months, again depending on the scale of the development. However, there is also an initial premium that needs to be paid upon the signing of the lease, which is usually the equivalent of one year's rent. Once the grace period has elapsed the annual ground rent will come due payable half yearly in advance to the Ministry of National Development. The rent will be reviewed upwards only every five (5) years not more than 25% and not less than 10% of the current rent.

Upon transfer the developer will be liable for payment of Stamp Duty and registration Fees on the said transfer. The development is to be in accordance with plans submitted to and approval by the Planning Authority.

Plots of lease on the Providence Industrial Estate

The plots located on the Providence Industrial Estate are managed by the Ministry of National Development. The contracted price for the lease of the plots is SR 30 per square metre per year. The notary and registration fee (5 to 10 percent of the annual value of the lease) are to be paid by the investor. However in line with the new macroeconomic reform programme the plots are on offer to investor at a premium paid in advance for a 99 year lease.

International investors or companies who wish to lease a property

It is preferable that the terms of the lease agreement be determined before submission of the project to the Seychelles Investment Bureau (SIB).

a) Rental for a period under two years
Any non-Seychellois who wishes to rent a plot of land or a building owned either privately or by Government for a period less than two years should have the approval of the Ministry of National Development.

b) Rent or lease for a period over two years
Any non-Seychellois who wishes to rent a plot or building owned privately or by the Government for a period of over two years should have the authorisation of the Cabinet of Ministers through a document entitled: “ Application for Sanction to Lease, Rent Immovable Property” available at the Land Division of the Ministry of National Development . The processing fee on application is 1.5 percent of the annual rent value. 

IMPORTANT GUIDELINES TO NOTE WHEN BUYING REAL ESTATE IN SEYCHELLES

Overseas buyers must obtain permission from the government before buying property. This is best done by a notary.
Property purchase by a non-national is processed by the Land Section at the Ministry of Land Use and Habitat and registered at the Registration Office.
Foreign buyers are required to deposit purchase funds in the Central Bank of Seychelles in foreign currency. This is converted to Seychelles rupees upon withdrawal and used for the property transaction.
Foreigners can secure residency for a fee of 50,000SR (£3,000), which means that the property won't be subject to CGT once sold.
A government sanction fee (30 per cent of the transfer value) is payable, but this can be reduced and, in some cases, waived based on the property and location. Fee for processing this: 1.5 per cent.
Notary fees are 1-2 per cent; transfer fee (stamp duty) is 5 per cent. There is no capital gains tax or inheritance tax.
 

A foreigner may acquire a real estate without much ado by not holding the title directly, but by holding security to the title. This is the common legal practice. A local holding company is formed and registered to purchase and hold the title of the property in the holding company’s name with a charge ( mortgage ) on the property in favour of the foreign purchaser. This permits the foreign owner to secure the property in good time. He / she can enjoy the property, and after sometime apply to purchase all the shares of the holding company. Of course, the company owns him / her the full amount of the value of the property.

Forming such a holding company can be done without any difficulty. When the property is acquired this way, there is no need for government sanction and tax applicable is the same as that applicable to a citizen of Seychelles.