SEYCHELLES Law and Practice Contributed by: Tamara Christen, Christen Chambers
2.11 Legal Restrictions on Foreign Investors Seychelles has a sanction process enforced under the Immovable Property (Transfer Restriction) Act. It takes approximately three months to complete this process. 3. Real Estate Finance 3.1 Financing Acquisitions of Commercial Real Estate A number of the developers typically finance their projects through their existing financing relationships with commercial lenders and provide security over the acquired land. 3.2 Typical Security Created by Commercial Investors Should a buyer require financing, the financer is pro - tected with a legal charge over the property and pro - tected by the Mortgage and Registration Act. 3.3 Restrictions on Granting Security Over Real Estate to Foreign Lenders Foreign lending and security creation and repayment is unrestricted. Furthermore, the Investment Act pro - hibits discriminatory measures against foreign inves - tors, safeguarding timely repayments under loan or security documents. 3.4 Taxes or Fees Relating to the Granting and Enforcement of Security There is stamp duty of 0.2% of the charge amount upon registration of the legal charge. 3.5 Legal Requirements Before an Entity Can Give Valid Security Creditors must submit the original or certified cop - ies of the deed creating the security to the Registrar. Furthermore, all transactions must be at arm’s length under the Business Tax (Amendment) Act, 2022. 3.6 Formalities When a Borrower Is in Default A lender enforcing security over real estate after bor - rower default must ensure the security is properly registered. This establishes priority over unsecured creditors. Prior to initiating court proceedings there must be sufficient notice provided to the defaulter. Court processes typically take three years if there is
know the landscape to ensure the project processes do not get further delayed along the way. 2.7 Soil Pollution or Environmental Contamination While the Environment Protection Act does not explic - itly transfer liability to new owners, it places obliga - tions on current owners to address known contami - nation. While the polluter is primarily liable, the state may intervene to prevent ecological harm and seek reimbursement. For contractual purposes, the buyer can include indemnification to cover its risk. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law Zoning is pre-established and is available on the Web - GIS website. There may be scope to negotiate zoning should the project be in the interests of the country. 2.9 Condemnation, Expropriation or Compulsory Purchase A number of hotel projects enter into a lease agree - ment with the Government of Seychelles (GOS). The GOS leases work from a build, operate, transfer model incorporated into a 99-year lease. Another means of taking of land occurs when the purchase is associ - ated with anti-money laundering legislation. A third consideration is, if a property owner is absent or an estate is vacant for a very long period, the curator can take charge, administer and vest the land under the Curatelle Act, potentially resulting in its confiscation if the owner is not located. Finally, under the Seychelles Investment Act, any investments in Seychelles shall not be nationalised, expropriated or subjected to any indirect property measures having an equivalent effect, except by provision of a law, in the public interest, for a public purpose, on a non-discriminatory basis and accom - panied by prompt and full compensation. 2.10 Taxes Applicable to a Transaction For both an asset deal and a share deal there is 5% stamp duty equally applicable to foreigners and domestic persons. While for foreigners there is the additional sanction process which contains costs ranging from 1.5% to 13% depending on the trans - action.
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