SEYCHELLES Law and Practice Contributed by: Tamara Christen, Christen Chambers
5.6 Annual Entity Maintenance and Accounting Compliance
The landlord is generally responsible for maintaining the property in a tenantable condition and effecting necessary repairs unless an express contract states otherwise. If repairs are not done, the tenant can com - plain to the Rent Board. Payment frequency is typically stipulated in the lease agreement. For government-leased commercial land, rent is generally payable on a bi-annual basis after an initial grace period. In private leases, monthly rent payments are common, but the frequency can be negotiated and specified in the contract. 6.5 Rent Variation Rent increases can be incorporated into the lease agreement and depend on the negotiated terms. 6.6 Determination of New Rent Rent increases depend on the negotiated terms, which usually include a limit of how much the rent can be increased. If parties cannot agree, they can submit themselves to the Rent Board, which can set the rent at market value based on valuation reports. 6.7 Payment of VAT VAT is payable on income above SR2,000,000 (approximately USD140,000) including commercial rental income, however, residential rental income is specifically exempt from VAT under the First Schedule Part II clause 4 of the Value Added Tax Act 2010. 6.8 Costs Payable by a Tenant at the Start of a Lease GOS leases typically involve a premium. The premium may either be for infrastructure purposes or a one- year rent premium. Standard commercial or residential leases typically include a one-to-three month rental deposit as a form of insurance for the lessor. 6.9 Payment of Maintenance and Repair Within a condominium development, the owners or tenants pay a monthly levy towards the management corporation to maintain the common areas. Many con - dominium developments also include a capital con - tribution fee upon dealing with a unit. The purpose of the fee is to repair the buildings when the need arises.
There is a nominal annual government fee, and the requirement of a domestic secretary, as well as an auditor. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time There are lease agreements ranging from short term to long term (up to 99 years). Leasehold ownership allows the lessee to hold and use property for a defined term (often in line with the 99-year head lease), after which the property reverts to the lessor. These arrangements also require the sanction application process in the case of a foreigner. 6.2 Types of Commercial Leases Fixed-term leases are the most common type of lease. 6.3 Regulation of Rents or Lease Terms Rents and lease terms are regulated by law, specifi - cally under the Control of Rent and Tenancy Agree - ment Act. The Rent Board has authority to oversee and adjudicate disputes regarding rent and tenancy agreements, and the Rent Control Act regulates rent - al prices to protect tenants from unreasonable rent increases. Lease terms, including duration and condi - tions, are governed by statutory provisions and must generally be in writing for leases over one year. Rents and lease terms are not entirely freely negotiable but are subject to legal regulation and oversight by rel - evant authorities. 6.4 Typical Terms of a Lease Government leases for commercial or industrial land typically range from 60 to 99 years, depending on the type and scale of development and typically involve a premium. For private leases, the minimum duration is usually six months, but long-term leases (often up to 99 years) are common for commercial properties. The GOS has a policy that allows non-Seychellois entities to rent commercial premises for less than two years without government sanction; leases of two years or more require government approval.
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