SEYCHELLES Trends and Developments Contributed by: Divino Sabino, Conrad Lablache, Olga Lablache and Brandon Francois, Rivard Nariman
The Latest Overview of What to Know Before Doing Business in Seychelles The pillars of Seychelles’ economy are tourism, fishing and the offshore financial sector. Virtual assets The introduction of the Virtual Asset Service Providers Act 2024 has sought to place laws regulating a hitherto unregulated sphere. Sey - chelles international business companies (IBCs) are utilised as vehicles to supply cryptocurrency or virtual asset services to the public. The new laws regulate the provision of services in or from Seychelles. Acquisition of residential property Seychelles is known for its sandy beaches and crystal waters. Anyone taking a hike or a drive to the hilltops is guaranteed to come across some breathtaking views. It is no wonder that acquiring property in Seychelles, whether on the beachfront or in secluded mountaintops, is popular among high net worth individuals. However, this requires government sanction, and processes are in place to ensure that the identity of the ultimate beneficial owners and the source of funds are known to the govern - ment. Numerous other checks and disclosures are required by the government from potential buyers of property. Such acquisitions, however, have driven up the prices of property. In an apparent bid to curb the trend, the government has in place a policy whereby they have restricted sanction approv - als. This policy restriction has been lifted in 2025. Increase in immovable property tax The government introduced immovable property tax in 2020 for foreign-owned residential proper - ty. The original tax rate was 0.25% of the market
value of the property per annum. For 2024, this tax rate has doubled to that of 0.5% of the prop - erty’s market value per annum. Late payment of property taxes can lead to high penalties being imposed on the taxpayer. Investment climate Investments in tourism accommodation projects continue. Multinational hotel chains continue to invest in development projects in the country. To cater for the demand for flights, many of the large regional airlines service the country with frequent flights – although there is room for other large carriers to service the country. As tourism arrival numbers are expected to increase, the country is expected to develop its infrastruc - ture to cater for increasing pressure on existing facilities, such as the provision of utilities and telecommunication services. Port, shipping and marine services Seychelles is an important transshipment hub in the region. The development of its port infra - structure and facilities is an ongoing process by the government and key stakeholders. Ship reg - istration is aligned with modern practices. Revision of employment laws The government is in the process of consult - ing with various stakeholders, with a view to revising employment legislation. Instead of a wholesale revision, the current process seeks to remedy issues that have arisen under the existing employment regime. Proposals include introducing a new category of leave to cater for unpredictable circumstances that warrant work - ers having to stay at home, unable to work, as precipitated by the COVID-19 outbreak. The much-disputed compulsory 13th-month salary introduced a few years ago – favoured by work - ers, but which put a significant strain on employ -
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