Seychelles :: SADC Investment Portal

Seychelles

Country Profile

Country Overview

Seychelles flag Seychelles, island republic in the western Indian Ocean, comprises of 115 islands, with lush tropical vegetation, beautiful beaches, and a wide variety of marine life. Situated between latitudes 4° and 11° S and longitudes 46° and 56° E, the major islands of Seychelles are located about 1,000 miles (1,600 km) east of Kenya and about 700 miles (1,100 km) northeast of Madagascar. The capital, Victoria, is situated on the island of Mahé. The country has an estimate population of around 107,000 inhabitants, three-quarters live on the main island of Mahé.

Economic Overview

Seychelles has the highest Gross Domestic Product (GDP) per capita in Africa, at $ 15, 926 (2022). Its economy is highly dependent on tourism and fisheries.

GDP growth reached 9% in 2022, before moderating to 4.3% in 2023. Average inflation fell to 2.6% in 2022. This reflects a moderation in global energy and food prices and recovering private consumption.

The Seychelles currency Rupee is expected to remain strong and slightly appreciate to SRs13.3 per US dollar by end-2024, supported by modest flows of foreign exchange into the tourism sector (World bank)

Government System

The Constitution of the Third Republic of Seychelles is the Supreme Law and establishes the country's system of government. It provides for three separate branches of the State, which puts in place a separation of powers – the Executive, the Legislature (or Parliament) and Judiciary.

The Executive is the administrative arm of government and is responsible for putting into operation the laws passed by Parliament and administering the programs and services that are delivered by Government. The head of state and Government/Executive is the president, who is directly elected by popular vote and may hold office for up to two consecutive five-year terms.

The National Assembly of Seychelles is the Legislative branch of Government and is a unicameral Parliament consisting of only one House. The Assembly currently comprises of up to 35 Members, of who 26 are directly elected to represent Constituencies and 9 are proportionally elected. Members can belong to a political party or be Independent.

The Judiciary is the legal branch of government and is responsible for interpreting and enforcing the laws of Seychelles. It is headed by the Chief Justice. Judicial power and authority is exercised by the courts (the Supreme Court, the Court of Appeal, the Magistrates Court and the Constitutional Court, as well as other courts and tribunals). The courts are independent of Parliament and the Executive.

Legal Overview

Seychelles has an efficient legal system that is based on both French Napoleonic Code and British common law.

As a part of the World Intellectual Property Organisation (WIPO), the government guarantees that the intellectual property rights of individuals and companies, obtained in their home country, will be well-protected hence asset protection is a given.

General Information

Official Name	Republic of Seychelles
Capital City	Victoria
Area	455 sq. Km
Population (2023)	107,940 (World meter)
Official Languages	Creole, English and French
Nationality	Seychellois
Currency	Seychellois Rupee (SR)
Int’l. Dialing Code	+248
Time zone	4 hours ahead of GMT,
Ethnic groups	Creole (A mixture of European, Asian and African
Main Destinations of Exports 2022	France, Bermuda, United Arab Emirates, United Kingdom, Zambia (UNCTAD Stat)
Main Origins of Imports 2023	Saudi Arabia, South Africa, France and Spain.
Total Exports (Millions of US$) 2023	537 (World Bank)
GDP 2022 (Millions current US$)	1 706 (UNCTAD Stat)
GDP per Capita (current US$) 2022	15 926 (UNCTAD Stat)
FDI (Millions current US$) (2022)	212.05 (UNCTAD Stat)

Why Invest in Seychelles?

a) Robust Legal Regulatory Framework for Investments

Acquisition of private property in Seychelles is protected and government can only expropriate property in cases of public interest or for public safety. In such cases, the 1978 Lands Acquisition Act states that when the government takes possession of property, it must pay prompt and full compensation for the property.

Seychelles is a party to the ICSID Convention and New York Convention. The ICSID convention provides means of conciliation and arbitration to settle investment disputes between contracting states and nationals of other contracting states while the New York convention allows for the recognition and enforcement of Foreign Arbitral Awards.

Seychelles also has an Investment Appeal Panel to provide an appeal mechanism for investors to challenge the government’s decisions regarding investments or proposed investments in Seychelles.

Further, Seychelles has undertaken a complete overhaul of its legislative framework. The country offers generous fiscal incentives to foreign investors. In an ever-increasing drive to improve competitively, Seychelles has signed Double Tax Avoidance Agreements with a number of jurisdictions which further incentivise and facilitate the registration of businesses in and from Seychelles.

b) International Relations

Seychelles pursues bilateral, multilateral and regional relations in a peaceful, proactive and innovative manner. It subscribes to the broader concept of human security and supports initiatives that create favourable conditions for regional stability, international cooperation, and economic prosperity contributing to peace, security and stability in the region through proactive diplomacy.

c) Wide Market Access

Seychelles is also party to the Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), Indian Ocean Commission (IOC), Tripartite FTA, World Trade Organization and Other Preferential Trade Agreements (PTAs).

Seychelle has also signed bilateral treaties with several countries. Goods and services emanating from the country enjoy preferential treatment and have access to a wide market.

d) Investment Climate

The Seychelles investment climate has changed radically over the past decade, in the wake of the decision to transform the economy of Seychelles from a predominantly agricultural / tourism-based one into a sophisticated international service centre, receptive to foreign investors.

The Seychellois government is committed to improving the business environment through public-private partnerships (PPP) to upgrade the country’s infrastructure. In March 2021, the cabinet of ministers approved the migration from the 2017 version of the harmonized system of classification to the 2022 version.

e) Skilled Labour Force

Seychelles has 96% literacy rate with an increasingly educated and skilled workforce. It has a network of colleges and universities, offering courses in diverse fields – from IT and mechanics to hotel management, even nurturing an array of professionals in law, finance, medicine, and more.

f) Other Factors

Located in the heart of the Indian Ocean with excellent air connectivity to major hubs in the Middle East, Europe, Africa, and Asia;
The main population is situated outside the cyclonic belt;
Favourable time zone of GMT+4;
Temperature ranges from 25-32 degrees Celsius throughout the year;
Politically and economically stable environment;
A growing economy with expanding opportunities in Fisheries, Agriculture, Real Estate, Adventure & Sports Tourism, ICT, and Energy;
Offers a world-class financial centre with no foreign exchange restrictions;
1st in Africa and 23rd in the world on the Corruptions Perceptions Index 2022;
1st Highest GDP per Capita in Africa 2022;
2nd for the Mo Ibrahim Index of African Governance 2022;
2nd in Africa on the Human Development Index 2022;
1st in Africa on the Henley Passport Index 2022;
3rd in Africa in E-Government Development Index 2022.

Seychelles Investment Board (SIB)

The Seychelles Investment Board (SIB) was established in 2004 and is the national single gateway agency for the promotion and facilitation of investment in the country. The Agency works in collaboration with other government agencies to promote and facilitate local and foreign investments in the country.

Its functions entail:

Undertaking promotional activities to attract local and foreign investment;
Promoting investment opportunities;
Conducting sector specific investment missions and information seminars;
Providing guidance for government policy change or adaptation or investment policy implementation;

Assisting investors with application processes to obtain the necessary permits, licenses, incentives and exemptions;
Mediation with other governmental agencies, and provide administrative and advisory support;
Partner identification and matchmaking;

Enhancing and encouraging re-investment, diversification and expansion according to the priority sectors;

Identifying and addressing key barriers to increase business expansions and re-investment;
Undertaking periodic reviews of issues/barriers and formulating appropriate measures for the smooth implementation and operations of projects.

Incentives

The Seychelles government has created a positive environment for business and provides several investment incentives, including tax credits, exemptions, and duty-free access for the import of materials required for initial investment. The country levies no capital gains tax or withholding tax.

a) Professional and Technical Services

Income derived by companies providing health services is taxed at a reduced 15% CIT rate. Further, VAT exemption is provided for:

Imports of medical, surgical, dental, pharmaceutical and veterinary goods, instruments and appliances;
Life insurance premiums, health insurance premiums, marine cargo insurance premiums, insurance premiums under the agriculture disaster and fisheries insurance schemes or a reinsurance contract by a person carrying on the business of a licensed insurer or reinsurer;
Hospital, medical and dental services including ancillary services as approved by the public health authority.

b) Accommodation, Food and Recreation

A special rate of 0% is applicable to income derived by casino owners. Further, income derived from selling lottery and game of chance tickets is exempt from tax.

Tourism activities are fully CIT-exempt up to SCR 250 000 (under USD 14 000) This applies to "small companies" (under USD/EUR/GBP 10M turnover and/or USD/EUR/GBP 500 000 in annual income). For annual incomes exceeding SCR 250 000, tourism activities are taxed at a concessionary CIT rate of 15%

Under the Business Tax (Amendment) Act, 2010 tourism operators are allowed deductions from taxable income for expenditures on training activities certified by the Seychelles Tourism Board. Further, emoluments paid to part-time students and qualified graduates of the Seychelles Tourism Academy are allowed as deductions from taxable income.

c) Distribution Sector

Companies engaged in import/export and operating "exclusive shop outlet", or duty-free shops, are taxed under an alternative regime of 12% on the total business turnover.

d) Financial Investment Sector

Pursuant to the Mutual Fund and Hedge Fund Act, licensed funds are wholly exempt from the application of the Business Tax Act. Such exemption shall remain in force for a period of twenty years from the date of commencement of the Act and shall continue in force thereafter unless or until expressly repealed or amended by a written law.

Licensed fund administrators are partially exempt from the application of the Business Tax Act, as their tax liability is limited to the payment of mutual fund license and annual renewal fees. The tax concession is only applicable where the licensed fund administrator meets the substantial activity requirements. Both "licensed funds" and "licensed fund administrators" may take the form of "companies incorporated in Seychelles or a recognized jurisdiction.

e) Renewable Energy Sector

Goods imported to be used in the process of conservation, generation or production of renewable energy or environment friendly are exempt from the payment of value added tax. The photovoltaic (PV) financial rebate scheme launched in May 2014 has been put in place as an incentive to encourage residential and commercial premises to install PV systems connected to the national electricity grid on their rooftop to power their homes and businesses.

Further, all duties including environment levy were removed on electric vehicles in 2015.

f) Free Trade Zones

The Seychelles International Trade Zone (SITZ) Act of 1995 provides for the establishment of free trade zones, which aim to combine the benefits of a freeport and an export processing zone. A number of locations have been declared International Trade Zones under this regime. The list of concessions available to ITZ license holders includes the following:

Exemption from customs duties on certain capital equipment to be used in the SITZ;
Exemption from certain taxes;
Exemption from fees with respect to work permits;
Entitlement to full foreign ownership;
Entitlement to employ 100 percent foreign labour; and
Exemption from national labour laws.

Activities of the ITZ are regulated by the Seychelles Financial Services Authority. Foreign-owned firms benefit from the same incentives as local firms operating in the ITZ.

Investment Opportunities

Investing in Seychelles offers numerous opportunities for individuals and businesses alike. With its stable political and economic environment, Seychelles is attracting increasing interest from investors around the world. In addition to its favourable tax policies, the country offers a range of investment opportunities that are unmatched in the region.

Opportunities include:

a) Tourism

The Seychelles’ largest non-government economic sector is tourism which employs about 15% of the formal labour force. The 115 islands’ stunning natural surroundings and distinctive Creole culture have drawn an increasing number of tourists as well as regional and international businesses looking to invest in the area.

Opportunities abound in ecotourism, cultural tourism, and sports tourism.

They include:

Sporting and cultural events;
Culinary events;
Eco-lodges and high-end boutique hotels;
Adventure and sports tourism;
Cultural and heritage products and events;
Maritime and cruise tourism;
Zip lining, rock climbing, bungee jumping, paragliding and sky diving activities.

b) Real Estate

Investors can lease land from the government and/or buy land from the private sector. Investors wishing to lease land from the government have to submit a project concept to the SIB. It is advisable to identify a site before a project proposal is submitted.

Statistics indicate that the value of residential real estate market in Seychelles is projected at US$3.88bn in 2023 with an annual growth rate (CAGR 2023-2028) of 3.28%, resulting in a market volume of US$4.56bn by 2028 (Statista).

Opportunities exist for construction of:

Warehouses;
Retirement homes;
Condominiums;
High-end real estate.

c) ICT

Seychelles has always been among the leaders in the region with respect to the deployment of ICT with internet penetration of 79% and mobile penetration of 187% in 2022.

Opportunities exist in:

E-business solution providers;
Website providers;
Cyber security;
MultiMedia development (software/videos/animation/website/audio);
Data centers;
Submarine cable links;

Wireless technology;
Television service providers;
Internet service providers;
Mobile service operators;
Application development.

d) Blue Economy

Seychelles is a global biodiversity hotspot comprising of 115 islands in the Indian Ocean. As an island nation that depends almost entirely on its ocean, it has become a prime example of a country that has embraced the blue economy.

The blue economy in Seychelles has been built on a foundation of transformation from the status quo to a development which incorporates the need to conserve our marine resources while creating wealth for equitable distribution.

Opportunities exist in:

Aquaculture;
Fin fish farming;
Sea cucumber farming;
Mud crab farming;
Prawns farming;

Oyster farming;
Sea urchin farming;
Cold chain logistics.
Waste management (recycling).

e) Professional Services

Seychelles is a service-mixed oriented economy and with a continuous increase in professional services for investments in the country. An average of 2000 businesses are registered annually in Seychelles.

Opportunities exist in provision of the following services:

Architectural services;

Information technology;
Engineering services;

Accounting and bookkeeping services;
Translation services;
Delivery services.

f) Renewable Energy

Renewable Energy plays an increasingly important role in the Seychelles economy. The overall goal is to not only mitigate the effects of climate change but also strengthen the energy security. It is an area that will drive local industries, local and foreign investments as well as create job opportunities.

Opportunities include:

Independent power producers;
Transmission and distribution operators;
Solar energy generation and distribution;
Photovoltaic equipment suppliers;
Waste to energy systems;

Suppliers of electrical equipment (renewable);
Energy efficient technology (smart systems for domestic/ commercial use);
Offshore wind, wave and tidal energy conversion;
Ocean Thermal Energy Conversion (OTEC).

Starting a Business

Forms of Businesses

Type	Characteristics
Sole Proprietorship	Consists of one person; No minimum capital required; The individual is personally liable for all the debts and obligations of the business.
Partnership	Consists of a minimum of two partners; No minimum capital required; Partners are personally liable for debts and obligations of the business.
Limited Partnership	Consists of a minimum of two partners two (at least one general partner); No minimum capital required; The general partners manage the business and have unlimited liability for its debts and obligations, while the limited partners contribute capital but have limited liability.
Private Company	Consists of a Minimum of one shareholder and one director, who can be the same person; Capital (max/min): SCR 5,000 (approximately USD 370); Shareholders and liability: Limited to the shares.
Special Licence Company (CSL)	Incorporated under the Companies (Special Licenses) Act, 2003; Required to obtain a special license by the Seychelles International Business Authority to carry its business activities; Has to be registered with Financial Services Authority.
International Business Company (for offshore operations in the Seychelles)	Consists of a minimum of one shareholder and one director who need not be residents of Seychelles; No minimum capital required; Need a local agent and a registered office in Seychelles; Shareholder’s liability limited by shares or limited by guarantee (with or without share capital).

Company Registration Process

a) Submit Business Plan

An applicant is first required to submit the business plan to Seychelles Investment Board. SIB provides guidelines which include the required information for the business plan, as well as the list of other required documents. SIB will then circulate the project concept/business plan to the referral agencies for government recommendation.

b) Register Business or Company

Upon approval of the business concept, the investor can now register the business or company at the Registration Division. The investor will be required to reserve the company/business name first. Once a proposed company name has been approved by the registrar, the investor may apply to the registrar to incorporate the company. Following a request for incorporation, the registrar will reserve and issue (subject to timely incorporation) a unique company registration number to the proposed company. The registrar will then inform the investor in writing (usually by email) of the proposed unique company registration number.

The Investor will then be required to submit at least 3 copies of the company’s Memorandum and Articles of Association accompanied by the prescribed fee of US$130. Upon filing of the Company’s Memorandum and Articles for registration, the registrar will incorporate the company and issue its Certificate of Incorporation.

Other Registrations

a) Business License

Should the activity be licensable, the investor will be required to apply for a license at the Seychelles Licensing Authority (SLA). Applicants can apply, renew and pay for business license online. For the full list of licensable activities, please visit the SLA website:https://www.sla.gov.sc/business-license-application/

b) Planning Approval

Construction of buildings and any other infrastructure in Seychelles is regulated by the Seychelles Planning Authority. Should the project require architectural planning approval, the investor will be required to submit their detailed planning application to the Authority. For foreigners applying for a change of use for a building, a feedback letter from SIB is required upon submission of same at the Planning Authority.

c) Tax Identification Number

All new businesses must register with the Seychelles Revenue Commission (SRC) within 14 days of trading. For new ‎businesses with employees, the business must register all its employees within 7 days of employment. ‎Registration is done online via TMS ‎.

Requirements for Registration

National identification card or passport;
Copy of license issued by respective authorities (e.g., Seychelles Licensing Authority, Financial Services Authority ‎etc.;
Copy of partnership or company registration certificate as issued by the Registrar of Companies;
Details of tax agent (if any).‎

d) Bank Account

Banking in Seychelles has developed substantially over the years. There are currently seven commercial/retail banks, one development bank, one offshore bank, and two housing mortgage/cooperative banks. Investors can open corporate accounts with these banks.

Most global banks will require the following documents during account opening:

Corporate documents of the entity including certificate of incorporation and memorandum & articles of association;
KYC documents of directors and shareholders including passport copies and proof of address;
Corporate resolutions;
Business plan.

e) Gainful Occupation Permit

Foreign employees are required to apply for a Gainful Occupation Permit (GOP) at the Ministry of Employment and Social Affairs. See immigration section for more info on the Gainful occupation permit.

Taxation

Businesses are required to comply with the following taxes in Seychelles:

a) Business Tax

This is levied on the taxable income; that is, assessable income less any allowable deductions, except for those exempted in the Second Schedule, as per the Business Tax Act- Amendment 2021.

Business Tax is levied at different rates depending on whether it is a sole trader, company or partnership as well as other activities as per SI 108 2021 - Business Tax (Amendment of Schedules) Regulations 2021.

Business tax rates are applicable as of January 2022

Company (An entity, government body, or a trustee)	Sole trader (Any person other than an entity or a government body)
15% on the first SCR 1,000,000 of taxable income	SCR 0 to SCR 102,666 of taxable income: 0%
25% on SCR 1,000,001 and above of taxable income	SCR 102,667 to SCR 1,000,000 of taxable income: 15%
25% on SCR 1,000,001 and above of taxable income
SCR 1,000,001 and above of taxable income: 25%

Tourism	Fisheries	Agriculture
15% on SCR 0 to SCR 1,000,000 of taxable income	Presumptive tax of 1.5% of the annual turnover for Individual fisherman (No exceptions for boat owners)	Exempt from business tax up to 2026
		Exempt from business tax up to 2026
25% on SCR 1,000,001 and above of taxable income

Telecommunications service providers, banks, insurance companies, alcohol and tobacco manufacturers

25% on the first SCR 1,000,000 of taxable income

33% on SCR 1,000,001 and above of taxable income

b) Presumptive Tax

The Presumptive Tax regime was introduced in 2013 for businesses with an annual turnover that is up to SCR 1 million and not registered for Value Added Tax. It is payable at a rate of 1.5% of the annual turnover.

Businesses are required to pay the income and non-monetary benefits tax. This group will only pay presumptive tax and income and non-monetary tax if they have employees. Presumptive Tax is payable by 31st March for the revenue generated in the previous year.

c) Value Added Tax

VAT is a consumption tax levied on the sales of goods and services provided in Seychelles. VAT is levied at the point of entry and charged at the point of sale, except on goods and services exempted in S.I 71 of 2021 of the VAT (Amendment of Schedules) Regulations, 2014, and further amended by the S.I. 33 of 2018).

Businesses with taxable supplies of SCR 2 million and above will be liable to pay VAT. The Standard VAT Rate is 15% for goods and services consumed in Seychelles.

The due date for lodging VAT return and Business Activity Statement (BAS) form and paying any amount due on the statement is 21 days after the end of each month.

d) Progressive Income Tax

Progressive Income Tax is levied on employees’ gross emoluments e.g. (salary, allowances). The employer is required to submit a payroll on a monthly basis, no matter the number of employees even if the gross emoluments is below or within the free threshold of SCR8, 555.50.

Deadline for payment of the tax is on the 21st of the following applicable month.

Monthly Wage (SCR)		Rates
From	To	Citizen Employee	Non-Citizen Employee
0	8,555.50	0	15%
8,555.51	10,000	15%	15%
10,000.01	83,333	20%	20%
> 83,333		30%	30%

Immigration Procedures

Visitors Permit

Seychelles is a visa-free country, which means that there are no visa requirements for any persons wishing to travel except for passport holder from Kosovo. Nevertheless, visitors should have in their possession a valid passport or other travel documents recognized by the government of Seychelles in order to gain entry.

A visitor’s permit is issued on arrival in Seychelles to a person who comes for the purpose of holiday, pleasure, business, visit friends or family and who:

Is not a prohibited immigrant;
Is not the holder of a valid permit which entitles the holder to reside in Seychelles;
Holds a valid return or onward ticket for duration of visit;
Has confirmed accommodation;
Has sufficient funds for duration of the stay.

The permit may be granted for a period of visit of up to three months upon arrival. It can be extended for successive periods not exceeding three months at a time to a maximum period of twelve months, provided that the person still meets the criteria of a bona fide visitor.

The visitor's permit is issued free of charge for the first three months after which, a fee of SCR. 5,000/‐ is applicable for extension covering each period of three months or any part thereof.

It is worth noting that all non-citizens travelling to Seychelles must first complete the Travel Authorisation, as per Seychelles law.

Gainful Occupation Permit (GOP)

A GOP allows the holder to be gainfully occupied in Seychelles whether as an employee or as a self‐employed person.

Step 1: Obtain an Approval Certificate from the Ministry of Employment, and Social Affiairs.

Requirements for approval certificate

Application form;
Proof of vacancy advert;
List of respondents to the advert;
Updated establishment list;
Company’s certificate of incorporation;
Evidence of salary payment (where applicable);
List of approved projects and their duration (where applicable);

Accommodation certificate from Ministry of Health localization/succession plan and/or training plan (where applicable).

Step 2: Submit Application for Gainful Occupation Permit.

This is submitted to the Immigration office, Independence House, Victoria at least one week before the employee is due to start work.

The application form is to be completed by the prospective employer. In the case of a self-employed, by the person seeking the permit.

Requirements

GOP Application form;
Valid employment approval passport;
Passport photo;
Medical certificate;
Covering letter;
Valid certificate of entitlement;
Up to date establishment list;

Travel history print out if employee is in the country
SMSA Approval for Seafarer /Media Commission Approval /NSC Approval;
Copy of ID for career;
SQA evaluation certificate;
Curriculum Vitae;
Educational certificate;
CINEA approval for entertainers.

New company

Business license;

Memorandum & article of association;
Registration certificate.

Conditions to comply with after issuance of GOP

Submission of attested contract of employment;
Submission of security bond as follows:

5 to 10 expatriates SRC 20, 000;
10 to 30 expatriates SRC 30, 000;
Above 30 expatriates SRC 50, 000.

GOP Fees

Non-refundable processing fee GOP fees per month	SRC 1, 000
Endorsement Fee	SRC 500
Married to Seychellois	SRC 1, 000. 00
Agriculture / Semi industrial Fishing Vessel	SRC 125. 00
Sport First Player / Coach monthly Second Player monthly Third Player monthly	SRC 125. 00 SRC 250. 00 SRC 500. 00

Duration: Gainful occupation permits (GOP) can be collected between 1 - 5 days after submission of application.

International Trade Zone Permit

An international trade zone work permit allows a non-Seychellois to enter and remain in Seychelles for the purpose of employment in an International Trade Zone.

It is the responsibility of the prospective employer to apply for the permit through the Financial Services Authority (FSA), Seychelles.

The spouse and minor children of an ITZ work permit holder may upon application be endorsed on the ITZ work permit.