Key Takeaways
- Stamp duty applies to a defined set of dutiable documents and transactions in Seychelles, including property transfers, share transfers, leases, and legal charges.
- Property transfers are subject to a 5% rate, while exemptions and reliefs may reduce or remove the duty for qualifying transactions.
- Foreign buyers should account for how stamp duty interacts with sanction duty and processing fees when planning a purchase.
- Understanding how the duty is calculated, paid, and stamped helps companies and investors meet their obligations and plan transactions with confidence.
Stamp Duty in Seychelles: An Introduction
Stamp duty in Seychelles is a live, operative charge on the transfer of immovable property, levied at a standard rate of 5% of value under the Stamp Duty Act 1976. This is significant because the country imposes no income tax, no capital gains tax, and no inheritance tax, yet property transactions remain firmly within the duty net. The charge applies equally to residents and to foreign buyers, and it reaches both direct asset deals and indirect transfers of shares in property-owning entities.
A common misconception treats Seychelles as a zero-stamp-duty jurisdiction because of its offshore company regime. That assumption is wrong for anyone touching local real estate: the exemption enjoyed by International Business Companies does not extend to immovable property situated in the country. This article explains the legal framework, the rates and exemptions, and the additional costs a foreign purchaser should expect; you can read the Stamp Duty Act in full on the official law portal. It will be most useful to foreign investors and their advisers weighing a property acquisition or a corporate transaction connected to Seychelles assets.
The Legal Basis: The Stamp Duty Act and the Role of the Stamp Duty Commissioner
The governing statute is the Stamp Duty Act 1976. It charges duty on the instruments listed in its Schedule, at the rates set out there, provided the instrument connects to something situated, performed, or done within the country, or to a bill of exchange or promissory note issued, transferred, or presented for payment there.
Administration sits with the Stamp Duty Commissioner, an office held by the Registrar of Deeds, supported by authorised officers in the Registrar General's department. The Commissioner may demand evidence that every fact affecting an instrument's liability has been fully and truly disclosed, and may decline to act until that evidence is produced.
Duties collected pass into public revenue, and payment is made by means of stamps in the manner prescribed by the Minister. The rate applied is the rate in force on the date the instrument is presented for stamping, not the date it was signed.
Several related laws shape how property transfers operate alongside the duty rules: the Land Registration Act, the Mortgage and Registration Act, the Condominium Act, the Civil Code, and the Immovable Property (Transfer Restriction) Act. A foreign buyer encounters these statutes together rather than in isolation.
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What Documents and Transactions Are Dutiable in Seychelles
The Schedule to the Act identifies which instruments attract duty and at what rate, and its accompanying rules, notes, and exemptions carry full effect. For a foreign-owned business, the instruments that matter most are property transfers, leases, mortgages, security registrations, and transfers of marketable securities.
Dutiable instruments include the following:
- Transfers of immovable property, whether structured as an asset deal or as a share deal in a property-holding entity
- Leases of immovable property
- Marketable securities and instruments transferring rights to them
- Bills of exchange and promissory notes
- Mortgages, legal charges, and other security registrations
"Marketable securities" reaches widely. The definition covers instruments made or issued by any Seychelles company or body, foreign securities offered for subscription and delivered to a subscriber locally, and share warrants or bearer stock certificates by which shares in foreign companies are assigned, transferred, or registered in the jurisdiction.
Language requirements apply to every chargeable instrument. The document must be written in French or English, and where the original is in another language, a certified translation into French or English must be attached.
Stamp Duty on Property Transfers: The 5% Rate
The headline charge on a property transfer is 5% of value. It applies whether the deal is a direct purchase of land or buildings or an indirect acquisition through shares in a property-owning company, and it falls on foreign and Seychellois parties alike.
The base is market value, subject to specific exemptions, and registration at the Land Registry costs SCR 100 per parcel. Where the Commissioner judges the stated consideration inadequate and finds that the transfer confers a substantial benefit on the transferee, the transaction is treated as a voluntary disposition and the duty is assessed on market value rather than the price recited in the deed.
For a non-Seychellois purchaser of residential property, the 5% stamp duty is only the starting point. A processing fee and a separate sanction duty apply on top, materially raising the all-in cost (see the foreign-buyer section below).
A worked example shows the base position for a local buyer. On a property valued at SCR 5,000,000, stamp duty comes to SCR 250,000, with notary fees of roughly 2% on top. Because no capital gains tax is charged on a later disposal, the duty paid on entry is the principal transaction tax to plan for.
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Stamp Duty on Share Transfers and Marketable Securities
A share deal in an entity that owns Seychelles real estate is taxed like the underlying asset. The same 5% stamp duty attaches, and it binds foreign and domestic acquirers equally, closing the obvious route of selling the company instead of the land.
Foreign acquisition of such shares carries an extra layer. Under the Immovable Property (Transfer Restriction) Act, where a non-Seychellois takes shares in a company owning local property, by transfer, allotment, rights issue, or otherwise, a sanction duty of up to 15% of the market value of the shares or the stated consideration, whichever is higher, may be specified in the grant of sanction.
The marketable-securities definition also captures instruments that assign or transfer the right to a security, treating them as securities for duty purposes regardless of whether delivery amounts to a legal assignment.
The IBC position is the exception that draws the most interest, and the most error:
- An International Business Company is exempt from duty on its formation
- Transfers of property to or by the company are exempt
- Transactions in its shares, debt obligations, or other securities are exempt
- The creation, variation, or discharge of a charge is exempt
- None of these exemptions apply where the transaction relates, directly or indirectly, to real estate located in the jurisdiction
That last point governs structuring. An offshore vehicle holding Seychelles land does not escape the 5% charge by transferring shares instead of the property itself.
Stamp Duty on Leases and Registration of Legal Charges
Leases running beyond two years require registration under the Land Registration Act and must follow the prescribed form. Shorter leases are exempt from that requirement, unless they carry an option to extend the total term past two years, which brings them back within it.
Duty on a lease is charged on the equivalent of the annual rent, at a rate that runs from 5% to 15%, alongside a few minor statutory costs. A foreign tenant must secure sanction approval before signing.
Relief exists at the lower end of the residential market. Transfers and leases of residential property valued up to SCR 3,000,000 are fully exempt for first-time buyers and family transfers, with duty payable only on any value above that threshold; this relief is reserved for individual Seychellois citizens.
Security registration is comparatively light. Registering a legal charge attracts duty of 0.2% of the charge amount, and a creditor must lodge the original deed creating the security, or certified copies, with the Registrar. Security over financed property is protected under the Mortgage and Registration Act.
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Exemptions and Reliefs Under the Stamp Duty (Exemption) Order
The Stamp Duty (Exemption) Order 2019 sets out when no duty is payable on a property transaction. Its reliefs are aimed at supporting home ownership and family property arrangements among citizens, and they are largely closed to foreign buyers; you can review the framework through the Ministry of Finance.
The principal reliefs are these:
| Relief | Scope |
|---|---|
| First-time buyer / family transfer | Residential property up to SCR 3,000,000 fully exempt; duty on the excess only |
| Succession | Transfers by will, inheritance, or to heirs exempt |
| Matrimonial property | Transfers of a matrimonial home or between spouses, or from a spouse to children, exempt |
| Shared ownership | Exemption apportioned to the individual's share |
Eligibility is restricted. The transferee or lessee must be an individual and a Seychellois citizen, and the first-time-buyer relief is available only to those who do not already own residential property in whole or in part.
Claiming relief is a formal process. An application goes in on the prescribed form with supporting documents, valuation, and proof of relationship where relevant; the Ministry of Finance reviews it and issues a Certificate of Exemption if the conditions are met, with applications accepted by email at sdexemption@finance.gov.sc. False declarations or breaches can trigger cancellation and imposition of the duty, while wrongly paid amounts may be reclaimed within the time limits in the Order.
A separate sanction-duty exemption operates for genuine investment. Investments in tourism, commercial, or industrial sectors, or under the Villas Policy, are released from sanction duty, as are transfers between spouses, parents, and children, partitions among heirs, and matrimonial property settlements.
How Stamp Duty Is Calculated, Paid, and Stamped
Two dates matter, and they differ. Liability is fixed by the rate in force when the instrument is presented for stamping, not the date of execution, so a delay can change what you owe.
The mechanics run as follows:
- The instrument is prepared in French or English, with any required translation annexed.
- Where an instrument is first received within the jurisdiction, the recipient notes and signs the date of receipt; it may then be stamped within 30 days of that receipt on payment of the unpaid duty.
- Duty is paid by means of stamps in the manner the Minister prescribes.
- The transfer is registered at the Land Registry, which is necessary for the transaction to take legal effect.
The Commissioner can scrutinise any instrument. On request, or of the Commissioner's own motion for an instrument charged with ad valorem duty, the value and liability may be adjudicated, and the Commissioner can require evidence before proceeding. A party who disagrees with an adjudication may appeal.
An instrument that is not duly stamped faces a practical penalty: restricted admissibility in evidence. Where revenue stamps are spoiled in specified circumstances, the Commissioner may allow relief on production of the evidence. For the sale itself, the buyer selects the notary, and only one notary is needed to complete the transaction.
Stamp Duty for Foreign Buyers: Interaction with Sanction Duty and Processing Fees
A foreign purchaser does not face the 5% rate alone. Acquisition by a non-Seychellois runs through a sanction process under the Immovable Property (Transfer Restriction) Act, which takes roughly three months and carries its own charges; the Seychelles Planning Authority publishes acquisition guidance on the conditions that apply.
The residential market reopened to non-Seychellois after Cabinet lifted the purchase moratorium in January 2025, but access is conditional. Foreign buyers may acquire residential land and property only within Designated Areas or approved developments, subject to a minimum price near SCR 10 million for high-end property, size limits typically between 1,000 and 4,000 m² for houses, and sanction by the Seychelles Planning Authority.
The full cost stack for a non-Seychellois residential buyer is materially higher than the headline rate:
| Charge | Amount |
|---|---|
| Stamp duty | 5% of market value |
| Processing fee | 1.5% of purchase price |
| Sanction duty (residential) | 12% of market value (raised from 11%) |
| Sanction duty (condominium development) | 1.5% of market value |
| Sanction duty (holiday/residential outside Villas Policy) | 1.5% of market value, over and above the 5% stamp duty |
Non-refundable application fees apply at the front of the process: SCR 3,000 to purchase or acquire immovable property, SCR 2,000 for a lease, and SCR 1,000 per application to acquire shares or an interest in a company owning local property. A sanction, once granted, is valid for one year, within which the transaction must be effected and registered.
One recurring charge sits outside the transaction itself. Non-Seychellois owners pay an annual immovable property tax of 0.50% of market value, a rate doubled from 0.25% with effect from 1 January 2024; first-time foreign buyers of residential property after 1 January 2020 keep a one-year exemption from this tax.
Outlook and Practical Considerations for Companies and Investors
The market shift is recent and concrete. Cabinet lifted the residential moratorium for non-Seychellois in January 2025, and the Seychelles Planning Authority issued operational guidance in March 2025, opening access for foreign buyers willing to meet the SCR 10 million minimum for high-end property while affordable housing stays reserved for locals.
For investors using offshore vehicles, the structuring lesson is firm. The IBC stamp-duty exemption falls away the moment a transaction relates, directly or indirectly, to real estate located in the jurisdiction, and an IBC that wishes to keep its zero-tax status may neither carry on business nor own real estate there.
Valuation risk deserves attention at deal close. Because the Commissioner can assess duty on market value where the stated consideration is judged inadequate and the transfer confers a substantial benefit, a low recited price will not reduce the charge and may instead invite challenge.
Financing arrangements are comparatively unencumbered. Foreign lending, the creation of security, and repayment are unrestricted, and the Investment Act bars discriminatory measures against foreign investors, which supports timely repayment under loan and security documents.
No public data points to a planned overhaul of the duty rate structure beyond the 2019 Exemption Order and the 2025 moratorium lift. Even so, verify the applicable rates and fees with the Ministry of Finance or the Seychelles Revenue Commission before completing any transaction.
Conclusion
For a foreign owner or adviser weighing a transaction in Seychelles, the property transfer rate is a known quantity, but it is the layering of sanction duty and processing fees on top of stamp duty that tends to catch non-residents off guard and distort the real cost of entry. That interaction, more than any single rate or exemption, is where careful pre-transaction planning pays off.
Exemptions exist and may apply, but they require proactive assessment before documents are executed, not after. The most concrete next step is to map every dutiable instrument in the planned transaction against the exemption order and the full fee stack before any commitment is made.
How Expanship Can Help Your Business in Seychelles
Expanship assists foreign owners with the stamp duty side of a Seychelles transaction, from confirming the applicable rate and sanction-duty exposure to coordinating valuation, notary engagement, and Land Registry filing, and we extend that support to the wider needs of a foreign-owned entity operating in the jurisdiction.
- Company incorporation, including IBC and domestic structures
- Registered agent and registered office services
- Tax registration and filing
- Ongoing compliance management and statutory deadlines
- Accounting and bookkeeping
- Introductions to banking partners
To discuss a property acquisition or a corporate transaction connected to Seychelles, contact Expanship Seychelles.
Frequently Asked Questions
Yes. Stamp duty is levied at 5% of value on transfers of immovable property under the Stamp Duty Act 1976, and it applies to foreign and Seychellois parties alike. The absence of income tax, capital gains tax, and inheritance tax does not displace this charge.
An International Business Company is exempt from duty on its formation, on property transfers to or by it, on transactions in its shares and securities, and on charges. That exemption does not apply where the transaction relates, directly or indirectly, to real estate located in the jurisdiction, so an offshore vehicle holding local land still pays the 5%.
The 5% stamp duty is only the first layer for a non-Seychellois residential buyer. A 1.5% processing fee and a sanction duty of 12% of market value apply on top, plus non-refundable application fees and an annual property tax of 0.50%, producing a cost well above the headline figure.
The Stamp Duty (Exemption) Order 2019 fully exempts residential property valued up to SCR 3,000,000 for first-time buyers and family transfers, with duty charged only on any excess. This relief is restricted to individual Seychellois citizens who do not already own residential property, so it is not available to foreign purchasers.
An instrument first received within the jurisdiction may be stamped within 30 days of receipt on payment of the unpaid duty, and the recipient must note and sign the date of receipt. Duty is calculated at the rate in force on the date of presentation for stamping, not the date the document was signed.
Yes. Where the Commissioner regards the stated consideration as inadequate and finds that the transfer confers a substantial benefit on the transferee, the transaction is treated as a voluntary disposition and duty is charged on market value. A low recited price therefore does not reduce the charge.
Legal Disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change, and the application of laws can vary widely based on specific facts and circumstances.
Readers should not act upon this information without seeking professional counsel tailored to their individual situation. Expanship and its authors disclaim any liability for actions taken or not taken based on the content of this article.
For specific advice regarding your business setup, compliance requirements, or any legal matters, please consult with qualified legal and tax professionals in the relevant jurisdiction.
