Culture and Geography
Seychelles is an island nation located in the western Indian Ocean, approximately 1,600 km east of mainland Africa and northeast of Madagascar. The country comprises more than 115 islands, with Mahé, Praslin and La Digue being the principal inhabited islands.
Seychelles is a multicultural and internationally oriented country, with African, European and Asian influences. The economy is open to foreign investment, with opportunities particularly in tourism, financial services, fisheries, technology, renewable energy and the Blue Economy.
The official languages are Seychellois Creole, English and French, with English widely used in business and government. The majority of the population resides on Mahé, which is the country’s main commercial and financial centre.
Legal Landscape
Seychelles is an independent republic which gained independence from the United Kingdom on 29 June 1976. Its legal system combines English common law and French civil-law principles, providing a familiar framework for international investors.
Foreign investment is principally governed by the Seychelles Investment Act and applicable investment regulations. Foreign investors may establish businesses in Seychelles, subject to sector-specific licensing requirements, reserved activities and, in certain sectors, approval requirements under applicable investment regulations..
International Business Companies (IBCs) remain a popular vehicle for international business and investment, offering flexible corporate governance and up to 100% foreign ownership, subject to applicable tax, substance and regulatory requirements.
SEYCHELLES ENTITIES AT A GLANCE
*Withholding tax may apply to certain payments to non-residents, including interest, royalties and technical service fees, subject to applicable exemptions and treaty relief.
*Resident companies are generally subject to business tax at progressive rates, currently ranging from 15% to 25%
Taxation
Seychelles operates a business taxation system with a standard rate of:
- 15% on the first SCR 1 million of taxable income
- 25% on taxable income exceeding SCR 1 million
Value Added Tax (VAT) applies at a standard rate of 15% on taxable supplies, subject to applicable exemptions and zero-rated supplies.
Withholding tax generally applies to certain payments to non-residents, including dividends, interest, royalties and certain technical services, with a standard rate of 15%, subject to applicable exemptions and Double Taxation Agreements.
Seychelles has entered into a number of Double Taxation Avoidance Agreements and Tax Information Exchange Agreements, supporting international trade and investment
Banking in the Seychelles
A range of local and international banking solutions are available, subject to regulatory approval and standard due diligence.
Identification and verification of UBOs, directors and controlling persons is required under Seychelles’ AML/CFT framework
A straightforward corporate structure is generally recommended at inception to facilitate account opening and compliance procedures.
Businesses may be subject to FATCA, CRS, economic substance requirements and other transparency and AML/CFT obligations aligned with OECD standards.
For more information
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