Property purchase process in Seychelles: Foreigners are permitted to purchase residential property, which is used by the buyer and his family in Seychelles after approval from the government. Also, the Real Estate (Transfer Restrictions) Act prohibits leasing of non-Seychelle-owned real estate.
Government approval is required before purchasing. For the application, it is appropriate to hire the services of a notary.
The Land Section in the Ministry of Land Use and Housing processes the application of a non-Seychello buyer. A proposal for the property involved is published in “The Nation”, a national daily newspaper. Non-Seychello should prioritize a Seychello before purchasing a property.
If the seller is the government, the transaction has to pass through the land division, who then passes it on to the Attorney General’s office. The Attorney General’s office is responsible for the transfer of all state property.
Note that if the government purchases for commercial or industrial purposes, it gets a grant. The government does not allow the sale of such activities.
When purchasing, a non-Seychello buyer is required to deposit SCR1 million SCR1 million in foreign currency to the Central Bank of Seychelles. It is to be converted into Seychelles rupee after withdrawal, which is then used for transactions.
Who can buy real estate in Seychelles?
Many laws provide for the purchase of properties in Seychelles. Even though there are no special restrictions on foreign nationals or companies interested in investing in real estate in Seychelles, there are special cases in which certain formalities have to be met.
If you want to buy a property in Seychelles then you need to know:
- Foreign citizens and companies can purchase property in Seychelles based on government approval;
- Foreign citizens and companies cannot buy state-owned real estate, but they can lease them for a long period;
- It is also prohibited to purchase land on some islands in Seychelles, however, long-term leases are available;
- The buying of land or property in Seychelles by immigrants must be followed by an approved development plan with the government.
If you are interested in building a company in Seychelles after the acquisition of a property, our local consultants can help you.
Documents required when purchasing property in Seychelles
When purchasing a property, the following documents need to be prepared and filed with the Ministry of Land and Housing:
- Certified copy of a valid passport of foreign nationals with contact details of Seychelles public notaries who have not been notarized;
- Proof of residence of foreign nationals which may be indicated by recent utility bills (not exceeding 3 months);
- A clean criminal record (a police clearance certificate) that cannot be older than 6 months;
- Declaration of foreign nationals that they have not politically exposed persons and declaration of money generated from legal sources;
- Proof of money that must be obtained in the form of a certificate of bank deposit;
- In the case of companies, articles of trade association and certificates of registration of the company are required;
- Declaration of beneficial owner and details of company representatives should also be submitted.
Our representatives in Seychelles offer various legal services, among them services related to the preparation of reports required to purchase property here.
Stamp duty while acquiring a property in Seychelles
One of the most important aspects to consider when purchasing property in Seychelles is the payment of a fee which is a transfer tax on the property. Charges are acquired at the market value of the property. The following rates apply when purchasing real estate in Seychelles:
- 5% stamp duty if the property is purchased by a Seychelles citizen or company;
- 11% stamp duty, and 5% stamp duty when purchasing property used as a holiday or residential home for foreign nationals;
- 1.5% processing fee for approval applications approved by the Office of the Principal Secretary within the Ministry of Lands;
- The notary’s fees are usually around 2% of the value of the sale-purchase agreement.
Some relevant aspects of the real estate market in Seychelles are:
- Eden Islands is one of the most wanted places in the Seychelles, where to buy a property with prices starting from USD 500,000;
- Property prices in Seychelles typically register a 10% year-over-year increase;
- Oriental is the largest island in Seychelles, with real estate prices 20% higher than the country’s capital;
- When purchasing property in Seychelles, foreign nationals must deposit a security of at least 80,000 USD.
Main types of real estate due to labor services in Seychelles
There are two types of properties that one can acquire according to their use in Seychelles: for personal and commercial purposes. No matter what type of property you intend to buy, due diligence of real estate should be the first thing to consider. Even if it is optional, property verification can help future real estate owners save money on properties that are not worth investing in.
Here are some of our legal services:
- Violation of immovable property, which is caused by diligence, means verification of property title with the land register in Seychelles;
- Administrative real estate labor which means the examination of property for any encroachment;
- Structural or technical due diligence that is a property verified by construction experts;
- Commercial due diligence that is available to commercial property buyers who require more extensive verification;
- Environmental real estate due to which the impact on the environment is assessed.
- The last type of real estate due diligence is not compulsory, however, as the number of homeowners requesting such verification in Seychelles has increased significantly.
- Our local consultants can assist with residential and commercial real estate, which must be completed with the Seychelles Land Register due to due diligence procedures.
As mentioned above, if you want to invest in Seychelles by setting up an offshore company, we can also help with this.
Land registration verification and Property purchase process in Seychelles
Real estate due diligence should begin with a land register that holds information on all types of properties in Seychelles. The information that can be found with the land register refers to the previous owners of the property if there is an encroachment, such as unpaid mortgages purchased on real estate, and also a lawsuit on the property.
This information is very important when deciding to buy a property in Seychelles, as it can help the buyer determine whether the process will be made easier.
Any unpaid tax or another burden on the property will also be reflected in the immovable property due to the diligence report.
Our lawyers in Seychelles can have a property verified with a land register before the buyer arrives.
Technical real estate due to diligence in Seychelles
Our company registration consultants in Seychelles can help foreign investors interested in setting up foreign companies here, who can locate experts who can assess the construction used for commercial purposes if the investor is to build Want to buy an existing building instead. For this, technical real estate with land register verification is available.
Why is real estate labor important in Seychelles?
As noted above, a real estate due diligence report with the future owner’s choice is not mandatory for the verification of the property. However, a buyer must first consider the investment made in a property which is quite important and means that there is a large amount of money which is why the property needs to be free from encumbrance and litigation.
Most of the time, a land register verification is sufficient to know whether the property has been purchased or not, while in the case of commercial real estate due to diligence, foreign investors should order a more comprehensive report.
If you dispose of real estate in Seychelles, our lawyers are at your disposal.
Why buy a property in Seychelles?
Seychelles is one of the most attractive countries for a property in the Indian Ocean, however, foreign citizens should know:
- Between 2006 and 2014, real estate prices on the Island of Eden have Praslin is the largest island in Seychelles, and property prices here are 20% higher than the country’s capital;
- Foreign nationals can obtain residence in Seychelles by purchasing a property here against the protection of 1 to 2 million SCRs;
- Stamp duty is paid on the purchase of immovable property in Seychelles which is 5% of the value of the property.
