The new immovable property tax in Seychelles imposes an annual tax on non-Seychellois owning land in the Seychelles and a number of steps need to be followed in order to be in compliance with the law.

Immovable property includes commercial property, condominium units, land used for residential purposes, industrial property, leases, multi-purposes buildings and villas.

Who is liable for taxation under this Act?

This annual tax of 0.25% of the market value of the immovable property applies to all non-Seychellois owning immovable property in Seychelles unless falling under a few exceptions. Immovable property of all use is liable for tax under this Act, including residential, commercial, and industrial property.

If a non-Seychellois shares ownership with a Seychellois the taxpayer must still pay a proportionate share of tax payable on the immovable property and is thus liable under this Act.

Exempt non-Seychellois

Tax shall not be paid on immovable property if it is used for residential, commercial, or industrial property provided that it is owned by one taxpayer  who is married to a Seychellois and the marriage is still subsisting, or whose spouse has since died after owning the immovable property.

If a non-Seychellois is a first-time owner of immovable property used for residential purposes the taxpayer is eligible for an exemption for a period of 1 year.

Registration, valuation, and payment

In order to comply with the law property owners must register the property, provide a valuation every five years or upon improvements (whichever occurs earlier), and pay the annual tax in order to avoid additional penalties. 

What are the Penalties ?

A taxpayer shall submit a declaration along with evidence that all taxes due and payable are paid before a transfer or surrender can take effect.

A person who fails to register in the specified period shall pay the Registrar General a fine of SCR50,000 in the case of commercial property, industrial property, multi-purpose buildings, or villas and SCR10,000 in the case of all other immovable property.

 If the taxpayer fails to submit a valuation and the Chief Valuation Officer must assign a valuation officer the taxpayer is liable to pay double the amount of tax.

Services

Don’t have the time or simply don’t want to worry about the extensive process?

Christen Chambers is a firm specialised in Financial Law and is well-resourced to ensure the latest tax responsibility for property owners is managed in the most efficient and convenient manner. 

Christen Chambers annual services include:

• Registration of property
• Valuation quotations
• Valuation submission
• Escrow account
• Tax payment
• Process management

Feel free to send us an email for further information regarding our services.