The main sources of real estate law in Seychelles are the Land Registration Act, the Mortgage and Registration Act, the Condominium Act, the Code Civil and the Immovable Property (Transfer Restriction) Act.

Over the past 12 months, evolving legislation has driven shifts in real estate trends across Seychelles. The most notable trend is a growing emphasis on condominium developments, catering to both tourism and freehold ownership, often combined with rental pool arrangements. Revised 2025 regulations now allow non-Seychellois to acquire high-end residential properties valued at a minimum of SCR10 million, encouraging foreign investment while protecting affordable housing opportunities for locals.

Significant real estate transactions during this period include the sale of a 60+ key hotel on Praslin and several high-value residential property transfers. Rising inflation has increased construction costs, prompting developers to adopt smaller building footprints and prioritise condominium projects.

Disruptive technologies have yet to make a substantial impact on the Seychelles property market, contributing to a stable investment environment underpinned by steady GDP growth – largely driven by tourism and fisheries. With a small commercial sector and an economy centred on tourism, demand for office conversions remains limited. Instead, mixed-use developments have become the dominant model in the country’s real estate landscape.

Authorities should remain vigilant against regulatory creep and the risk of increased time and costs for investors. Improved co-ordination between the various stakeholders and regulatory bodies is a significantly viable source for improved transaction flow.

Freehold and leasehold are attainable property rights for both residential and commercial transactions depending on the location of the land and the type of project.

Depending on the registered nature of the parcel, either the more recent Land Registration Act applies, or for older transcriptions, the Mortgage and Registration Act applies.

A lawful transfer of title involves a registration process at the Seychelles land registry. While transfer of parcel title is the most common registered interest, there are also a number of specific categories of registration for different interests in land. Title insurance is an unknown insurance in Seychelles.

Buyers rely on the lawyer contracted for the transfer to carry out due diligence on the parcel and the larger project. Depending on the scope of the transfer, the due diligence may require confirming records at the Land Registry, observing past registered documents, understanding the nature of the rights, and forming a good understanding of the land purchase. 

The typical seller’s warranties include that the seller guarantees clear title, the seller’s entity has legal capacity to transact, there are no undisclosed encumbrances (eg, liens, third-party rights) and the seller has complied with zoning and environmental regulations. The primary remedies include damages for losses caused by false statements and contract termination if the misrepresentation is material.

Purchasing Seychelles real estate entails a sanction process that takes some time. There are a number of statutory costs that need to be understood. Most importantly, the investor requires professionals who know the landscape to ensure the project processes do not get further delayed along the way.

While the Environment Protection Act does not explicitly transfer liability to new owners, it places obligations on current owners to address known contamination. While the polluter is primarily liable, the state may intervene to prevent ecological harm and seek reimbursement. For contractual purposes, the buyer can include indemnification to cover its risk.

Zoning is pre-established and is available on the WebGIS website. There may be scope to negotiate zoning should the project be in the interests of the country.       

A number of hotel projects enter into a lease agreement with the Government of Seychelles (GOS). The GOS leases work from a build, operate, transfer model incorporated into a 99-year lease. Another means of taking of land occurs when the purchase is associated with anti-money laundering legislation. A third consideration is, if a property owner is absent or an estate is vacant for a very long period, the curator can take charge, administer and vest the land under the Curatelle Act, potentially resulting in its confiscation if the owner is not located.

Finally, under the Seychelles Investment Act, any investments in Seychelles shall not be nationalised, expropriated or subjected to any indirect property measures having an equivalent effect, except by provision of a law, in the public interest, for a public purpose, on a non-discriminatory basis and accompanied by prompt and full compensation.

For both an asset deal and a share deal there is 5% stamp duty equally applicable to foreigners and domestic persons. While for foreigners there is the additional sanction process which contains costs ranging from 1.5% to 13% depending on the transaction. 

Seychelles has a sanction process enforced under the Immovable Property (Transfer Restriction) Act. It takes approximately three months to complete this process.

A number of the developers typically finance their projects through their existing financing relationships with commercial lenders and provide security over the acquired land.

Should a buyer require financing, the financer is protected with a legal charge over the property and protected by the Mortgage and Registration Act.

Foreign lending and security creation and repayment is unrestricted. Furthermore, the Investment Act prohibits discriminatory measures against foreign investors, safeguarding timely repayments under loan or security documents

There is stamp duty of 0.2% of the charge amount upon registration of the legal charge.

Creditors must submit the original or certified copies of the deed creating the security to the Registrar. Furthermore, all transactions must be at arm’s length under the Business Tax (Amendment) Act, 2022.

A lender enforcing security over real estate after borrower default must ensure the security is properly registered. This establishes priority over unsecured creditors. Prior to initiating court proceedings there must be sufficient notice provided to the defaulter. Court processes typically take three years if there is no appeal. There is not a tangible secondary market for non-performing notes.

Secured debt is enforceable in order of date of registration. Existing secured debt can be subordinated to new debt through contractual agreements between creditors, such as intercreditor arrangements.

A lender holding security without taking possession or control of the property is unlikely to face liability unless it directly causes pollution or knowingly permits damage.

Security interests created by a borrower in favour of a lender are not automatically void upon the borrower’s insolvency. During insolvency proceedings, enforcement of security may be stayed or restricted to facilitate orderly asset distribution.

There is a 0.2% stamp duty on registration of a security.

The primary law governing planning and zoning in Seychelles is the Physical Planning Act, 2021. The Seychelles Planning Authority (SPA) is the central body responsible for administering and enforcing planning and zoning controls nationwide. It operates as a semi-autonomous entity under the Ministry Responsible for Lands.

Physical Planning (Land Use and Development Plans) Regulations 2023 set out guidelines for land use, including plot coverage, building heights, no-development zones and public consultation procedures. The Physical Planning (Development and Subdivision of Parcels) Regulations 2023 address site planning aspects. The SPA provides recommendations and guidelines. Physical Planning (Building) Regulations, 2024 specify technical requirements for building materials, structural integrity, resistance to moisture and termites, fire safety, and durability but these regulations have not yet been brought into force.

The SPA regulates real estate development under the Physical Planning Act 2021 and its subsidiary regulations. Other key legislation includes the Physical Planning (Land Use and Development Plans) Regulations 2023, the Physical Planning (Development and Subdivision of Parcels) Regulations 2023, and the Physical Planning (Control of Development of Land) Regulations 2023.

For foreigners the most important permissions remain the sanction approval process and Seychelles Investment Board (SIB) application for a business project. The sanction process and SIB process provide pre-approvals in consultation with the relevant authorities. All development projects in Seychelles require formal approval from the SPA, regardless of scale or type. The SPA may require the developer to undertake public consultations. The public can inspect the development application free of charge at the relevant district administration office and submit written comments or objections within 14 days of the plans being lodged.

There is a right of appeal against a relevant authority’s decision regarding an application for permission for development or the carrying on of a designated use.

It is possible to enter into agreements with to facilitate a development project. For example, the Eden Island project involved a commercial agreement between the developer and the GOS, subdividing the island for residential and commercial purposes and granting special concessions to the developer. Pre-approvals for sanction are necessary for development and sale. Projects may also require agreement with the authorities for a transfer from leasehold to freehold land where necessary. Developers often need to enter into service agreements with utility providers.

Restrictions on development and designated land use in Seychelles are enforced primarily through the Physical Planning Act 2021, and the associated Physical Planning (Control of Development of Land) Regulations 2023. There are development permission requirements, monitoring and inspections, stop and enforcement notices, and the possibility of legal action and penalties.

Seychelles allows real estate assets to be held either in the owner’s personal name or through a domestic company. Shareholding of the domestic entity may be a foreign entity provided the structure is transparent. A domestic entity requires a minimum of two shareholders and two directors. The preference of ownership is completely dependent on the circumstance.

A Seychelles domestic company is required for a limited liability company. Shareholding can be through foreign entities. All corporate documents and beneficial ownership registers are required for the full structure.

REIT vehicles are not common in Seychelles.

The law allows the founders to freely decide the amount of authorised or paid-up share capital and there is no minimum capital required to set up a domestic company in Seychelles.

A domestic company has disclosure requirements under the Beneficial Ownership Act for ownership above 10%.

There is a nominal annual government fee, and the requirement of a domestic secretary, as well as an auditor.

There are lease agreements ranging from short term to long term (up to 99 years). Leasehold ownership allows the lessee to hold and use property for a defined term (often in line with the 99-year head lease), after which the property reverts to the lessor. These arrangements also require the sanction application process in the case of a foreigner.

Fixed-term leases are the most common type of lease.

Rents and lease terms are regulated by law, specifically under the Control of Rent and Tenancy Agreement Act. The Rent Board has authority to oversee and adjudicate disputes regarding rent and tenancy agreements, and the Rent Control Act regulates rental prices to protect tenants from unreasonable rent increases. Lease terms, including duration and conditions, are governed by statutory provisions and must generally be in writing for leases over one year. Rents and lease terms are not entirely freely negotiable but are subject to legal regulation and oversight by relevant authorities.

Government leases for commercial or industrial land typically range from 60 to 99 years, depending on the type and scale of development and typically involve a premium. For private leases, the minimum duration is usually six months, but long-term leases (often up to 99 years) are common for commercial properties. The GOS has a policy that allows non-Seychellois entities to rent commercial premises for less than two years without government sanction; leases of two years or more require government approval.

The landlord is generally responsible for maintaining the property in a tenantable condition and effecting necessary repairs unless an express contract states otherwise. If repairs are not done, the tenant can complain to the Rent Board.

Payment frequency is typically stipulated in the lease agreement. For government-leased commercial land, rent is generally payable on a bi-annual basis after an initial grace period. In private leases, monthly rent payments are common, but the frequency can be negotiated and specified in the contract.

Rent increases can be incorporated into the lease agreement and depend on the negotiated terms.

Rent increases depend on the negotiated terms, which usually include a limit of how much the rent can be increased. If parties cannot agree, they can submit themselves to the Rent Board, which can set the rent at market value based on valuation reports.

VAT is payable on income above SR2,000,000 (approximately USD140,000) including commercial rental income, however, residential rental income is specifically exempt from VAT under the First Schedule Part II clause 4 of the Value Added Tax Act 2010.

GOS leases typically involve a premium. The premium may either be for infrastructure purposes or a one-year rent premium. Standard commercial or residential leases typically include a one-to-three month rental deposit as a form of insurance for the lessor.       

Within a condominium development, the owners or tenants pay a monthly levy towards the management corporation to maintain the common areas. Many condominium developments also include a capital contribution fee upon dealing with a unit. The purpose of the fee is to repair the buildings when the need arises.

For commercial developments, the common areas are maintained and repaired by the lessor.

Payment of utilities is often centralised at the management corporation level or lessor level, while individual meters are installed in each unit to measure the usage per unit. The measurements are then billed individually to each unit owner or tenant.

Real estate taxes are focused on foreign owners and in the case of registered commercial leases, the foreign tenant. The current immovable property tax is 0.5% of the market value payable annually.

The options for insurance are:

• public liability insurance covering the parties for legal liability to third parties for bodily injury or property damage arising from business operations;
• property insurance; and
• fire and theft insurance, which provides cover for physical damage to insured property.

Depending on the type of relationship or ownership structure, the insurance policies are covered by at least one of the parties depending on the negotiated terms. Business interruption insurance is not common in Seychelles.

The use of real estate can be regulated by the agreement between the parties. Any disagreements are argued in front of the Rental Board under the Control of Rent and Tenancy Agreements Act.

Usually, alterations or improvements by a tenant require written permission. The alterations do not require reimbursement from the lessor and the lessor may further require the tenant to remove the alterations or improvements at the end of the tenancy.

All leases are regulated under the Control of Rent and Tenancy Agreements Act.

The Control of Rent Act permits lessors to seek eviction if a tenant fails to pay rent lawfully due, which may occur due to insolvency. This is one of the primary grounds for eviction under Section 10(a) of the Act.

Under Seychelles’ Control of Rent and Tenancy Agreements Act, commercial tenants do not have an automatic right to remain in the premises after lease expiry unless specific statutory provisions apply. If a commercial tenant continues occupying the premises after lease expiry without renewal, the lessor may apply to the Rent Board for eviction. The tenant’s right to remain depends on the Board’s assessment of factors such as whether the lessor has a valid reason for repossession (eg, needing the property for their own use, renovation, or sale), and whether eviction would cause “greater hardship” to the tenant compared to the lessor. Lessors should ensure lease agreements clearly outline termination procedures and conditions, provide written notice of lease termination in accordance with the lease terms, apply to the Rent Board promptly after the lease expiry to prevent tenants from acquiring de facto statutory tenancy rights, and avoid unlawful eviction attempts (eg, utility disconnection), which can result in penalties.

The possibility of assignment needs to be stipulated in the agreement. Where a contract is silent on assignment, parties will fall back on the law, which sets out that parties may assign a contract, the assignee must accept the assignment and the third party must be notified of the assignment.

Lessors may seek termination through the Rent Board under the following statutory grounds: non-payment of rent, breach of lease terms, landlord’s personal needs, property renovations or demolition, and overcrowding.

Tenants may seek termination under the following statutory grounds: expiry of fixed-term leases, periodic tenancies, landlord’s breach, or mutual agreement.

Leases for over two years require registration under the Land Registration Act. Leases of two years or less are exempt unless they include an option to extend the total period beyond two years. Leases must be in the prescribed form outlined in the Land Registration Act. There is stamp duty ranging from 5%–15% payable on the equivalent of annual rent as well as a few other minor statutory costs. A foreigner tenant is required to obtain sanction approval prior to entering into the lease.

An eviction starts with an application to the Rent Board filed by the landlord, specifying the grounds for eviction. The tenant must be notified and given a chance to respond at a hearing. If eviction is granted, the Board sets a “reasonable” timeframe for the tenant to vacate (typically weeks to months, depending on circumstances). The Rent Board may also order payment of arrears. Eviction orders are enforced like court judgments, potentially involving bailiffs. It is important to note landlords cannot forcibly remove tenants without a Rent Board order. An eviction process tends to take 12–18months.

Third parties such as the government or municipal authorities can terminate leases under specific statutory conditions, though this authority is tightly regulated. The process duration and compensation eligibility depend on the legal grounds for termination and whether due process is followed.

Cash deposits are standard, often equivalent to one-to-three months’ rent. Remedies are confined to eviction (after Rent Board approval). The Act explicitly prohibits lessors from demanding excess rent as penalties.

The most common structures used to price construction projects closely mirror international best practices and private developers may use a mix of fixed price and cost-plus contracts.

For private projects, responsibility is typically contractually defined, with architects/engineers handling design integrity and contractors executing construction under Quality Assurance and Building Control Unit oversight.

Construction projects typically employ indemnifications, warranties, limitations of liability and waivers to manage risk, though these devices face legal constraints. Indemnifications are enforceable if clearly drafted, but may be subject to liability caps and contributory negligence reductions, as courts apportion damages based on fault. Warranties can include extended terms, though their enforceability is limited by statutory periods (eg, five years for breach of contract). Limitations of liability are upheld if explicitly defined in contracts, even in cases of negligence, provided they comply with public policy and contractual fairness principles. Waivers of consequential damages (eg, loss of use or indirect costs) are permissible, but must be unambiguous to withstand judicial scrutiny. These mechanisms are further constrained by Seychelles’ civil code principles, which allow courts to adjust claims based on comparative fault and ensure remedies align with proven losses. Larger construction projects may use performance security bonds and retention amounts.

Schedule-related risks in construction projects are managed through contractual mechanisms that emphasise proactive notification and structured compensation for delays. Under local procurement frameworks, contractors must promptly notify project owners of delays and their causes, allowing for potential time extensions with or without penalties. Parties are permitted to agree on liquidated damages (LDs) as monetary compensation for unmet milestones or completion dates, with specific rates (eg, a percentage of unperformed services per day) and maximum caps outlined in contracts.

It is not common for additional forms of security to be sought, however, contracts may rely on bank-backed performance securities as the primary safeguard against contractor default.

The laws do not provide for liens, although these can be stipulated in a contract. Court protection orders may be placed over property to prevent its sale. If there is already an encumbrance on the property, the beneficiary of the encumbrance must follow judicial seizure procedures outlined in the Immovable Property (Judicial Sales) Act. Removal of the encumbrance can be either by agreement of both parties or court intervention.

The law mandates that before any building – whether newly constructed or modified – can be occupied or used, a written permit must be issued by the relevant authority, authorising such occupancy or use. In practice, this process is formalised through the issuance of a certificate of occupancy, which confirms that the premises have met all planning and building requirements as stipulated under the Physical Planning (Building) Regulations.

The sale or purchase of corporate real estate is VAT exempt as per the First Schedule Part II clause 5 of the Value Added Tax Act 2010.

For large-scale transactions with multiple changes of shareholders it is preferable to structure the transaction where the change in shareholding occurs through a foreign entity, leaving the domestic shareholding unaffected while the foreign entity incurs the shareholder activity. This will mitigate some (but not all) of the liabilities applicable in Seychelles.

Within the Seychelles context, there are no municipal taxes.

Real estate taxation is distinguished between commercial rental and residential rental. While commercial rental pays the same business tax as all other businesses at 25% of corporate profit the residential income is limited to 3% of the gross rental income. Foreign investors have a 15% withholding tax on dividends paid.

A real estate investment may qualify for accelerated capital allowances (depreciation) on qualifying capital expenditures. By reinvesting lease income into property enhancements, the real estate investment can not only maintain and increase the long-term value of the asset but also optimise its tax position.