The application forms for registration are now available for collection at the Registrar General’s office at Independence House, Victoria, Mahe, Seychelles and will also be made available online from the Seychelles Government’s website.

The term “non-Seychellois” is specifically defined in the Immoveable Property (Transfer Restrictions) Act, which includes (but is not limited to) individual owners who are not Seychellois, as well as corporations which own immovable property whose directors or shareholders or ultimate beneficial owners are not Seychellois.

“Immovable Property” includes commercial or residential property, condominium units, industrial property, freehold or leasehold land, multi-purpose buildings and villas. Further, the IPT Act declares that the term “immovable property” shall be given “such wide and liberal construction as to ensure that there are no legal gaps to escape liability to pay tax on immovable property owned by non-Seychellois.”

The purpose of registration is to identify those who shall be liable to pay immovable property tax (Property Tax) to the Seychelles Government.

The period for the submission of the valuation of the immoveable property is between 1 July to 31 November 2020. Valuations must be conducted by a qualified valuation surveyor or a quantity surveyor, who possesses a valid licence from the Seychelles Licensing Authority and is approved by the Minister responsible for Land in Seychelles to carry out such valuations. Failure to submit such a valuation during this period will incur penalties under the IPT Act.

The Property Tax rate has been set at 0.25% of the market value of any immovable property liable to be taxed and it is due and payable to the Seychelles Government on or before 31 December every year.

In accordance with the Government’s White Paper on “Foreign-Owned Property Tax” the objectives of the Property Tax are:

  • To influence the land market generally in the Seychelles – to address the perceived problem with alienation of land owned by nationals to non-nationals. If it has any local market impact, it is expected to depress the “base price” of land generally in Seychelles.
  • To increase tax revenue – to open a new revenue source in order to increase total tax yield which will vary substantially according to the scope and coverage of the tax.

It is left to be seen how the new Property Tax system is implemented in practice and whether it achieves its objectives. Certainly, the second objective seems to have triggered the issue of the Gazetted Notices on 1 July 2020 for the commencement of the implementation of collection of Property Tax in the midst of the COVID-19 economic crisis.

Share
Twitter LinkedIn Email Save as PDF
More News
23 Oct 2020 | News

Offshore Business Update

This is an update for our clients on how the authorities in our core jurisdictions are responding to...

23 Sep 2020 | News

Appleby shortlisted ‘Offshore Firm of the Year’ by The Lawyer

Leading offshore firm Appleby has been shortlisted in The Lawyer Awards 2020, ‘Offshore Firm of th...

8 Jul 2020 | News

Appleby releases Offshore Data Protection Guide

Leading offshore law firm Appleby announces today it has launched an Offshore Data Protection Guide ...

6 Jul 2020 | News

Appleby Global Services announce new leadership team

Appleby Global Services (AGS) a global fiduciary services provider which was launched by offshore la...

2 Jul 2020 | News

Covid-19: Protecting Personal Data – the New Normal

One unanticipated consequence of the COVID-19 pandemic has been the huge increase in the collection ...

4 Jun 2020 | News

Appleby recognised by Citywealth following brand refresh

Leading offshore law firm Appleby has been recognised by Citywealth in their Brand Management and Re...

14 May 2020 | News

Anti-takeover strategies during COVID-19

The unprecedented market volatility and substantial declines in stock prices that we have witnessed ...

15 Apr 2020 | News

COVID-19 Economic Substance Update

All of the offshore jurisdictions in which Appleby operates have implemented legislation to require ...

6 Mar 2020 | News

Appleby’s Female Leader’s Network: One year on

Global network brings together women in senior positions across the jurisdictions in which the firm ...