Buyer's Resources

About Home or Land ownership in Seychelles

In Seychelles anyone can buy property, local or non-local.

If you are a Seychelles Passport holder you can purchase property at any time without permission. The taxes are usually 5%of the sale price and notarial fees of 2%.

If you are a non-Seychelles Passport holder you can apply for permission for your property, you need to obtain a Sanction to Purchase form form IP/3 from the Ministry of Land Use and Habitat, fill it up and there is a 3 month processing time. You can download this form from our home page.

For Resort developers who wish to purchase land or develop, you need your application to the Seychelles Investment Bureau. More information is available on their web site at the Seychelles Investment Bureau at www.sib.gov.sc or contact as per below:

Tel No : +248 4295500

Email  : sib@seychelles.sc

Note that when you buy or sell your property the buyer can appoint any notary they wish. You are not obliged to use the agent's or seller's recommended notary.

Real Estate taxes for foreigners and residency notes:

1. Taxes for purchasing residential property by foreigners.
 
For the purchase of an individual house or land on a freehold basis in Seychelles that is not in a compound of condo or Eden Island, the taxes are a one time fee of 17.5%. The buyer chooses the notary and only one notary is needed for the sale transaction. The notary fees are usually 2%. You may not rent out your property unless express authority is obtained form the government.
 
b. For Eden island, a new unit has no taxes or notary fees, but for re-sale units there are taxes of 5% for Seychellois of foreigner purchases with notary fees of 1.5%. You may rent out your property on a daily or monthly basis.
 
c. For purchases of an apartment in a designated condominium development the taxes are 8%, i.e. 6.5% for for stamp duty and 1.5% for notary fees.
 
If you spend less than 3 months at a time here you do not need a visa, however, if you plan to stay longer, you can purchase residency for 5 years renewable at SCR150,000. Children below 18 are SCR25,000.
 
2. If you invest more than USD2M you are eligible for consideration for permanent residence. This gives you all the same rights as local Seychellois passport holders but you are not allowed to vote, and property purchases entitles you to half the prevailing stamp duty.
 
On the other hand, if you stay 10 years in Seychelles you can apply for permanent residence. After a further 2 yers, you can apply for Seychelles citizenship
 
3. You can open a bank account here but you must be present and have a local address, with a proof of address such as a utility bill on your name, your ID, your proof and source of income.
 
4. Buying procedures can be by one time payment after signing a Transfer of land document that the notary holds and registers after payment, or by deposit of 10% and a balance payment thereafter, usually agreed between buyer and seller, such as 30 days later.
 
Note that there are some properties that are leasehold, 70 years usually, usually situated on outer islands such as Desroches or Zil Pasyon.
 
Note on possible new taxes in January 2018: The government is preparing a possible tax on properties for foreigners of 0.25% per annum of the capital value of the property. Currently, there are no capital gains taxes, no monthly rates or other fees after buying a property that is freehold in Seychelles, unless it is in a development like a hotel residence of a condominium or Eden island.

Purchase calculation example:

Typically the notary makes and commission for the paperwork, and the government tax and other fees will be calculated as follows:

House Price   : Euro350,000.00
Notary fees   : 3,500

(aka Trade Tax, in this case we take for example 1% of sale price as it is large, may vary to 2% or so if the sale value is not large, calculated as 1% of 350,000=3,500. We take 3,500/0.85 to get 4,117.65. The difference between this and 3,500 is the trades tax payable)

Trades tax      : 617.65 (4,117.65 - 3,500) (No longer applicable in Seychelles since Jan 2013)

Stamp duty    : 61,250 (17.5% for non-Seychellois, 5% for Seychellois, in this example we take 17.5% of the sale price)

Total  Cost     : Euro415,356.65 (excl. 5% estate agent fee if applicable on the sale price. If 5% is added, the commission to the real estate agent is Euro17,500.00, totaling Euro432,856.65 and the estate agent will arrange with the seller or buyer who is paying the commission before the sale)

Contact us today for available property listings or any enquiries you may have. Using the right agent you can shorten your transaction time, uncertainties and obtain a wider prospect list and so a better price as a whole.

Buying a home is the largest purchase most people will ever make. Homeownership has great benefits. Homeownership also comes with certain responsibilities.

Are you ready for home ownership? Look at your current situation and determine if:

  • You have a continuing and reliable source of income prior to applying for the loan.
  • You have a credit history that shows you're ready for homeownership.
  • Your total debt is manageable and you can afford to take on the costs associated with homeownership.
  • You have money saved for a down payment and closing costs.

Once you fully understand your current situation, it's important to look at the pros and cons of homeownership to make the best decision for you and your family.

Benefits of Home Ownership

Homeownership has many advantages - both financial and personal. But buying a home is an important decision. Look at the benefits and the differences between homeownership and renting to better understand if owning a home is right for you.

What are the benefits of homeownership?

  • Tax savings.
    You may earn significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax and many states' income tax if you itemize your deductions.
  • A more stable monthly housing expense.
    Your monthly housing loan or mortgage expense can remain the same for the life of your mortgage, depending on the type of loan you choose.
  • Equity.
    You may build equity in your home over the life of your loan, which allows you to plan for future goals like your child's education or your retirement.

Home ownership is not right for everyone. It may not be the right time in your life or you may not like the commitment associated with owning a home. Here are some differences between renting and home ownership:

  • Renters are typically free from maintenance obligations such as repairs or lawn care.
  • Homeowners often have more freedom in decorating, landscaping, etc.
  • Renters can move more easily and more quickly than homeowners and there are higher costs associated with buying and selling a home.
  • Homeowners have a financial investment and may build equity in their home.


How Much Can You Afford?

To get a quick idea of what you can afford to spend, multiply your annual gross income (before taxes) by 2.5. For example, if your annual household income is $50,000, you might be able to qualify for a $125,000 home. This is just a rough estimate - the actual number will vary based on factors such as your debt and credit history.

Mortgage lenders typically use the housing expense and debt-to-income ratios to more accurately determine how much you can afford to spend on your mortgage.

  • Housing Expense Ratio
    Mortgage lenders recommend that your monthly mortgage payment should be less than or equal to a quarter of your monthly gross income. This percentage can change based on the type of mortgage you choose and sometimes the area in which you're looking to buy.
  • Debt-to-Income Ratio
    You need to factor your other debts into determining an affordable monthly mortgage payment. Mortgage lenders look at whether your total debt is larger than 30-40% of your monthly gross income. Remember, debt is not just credit cards and student loans. It can also include alimony, child support, car loans, and housing expenses.

A mortgage lender, a housing counselor, or consumer credit counselor can help you better understand these guidelines. Before you talk to a financial professional, you can organize your financial picture by creating a budget. Don't forget that you also have to save for the down payment, closing costs, inspections costs, moving, and other related expenses.


 

What Are the Risks?
Check For Properly Working Appliances/Fixtures:
  • Bathroom
    • Sinks
    • Showers/tubs
    • Toilets
    • Vent fan
    • A/C fan
  • Appliances
    • Dishwasher
    • Stove
    • Oven
    • Ice maker
    • Garbage disposal
    • Range hood
    • Refrigerator
    • Freezer
    • Microwave
    • Washer / Dryer 
  • Kitchen
    • Kitchen cabinet doors
    • Drawers
    • Sinks
  • General
    • Lights (interior & exterior)
    • Windows
    • Water heating system
    • Ceiling fans
    • Water tank system
    • Air conditioning system
    • Electrical outlets
    • Door bells
    • Doors / Gate
    • Water purifier
    • Boat Garage
    • Garage door
Ensure House Is Well-Built & Systems Are In Working Condition:
  • Exterior
    • Brick bulging or cracking
    • Shingles missing or broken
    • Siding rotted or missing
    • Gutters damaged or need to be cleaned
    • Concrete cracked in sidewalks/driveway
    • Wood rotting / worms
    • Old wiring - wall mains / lights switches
  • Foundation / Roof
    • Water seepage
    • Cracks in foundation
    • Poor ventilation
  • Interior
    • Sub-flooring damaged or loose
    • Cracked walls or ceiling
    • Cracked tiles
    • Loose plaster
    • Flooring damaged
    • Soft, springy floors
    • Water stains near windows
    • Water stains on ceiling below bathroom
    • Water stains in attic
    • Pipe insulation missing
    • Faulty wall points


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