Country Guide

Buying a Private Island in Seychelles

Seychelles is one of the few places on earth where a private island can still be acquired lawfully, quietly and with clear title — provided the buyer understands that the state sits at the centre of every transaction. This is an orientation to how ownership actually works, and to the sanction process every non-Seychellois must pass through.

The two forms of tenure

Seychelles law recognises freehold and leasehold interests in immovable property. Freehold is absolute ownership; leasehold is a long-term right to occupy and use land under a registered lease, most commonly for 99 years. For a Seychellois citizen, freehold is the ordinary form of ownership. For a non-Seychellois buyer, freehold is available only in narrow circumstances, and the overwhelming majority of foreign-held property — and effectively all foreign interests in the islands beyond the principal inner islands — is held on leasehold.

In practice, freehold acquisition by foreigners is confined to the developed inner islands, principally Mahé, Praslin, La Digue and Cerf, and even there it is subject to sanction and to value and plot thresholds. On the outlying islands, freehold acquisition by a non-Seychellois is not permitted at all. What is available there is a long lease, frequently structured by the Government on a build-operate-transfer basis over a 99-year term.

The role of the Government

The state is not a bystander in Seychelles land transactions; it is the gatekeeper. The Ministry of Lands and Housing, through the Office of the Principal Secretary for Lands, administers foreign acquisitions and issues the sanction without which no non-Seychellois transaction can complete or register. The Government also holds a very large share of land directly — including the foreshore, the seabed and most undeveloped island land — as state land, which it may lease but will generally not sell into foreign freehold. Understanding that the counterparty on an island transaction is very often the state itself, rather than a private vendor, is central to setting realistic expectations on timing, conditions and price.

The Immovable Property (Transfer Restriction) Act

The controlling statute is the Immovable Property (Transfer Restriction) Act, a law of long standing (Chapter 95 in the Laws of Seychelles) that has been revised over the decades. Its effect is straightforward: a non-Seychellois — whether an individual or a corporate body — may not purchase, lease, hold an option over, or acquire shares in a company that owns immovable property in Seychelles without first obtaining the Government's sanction. A transaction entered into without sanction is not merely irregular; it cannot be validly registered, and registration is what confers a good title.

The Act sits alongside a policy framework that has shifted over the years. A moratorium on the sale of residential land to non-Seychellois was in force for a period and has since been relaxed, with the current policy directing foreign residential demand toward the higher end of the market while protecting affordable and subsidised housing for citizens. The practical consequence for an island or high-end coastal buyer is that the door is open, but only above defined value thresholds and only through the sanction process.

The sanction process, step by step

An application for sanction to purchase, lease or hold an option over immovable property is submitted to the Office of the Principal Secretary, Ministry of Lands and Housing. It may be filed directly or, as is usual and advisable, through a Seychelles notary or attorney. Seychelles is a civil-law jurisdiction in which the notary plays a central role in conveyancing, and engaging one early is the norm.

Fees at a high level

A non-refundable application fee is payable when the application is filed. As a broad orientation, this has been in the region of SCR 3,000 for a purchase, SCR 2,000 for a lease and SCR 1,000 for the acquisition of shares in a property-owning company. If the application is approved, a sanction processing fee becomes payable — broadly 1.5% of the market value for a purchase, 1.5% of the annual rental value for a lease, and a fixed sum for a share acquisition.

Separately, residential acquisitions that fall outside the Government's dedicated villas policy attract an enhanced sanction duty, which was increased in recent policy to around 12% of the market value of the property (up from 11%). Certain categories are exempt from this duty, including bona fide tourism, commercial and industrial investment, transactions under the villas policy, and transfers between spouses, parents, children and heirs. Because the duty and the processing fee are distinct charges, and because rates and thresholds are periodically adjusted, the applicable figures should always be confirmed for the specific transaction at the time it is contemplated.

Criteria the Government considers

Sanction is discretionary, not automatic, and the Ministry weighs both the applicant and the asset. On the asset side, residential policy sets floors: a minimum property value in the order of SCR 10 million for a dwelling, a minimum per-square-metre value for bare residential land, plot sizes generally in a defined band (with allowances where privacy, security or topography justify a larger parcel), and separate minimums for condominium units, which may not sit on state land. On the applicant side, the ownership vehicle for residential property is confined to natural persons or a local company whose shareholders, directors and beneficial owners are traceable in Seychelles to identifiable natural persons — layered or opaque corporate structures are not welcomed.

Due diligence and documentation

Applicants should expect a substantive integrity review. Typical requirements include a certified passport copy, recent proof of address, a police clearance certificate issued within the preceding months, a declaration of politically exposed person status, a source-of-funds declaration and bank evidence of funds. Corporate applicants provide their constitutional documents together with full beneficial ownership disclosure to the same standard. Non-English or non-French documents require certified translation.

Timelines and validity

As a general expectation, the sanction process runs to roughly three months from a complete application, though complex files or corporate structures can take longer. A sanction, once granted, is valid for one year from the date of issue, and the transaction must be completed and registered within that window. Allowing the sanction to lapse means starting again.

Leasehold on the islands

For a genuine private island, leasehold is the realistic path. The Government's typical structure is a long lease — commonly 99 years — often on terms that contemplate development, operation and eventual transfer of improvements. Lease terms will address permitted use, development obligations, environmental conditions, rent and review mechanics, and assignment. Because so much island land is state land, the lease is frequently negotiated with the Government rather than with a private seller, and the commercial and conservation conditions attached can be as important to value as the headline term.

Foreshore and state land

The foreshore — the zone between high and low water — and the seabed are state property and are not sold into private freehold. A waterfront or island project therefore commonly involves a private or leasehold interest in the upland combined with a separate arrangement, such as a foreshore lease or licence, for any structures, moorings or reclamation touching the state's domain. These are treated as distinct interests and negotiated accordingly.

Foreign-ownership realities

The candid position is that Seychelles welcomes serious foreign capital at the upper end of the market while reserving affordable land and the outlying islands from foreign freehold. A buyer who arrives expecting to purchase an outlying island outright will be redirected to a long lease; a buyer who expects to bypass the sanction process will find no valid title at the end of it. Approached correctly, however, the framework is coherent and predictable, and title, once sanctioned and registered, is secure.

Taxes and duties, in orientation

Stamp duty on a transfer of immovable property is levied at 5% of market value and applies equally to Seychellois and non-Seychellois; on leases, duty is assessed on the rent and can run higher depending on term and structure. The sanction processing fee and, for non-exempt residential purchases, the enhanced sanction duty are additional to stamp duty. Seychelles also levies an annual immovable property tax on foreign-owned residential immovable property, charged at a low percentage of assessed market value. Rates, thresholds and exemptions here change more often than the underlying statute, so each of these figures should be confirmed for the live transaction.

Practical steps

In sequence: identify the asset and confirm whether it is freehold-capable or leasehold only; engage a Seychelles notary and, where useful, an attorney; assemble the applicant due-diligence file early; agree heads of terms with the vendor or the Government subject to sanction; file the sanction application and pay the application fee; on approval, pay the processing fee and duty, complete the notarial deed, and register within the one-year validity of the sanction. Throughout, treat the Government as an active counterparty whose conditions shape the deal, not merely as an approving authority.

General orientation only, current as of 2024 and not legal or tax advice; Seychelles law and policy — including fees, thresholds and duty rates — evolve frequently. Confirm the current position and your specific structure with qualified local counsel and a Seychelles notary before acting. Enquiries: the enquiry form.