$2 million in new taxes to be collected this year from foreign owners of homes in Seychelles

Some $2 million is expected to be collected at the end of this year as a new tax on foreign owners of homes kicks in. The immovable property tax was endorsed bySeychelles’ Cabinet of Ministers earlier this month and will apply for non-Seychellois owning buildings for residential purposes on the island nation.

Roseline Lepathy of the Seychelles Revenue Commission said SRC will work with the Registrar and Ministry of Housing Infrastructure Land and Transport for the valuation and collection of taxes. The tax rate will be calculated at 0.25 percent of the market value of the property and is payable annually before the end of December 31, and applies to foreigners owning houses anywhere in Seychelles. “It includes vacant or unoccupied immovable property which is intended or capable of being used for private housing or place of residence by the non-Seychellois owner with some exceptions. For example, if there is a co-ownership of residential property between a Seychellois and non-Seychellois, who are not married, the non-Seychellois will pay tax only on the percentage of the share he or she owns in the property,” said Lepathy.

The director added that any property used as a villa will also be captured as a residential property excluding villas solely owned by a hotel.There are however some exemptions for the tax. A non-Seychellois who is married to a Seychellois and the marriage is still subsiding will be exempted fromImmovable Property Tax. Lepathy added that another exemption is “when a non-Seychellois who is a first time owner of residential property in Seychelles may also apply to the Commissioner-General with evidence to be exempted from this tax for the first year only.”Registrar General Wendy Pierre said that since July 1, a notice has been published to that effect and the office is making available forms for foreigners so that they can declare their properties. This will be opened for four months until November1.

Source: SNA