Seychelles to Introduce Tax On Foreign-Owned Property Next July

A tax on property owned by foreigners is expected to take effect in July next year, a top official of the Ministry of Finance said on Thursday at a consultative meeting.

The principal secretary for finance, Patrick Payet, said that the ministry has taken this decision after discussions with the government.

"What we have seen with the real estate market is that it is driven by foreigners. We see prices go up and while foreigners can purchase properties, Seychellois lose because they cannot afford to buy land or houses."

"With this, we are ensuring that there is enough supply of land for Seychellois as well as additional land for the business sector to invest in and develop for rent," said Payet after a consultative meeting with businesses, companies owning properties and real estate agents.

The property tax will apply to foreigners, be it individual or companies, who already own residential and tourist establishments as well as businesses in Seychelles, a group of 115 islands in the west of the Indian Ocean. It will also apply to any future purchase of property by foreigners.