Living in Seychelles: The Complete Expat Guide for 2026
Seychelles is one of those destinations that sounds like a dream holiday until you investigate its tax regime — at which point it starts to look like a serious residency decision. No income tax on individuals, no capital gains tax, no inheritance tax, and a financial services sector of genuine standing. Combined with a permanent residence pathway linked to investment, and arguably the most beautiful natural environment of any inhabited archipelago on earth, the Seychelles proposition for HNW individuals is real — provided the limitations are understood and accepted.
This guide is candid about both the attractions and the very real practical constraints.
The Islands: Mahé, Praslin, and La Digue
The Seychelles archipelago comprises 115 islands; almost all residents live on three main ones.
Mahé is the principal island, home to the capital Victoria and approximately 90% of the population. The international airport is here, as are the main hospitals, financial institutions, government offices, banks, and the majority of the expat population. The island's interior is mountainous and forested; the coastal areas contain most residential developments. Popular areas include Beau Vallon (the main tourist beach on the north coast), Glacis, Mont Fleuri, and the more exclusive southern districts of Anse aux Pins and Anse Royale.
Praslin is the second largest island — quieter, less developed, and home to the Vallée de Mai, a UNESCO World Heritage Site containing the endemic Coco de Mer palm. It is connected to Mahé by a 15-minute flight or a roughly 60-minute high-speed ferry. A smaller number of long-term residents have based themselves here, attracted by its slower pace and extraordinary beaches (Anse Lazio is frequently cited as one of the finest beaches in the world).
La Digue is even smaller and more remote — accessible by ferry from Praslin. No private cars are permitted (residents use bicycles and ox carts). It is a remarkable place to visit; living there permanently is a significant commitment that suits a very small number of people.
The Tax Environment
The headline facts are straightforward:
No personal income tax: The Seychelles does not levy income tax on individuals. Employment income, investment returns, pension income, dividends — none of these are subject to Seychellois income tax.
No capital gains tax: There is no CGT on any asset class.
No inheritance tax: Estates pass without tax.
Business Tax: Companies in Seychelles may be subject to Business Tax depending on the nature and source of income. The standard Business Tax rate is 15%. This is separate from personal income tax and is a corporate-level consideration.
SIBA — the Seychelles International Business Authority: Seychelles has developed an offshore financial centre regulated by SIBA. International Business Companies (IBCs) can be incorporated here and have been widely used for holding structures and international transactions. Following FATF and OECD reforms and a period of grey-listing, Seychelles has implemented significant regulatory improvements and sought to position itself as a compliant, reputable jurisdiction.
VAT applies at 15% on goods and services within the Seychelles domestic economy.
For UK nationals establishing Seychelles residence, the key tax interaction is with UK law on departure: establishing genuine non-UK residency (meeting the Statutory Residence Test conditions), and managing the treatment of UK-source income (which may still be taxable in the UK regardless of Seychelles residency). The UK does not have a comprehensive double taxation agreement with Seychelles.
Permanent Residence Through Investment
Seychelles offers a permanent residence permit (Investor Residency) for qualifying investment. The statutory investment threshold is USD 1 million (the equivalent in Seychelles rupees) in qualifying Seychellois investment — typically through property purchase, approved business investment, or bank deposit within an approved framework, generally combined with a minimum prior-residence or business-association period. The programme provides the investor and immediate family with permanent resident status.
Details and thresholds are managed by the Seychelles Investment Board (SIB) and can vary; current terms and qualifying investment categories should be verified with a specialist immigration lawyer and the SIB before committing.
Property ownership for foreigners is possible through approved schemes (the Seychelles does not have the free-floating foreign ownership market that some other Indian Ocean destinations have). Several integrated resort developments and residential schemes are approved for foreign purchase.
Practical Constraints: The Honest Assessment
Seychelles is exceptional as a holiday destination. As a permanent residence, it demands a particular mindset and acceptance of constraints that are not trivial.
Cost of living: Seychelles is expensive — one of the most expensive countries in Africa and the Indian Ocean by many measures. Almost all food, fuel, consumer goods, and construction materials are imported, and the cost of shipping inflates every price. A modest lifestyle in Mahé can easily cost more than equivalent living in London. Expats who move here expecting a low-cost island life are frequently surprised.
Bandwidth and connectivity: Internet infrastructure has improved significantly with the SEAS submarine cable, and Mahé has acceptable connectivity for business use. However, reliability can still be inconsistent, and the infrastructure does not match what professionals in major cities would expect. Remote-working arrangements need to be stress-tested before committing.
Healthcare: The Seychelles has a public hospital system (Seychelles Hospital on Mahé) and some private clinics (Clinique des Palmiers), but for anything beyond routine or moderate complexity care, medical evacuation to India (Apollo Hospitals group), South Africa, or Europe is standard. Comprehensive international health insurance including medical evacuation is non-negotiable.
Education: International schooling options are limited. The International School Seychelles provides an English-medium education to secondary level, but higher education requires overseas study.
Connectivity: Mahé has an international airport with connections to the Gulf (Emirates, Etihad), Johannesburg (South Africa Airways, Kenya Airways), and limited European connections. Travel to and from Europe involves a minimum of one stop and typically 12–14 hours of travel time.
Who Is Seychelles Right For?
Seychelles as a permanent residence suits a specific profile: HNW individuals who have already achieved their primary wealth accumulation objectives, who value natural beauty and privacy above urban connectivity, who have the capital to live comfortably at island prices, and whose income and investment activity does not require daily proximity to major financial centres.
It is a serious choice, not a fantasy — but it is a choice that genuinely suits some people exceptionally well.
Financial infrastructure in the Seychelles
One of the practical considerations for HNW residents is the local investment and banking infrastructure.
Banking: The Seychelles has a small but functional banking sector. Domestic banks include the Mauritius Commercial Bank (Seychelles), Absa Bank Seychelles, Bank of Baroda, and the Seychelles Commercial Bank. For international banking, HSBC Expat and other offshore banking services accessible from international jurisdictions provide more comprehensive investment and currency facilities. Many Seychelles-based HNW residents manage their principal investment portfolios through platforms in the Isle of Man, Jersey, or Guernsey rather than through local banks.
Investment management: There is no developed local investment management industry. Residents investing globally do so through offshore platforms, SIPP providers, or international private banks accessed remotely. The regulatory absence of a Seychelles income tax on investment returns means that tax-efficient wrappers (such as offshore bonds) may be less necessary from a Seychellois tax perspective — though they remain relevant for managing UK tax obligations on income that may still have a UK nexus.
Estate planning: The absence of Seychelles inheritance tax is advantageous, but UK inheritance tax exposure may continue for UK nationals who have only recently departed the UK. Since 6 April 2025 the UK has moved from a domicile-based to a residence-based IHT system: a "long-term UK resident" (broadly, someone UK-resident in at least 10 of the previous 20 tax years) remains within the scope of UK IHT on worldwide assets, and falling out of that status after departure can take a number of years. UK situated assets — including UK property — remain within the UK IHT estate regardless of residence status.
The social and community dimension
Seychelles' permanent expatriate community is relatively small — estimated at a few thousand long-term non-citizen residents, concentrated largely on Mahé. This means a tight-knit expatriate social environment, which some residents value highly for its intimacy and others find limiting. The island's own Creole culture is warm and hospitable, and integration with the local community is both possible and rewarding for those who engage with it.
The British High Commission maintains a presence in Victoria, Mahé, providing consular services for British nationals in Seychelles and neighbouring island territories.
Seychelles is a politically stable democracy with free elections and a well-functioning rule of law. Property rights are respected and the court system, while modest in scale, is functional. There is no recent history of political instability or civil unrest. This is a meaningful advantage for those considering long-term permanent residence.
Frequently asked questions
Can I get permanent residence in Seychelles through property purchase alone? Property purchase above the qualifying threshold is one route to investor residency. However, the rules around which properties qualify, the minimum investment level, and the administrative process are managed by the Seychelles Investment Board and are subject to change. Professional legal advice before any property acquisition is essential.
Is Seychelles on the FATF grey list or any international blacklist? Seychelles was placed on the FATF grey list in 2020 following concerns about its AML framework but was removed from the grey list in 2022 after implementing required improvements. It has also engaged with OECD transparency standards and is rated as "largely compliant" with information exchange obligations. The jurisdiction has made significant regulatory reform efforts and is not currently on major blacklists, though its IBC regime continues to require careful structuring to ensure compliance with substance requirements.
What happens if I need emergency medical treatment? For serious cases requiring specialist treatment beyond local capacity, evacuation to India (Bangalore or Mumbai, both within five hours of Mahé by flight) or to Europe is the standard protocol. International health insurance with medical evacuation cover — specifically including India as a covered destination — is the minimum. Ensure your insurance is reviewed annually as policies change and medical costs in India have risen. Keep copies of all insurance documentation readily accessible.
How Global Investments Can Help
For UK nationals considering Seychelles permanent residence, the primary financial planning concerns are: establishing genuine UK non-residency, the treatment of UK-source income in the absence of a UK-Seychelles DTA, the structuring of investment portfolios for an environment without local investment infrastructure, and medical and estate planning for a remote island context.
Global Investments advises HNW individuals on the full spectrum of pre-departure UK tax planning and cross-border financial structuring. We can connect you with specialist Seychelles legal and immigration advisers where required.
Contact us for a confidential initial consultation.
This guide is for general information only and does not constitute financial, legal or tax advice. Rules, fees and regulations change frequently; verify current requirements with a qualified adviser before acting.