Foreign income is generally not taxed
Your current home country may apply an exit tax before you leave
European tax authorities apply CFC rules, especially for passive structures
Management and actual control from Europe can lead to taxation in your home country
The Seychelles have appeared on EU lists in the past, which can affect perception and compliance risks
Bank accounts are often opened outside the Seychelles and require extensive documentation
The Seychelles are an island nation in the Indian Ocean off the east coast of Africa. The national currency is the Seychellois rupee (SCR), and the population is comparatively small.
The Seychelles International Business Company (IBC) is governed by the International Business Companies Act 2016 and is considered one of the most flexible and cost-efficient offshore company forms worldwide. An IBC is suitable for international structuring, in particular for offshore consultancy or holding foreign shareholdings. The tax outcome depends on the specific setup and the applicable business tax rules. The Seychelles’ standard tax regime is not a flat 0% system.
The Seychelles offer a high degree of business confidentiality. Beneficial owners are not fully publicly accessible, but must be disclosed to local authorities in line with compliance requirements. The jurisdiction meets OECD standards on transparency and information exchange and continues to be used for legitimate international structures.
If your Seychelles company earns only foreign-source income and carries out no business activity within the Seychelles, the effective corporation tax rate in practice is generally 0%.
Dividends are subject to withholding tax only if they arise from Seychelles-source income. For a pure offshore company with foreign income, this is usually not the case. For local income, a 15% withholding tax on dividends may apply. In addition, VAT of 15% applies if annual turnover exceeds SCR 2,000,000 (approx. EUR 123,110).
The Seychelles do not provide automatic access to banking. Many IBCs therefore open accounts in other jurisdictions such as Mauritius, the UAE or certain Caribbean states. Genuine business activity, a traceable source of funds and complete KYC documentation are essential.
The legal system is based on a blend of English common law and French civil law. Incorporation is fast, ongoing costs are comparatively low, and administration is flexible. Nonetheless, reputational risks persist in an EU context. The Seychelles are particularly suitable for clients with clear cross-border structuring and no intention of tax abuse.
Contact us for an individual assessment and, where appropriate, better alternative solutions.
For a standard IBC, a local director is generally not required.
Generally, yes. Incorporation is typically carried out fully remotely via a licensed provider. Opening the bank account is usually the more time-consuming part of the process.
The Seychelles are currently no longer on the EU blacklist. However, previous listings may still influence the risk assessment of banks and business partners.
| Tax Burden | Banking | Reputation | Bureaucracy | Legal Security | Costs | |
|---|---|---|---|---|---|---|
| USA | 21-0% |
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from EUR 1,900 |
| Singapore | 0% |
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from EUR 2,950 |
| Hong Kong | 0% |
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from EUR 1,900 |
| Cyprus | 15% |
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from EUR 1,900 |
| Malta | 5% |
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from EUR 2,500 |
| Ireland | 12,5% |
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from EUR 1,950 |
| Trust | 0% |
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from EUR 4,900 |
| England | 25-19% |
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from EUR 1,000 |
Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income — in some cases even if profits are not distributed.
Depending on your personal situation, an appropriate holding structure may be required to comply with tax rules and avoid unnecessary tax risks.
To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.
Our advisers will be happy to review your case and advise you accordingly.
