Seychelles Economic Substance Requirements, Explained Simply
Seychelles’ territorial tax regime was revised on 16 September 2021. It is not a blanket tax exemption — certain foreign-sourced passive income now carries an economic substance test.
What You Need to Know
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The basic rule
Seychelles taxes only Seychelles-sourced income. Profits from a genuine overseas permanent establishment are generally not taxed in Seychelles.
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The substance test
Foreign-sourced passive income (dividends, interest, royalties, rent) is exempt only where the company meets the applicable economic substance requirements. Income that doesn’t meet these conditions can fall within Seychelles’ tax net.
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What this means for you
We never describe IBC income as simply "tax-free" — the outcome depends on the activity and whether substance conditions are actually met, confirmed before it goes into any proposal.
Before You Move Forward
- Identify whether your income is active or passive-foreign-sourced.
- Confirm what substance your specific income category requires.
- File the annual economic substance self-declaration regardless of whether the test applies to you.
See the Full Seychelles Picture
This guide is one slice of the Seychelles page — structure options, tax snapshot, and the full compliance calendar live there.