Seychelles: Invertir
According to UNCTAD's 2021 World Investment Report, FDI inflows to Seychelles declined by 15% to USD 122 million in 2020, compared to USD 144 million a year earlier, mainly due to the economic and health crisis triggered by the Covid-19 pandemic and the resulting restrictions on international tourist travel. FDI inward stock closed at USD 3.3 billion in 2020. The fishing sector (smoked tuna, frozen fish) attracts a large share of FDI. Increased opening to foreign investors, notably Chinese, is expected to continue. The discovery of significant oil deposits on the coastlines of Seychelles is sparking new interest among investors (licenses for exploration and exploitation have been granted since 2013). As per Fitch Ratings, investment is set to pick up in 2022-23, as hotel construction/expansion projects that were paused in 2020 and part of 2021 resume.
The Government of Seychelles has taken regulatory measures to create a suitable environment for foreign investment such as reducing the corporate tax rate. In addition, a skilled workforce, an efficient legal system based on the Napoleonic Civil Code, and transparent access to different legal sources concerning investment represent advantages for investors. Attractive sectors for investments include tourism, construction, alternative energies and the oil sector, as the country can count on an exclusive Economic Zone (EEZ) of 1.3 million km2. However, risk factors include the existing black-market economy, limited export opportunities, the excessive reliance on tourism (which indirectly accounts for more than half of GDP), and piracy. Furthermore, foreign investments are restricted in certain sectors in order to protect the public interest (including accommodation services up to fifteen rooms, car hire, crop production, real estate agencies, travel agencies, etc.). The Seychelles Investment Board (SIB) is the national single gateway agency for the promotion and facilitation of investment in the country. The Agency also assists in screening potential investment projects in cooperation with other government agencies. Seychelles is ranked 100th out of 190 countries in the World Bank's latest Doing Business report, a four-spot drop compared to the previous edition.
| Seychelles | Sub-Saharan Africa | United States | Germany | |
|---|---|---|---|---|
| Index of Transaction Transparency* | 4.0 | 5.5 | 7.0 | 5.0 |
| Index of Manager’s Responsibility** | 8.0 | 3.5 | 9.0 | 5.0 |
| Index of Shareholders’ Power*** | 5.0 | 5.5 | 9.0 | 5.0 |
Source: Doing Business - Latest available data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
| Foreign Direct Investment | 2019 | 2020 | 2021 |
|---|---|---|---|
| FDI Inward Flow (million USD) | 144 | 122 | 157 |
| FDI Stock (million USD) | 3,244.3 | 3,285.1 | 3,335.1 |
| Number of Greenfield Investments* | 4.0 | 3.0 | 1.0 |
| Value of Greenfield Investments (million USD) | 39 | 357 | 105 |
Source: UNCTAD - Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
| Personal income tax | (citizen employee) |
| SCR 0 to 8,555.50 | 0% |
| SCR 8,555.51 to 10,000 | 15% |
| SCR 10,000 to 83,000 | 20% |
| Above SCR 83,000 | 30% |
| Non-citizen employee | |
| SCR 0 to 10,000 | 15% |
| SCR 10,000 to 83,000 | 20% |
| Above SCR 83,000 | 30% |
| Non-monetary benefits | 20% |
| Seychelles | Sub-Saharan Africa | United States | Germany | |
|---|---|---|---|---|
| Number of Payments of Taxes per Year | 29.0 | 36.6 | 10.6 | 9.0 |
| Time Taken For Administrative Formalities (Hours) | 85.0 | 284.8 | 175.0 | 218.0 |
| Total Share of Taxes (% of Profit) | 30.1 | 47.3 | 36.6 | 48.8 |
Source: Doing Business - Latest available data.
| Setting Up a Company | Seychelles | Sub-Saharan Africa |
|---|---|---|
| Procedures (number) | 9.00 | 7.51 |
| Time (days) | 32.00 | 21.30 |
Source: Doing Business.
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Latest Update: February 2023
