Seychelles Low Tax Or Tax- Free Living?
The Seychelles levies a flat rate of personal income tax. The question is where you earn your income.
At first glance, it looks as though the Seychelles levies a flat rate of personal income tax, and at only 15% on gross income, it’s a relatively low tax.
However, on closer inspection, it seems it may well be possible for qualifying expats to live tax-free in the Seychelles.
The key to tax-free living in the Seychelles is where you earn your income – and the question of remittance of funds could be important to keep in mind.
And this raises interesting questions about whether expats living in the Seychelles should go offshore with their money.
Let’s take a closer look.
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The Seychelles is an archipelago in the Indian Ocean – famed for majestic scenery, palm-fringed white sandy beaches, a stunning climate, and an exceptionally high quality of relaxed life.
Google ‘Seychelles images’ and indulge yourself in the paradise-like pictures of this fantastic 115-island nation.
According to the tax experts at Ernst & Young: “Individuals gainfully employed in the Seychelles are subject to income tax at a rate of 15% on the amount of gross emoluments paid.”
However, according to Global Property Guide: “only locally-sourced income is taxed.”
What that seems to mean is that if you can establish residency in the Seychelles and you earn your income from work you do overseas, you can enjoy that income tax-free.
This applies to expats who earn an income online, for example, those who work remotely for a company, those who consult, or those who only travel to their worksite occasionally.
Assuming you earn your income outside of the Seychelles and are therefore eligible to pay no tax on it as a legal resident of the Republic, why would you want to remit all of your funds?
Clearly you’re going to want and need some to live on – and perhaps you want to invest some in a property onshore. But beyond that, there is no real reason for you to bring your income into the Seychelles’ financial system unless you’re being offered an amazing investment or interest rate deal.
Therefore, where should you manage your money?
For many expats it’s worth thinking about staying offshore, financially speaking.
And for those living in a nation where they are allowed to earn foreign-sourced income tax-free, it makes a lot of sense to stay offshore financially speaking.
What this means is banking, saving and investing in a nation other than the one in which you’re living.
Remember that ignorance of your tax reporting and payment requirements is not an excuse in any country or any nation. What’s more, you need to seek expert advice before making any decisions about any aspect of your financial life.
In addition to all this, where you establish your residency is not the only important factor to keep in mind when it comes to tax. You may have a tax reporting and/or payment liability in your old home nation, country of domicile and/or any nation in which you hold assets.
If you want to live in the Seychelles there are various visa types you can apply for – and the lifestyle you can enjoy is almost inimitably wonderful.
Expats already living there report on multiple forums and blogs that it’s incredible.
The best way to discover whether you could be happy living in the Seychelles is to go for an extended vacation.
The local government website details which nations’ citizens are required to apply for a tourist visa before entry.