Financial Preparation

• Determine your total investment budget (property + transaction costs + reserves)
• Establish a currency exchange strategy (USD to SCR or EUR)
• Research historical exchange rate patterns to identify favorable timing
• Set up international wire transfer capabilities with your home bank
• Consider opening a Seychelles bank account (requires physical presence)
• Evaluate tax implications in both Seychelles and your home country
• Prepare proof of funds source documentation (critical for sanction approval)
• Budget for sanction fee (5% of property value) and other government fees

Market Research

• Identify target islands and regions based on investment goals (rental yield vs. personal use)
• Research island-specific infrastructure, access, and amenities
• Join online forums for Seychelles property investors
• Subscribe to property market reports from local agencies
• Analyze tourism trends and visitor demographics for rental potential
• Research seasonal variations in rental demand and weather patterns
• Understand environmental protections affecting potential properties
• Plan a preliminary market visit to evaluate areas firsthand
• Research pre-approved developments for streamlined foreign ownership

Professional Network Development

• Connect with attorneys specializing in Seychelles property law for foreigners
• Identify real estate agencies with experience in international client transactions
• Research property management companies focused on luxury rental properties
• Establish contact with currency exchange specialists familiar with Seychelles
• Find a Seychelles-based accountant familiar with non-resident investor concerns
• Connect with building surveyors for property inspections
• Establish relationships with renovation/maintenance contractors if needed
• Contact the Seychelles Investment Board for official guidance

Expert Tip: The Seychelles property market is highly seasonal, with different islands having different peak seasons. North American investors should consider timing their property viewing trips for the shoulder seasons (April-May or October-November) when rates are lower but weather remains good. This allows for a more relaxed viewing experience while still experiencing the islands at close to their best. For those focused on investment returns, spending time analyzing the tourism high seasons (typically December-January and July-August) can provide valuable insights into rental potential.

Recent Regulatory Change: As of January 2023, the Seychelles government has streamlined the sanction application process for pre-approved developments, reducing processing times from 3-6 months to approximately 30-45 days. These designated developments, typically new luxury projects, have received blanket approval for foreign ownership, making them particularly attractive for international investors seeking a more efficient purchase process. However, these properties generally come at premium prices compared to the broader market.

Banking Setup

• Local Bank Account Options:
  • Seychelles Commercial Banks: Includes Seychelles Commercial Bank, Absa Bank Seychelles, Bank of Baroda, MCB Seychelles
  • International banks with local presence: Barclays/Absa, Standard Chartered
  • Private banking services: Available for higher net worth individuals (typically $250,000+ relationship)
• Account Requirements:
  • Physical presence usually required for account opening
  • Passport and secondary identification
  • Proof of address (in home country)
  • Reference letters from existing bank
  • Source of funds documentation
  • Investment/business plan for Seychelles
• Banking Limitations:
  • Account opening can take 2-4 weeks after application
  • Enhanced due diligence for higher value transactions
  • Multi-currency accounts available but with conversion fees
  • Online banking available but often with limited features
• Alternative Approach: Many foreign investors complete property transactions without a Seychelles bank account by using attorney escrow accounts for the purchase and then setting up property management with direct transfers to overseas accounts.

Financing Options

While cash purchases are common among foreign investors, financing options include:

1. Local Bank Mortgages:
   • Availability: Limited and selective for foreign buyers
   • Loan-to-Value Ratio: Typically 50-60% maximum for non-residents
   • Interest Rates: 7-9% (significantly higher than North American rates)
   • Terms: Usually 5-15 years maximum
   • Requirements: Extensive income verification, asset documentation, and local bank relationship
2. Developer Financing:
   • Available for select new development projects
   • Typically involves 30-50% down payment
   • Terms usually 3-5 years
   • Interest rates often 6-8%
   • More flexible qualification criteria than banks
3. International Financing:
   • Secured against assets in home country
   • Lower interest rates than local options
   • No Seychelles approval process required
   • Currency risk considerations
   • Typically requires international banking relationships
4. Home Country Equity:
   • Home equity lines of credit
   • Refinancing existing North American properties
   • Securities-based lending using investment portfolios
   • Familiar lending process with established relationships

Most foreign buyers utilize cash purchases or financing secured in their home country due to the limited availability and higher costs of local financing. The sanction application process also generally flows more smoothly for cash purchases.

Currency Management

The Seychellois Rupee (SCR) is the official currency, but many property transactions occur in USD or EUR:

• Exchange Rate Considerations:
  • Monitor USD/SCR and EUR/SCR trends before major transactions
  • The Seychelles Central Bank manages the SCR with limited float
  • Property prices often quoted in USD to avoid currency fluctuations
  • Consider forward contracts for large transfers
• Currency Services:
  • Specialized services like Wise, OFX, or Moneycorp typically offer better rates than banks
  • Forward contracts can lock in exchange rates for future payments
  • Some services offer SCR accounts for easier property expense management
• Banking Regulations:
  • Large transfers require documentation of source of funds
  • Advance notification for significant transfers is recommended
  • Foreign currency accounts available but with restrictions
  • Currency exchange controls may apply to certain transactions
• Income Repatriation:
  • Rental income can be freely repatriated after tax compliance
  • Sale proceeds can be repatriated if original investment was properly documented
  • Tax clearance certificates may be required for larger repatriations

Currency management can significantly impact your overall investment returns. While most high-value property transactions are denominated in USD or EUR, day-to-day property expenses will be in SCR. Maintaining small SCR balances for ongoing expenses while keeping larger reserves in USD/EUR often represents the most practical approach.

Property Search Resources

• Online Property Portals:
  • Seychelles Properties – Local listings from multiple agencies
  • Eden Island – Popular development for foreign buyers
  • Sotheby’s International Realty – Luxury listings
  • Savills – High-end international properties
• Local Real Estate Agencies:
  • REMAX Seychelles
  • Seychelles Estate Agency
  • Premium Realty
  • Seychelles Properties Limited
  • Note: Most agencies represent sellers; buyer’s agents are uncommon
• Developer Direct Sales:
  • Eden Island Development Company
  • Pangia Beach Development
  • L’Escale Resort & Marina
  • Often offer streamlined process for foreign buyers
• Government Resources:
  • Seychelles Investment Board – Official guidance and approved projects
  • Ministry of Habitat, Infrastructure and Land Transport – Land registry information
• Networking:
  • Existing foreign property owners
  • Luxury hotel concierge services
  • Local attorneys specializing in real estate
  • Expatriate communities and forums

Property Viewing Trip Planning

For overseas investors, an efficient property viewing trip is essential:

1. Pre-Trip Research:
   • Identify 5-10 potential properties before arrival
   • Schedule viewings in advance (limited inventory moves quickly)
   • Research islands thoroughly (travel between islands takes time)
   • Arrange meetings with attorneys and government officials if needed
   • Secure necessary visas/entry requirements (typically visitor’s permit)
2. Trip Logistics:
   • Plan at least 7-10 days for a thorough property search
   • Allow time for inter-island travel if viewing properties on multiple islands
   • Schedule viewings in geographical clusters
   • Leave time for neighborhood exploration and local amenities
   • Account for more relaxed island pace in scheduling
3. During Viewings:
   • Take detailed photos and videos (including views and surroundings)
   • Document sun exposure patterns during different times of day
   • Check for signs of humidity damage or salt corrosion
   • Test water pressure and quality
   • Verify power reliability (generator availability)
   • Check internet connectivity and cell reception
   • Note proximity to beaches, shopping, and essential services
4. Additional Considerations:
   • Visit during different weather conditions if possible
   • Speak with neighbors and nearby property owners
   • Meet with potential property management companies
   • Open a local bank account if necessary (requires physical presence)
   • Meet with government officials about sanction process

Property Evaluation Criteria

Assess potential investments using these key criteria:

• Location Factors:
  • Beach access and quality (direct, shared, or public)
  • View considerations (unobstructed ocean views command premium)
  • Proximity to amenities (restaurants, shopping, medical facilities)
  • Transportation access (roads, ferry connections, airport distance)
  • Tourism popularity of the area for rental potential
  • Protected status of surrounding land (development potential)
  • Elevation and protection from potential sea level changes
• Property Characteristics:
  • Construction quality (particularly important in tropical climate)
  • Age and condition of property
  • Building materials and adaptation to local conditions
  • HVAC systems (air conditioning is essential for rentals)
  • Water supply systems (some properties have rainwater collection)
  • Power backup systems (generators or solar)
  • Pool condition and maintenance (common feature in luxury properties)
  • Landscaping and outdoor living spaces
• Rental Potential:
  • Historical occupancy rates if available
  • Established rental program participation
  • Booking platform performance for similar properties
  • Seasonal demand patterns
  • Potential daily/weekly rates in high vs. low season
  • Rental restrictions in development or community
  • Management company options and fees
• Financial Considerations:
  • Price per square foot compared to area averages
  • Maintenance and management costs in tropical climate
  • Utility costs (electricity is particularly expensive)
  • Property taxes and annual fees
  • Insurance costs (including tropical storm coverage)
  • Renovation or improvement costs if needed
  • Potential appreciation based on local market trends

Expert Tip: When evaluating properties in Seychelles, pay particular attention to construction quality and materials. The tropical climate with high humidity, salt air, and occasional extreme weather presents unique challenges for building integrity. Look for properties built with corrosion-resistant fixtures, quality roof construction, proper drainage systems, and effective ventilation. For homes with pools, check filtration systems carefully as replacement parts can be expensive and difficult to source. Properties built by developers with international experience and proper adaptation to local conditions typically command premium prices but often represent better long-term investments with lower maintenance costs.

Legal Due Diligence

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  Title Verification: Confirm ownership and identify any restrictions, easements, or encumbrances
• ✓
  Land Registry Search: Verify registered ownership, boundaries, and any registered charges
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  Property Survey: Confirm boundaries match registry entries (particularly important in Seychelles)
• ✓
  Planning Permissions: Verify compliance with planning regulations and any restrictions
• ✓
  Environmental Clearances: Check for required environmental permits and compliance
• ✓
  Utility Connections: Verify legal connections to water, electricity, and sewage systems
• ✓
  Foreign Ownership Status: Check if the property has pre-approval or requires new sanction
• ✓
  Development Rules: Review community or development restrictions and guidelines

Physical Due Diligence

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  Building Inspection: Commission a comprehensive inspection by a qualified surveyor
• ✓
  Structural Assessment: Check foundations, walls, and roof for tropical climate damage
• ✓
  Water Systems: Test water supply, pressure, storage tanks, and filtration systems
• ✓
  Electrical Systems: Verify capacity, condition, and backup power options
• ✓
  HVAC Assessment: Check air conditioning systems and ventilation effectiveness
• ✓
  Pest Inspection: Check for termites, wood borers, and other tropical pests
• ✓
  Moisture/Mold Assessment: Evaluate for humidity damage and mold issues
• ✓
  Infrastructure Assessment: Evaluate access roads, drainage, and shared facilities

Financial Due Diligence

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  Comparative Market Analysis: Verify price aligns with recent comparable sales
• ✓
  Utility Cost History: Review 12 months of utility bills (particularly electricity)
• ✓
  Tax Assessment: Calculate property tax, transfer tax, and other government fees
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  Insurance Quotes: Obtain quotes for property insurance including natural disaster coverage
• ✓
  Maintenance Cost Estimation: Calculate ongoing maintenance in tropical maritime climate
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  Management Fee Assessment: Review property management options and costs
• ✓
  Rental Analysis: Verify realistic rental projections with local management companies
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  Future Expense Planning: Identify upcoming major maintenance or replacement needs

Expert Tip: Due diligence in Seychelles often takes longer than expected, especially for properties without pre-approved foreign ownership status. Allow for 30-60 days for thorough investigation, particularly if the property is on an outer island. For beachfront properties, checking coastal erosion patterns and verifying sea defense infrastructure is essential. Government agencies can provide historical erosion data, and local knowledge is invaluable. Also consider seasonal accessibility – some properties may be more challenging to reach during certain monsoon periods, affecting both personal use and rental potential.

Foreign Buyer Sanction Process

1. Preliminary Agreement: Sign a preliminary sales agreement, typically with a 10% deposit held in escrow
2. Sanction Application: Submit application to the Seychelles Investment Board with all required documentation
3. Government Review: Application reviewed by relevant government departments (3-6 months for standard process)
4. Sanction Approval: Upon approval, pay the sanction fee (5% of property value)
5. Receipt of Authorization: Official sanction certificate issued permitting the purchase

For pre-approved developments with blanket foreign ownership sanction, this process is significantly streamlined with approvals typically taking 30-45 days. The sanction remains valid for 6 months, during which the purchase must be completed.

Property Transfer Process

1. Instruct Attorney: Appoint a local attorney to handle the transaction
2. Final Due Diligence: Complete any outstanding title searches and property investigations
3. Sale Agreement: Draft and sign the final sale agreement
4. Transfer Tax Payment: Pay stamp duty and property transfer tax (typically 5% combined)
5. Document Registration: Register the transfer with the Land Registry
6. Title Transfer: Obtain the official title deed in the buyer’s name
7. Final Payments: Release of balance payment to seller upon completion
8. Utility Transfers: Register utilities in new owner’s name

The timeframe from sanction approval to completion typically ranges from 4-8 weeks. Foreign buyers should plan for at least 6-9 months for the entire process from initial offer to final ownership, though pre-approved developments can reduce this to 2-3 months.

Transaction Costs

Budget for these typical transaction expenses:

• Government Sanction Fee: 5% of property value
• Sanction Application Processing Fee: $1,000-2,000 (non-refundable)
• Stamp Duty: 5% of property value
• Legal Fees: 1-2% of property value for attorney services
• Registration Fees: Approximately 0.5% of property value
• Notary Fees: Fixed scale based on property value
• Survey Costs: $500-2,000 depending on property size
• Property Inspection: $800-1,500 for comprehensive inspection
• Currency Exchange Costs: Varies by provider (0.5-3% spread)

Total transaction costs for foreign investors typically range from 12-15% of the purchase price, with the sanction fee and stamp duty representing the largest components. These costs should be factored into your overall investment calculations.

Expert Tip: The sanction process for foreign buyers in Seychelles can seem daunting, but working with an attorney experienced in guiding international clients can significantly improve efficiency. Have all documentation prepared before submitting your application, including clear source of funds verification, as incomplete applications often face substantial delays. For buyers focused on faster acquisition, pre-sanctioned developments or properties with existing foreign ownership offer the most streamlined path, typically reducing the timeline by 3-4 months compared to standard purchases. Some developers also offer “turnkey” services to handle the entire government process on behalf of foreign buyers.

Administrative Tasks

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  Title Deed Registration: Ensure property is properly registered in your name
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  Utility Transfers: Register electricity, water, and telecommunications accounts
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  Property Insurance: Secure comprehensive coverage including natural disasters
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  Tax Registration: Register with Seychelles Revenue Commission if generating rental income
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  Management Agreement: Establish property management relationship if not personally residing
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  Security Systems: Set up security monitoring if desired
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  Local Banking: Establish local account for property expenses if not already completed

Property Maintenance in Tropical Climate

The Seychelles climate requires specific maintenance approaches:

• Regular Inspections: Schedule quarterly inspections even if property is unoccupied
• Air Conditioning Maintenance: Service systems every 3-4 months to prevent breakdowns
• Humidity Control: Install dehumidifiers or humidity control systems
• Salt Corrosion Prevention: Regular washing of exterior surfaces and fixtures
• Pest Management: Ongoing pest control programs for termites and other tropical pests
• Vegetation Management: Regular landscape maintenance to prevent overgrowth
• Pool Maintenance: Weekly service to maintain chemical balance and equipment
• Storm Preparation: Seasonal preparations for potential extreme weather
• Water System Maintenance: Regular cleaning of water tanks and filtration systems

For non-resident owners, a comprehensive property management agreement is essential to ensure proper maintenance during absences. The tropical climate can accelerate deterioration if properties are not properly maintained, potentially leading to significant repair costs.

Record Keeping

Maintain comprehensive records for tax and legal purposes:

• Property Documents:
  • Government sanction certificate
  • Title deed and property transfer documents
  • Purchase contracts and completion statements
  • Property surveys and inspection reports
  • Insurance policies and claims
  • Renovation plans and approvals
• Financial Records:
  • All property-related expenses with receipts
  • Utility payments and statements
  • Management fees and reports
  • Maintenance and repair costs
  • Rental income and tenant deposits
  • Currency exchange transactions
• Tax Documentation:
  • Seychelles tax filings and payments
  • Home country tax declarations
  • Capital improvements (which may reduce future capital gains tax)
  • Property value assessments
• Rental Information:
  • Rental agreements and terms
  • Guest information and booking records
  • Rental platform listings and performance data
  • Guest communications and reviews

Both Seychelles and North American tax authorities require records to be kept for at least 5-7 years. Digital record-keeping systems with secure backups are strongly recommended, particularly for overseas investors managing properties remotely.

Expert Tip: Consider establishing a dedicated image-based reporting system with your property manager for remote monitoring. Regular photo documentation of property conditions, especially after storms or during seasonal transitions, helps identify maintenance issues before they become serious problems. For properties with rental income, separate accounting for personal use periods versus rental periods is essential for accurate tax reporting. Many successful foreign owners in Seychelles create detailed property manuals containing all information about systems, contacts, and maintenance schedules to ensure consistent management even if local service providers change.

Seychelles Tax Obligations

• Property Transfer Tax:
  • 5% stamp duty on property purchase
  • Paid at the time of property transfer
  • Based on the declared property value
  • Typically paid by the buyer
• Income Tax on Rental Income:
  • Business tax applies to rental income at 15% flat rate
  • Tax return filing required annually
  • Deductions allowed for property expenses and depreciation
  • Tax year runs from January to December
• Immovable Property Tax:
  • Annual property tax of 0.25% of property value for residential properties
  • Based on most recent official valuation
  • Payable to the Seychelles Revenue Commission
• Capital Gains Tax:
  • No capital gains tax on property sales in Seychelles
  • Only business income from frequent property trading is taxable
• Withholding Tax:
  • 15% withholding tax on certain payments to non-residents
  • May apply to management fees paid to foreign service providers
  • Reduced rates under tax treaties where applicable

Home Country Tax Obligations

Tax treatment varies significantly between jurisdictions, and professional tax advice from specialists familiar with both Seychelles and your home country tax systems is essential. The favorable Seychelles tax environment (particularly no capital gains tax) creates planning opportunities, but home country taxes must still be considered.

Tax Planning Strategies

• Entity Structure: Evaluate whether personal ownership, local company, or international structure optimizes tax position
• Expense Documentation: Maintain meticulous records of all allowable expenses to maximize deductions
• Property Improvement Tracking: Document all capital expenditures which may reduce future tax liability
• Residency Planning: Consider implications of Seychelles residency status on global tax position
• Rental Program Structure: Design rental arrangements to optimize between Seychelles and home country taxation
• Timing of Disposition: Consider tax year timing for property sales to optimize tax position
• Currency Management: Plan currency conversions to minimize exchange impacts on taxable income
• Tax Treaty Benefits: Leverage provisions in applicable tax treaties

Tax rules change frequently in both Seychelles and North America. Regular consultations with tax professionals in both jurisdictions are essential to ensure continued compliance and optimal structuring.

Expert Tip: For North American investors with significant rental income from Seychelles properties, creating a clear separation between personal use periods and rental periods is crucial for maximizing legitimate expense deductions. Maintain a detailed calendar documenting exact usage periods and purpose. When renovating or improving the property, categorize expenditures properly between repairs (typically immediately deductible) and capital improvements (which may need to be depreciated). This distinction can have significant tax implications in both Seychelles and your home country.

Selecting a Property Manager

Evaluate potential property managers using these criteria:

• Experience with International Owners:
  • Track record managing properties for overseas investors
  • Experience with international financial transactions
  • Understanding of absentee owner concerns
  • English language proficiency (and other languages if needed)
• Local Market Knowledge:
  • Established presence on the specific island
  • Connections with reliable maintenance and service providers
  • Understanding of local seasonal patterns
  • Knowledge of rental market dynamics
• Technology & Reporting:
  • Digital reporting and document systems
  • Regular photo/video property condition updates
  • Online payment systems and financial transparency
  • Property management software for tracking
• Rental Capabilities:
  • Marketing reach and platform relationships
  • Booking management systems
  • Guest screening and check-in processes
  • Pricing strategies and occupancy optimization
• Emergency Response:
  • 24/7 availability for critical issues
  • Storm/disaster preparation protocols
  • Established response procedures
  • Insurance claim handling experience

Management Agreement Essentials

Ensure your property management contract includes these key elements:

• Scope of Services: Detailed description of exactly what is included and excluded
• Fee Structure: Clear explanation of all management fees, commissions, and additional charges
• Contract Term and Notice Period: Duration of agreement and termination process
• Reporting Schedule: Frequency and format of financial and property condition reports
• Maintenance Authority: Spending limits for repairs without prior approval
• Rental Terms: Policies for rental pricing, booking, and cancellations
• Owner Access: Provisions for owner’s personal use periods
• Staff Management: Responsibilities for hiring and supervising property staff
• Insurance Requirements: Coverage expectations and liability boundaries
• Emergency Protocols: Procedures for natural disasters or property emergencies
• Tax Compliance: Responsibility for tax reporting and documentation

Request references from current clients, particularly other overseas investors, before signing with a property management company. This provides valuable insights into how they handle properties for remote owners.

Expert Tip: In Seychelles, establishing a trusted local management relationship is particularly important due to the distance and limited travel options from North America. Consider including a performance clause in your management agreement with specific occupancy and revenue targets for rental properties, with an option to review the arrangement if targets aren’t met. For luxury properties, look for managers with specific experience in your property’s category (beachfront, hill villa, etc.) as each has unique maintenance requirements in the Seychelles environment. Property managers with international certification or training tend to provide more consistent service quality and standardized reporting.

Exit Options

Sale Process for Foreign Owners

When selling your Seychelles property:

1. Pre-Sale Preparation:
   • Renovations and repairs to maximize value
   • Professional photography and marketing materials
   • Property staging consideration
   • Title and sanction documentation organization
2. Agency Selection:
   • Choose agencies with international marketing reach
   • Evaluate experience with foreign seller transactions
   • Commission structure (typically 5-7%)
   • Exclusive vs. multiple agency representation
3. Marketing Period:
   • International marketing platforms
   • High-quality digital and print materials
   • Virtual tours for overseas buyers
   • Seychelles Investment Board coordination
4. Transaction Process:
   • Negotiation and preliminary agreement
   • Buyer’s sanction application process
   • Title searches and legal due diligence
   • Final sale agreement and closing
5. Post-Sale Requirements:
   • Tax clearance certificate from Seychelles Revenue Commission
   • Capital repatriation documentation
   • Property transfer tax settlement
   • Utility account closures and transfers

The selling process for foreign owners typically takes 6-12 months from listing to completion, with the buyer’s sanction process being the most variable timeframe. Pre-approved properties with existing foreign ownership sanction can typically be sold more efficiently.

Market Exit Timing Considerations

Several factors should influence your exit timing decision:

• Tourism Trends: Align sale timing with periods of strong tourism growth and international interest
• Currency Exchange Rates: Monitor USD/EUR to SCR rates to optimize repatriated proceeds
• Infrastructure Developments: Time exits to capitalize on major improvements (airports, marinas, etc.)
• Competitive Inventory: Consider current market inventory levels and competition
• Home Country Tax Situation: Coordinate with personal tax planning in North America
• Property Condition Cycle: Exit before major maintenance/renovation needs
• Regulatory Changes: Monitor potential changes in foreign ownership policies
• Seasonal Considerations: List during peak tourism season for maximum exposure
• Global Luxury Market Cycles: Seychelles tends to follow global luxury property trends

The most successful investors establish clear performance benchmarks and regularly evaluate their Seychelles property against both local and global alternatives. Having a defined exit strategy from the beginning, even for long-term holds, ensures more objective decision-making when market conditions change.

Expert Tip: The Seychelles luxury market often has longer selling periods than many other markets due to the specialized buyer pool and distance factors. Plan for a 6-12 month marketing period and consider beginning the selling process before you’re absolutely ready to exit. Having a property that’s been well-maintained and recently updated is particularly important in this market, as buyers typically prefer turn-key properties that don’t require immediate renovation after purchase. For properties in managed developments or resort communities, aligning your sale with positive news or new amenities in the development can significantly increase marketability and value.