Seychelles Investment Income Guide: Dividends 0%, Interest 0%, Royalties 0-15% 2026
Seychelles applies zero withholding tax on dividends and interest paid to both residents and non-residents. Royalties are subject to 0-15% WHT depending on the type and applicable treaty. There is no capital gains tax on shares. Here is how investment income is taxed in 2026.
The taxation of investment income in Seychelles is notably favourable. Dividends and interest are entirely free from withholding tax for both residents and non-residents. This zero-rate policy, combined with no CGT on shares, makes Seychelles competitive with Mauritius and other investment hubs. The SRC administers withholding tax obligations — the payer (the Seychelles company or individual) is responsible for any applicable withholding. Cross-border tax guide →
Real-world example: A Seychelles company pays SCR 1,000,000 in dividends to a non-resident shareholder. WHT at 0% = SCR 0, net payment = SCR 1,000,000. Interest of SCR 200,000 paid to a non-resident lender: WHT 0% = SCR 0. Royalties of SCR 300,000 paid to a non-resident for a patent licence: WHT may be 0-15% depending on the type and treaty. Compare to Mauritius: also 0% on dividends and interest, but Seychelles offers the same treatment. Corporate tax overview →
Withholding Tax Rates on Investment Income
- Dividends — residents: 0% WHT — dividends paid to Seychelles resident individuals and companies are exempt
- Dividends — non-residents: 0% WHT — no withholding on outbound dividends
- Interest — residents: 0% WHT — interest paid to Seychelles residents is exempt
- Interest — non-residents: 0% WHT — no withholding on outbound interest
- Royalties — residents: 0% WHT on most royalties paid to residents
- Royalties — non-residents: 0-15% WHT depending on type of royalty and treaty provisions
The 0% WHT on dividends and interest is a significant advantage for international investors and holding company structures. Seychelles is often used as a jurisdiction for holding intellectual property and investment vehicles.
Double Taxation Treaty Network
Seychelles has several Double Taxation Treaties covering both African and international partners. Treaties generally provide for:
- Dividends: 0% in most treaties, consistent with domestic law
- Interest: 0% in most treaties, consistent with domestic law
- Royalties: Treaty rates typically range from 5% to 10% (compared to 0-15% domestic)
Treaty benefits require the recipient to be the beneficial owner and provide a Certificate of Tax Residency from the treaty jurisdiction. Key treaty partners include South Africa, China, India, Mauritius, UAE, and several European countries.
Taxation of Other Investment Income
- Bank interest: Interest on savings accounts and deposits earned by residents is not subject to withholding tax. Non-residents also benefit from 0% WHT
- Government bonds: Interest on Seychelles government securities is generally exempt from tax
- Capital gains on investments: 0% CGT on shares and securities for both residents and non-residents
- REIT distributions: Income from real estate investment trusts follows dividend rules (0% WHT)
Compliance and Reporting
Seychelles companies paying dividends, interest, or royalties to non-residents must withhold any applicable tax and remit it to the SRC. The payer must also file an annual withholding tax return. Recipients seeking treaty relief on royalties must provide: a Certificate of Tax Residency from their home country tax authority, a declaration of beneficial ownership, and any other documentation required by the SRC. Failure to withhold correctly results in the payer being liable for the unpaid tax plus penalties.
Are dividends from Seychelles companies really tax-free?
Yes. Dividends paid by Seychelles resident companies to both residents and non-residents are free from withholding tax. This encourages investment and profit distribution. Dividends received by Seychelles residents are also generally exempt from income tax.
What is the procedure for claiming treaty relief on royalties?
The non-resident recipient must submit a Treaty Relief Application to the Seychelles payer, along with a Certificate of Tax Residency from their home country. The payer then applies the reduced rate at source. If tax has been over-withheld, the non-resident can file a refund claim with the SRC.