Vacation Rental Laws in Seychelles

Vacation Rental Laws in Seychelles

Seychelles

Introduction
Introduction to Vacation Rental in Seychelles

Picture yourself on beautiful Seychelles beaches, with clear blue water and lots of green plants. This island nation in the Indian Ocean, with 115 islands, is famous for places like Mahé, Praslin, and La Digue. People visit for the amazing nature, fancy hotels, and friendly locals. But also, more and more visitors are choosing short-term rentals for their stay, changing how people find places to stay in Seychelles

Short-term rentals, commonly known as “self-catering accommodations” in Seychelles, play a significant role in the tourism sector. Platforms like Airbnb, Booking.com, and Expedia have made it easier for tourists to discover these rentals, which range from private villas to cozy bungalows. The government of Seychelles has embraced tourism as a vital contributor to its economy, generating approximately 25% of the country’s GDP. In 2023, Seychelles saw a resurgence in tourism income, exceeding $500 million, with STRs forming a significant part of this revenue.

However, operating STRs in Seychelles requires navigating a structured regulatory framework, with requirements like licensing, registration, and adherence to zoning laws. These regulations aim to preserve the islands' cultural and environmental integrity while promoting sustainable tourism. In this blog post, we’ll explore the intricacies of STR regulations in Seychelles, from local definitions to classifications, legality, and restrictions, providing a comprehensive understanding for property owners and aspiring hosts.

Overview

Picture yourself on beautiful Seychelles beaches, with clear blue water and lots of green plants. This island nation in the Indian Ocean, with 115 islands, is famous for places like Mahé, Praslin, and La Digue. People visit for the amazing nature, fancy hotels, and friendly locals. But also, more and more visitors are choosing short-term rentals for their stay, changing how people find places to stay in Seychelles

Short-term rentals, commonly known as “self-catering accommodations” in Seychelles, play a significant role in the tourism sector. Platforms like Airbnb, Booking.com, and Expedia have made it easier for tourists to discover these rentals, which range from private villas to cozy bungalows. The government of Seychelles has embraced tourism as a vital contributor to its economy, generating approximately 25% of the country’s GDP. In 2023, Seychelles saw a resurgence in tourism income, exceeding $500 million, with STRs forming a significant part of this revenue.

However, operating STRs in Seychelles requires navigating a structured regulatory framework, with requirements like licensing, registration, and adherence to zoning laws. These regulations aim to preserve the islands' cultural and environmental integrity while promoting sustainable tourism. In this blog post, we’ll explore the intricacies of STR regulations in Seychelles, from local definitions to classifications, legality, and restrictions, providing a comprehensive understanding for property owners and aspiring hosts.

Property
Overview

In Seychelles, there is no dedicated national association exclusively for short-term rental operators. However, the Seychelles Tourism Board provides support and resources for operators of self-catering accommodations. The board offers guidance on compliance with regulations, marketing strategies, and maintaining quality standards to enhance guest satisfaction.

Operators can also join broader hospitality industry associations, such as the Seychelles Hospitality and Tourism Association (SHTA), which advocates for the interests of tourism stakeholders, including short-term rental hosts. Membership in such organizations provides access to networking opportunities, industry updates, and training programs.

Property
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short term rentals
What is Vacation Rental in Seychelles?
What are short Term Rentals in the Country?

In Seychelles, short-term rentals are officially known as self-catering accommodations or Self-Catering Establishments in regulatory terms. These are fully furnished accommodations with private kitchens, similar to self-contained apartments, and are rented to tourists for short stays, typically under six months.

While international platforms like Airbnb and Booking.com use terms like short-term rental and vacation rental, Seychelles’ tourism policies emphasize sustainable tourism, requiring STRs to comply with zoning laws, environmental standards, and licensing regulations. These accommodations offer an alternative to hotels, providing guests with the comforts of home while supporting the local economy and promoting community-based tourism.

Is Subletting Legal?
Is Subletting Legal in Seychelles?

In Seychelles, subletting is permitted only if explicitly stated in the lease agreement. Tenants must obtain written consent from their landlord, as unauthorized subletting can lead to legal action or eviction, as outlined in the Rent Board Fact Sheet.

For self-catering accommodations, tenants must secure a license from the Seychelles Licensing Authority (SLA) and register the property with the Seychelles Tourism Board. Registration requires proof of ownership or a lease agreement, which is reviewed for compliance. Illegal subletting or non-compliance can result in fines or suspension of operations.

Additionally, landlords may prohibit subletting due to concerns over property management, and tenants must adhere to zoning laws, as some residential areas restrict tourist accommodations.

National Association for STR Owners
What is the maximum length of stay in Seychelles?
What is the maximum length of stay?

In Seychelles, there is no nationally mandated maximum length of stay for self-catering accommodations. The duration of a guest’s stay is primarily determined by the agreement between the accommodation provider and the guest.

According to the Seychelles Tourism Board, self-catering accommodations are defined by their daily rate structure and the inclusion of cooking facilities, but there are no legal restrictions on the length of stay. As a result, the duration is typically set by the provider’s policies and the guest’s needs.

To avoid misunderstandings, guests should confirm any stay limitations with the provider before booking. Property owners are encouraged to clearly define the maximum allowable stay in their rental agreements. Additionally, guests must ensure their stay complies with the conditions of their Visitor’s Permit to prevent any immigration issues.

Is there any National Registration Requirement or Permit?

Operating a short-term rental in Seychelles requires a business registering to obtain a tourism accommodation license to comply with safety, environmental, and zoning regulations, supporting the country’s commitment to sustainable tourism.

Hosts must first register their business under the Registration of Business Names Act before applying for the license. Once registered, hosts must apply for a tourism accommodation license through the Seychelles Licensing Authority (SLA). This involves approval from various departments before obtaining the license:

  • Health Approval: Needed if offering catering/takeaway services (Department of Public Health).
  • Planning Approval & Certificate of Occupancy: Required for new or renovated properties with more than 7 rooms.
  • Public Liability Insurance: Mandatory for higher-risk establishments.
  • Gainful Occupational Permit (GOP): Required for foreign employees working in the business.

The licensing fee for guesthouse is SCR 1,200 while the fee for self-catering accommodation is SCR 50 per room and a of minimum SCR 1,000. Failure to register or obtain a license can lead to fines, legal action, or suspension of operations.

Is there a need for Permission from Landlord/Local Council/Neighbors?

In Seychelles, tenants or individuals who do not own the property must obtain permission from their landlords before operating a short-term rental. Lease agreements often specify whether subletting or operating a business on the property is permissible. Landlords have the right to deny such requests if they are not explicitly allowed in the agreement.

In addition to landlord approval, hosts may need to obtain clearance from the local council, especially if the property is in a residential area. This ensures that the operation of a short-term rental does not disturb neighbors or violate zoning regulations.

These permissions are critical to maintaining harmony between short-term rental operators and the surrounding community. Hosts are encouraged to check all legal and contractual obligations before listing their properties to avoid conflicts or penalties.

Is Short-term rental Income taxable?

Income from short-term rentals (self-catering accommodations) in Seychelles is subject to various national tax frameworks.

1. Business Tax

Rental income is classified as business income and taxed progressively:

  • 25% on income up to SCR 1 million.
  • 33% on income exceeding SCR 1 million.

2. Accommodation Turnover Tax (ATT)

  • Introduced on January 1, 2023, this tax applies to tourism accommodation operators, including self-catering establishments.
  • Applicable only to businesses with an annual turnover of SCR 100 million or more.
  • Tax rate: 2% of monthly turnover.
  • Exemptions: Businesses below the SCR 100 million threshold are not required to pay ATT.

3. Tourism Marketing Tax (TMT)

  • Applied to businesses with an annual turnover of SCR 1 million or more.
  • Tax rate: 0.5% of monthly turnover.
  • Used to support Seychelles' tourism promotion initiatives.
  • Exemptions: Businesses with a turnover below SCR 1 million are not subject to TMT.

Tax Exemptions & Progressive Rates

Seychelles implements a progressive tax structure, ensuring that smaller businesses benefit from exemptions:

  • Businesses earning below SCR 1 million are exempt from the Tourism Marketing Tax (TMT).
  • Businesses with a turnover below SCR 100 million are not required to pay the Accommodation Turnover Tax (ATT).
Is there any National Tourism Fund or Tourist Tax?

Yes, Seychelles requires short-term rental operators to contribute to the national tourism fund through a specific tourist tax. Known as the “Tourism Marketing Levy,” this tax is charged on a per-guest, per-night basis and collected directly from guests by the hosts. The levy typically ranges from SCR 10 to SCR 50 ($0.70 to $3.60 USD) depending on the classification and size of the property.

These funds are used to support the Seychelles Tourism Board’s marketing and promotional efforts and also contributes to sustainable tourism initiatives, including environmental conservation programs.

Failure to collect and remit the levy can result in fines and penalties for hosts. Operators are advised to familiarize themselves with the requirements and ensure timely payments to avoid non-compliance issues.

Is there any Guest Registration and Reporting Requirement?

In Seychelles, there is no explicit legal requirement for self catering accommodation hosts to register or report guest information to national authorities. However, during the travel authorization process, guests are required to provide accommodation details, which may indirectly involve hosts in maintaining accurate records.

It is mandated by law and considered good practice for hosts to keep records of guest information, including names, contact details, and dates of stay. This practice aids in managing bookings, resolving disputes, and enhance tax calculations.

Is there any National Health and Safety Requirements?

Self-catering accommodations in Seychelles must comply with national health and safety standards which include;

  • Emergency Procedures: Clear display of emergency contacts and evacuation plans in multiple languages.
  • Medical Assistance: Availability of first aid supplies and procedures to summon medical help.
  • Security Measures: Secure door-locking mechanisms for guest safety.
  • Pest Control: Regular treatment to prevent infestations.
  • Fire Safety: Compliance with fire and electrical safety regulations.

Additionally, the Occupational Safety and Health Decree mandates that operators ensure a safe environment for employees and guests. Regular compliance checks are carried out by the Licensing Authority to maintain legal operations and uphold the national health and safety standards.

Is there any Platform Accountability Requirement?

In Seychelles, there is currently no explicit legal requirement for online platforms to ensure that short-term rental (STR) listings comply with national laws and regulations. The responsibility for compliance primarily rests with individual hosts, who must adhere to local laws concerning property rentals, taxation, and safety standards.

While such measures are not currently in place in Seychelles, hosts should remain vigilant and stay informed about potential regulatory changes that could impact platform accountability in the future.

Is there any Anti-Discrimination Law?

Seychelles does not have a law specifically addressing discrimination in self-catering accommodations, operators must adhere to national anti-discrimination principles that apply across sectors.

  • Constitutional Protections ensure equal treatment under the law, prohibiting discrimination.
  • Penal Code (Amendment) Act 2024 classifies offenses motivated by prejudice against protected characteristics as aggravated crimes.

Although these laws do not directly regulate guest accommodations, self-catering operators are expected to maintain inclusive, non-discriminatory practices. Additionally, major booking platforms such as Airbnb and Booking.com enforce anti-discrimination policies, requiring hosts to comply with fair treatment standards before listing their properties.

Is there any Data Sharing Requirements?

As of now, there is no specific mandate in Seychelles requiring short-term rental (STR) platforms to share data with national government authorities. However, the global trend is moving towards increased data sharing between STR platforms and governments to enhance regulation and ensure compliance. For instance, the World Travel & Tourism Council (WTTC) has emphasized the importance of data sharing in managing STR activities and informing policy decisions.

In December 2023, Seychelles enacted a new Data Protection Act, replacing the 2002 version. While this legislation primarily focuses on the protection of personal data, it reflects the country's commitment to modernizing its data governance framework.

Given these developments, it's advisable for operators of self-catering accommodations in Seychelles to stay informed about potential future regulations that may require data sharing with government authorities. Engaging with local tourism boards or regulatory bodies can provide the most current information and guidance on compliance requirements.

Is there any National Insurance Requirement?

Operators of self-catering accommodations in Seychelles must maintain insurance to ensure guest safety and mitigate financial risks. A valid liability insurance policy is required during the licensing process for self-catering accommodations, guesthouses, and hotels. This insurance protects operators from legal and financial liabilities arising from guest injuries, illnesses, or property damage. Failure to maintain the insurance at all times can lead to fines, license suspension, or business closure. Operators should ensure their policies comply with Seychelles Licensing Authority (SLA) standards and consult reputable insurers to secure adequate coverage.

Is there any National Zoning law/Cultural Heritage law?

In Seychelles, the regulation of self-catering accommodations, particularly concerning culturally or historically significant areas, is regulated by the local zoning laws to enhance cultural heritage protection.

Is there any Environmental Regulations that affects STR?

Self-catering accommodations in Seychelles must adhere to environmental regulations aimed at promoting sustainability and minimizing ecological impact. Environmental Impact Assessments (EIA) are mandatory for properties near sensitive ecosystems to evaluate potential effects on biodiversity and water resources before approval. To further align with sustainability goals, self-catering accommodations must comply with the Minimum Environmental Criteria, which mandate energy and water efficiency measures, waste management systems, and environmentally responsible building designs.

Additionally, the Tourism Environmental Sustainability Levy, introduced on August 1, 2023, was enacted to support environmental conservation efforts and promote sustainable tourism practices in Seychelles.

Is there any National Tenant Protection Law?

In Seychelles, tenant protections under the Control of Rent and Tenancy Agreements Act and the Tenant’s Rights Act regulate rental agreements and eviction procedures, impacting the operation of self-catering accommodations.

Landlords must obtain an eviction order from the Rent Board for removals due to non-payment, lease violations, or personal use. Seychellois tenants who have occupied a property for five years gain Statutory Tenant status, securing extended rights, including the option to purchase the property.

While no law explicitly prevents landlords from converting long-term rentals into self-catering accommodations, due process must be followed to avoid arbitrary evictions. The government is also considering measures to balance the growth of self-catering units with housing availability concerns in high-demand areas.

Is there any Reporting Requirements for Foreigners?

Self-catering operators in Seychelles must maintain a guest register detailing key information for all guests, including foreign nationals, as per the Licenses (Accommodation, Catering, and Entertainment Establishments) Regulations 2011. The register must include:

  • Full name
  • Nationality
  • Identity document details (passport, ID card, or travel document)

Guests must complete and sign a guest card or logbook before check-in. While operators are not required to routinely report this information to national authorities, they must retain records and provide them upon request.

Is there any Digital Platform Regulation Compliance?

In Seychelles, there is currently no explicit national regulation mandating that digital platforms to verify the compliance of self-catering accommodations with national laws before listing them. However, operators of self-catering accommodations are required to adhere to national regulations, including obtaining necessary licenses and ensuring compliance with health and safety standards.

Is there any Consumer Protection Law that affect STR?

Self-catering accommodations in Seychelles must comply with consumer protection laws to ensure fair practices and transparency. The Consumer Protection Act, 2010 mandates that rental agreements be clear, fair, and free from deceptive terms, protecting guests from misleading claims. Hosts must ensure that listings accurately represent the property, as deceptive advertising may lead to penalties.

Under the Licenses (Accommodation, Catering, and Entertainment Establishments) Regulations 2011, operators must maintain a guest register with details such as names, nationalities, and duration of stay, along with records of any guest property left behind.

Is there any Law that applies to Non-resident Owners?

In Seychelles, non-resident owners of self-catering accommodations must comply with specific regulations regarding property ownership, licensing, and taxation. Additionally, non-Seychellois individuals or entities must obtain approval from the Minister of Lands and Housing before purchasing or leasing property. Failure to secure this approval renders the transaction void and may result in fines or legal penalties.

Is there any classification of STR in the country?

Self-catering establishments in Seychelles are categorized based on room count, bed capacity, and service level, ensuring standardization and quality control.

1. Star Rating System (Seychelles Secrets Classification)

The Seychelles National Classification System rates accommodations, including self-catering units, under three tiers:

  • Seychelles Secrets Gold – Premium service and high-quality amenities.
  • Seychelles Secrets Silver – Well-maintained accommodations with good service.
  • Seychelles Secrets Bronze – Meets minimum standards for self-catering rentals.

NOTE: Grading is mandatory for establishments with 51 rooms or more but optional for those with 50 rooms or fewer.

2. Bed Capacity Classification

  • A self-catering unit with two bedrooms is counted as two rooms.
  • A hotel villa with three bedrooms is counted as three rooms.
  • Entire units must be rented out as a whole, not as individual rooms.

3. Number of Rooms Classification

Self-catering establishments fall under broader accommodation categories based on room count:

  • Small Hotel: 1-24 rooms
  • Medium Hotel: 25-50 rooms
  • Large Hotel: 51+ rooms

These classifications ensure quality control, regulatory compliance, and a standardized guest experience in Seychelles' growing self-catering sector.

Are there Special National Event Regulations?

In Seychelles, there are no specific national regulations imposing additional requirements on self-catering accommodations during national events or holidays.

While there are no event-specific regulations, operators should remain vigilant during national events or holidays, as local authorities may issue temporary guidelines or advisories to address specific concerns. Staying informed through official channels ensures compliance and helps maintain a safe and enjoyable environment for guests.

Is there any Penalty for Violating National Rules?

Failure to comply with Seychelles' self-catering accommodation regulations can lead to severe penalties, including fines, business suspension, or legal action.

  • Operating without a license: Running a self-catering accommodation without proper registration or licensing is a violation of national laws, carrying fines of up to SCR 50,000 ($3,600 USD) and potential closure of the property. Repeat offenses may result in legal proceedings and higher penalties.
  • Violation of Zoning & Safety Regulations: Properties operating in restricted residential zones or failing to meet safety and operational standards risk forced closure and legal consequences. Authorities may shut down non-compliant rentals and impose additional fines.
  • Tax Evasion Penalties: Property owners must report and remit taxes related to rental income, including Business Tax and Value-Added Tax (VAT) where applicable. Tax fraud or non-payment can lead to fines ranging from SCR 50,000 to SCR 1 million, along with legal action.
Are there National Rules or Regulations Governing Short-Term Rentals in Seychelles?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?
Is there any National Tax that affects short-term rental?
permits, license
Are there any Permits, Licenses, or Registrations for Vacation Rental in Seychelles?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

Operating a short-term rental in Seychelles requires a business registering to obtain a tourism accommodation license to comply with safety, environmental, and zoning regulations, supporting the country’s commitment to sustainable tourism.

Hosts must first register their business under the Registration of Business Names Act before applying for the license. Once registered, hosts must apply for a tourism accommodation license through the Seychelles Licensing Authority (SLA). This involves approval from various departments before obtaining the license:

  • Health Approval: Needed if offering catering/takeaway services (Department of Public Health).
  • Planning Approval & Certificate of Occupancy: Required for new or renovated properties with more than 7 rooms.
  • Public Liability Insurance: Mandatory for higher-risk establishments.
  • Gainful Occupational Permit (GOP): Required for foreign employees working in the business.

The licensing fee for guesthouse is SCR 1,200 while the fee for self-catering accommodation is SCR 50 per room and a of minimum SCR 1,000. Failure to register or obtain a license can lead to fines, legal action, or suspension of operations.

Is there any National Association for Vacation Rental owners in Seychelles?
Is there any National Association for STR owners in the Country?

In Seychelles, there is no dedicated national association exclusively for short-term rental operators. However, the Seychelles Tourism Board provides support and resources for operators of self-catering accommodations. The board offers guidance on compliance with regulations, marketing strategies, and maintaining quality standards to enhance guest satisfaction.

Operators can also join broader hospitality industry associations, such as the Seychelles Hospitality and Tourism Association (SHTA), which advocates for the interests of tourism stakeholders, including short-term rental hosts. Membership in such organizations provides access to networking opportunities, industry updates, and training programs.

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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