The Seychelles sit 99th out of 217 in our world ranking, with a FiScore of 5.3 out of 10. For twenty years the name has been shorthand for offshore, in the way that Panama and the Cayman Islands are, and usually with the same raised eyebrow.
Two things changed recently that almost nobody has reported, and they change the honest answer to "should I use the Seychelles".
What changed
On 12 May 2025, the Seychelles were removed from France's blacklist of non-cooperative states and territories, following a decree issued in April 2025.
On 17 February 2026, the Council of the European Union removed the Seychelles from Annex II of its conclusions on non-cooperative jurisdictions, the so-called grey list.
The Seychelles are therefore on neither the EU list nor the French list. For anyone who has to explain a structure to a bank, an auditor or a tax office, that is a material change, and it happened quietly.
What that does and does not mean
It does not make the Seychelles a normal European jurisdiction. Delisting means the country met specific commitments on transparency and information exchange. It does not erase twenty years of reputation, and it does not stop a compliance officer asking careful questions.
It does mean the automatic penalties are gone. French blacklisting carried concrete consequences: punitive withholding rates, denial of certain regimes, reinforced reporting. Those applied because of the listing, and they follow the listing out.
If you looked at the Seychelles two years ago and stopped because of the lists, the reason you stopped no longer exists. Whether the underlying case is good is a separate question.
The tax picture
| Tax | Rate |
|---|---|
| Personal income | 0 to 25% |
| Corporate | 15 to 25% |
| VAT | 15% |
Domestically, the Seychelles are unremarkable: a progressive personal scale to 25%, corporate tax between 15% and 25%, and a 15% VAT.
The offshore layer is the International Business Company. A Seychelles IBC is exempt from local tax on foreign-source income, including dividends, interest, royalties and capital gains. Accounting and record-keeping requirements have tightened considerably in recent years, and the era of the entirely invisible IBC is over.
The honest assessment
We are not going to sell you an IBC, so here is the plain version.
A Seychelles company does not reduce your own tax. If you are tax resident somewhere with controlled foreign company rules, and most developed countries have them, the profits of a Seychelles company you control can be attributed to you regardless of where it is registered. The structure moves the paperwork, not the liability.
Substance is the whole game. A company with no people, no premises and no decisions taken locally is not a Seychelles company in any meaningful sense, and every tax authority knows this.
Banking is the practical wall. Delisting helps, but opening and keeping accounts for a Seychelles entity remains harder and slower than for an EU or Gulf one.
Where an IBC genuinely works is as a holding vehicle inside a properly advised international structure, with real substance and full disclosure at home. That is a job for a professional, and it is not what most articles about the Seychelles are selling.
Living there
Distinct from the corporate question, the Seychelles as a place: 115 islands, extraordinary beaches, a very small population, and living costs that are high because almost everything is imported. Residence permits are restrictive and generally tied to investment or employment.
So, who are the Seychelles for?
- A properly advised international structure: the IBC is a legitimate tool, and the delisting removes a real obstacle.
- Someone who wants a company to avoid tax at home: no. Read how to actually leave, because residence is what decides.
- Someone who wants to live there: possible but restrictive and expensive.
- Someone comparing offshore reputations: the Seychelles just improved theirs more than Panama has.
The full table of Seychellois rates is on our Seychelles page, and the comparison tool puts it next to anywhere else.
Sources
Rules and dates verified in August 2026 against the French decree of April 2025, the Council of the European Union conclusions of 17 February 2026, and PwC Tax Summaries. An error reported to us gets fixed.
This page informs, it does not advise. Before deciding anything, talk to a professional who will look at your situation, as our terms of use set out.