Offshore Jurisdiction · Indian Ocean

Seychelles Trust Formation

A factual overview of how trusts are established in the Republic of Seychelles, the legal framework that governs them, and the players who operate within this jurisdiction.

What does Seychelles trust formation actually mean?

Seychelles trust formation refers to the legal process of creating a fiduciary arrangement in which a settlor transfers assets to a trustee, who then administers them for designated beneficiaries. The mechanism is built on common-law principles, adapted through local statute to the realities of an international financial centre.

The practice is widely used for estate planning, intergenerational wealth structuring and the safekeeping of moveable or intangible property. Trusts in Seychelles are commonly distinguished from a Seychelles foundation, which is a separate legal entity rather than a fiduciary relationship.

Which law governs trusts in Seychelles?

The principal legislation is the Trusts Act of 2021, which replaced the earlier International Trusts Act of 1994 and consolidated the Seychelles trust law into a single, modernised framework. Supervision falls under the Financial Services Authority (FSA), the local regulator for non-bank financial activities.

References to a "Seychelles trusts act 2026" in some commercial publications generally point to ongoing regulatory updates rather than a brand-new statute; the 2021 Trusts Act remains the operative text. The legislation defines duties of the trustee, rights of beneficiaries, and the boundaries of the Seychelles international trust.

Key features of the Seychelles trust act
ElementProvision under the Trusts Act
Maximum durationUp to 100 years (purpose trusts may differ)
Resident trusteeAt least one FSA-licensed trustee required
Settlor residencySettlor must be non-resident at the time of formation for an offshore trust
Forced heirshipForeign forced-heirship rules disregarded by Seychelles courts
Public registerNo public access to settlor or beneficiary identities

How is a trust set up in Seychelles?

To set up trust in Seychelles, three roles must be assigned: a settlor, one or more beneficiaries, and a licensed resident trustee. The trust deed is then drafted to capture the purpose, the powers, and the rules of distribution.

Documentation is filed through a licensed corporate service provider, who performs due diligence and submits the registration to the FSA. The trust capital Seychelles arrangement may consist of cash, securities, real estate held abroad, intellectual property or other transferable assets.

What does Seychelles trust cost in practice?

The Seychelles trust cost depends on the complexity of the structure, the volume of assets and the trustee's professional fees. Most public sources cite an initial formation envelope and a recurring annual administration charge.

Below is an indicative range commonly reported across the industry for a standard Seychelles offshore trust without unusual complexity.

Indicative cost ranges for a Seychelles trust
ItemTypical range (USD)Frequency
Drafting of the trust deed1,500 – 4,000One-off
Trustee acceptance & onboarding1,000 – 3,000One-off
FSA registration200 – 500One-off
Annual trustee fee2,000 – 6,000Annual
Government renewal duty~100Annual

Why is Seychelles a recognised jurisdiction for trusts?

The archipelago has positioned itself as an established offshore centre over the past three decades, combining a common-law heritage with statutory protections specific to non-resident structures. The confidentiality regime, the absence of taxation on foreign-sourced income, and the flexibility of the Seychelles trust company framework explain much of its appeal.

Trusts in Seychelles coexist with other vehicles such as IBCs, limited partnerships and the Seychelles foundation, each serving distinct planning purposes.

Who are the main licensed trust operators?

Several international and local fiduciary groups hold an FSA licence to act as trustees. Names frequently referenced in public registries and industry directories include Trident Trust Seychelles, Intercontinental Trust (Seychelles) Limited, Mayfair Trust Group Seychelles, Sterling Trust Seychelles, First Island Trust Seychelles Ltd, Carre Trust Seychelles Limited and Seychelles Trust Company (Seychelles) Limited.

Their roles are governed by the same Trusts Act provisions, although service catalogues, pricing structures and minimum asset thresholds may differ from one provider to another.

Examples of licensed trustees in Seychelles
OperatorProfile
Trident Trust SeychellesInternational fiduciary group with multi-jurisdiction footprint
Intercontinental Trust SeychellesRegional trust and corporate services provider
Mayfair Trust SeychellesBoutique private-client and corporate fiduciary firm
Sterling Trust SeychellesSpecialist in offshore trust and IBC administration
First Island Trust SeychellesLocal licensed corporate service provider
Carre Trust SeychellesFiduciary services and corporate administration

How does taxation apply to a Seychelles international trust?

A Seychelles international trust is generally treated as tax-neutral when its assets and income arise outside the territory and its beneficiaries are non-resident. No local income tax, capital gains tax or withholding tax applies on foreign-sourced wealth held within such structures.

The general corporate tax rate in Seychelles is 15% on the first SCR 1 million of taxable profit and 25% above that threshold, but this applies to domestic business income rather than to a properly structured Seychelles offshore trust.

Are there public-interest trusts in Seychelles?

Beyond private wealth structures, the country also hosts statutory and charitable arrangements such as the Environment Trust Fund Seychelles and the Nature Protection Trust of Seychelles. These vehicles channel resources towards conservation programmes and ecological preservation.

Specialised arrangements like a trust for construction Seychelles may also be encountered, typically used to ring-fence project funds or to secure obligations between parties in real-estate developments.

What about confidentiality and international standing?

Seychelles trust fund details are not entered into a public register; identities of the settlor and beneficiaries remain accessible only to the trustee, the regulator and competent authorities under exchange-of-information agreements. The jurisdiction is a member of the OECD Global Forum and complies with common reporting standards.

The Seychelles has been periodically reviewed by international bodies such as the FATF and the EU; status updates evolve over time, and current listings should be checked directly with the relevant authorities.

Trust vs. foundation in Seychelles — quick comparison
CriterionSeychelles trustSeychelles foundation
Legal natureFiduciary relationshipSeparate legal entity
Governing textTrusts Act 2021Foundations Act 2009
Owner of assetsTrustee (legal title)The foundation itself
Council / trusteeLicensed resident trusteeFoundation council
Typical useFamily wealth, successionPhilanthropy, holding

Frequently asked questions

What is the duration of a Seychelles trust?

Under the current Seychelles trust act, a private trust may be established for a maximum of 100 years. Purpose trusts and charitable trusts may benefit from different rules, with no perpetuity limit in some defined cases.

Is a Seychelles trust fund publicly registered?

The trust must be registered with the FSA, but the register is not open to the public. The names of the settlor, the beneficiaries and the nature of the trust property are not disclosed in commercial databases.

Can a foreigner be a settlor in trusts in Seychelles?

Yes. For an international or Seychelles offshore trust, the settlor must be non-resident at the time of creation, and the trust property must be situated outside the Seychelles, with limited statutory exceptions.

What is a Seychelles private trust company?

A Seychelles private trust company (PTC) is a corporate entity established to act as trustee for one specific family or group of connected trusts. It must itself be licensed or exempted under FSA rules and operate through a licensed administrator.

Are the Seychelles on the grey list?

The country's standing with the FATF and the EU has shifted several times in recent years. As policies evolve regularly, the most recent assessments published by these bodies should be consulted for an up-to-date picture.

What is the wealth profile of the Seychelles?

The Seychelles is classified as a high-income economy by the World Bank, driven by tourism and financial services. Its GDP per capita is among the highest in Africa, which supports its positioning as a regional financial hub.

Is education free in the Seychelles?

Public education in the Seychelles is free and compulsory from primary through to secondary level. Tertiary education is also largely state-funded for eligible nationals.

How long does Seychelles trust formation typically take?

Once due-diligence files are complete and the trust deed has been agreed, formation can usually be finalised within one to three weeks. Delays most often arise from KYC clarifications rather than from the registration step itself.