Who will be responsible for the future development of Eden Island?
A.
Eden Island Development Company (Seychelles) Limited
Q.
What other development projects has the developer been involved in?
A.
The Developers and the Project Consultants have extensive experience in property developments internationally over more than 20 years.
Q.
Who is the Chief Executive Officer of the Developer and who are the major shareholders?
A.
The CEO of Eden Island is Craig Heeger.
The shareholding of Eden Island is held through offshore structures representing the interests of South African and Austrian investors
Q.
Who is financing the development of Eden Island?
A.
The shareholders have invested substantial equity into the project and development finance is being provided by Barclays Bank.
Q.
What is the management structure of Eden Island?
A
There is a management and organisational structure in place in the Seychelles which manages the day to day operations of the Company and which reports to the CEO. In addition, various firms of professional consultants assigned to the project bring a broad range of essential project management, architectural, urban design, environmental, engineering, sales, marketing, financial and legal expertise to the project.
Q.
What management structure will be in place when the development is complete?
A.
Owners of units at Eden Island will become members of a Village Management Association which will manage the day to day running, maintenance, services etc. on the island and monthly levies will be raised for this to cover rates, water, security, general maintenance costs etc.
CONTROL AND OWNERSHIP STRUCTURES
Q.
What legal title in the units and moorings will be passed to Purchasers?
A.
All properties in the Eden Island residential development will be sold and transferred to Purchasers on freehold title. In the case of the maisons and villas, Purchasers will acquire individual freehold title and in the case of the apartments, freehold title will be in terms of the Condominiums Act of Seychelles.
In the case of the moorings attaching to each unit, a lease will be entered into between the owner of a unit and the Village Management Association that will attach the right of use to the mooring to the specific unit.
The nature of the lease will be that it will be long term (ie 99 years) and will be linked to ownership of the unit in question. The annual/monthly rental will be nominal plus such amount as is necessary to cover levies applicable to mooring in question and the maintenance and management thereof.
Q.
What has facilitated the ability of the Developer to be able to sell units on freehold title in Seychelles?
A.
The Developer has entered into agreements with the Government of the Republic of Seychelles in terms whereof the island has been subdivided into 2 portions, one for the residential development and the other for the commercial development (which includes the bridge, causeway and the marina). The Developer currently holds the freehold title in the residential development portion and accordingly freehold title will be passed to all purchasers.
Q.
Are there any restrictions placed on Owners selling their units before the development is complete?
A.
Yes, An Owner may not sell his unit without first giving the Developer the first right of refusal to acquire the unit back at market value.
Q.
What formalities are imposed by Seychelles law in respect of the transfer of ownership of immovable property situated in the Seychelles?
A.
Property ownership may be transferred as of right to a Seychellois national, and with Government sanction to a non-Seychellois as required under the Immovable Property (Transfer Restriction) Act.
Q.
What are the various methods of ownership of immovable property which apply within the Seychelles (including ownership in terms of the Condominium Property Act)?
A.
Individual ownership, co-ownership, corporate ownership and ownership as a partnership.
Q.
How may ownership of immovable property held by a corporate body be transferred? What particular formalities are required?
A.
It can be transferred either by way of a sale of the shares of the corporate body that owns the property or by way of selling the immovable property out of the corporate body. If the intended transferee is a non-Seychellois national, Seychelles Government sanction is required under the Immovable Property (Transfer Restriction) Act.
Q.
What are the benefits, if any, of taking ownership in an off-shore company versus individual ownership ?
A.
Purchasers should seek their own advice in relation to the structuring of their ownership.
Q.
Can a trust be registered in the Republic of the Seychelles?
A.
No
Q.
Can a trust registered outside the Seychelles own residential property in the Seychelles?
A.
Yes.
Q.
Can minors own immovable property in the Seychelles?
A.
Yes they can, but minors cannot sell the immovable property during their minority without the permission of the Supreme Court of the Republic of Seychelles.
Q.
Which legal system will govern any contracts of sale concluded in order to transfer ownership of units at Eden Island?
A
Seychelles law will apply and the court of competent jurisdiction is the Supreme Court of the Republic of Seychelles.
Q.
What currency restrictions are there with regard to the on sale of properties on Eden Island?
A.
Any purchaser may transact anywhere in the world and in any currency and no forex is required to go onshore to the Seychelles, except for the 6,5% stamp duty that is to go to the Government of the Seychelles for purposes of registration of this transfer;
Example: Mr A can sell his unit in 5 years to Ms B in Dublin, transact in Euros and get paid in Dublin. Ms B must just transmit 6,5% of the purchase price (as stamp duty) to the Seychelles for purposes of effecting the transfer.
There is a complete dispensation granted to the Eden Island Development Company and all of its successors in title, in that they are "entitled to retain 100% of the foreign currencies earned" in relation to this development (clause 6 (8) of the Commercial Agreement) between Eden Island Development Company and the Seychelles government.
Q.
Will the sale of immovable property attract Capital Gains tax in the Seychelles ?
A.
No
Q.
Will ownership of the property attract estate duty in the Seychelles ?
A.
No
Q.
Can a foreign company become an owner of property on Eden Island?
A.
Yes, subject to obtaining Government sanction in terms of the Immovable Property (Transfer Restriction) Act.
SALE, OCCUPATION AND TRANSFER
Q.
How does a Purchaser go about acquiring a unit on Eden Island?
A.
The website contains most of the information needed to do this. Prior to sales documentation being finalised a simple unit Reservation process is in place and is explained on the website. This enables Purchasers to reserve units of their choice ahead of signing up an agreement of sale. A Reservation Fee of USD 5000 is payable to reserve an apartment, USD 10 000 to reserve a maison and USD 20 000 to reserve a villa on Eden Island.
Q.
When will agreements of sale be available for signature?
A.
The Apartment and Maison Sales documentation is available for signature. If Purchasers have signed Reservation Agreements, they will be given 30 days to sign the sale agreements as soon as it is presented to them.
Q.
What are the broad terms of the agreements of sale with regards payment of the purchase price?
A.
A 10% initial payment is payable on signature of the agreement of sale. In the event that a Purchaser had already reserved a unit and paid the reservation fee then this will form part of the initial payment. This initial payment will be held in an escrow account with Barclays Bank Seychelles Limited until transfer.
Purchasers have to provide certain Know Your Client information to Barclays for purposes of opening their escrow accounts (a list of what is required is available on this website) and it is suggested that this required information be obtained without delay.
The balance of the purchase price is to be secured by way of payment into escrow account or by way of a bank guarantee within 30 days of signature or such extended time as agreed with the Seller.
Q.
When will the purchase price be paid to the Developer?
A.
In the case of the apartments the full purchase price is payable on transfer of the unit into the name of the Purchaser.
In the case of maisons and villas the full purchase price is payable as follows:
25% thereof will be paid to the Developer on transfer of the plot on which the maison is to be built and 30% on transfer in the case of the villas
Upon transfer of the plot into the name of the Purchaser, the balance of the purchase price is to be paid into an escrow account at Barclays Bank Seychelles Limited
This balance of the purchase price is then paid to the Developer as building work progresses in terms of the sale agreement and certified as follows:
Maisons
Villas
7,5%
10%
at floor level
45%
30%
at roof height level; and
22,5%
30%
on practical completion.
A retention is also provided for in all agreements of sale. These details are provided for guidance purposes and the sales agreements set this out in more detail.
Q.
When is occupation of the first units likely to take place?
A.
The first units are scheduled for completion in August 2007.
Q.
When will transfer of the first units take place?
A.
In the case of apartments transfer of these units can only be effected on completion of the apartment block. This will depend largely upon when building work on the particular apartment block starts. Transfer of the first apartments should be in approximately September 2007. Each agreement of sale will specify the estimated transfer and occupation date.
In the case of maisons and villas they are sold as land with building works. Transfer of the vacant plot will be effected first and then the building contract will start. In some cases building may well start before transfer of the land is effected to the Purchaser. The first plots should also be ready for transfer around July 2007.
Q.
Is there stamp duty payable on the sale of property on Eden Island?
A.
The first sale of any parcel of land on Eden Island from EIDC to any purchaser is fully exempted from any stamp duty/sanction processing fees. For any on-sale, a maximum duty of 6.5% (5% stamp duty and 1,5% sanction processing fee) is chargeable.
RESIDENCY AND VISITORS' VISAS
Q.
Who qualifies for residency?
A.
Any Purchaser (up to a maximum of 6 persons) together with his or her spouse and children.
Q.
If a company buys a unit who becomes eligible for residency of the Seychelles ?
A.
Nominees of that company (up to a maximum of 6 persons) together with his or her spouse and children.
Q.
What taxes / duties will be levied on cars / boats brought into the Seychelles ?