Maldives Property Market for Overseas Buyers

Not outright. Foreigners cannot own land or buildings freehold. They invest through leases, with resort islands leased for 25 to 50 years and residential leases up to 50 years. Tourism and commercial leases can run to 99 years, and all foreign investment needs government approval. Joint ventures with Maldivian partners are common for guesthouses.

The guide records no annual property tax and no capital gains tax for individuals. Tourism Goods and Services Tax of 17% applies to tourism sales, a green tax of $12 a night applies at resorts and hotels and $6 at smaller guesthouses, and business profit tax is 15% above MVR 500,000. Take advice from a Maldivian adviser before you invest.

A lease only. A branded residence or villa in an integrated tourism development is a leasehold of 50 to 99 years inside a designated zone. The lease can be sold or passed on during its term, but the land reverts to the state at the end. Check the years remaining and who operates the property.

In practice, no. Local banks serve the domestic market and offer foreigners almost nothing. Resort projects use international project finance, and individual buyers pay cash or borrow against assets in their home country. Some developers allow 30% to 50% upfront with the balance paid over one to three years.

Returns come from tourism, so they swing with the season and with how well the property is run. Well-run resorts report 8% to 15% net operating yield, guesthouses 10% to 20% gross in peak season, and Male flats 4% to 6% gross. Branded residences cost $500,000 to $5 million or more. Capital at risk.

No. The Maldives has no Golden Visa or residency tied to property. Visitors get a 30-day visa on arrival, and investors who run a business in the country need a business visa or work permit linked to that operation.