Legal & Financial

Investing in the Maldives is a highly lucrative opportunity, but understanding the legal and financial landscape is crucial for a smooth and profitable investment process. At Maldives International Group (MIG), we provide expert guidance on property ownership, lease agreements, taxation, and financial planning to ensure a seamless and secure investment experience.

1. Foreign Ownership & Investment Laws

✅ 100% Foreign Ownership: 

Foreign investors can fully own and operate tourism-related businesses, including resorts and private island developments.

✅ Leasehold Property Rights: 

The Maldives operates on a leasehold system, allowing up to 99-year leases for tourism projects.

✅ Investment Protection: 

Foreign investments are protected under the Foreign Investment Act, ensuring legal security.

✅ Business Structures:

Investors can establish Private Limited Companies (PLC), 

Joint Ventures (JV), or partnerships to manage their assets.

📌 Key Government Authorities:

Maldives Investment Board (MIB) – Oversees and approves foreign investments.

Ministry of Tourism – Regulates hotel and resort investments.

Economic Development Board – Facilitates foreign business operations.

2. Taxation & Financial Benefits

✅ No Personal Income Tax – Investors do not pay personal tax on their profits.

✅ Corporate Tax: A 15% corporate tax applies to businesses, except for tourism ventures that may have negotiated tax incentives.

✅ Tourism Land Rent: Resorts and hotels pay an annual lease rent based on land size and location.

✅ Import Duty Exemptions: Tourism projects benefit from duty-free imports on construction materials, furniture, and equipment.

📌 Financial Planning for Investors:

Property Financing: International banks offer mortgages and investment loans for resort developments.

Revenue Models: Investors generate income via resort operations, branded residence rentals, and private island leases.

Exit Strategies: Investors can sell their lease rights or transfer ownership through structured agreements.

3. Step-by-Step Investment Process

1️⃣ Secure Investment Approval

Submit a business proposal to the Maldives Investment Board (MIB).

Obtain necessary licenses from the Ministry of Tourism.

2️⃣ Lease Agreement & Property Acquisition

Sign a lease agreement for an island or resort project (typically 50-99 years).

Conduct due diligence on the land title and investment contracts.

3️⃣ Project Development & Business Setup

Obtain construction permits and environmental approvals.

Develop the property according to government regulations and sustainability guidelines.

4️⃣ Operational Licensing & Tax Compliance

Register the company and comply with Maldivian business laws.

Obtain operational permits, VAT registration, and tax clearance.

5️⃣ Revenue Generation & Asset Management

Launch the project and manage rental yields, resort income, or resale opportunities.

Utilize MIG’s expert property management services for maximizing ROI.

4. Legal & Financial Advisory Services by MIG

✔️ Investment Structuring – Guidance on setting up business entities and ownership structures.

✔️ Lease Negotiation – Secure the best lease terms for your investment.

✔️ Tax Optimization – Maximize financial benefits through strategic tax planning.

✔️ Regulatory Compliance – Ensure full legal compliance with Maldivian authorities.

✔️ Banking & Financing Solutions – Access tailored financing options for your investment.