Maldives (MV)
The Maldives is the world's most geographically dispersed country — a chain of 26 coral atolls and 1,192 islands stretching 900km across the Indian Ocean, of which only about 185 are inhabited.
Buying Property in Maldives
The full buying process, transaction costs, mortgage, and legal requirements.
Foreigners cannot own freehold land or residential property in the Maldives. The Constitution mandates that land belongs to the state and private land ownership is reserved exclusively for Maldivian citizens. The only narrow exception is the USD 1 billion threshold: foreigners may own land if they invest more than USD 1 billion and at least 70% of the land is reclaimed from the sea — a threshold relevant only to the largest resort developers. For all practical purposes, foreign access to Maldivian real estate is through leasehold only. The Foreign Investment Act 2024 (Law No. 11/2024, in force December 2024) now governs all foreign investment including tourism and commercial leases, replacing the previous framework. Leaseholds of up to 99 years are available for tourism and commercial developments in designated zones. The currency is the Maldivian Rufiyaa (MVR); 1 USD ≈ 15.4 MVR (2026). For ordinary expats, property purchase is not relevant — renting is the universal approach.
Rent vs. Buy
Renting is the only practical option for foreign expats in the Maldives. Freehold residential purchase is constitutionally prohibited for non-citizens. Even tourism leasehold investments do not confer personal residential rights in the conventional sense — they are commercial investments, not homes. Renting in Malé costs approximately MVR 8,000–20,000/month (USD 520–1,300) for a studio to 2-bedroom apartment; Hulhumalé offers slightly more space at similar prices. The rental market is liquid, and leaving is straightforward. Leasehold tourism investments (resort villas, commercial developments) are available only to those with substantial capital and commercial intent.
Buying Process — Step by Step
Understand the legal prohibition on residential purchase
1 day — legal fact, not a process stepForeign nationals cannot own freehold land or residential property. The Maldivian Constitution and the Land Act reserve land ownership exclusively for Maldivian citizens. This is a firm constitutional constraint, not a procedural hurdle. Confirm this with a Maldivian lawyer before incurring any costs.
Identify the type of leasehold investment (tourism/commercial only)
Research phase: 2–8 weeksForeign investors may access Maldivian real estate only through: (a) tourism island/resort leases tendered by the Ministry of Tourism; (b) commercial leasehold in designated investment zones; (c) strata-titled resort villas in approved tourism developments (long-term lease structure, typically 50 years extendable to 99 years). Mid-sized developments (USD 15M–30M) require a local partner with a foreign ownership cap of 65%. Projects above USD 30M are eligible for full foreign ownership.
Obtain Foreign Investment Licence under the 2024 Act
4–12 weeksAll foreign investment requires a licence from the Ministry of Economic Development and Trade under the Foreign Investment Act 2024 (Law 11/2024). The four-stage process: (1) submit foreign investment application; (2) receive Letter of No-Objection; (3) obtain Foreign Investment Licence; (4) sign Foreign Investment Agreement with the Ministry. The Act classifies investment areas as Open, Restricted, or Closed — tourism real estate is typically in the Restricted category.
Engage a Maldivian-licensed lawyer
1–2 weeks to engage; ongoing throughout processAll property-adjacent transactions require a lawyer licensed by the Maldives Bar. The lawyer reviews all documentation, advises on lease terms, represents you before government authorities, and handles contract execution. Documents from abroad must be apostilled (for Hague Convention countries) or consularly legalised.
Negotiate and execute the lease agreement
2–6 months for tourism tender; 1–3 months for resort villaTourism island leases are negotiated with the Ministry of Tourism (tourism.gov.mv), which periodically issues tenders. Strata resort villa leases are negotiated directly with the resort developer. Lease terms cover duration, annual rent, renewal options, permitted use, improvements, and exit rights. All leases involving foreigners require government approval.
Register the lease with the Ministry of Housing and Land Use Planning
4–8 weeksAll tourism and commercial leases must be registered with the Ministry of Housing and Land Use Planning (housing.gov.mv), which maintains the land registry. Registration confirms the lease is valid against third parties. There is no public land registry — searches require a lawyer.
Arrange financing and complete Environmental Impact Assessment if required
EIA: 3–12 months; financing: 2–6 monthsTourism development on a leased island requires an Environmental Impact Assessment (EIA) approved by the Environmental Protection Agency (EPA). Construction cannot begin without EIA approval. Large-scale financing may be arranged via Bank of Maldives corporate banking, IFC, or ADB.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Maldivian lawyer fees | MVR 10,000–80,000 (USD 650–5,200) | Hourly rates: MVR 1,000–3,000/hour. Higher for complex tourism transactions or litigation. |
| Foreign Investment Licence application fee | USD 1,000–5,000 | Fee set by Ministry of Economic Development and Trade under the 2024 Act; verify current schedule. |
| Ministry of Tourism island lease application fee | USD 5,000–50,000 | For island lease tenders. Varies by island size and tourism tier classification. |
| Annual lease rent to government | USD 10,000–500,000+/year | Varies by island size, location, and tourism classification. Negotiated in the lease agreement. |
| Environmental Impact Assessment (EIA) | USD 20,000–150,000 | Required for all resort development on leased islands. Must be approved by the Environmental Protection Agency. |
| Resort villa strata leasehold purchase price | USD 1,500,000–13,750,000+ | Beach villas near Malé atolls trade at USD 1.5M–4M; premium Soneva/Four Seasons villas USD 3.7M–13.75M+ for 50-year leasehold extendable to 99 years. |
| Total estimated transaction cost for resort villa leasehold | USD 50,000–200,000 in fees and taxes above purchase price | Includes lawyer, registration, government approvals, and EIA if applicable. |
The Notary — Mandatory for All Purchases
The Maldives does not have a notary system equivalent to civil-law notaries. Legal documents are drafted and executed by Maldivian-licensed lawyers. Contracts for government leases are executed before government officials at the relevant ministry. Foreign documents used in the Maldives must be apostilled (for Hague Convention signatory countries) or consularly legalised before local use. All transaction documents should be reviewed by a Maldivian Bar-licensed lawyer.
Mortgage
No residential mortgage products are available for foreigners, as foreigners cannot own residential property. Tourism and commercial development financing is available from Bank of Maldives (BML) Corporate Banking and from international development finance institutions for qualifying large-scale investment projects. BML does not offer personal mortgage products to non-residents for residential purposes.
Not applicable for standard residential purchases. Tourism/commercial investment: typically 20–35% of project value required as equity.
Foreign buyers face a constitutional prohibition on residential property purchase. For tourism lease investments, approach BML Corporate Banking or international development finance institutions (IFC, ADB) directly. Strata resort villa purchases are typically cash transactions or seller-financed. Verify that any financing structure is compatible with the Foreign Investment Act 2024 requirements.
Land Registry
Land registration is managed by the Ministry of Housing and Land Use Planning (housing.gov.mv). The registry records all leases and government land allocations. Foreign investors with tourism or commercial leases must register the lease with this ministry. There is no publicly searchable land registry — all searches require engagement of a licensed Maldivian lawyer. The land registry does not record freehold ownership by individuals, as all land is constitutionally state-owned.
Taxes
There is no property transfer tax or stamp duty on residential property sales (foreigners cannot participate in residential transactions). For tourism leasehold transactions: stamp duty applies at 1–2% of the annual lease value upon registration. Business Profit Tax (BPT) at 15% applies to profits generated from tourism investments. Tourism Goods and Services Tax (TGST) at 16% applies to tourism service revenues. No capital gains tax in the Maldives. There is no annual property tax on leaseholders. Goods and Services Tax (GST) at 8% may apply to certain commercial transactions.
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