Real Estate in Maldives

Real Estate in the Maldives

The Maldives is a tropical country in the Indian Ocean, located on 26 ring-shaped atolls, which consist of more than a thousand coral islands. It is famous for its beaches, blue lagoons and huge reefs. In the capital of the country, Male, it is worth visiting the lively fish market, restaurants and shops on the main road of Medjede Magu, as well as the Hukuru Miskiy Mosque (Friday Mosque), the foundation and walls of which are decorated with carvings on white coral.

The Maldives have long attracted wealthy people who fly here to relax in luxury hotels and enjoy the ocean. Among the buyers of real estate, Europeans, Russians, as well as residents of Malaysia, Singapore, the UAE and Saudi Arabia predominate.

The main purposes of purchasing real estate in the Maldives are:

Private vacation. The peculiarity of real estate in the Maldives is privacy. Villas on secluded islands attract people who value peace and privacy, which is especially important for public figures.
Investments. Real estate in the Maldives is growing in price by 3% per year. Serious developers from the UAE and China have already begun investing in new projects, which indicates growth potential.
A combination of recreation and investment. When buying a villa, you can rent it out through a management company and receive income even if you do not use it personally.

With an average occupancy rate of 65%, the yield will be 8-9% per annum. High occupancy of hotels without pronounced seasonality maintains stable income.

Purchase taxes

If you are considering buying real estate in the Maldives, it is important to take into account all tax obligations:

When purchasing real estate, individuals must pay a tax of 7% of the cost, while legal entities - 4%.

Foreign citizens are required to pay a fee of 5% of the value of the property.

The property tax is 11% of the purchase price.

Payments require a bank commission of at least 2%.

Registration of legal status costs $1,000.

Obtaining permission from the Ministry of Land Management is mandatory and costs $70.

A registered company can operate nominally, but it is necessary to maintain documentation, which costs about $400 annually. Monthly utility bills are comparable to Russian expenses.

Legal features

The Maldives offers limited opportunities for foreigners to own real estate.

Full ownership is only possible for citizens of the country, while foreign investors can purchase real estate through long-term lease agreements that can last up to 99 years.

Advantages

Constant growth in real estate prices: In recent years, real estate in the Maldives has been steadily increasing in price by 3-5% per year.

High demand for rental of resort real estate: Stable tourist activity supported by increased occupancy of hotels (65-70%).

Opportunity to invest in new projects from international developers.

Life hack for foreign investors

Investing in joint projects with large developers: Participation in large development projects from international companies, such as companies from the UAE or China, allows investors to receive a stable income and access to the best properties, minimizing risks.