Maldives Investment Income Guide: Dividends 0%, Interest 0%, Royalties 10% 2026

Q: Are dividends from Maldivian companies really tax-free?

Yes. Dividends from Maldivian companies are exempt from withholding tax (0%). No additional tax at the shareholder level (0% PIT). Dividend income is completely tax-free.

Q: What is the procedure for claiming treaty relief on royalties?

Submit a Treaty Relief Application and Certificate of Tax Residency to the payer. Reduced rates apply at source. If over-withheld, file a refund claim with MIRA.

The Maldives applies a highly favorable regime for investment income. Withholding tax on dividends and interest is 0% for both residents and non-residents. Royalties are subject to 10% WHT. Combined with 0% personal income tax and 0% capital gains tax, the Maldives offers one of the most tax-efficient investment environments globally. Here is how investment income is taxed in 2026.

The taxation of investment income in the Maldives is exceptionally favorable. There is no personal income tax on investment returns received by individuals. Withholding taxes on dividends and interest are zero. The only withholding tax is on royalties at 10%. The Maldives territorial system means that foreign-source investment income received by residents is also not taxable. MIRA administers withholding tax obligations — the payer is responsible for withholding and remitting the tax. Cross-border tax guide →

Real-world example: A Maldivian resident receives MVR 200,000 in dividends from a local company. WHT: 0%. Tax: MVR 0. A non-resident investor receives MVR 500,000 in interest from a Maldivian bank deposit. WHT: 0%. Tax: MVR 0. A foreign company receives MVR 300,000 in royalties from a Maldivian licensee. WHT at 10% = MVR 30,000, net payment = MVR 270,000. If the company is resident in a treaty country (e.g., UAE), the rate may be reduced to 5% = MVR 15,000. Capital gains (0%) →

Withholding Tax Rates on Investment Income

Dividends — residents: 0% WHT — dividends paid to Maldivian resident individuals and companies are exempt
Dividends — non-residents: 0% WHT — no withholding on dividend payments to non-residents
Interest — residents: 0% WHT — interest paid to Maldivian residents is exempt
Interest — non-residents: 0% WHT — no withholding on interest payments to non-residents
Royalties — residents: 10% WHT — domestic rate applies to residents
Royalties — non-residents: 10% WHT — may be reduced under applicable DTT

The 0% rates on dividends and interest are extremely generous by international standards. Most countries impose 15-30% on outbound dividends and 10-30% on outbound interest. The Maldives approach is designed to attract foreign investment and facilitate capital market development.

Double Taxation Treaty Network

The Maldives has DTTs with UAE, India, and Sri Lanka. Treaties may provide further reductions:

Dividends: Already 0% domestic — treaties confirm this rate
Interest: Already 0% domestic — treaties confirm this rate
Royalties: Treaty rates may reduce the 10% domestic rate to 5-10%

Treaty benefits require the recipient to be the beneficial owner and provide a Certificate of Tax Residency from the treaty jurisdiction.

Taxation of Other Investment Income

Bank interest: Interest on savings accounts and deposits earned by residents and non-residents is 0% WHT — completely tax-free
Government securities: Interest on Maldivian government bonds and treasury bills — 0% WHT
Capital gains on investments: 0% CGT on shares, securities, and all assets
Rental income: Passive rental income is not subject to PIT (0% rate). If rental is a business, BPT at 15% may apply

Compliance and Reporting

Maldivian companies paying dividends, interest, or royalties must comply with withholding obligations. For dividends and interest, the rate is 0%, so no withholding is needed. For royalties, the payer must withhold 10% and remit it to MIRA by the 15th of the following month. The payer must also file an annual withholding tax return. Recipients seeking treaty relief on royalties must provide: a Certificate of Tax Residency from their home country tax authority and a declaration of beneficial ownership.

Are dividends from Maldivian companies really tax-free?

Yes. Dividends paid by Maldivian resident companies to both residents and non-residents are entirely exempt from withholding tax. There is no additional tax at the shareholder level either (0% PIT). This makes dividend income completely tax-free in the Maldives.

What is the procedure for claiming treaty relief on royalties?

The non-resident recipient must submit a Treaty Relief Application to the Maldivian payer, along with a Certificate of Tax Residency from their home country. The payer then applies the reduced rate at source. If tax has been over-withheld, the non-resident can file a refund claim with MIRA.