Maldives Property Tax Guide: Transfer Tax MVR 5-10/sq ft, Annual Land Rent 2026
The Maldives property tax system features a property transfer tax of approximately MVR 5-10 per square foot (depending on location), a small annual land rent on leased land, and no annual property tax on residential real estate. There is no capital gains tax on property sales. Here is how property taxation works in the Maldives in 2026.
Property taxation in the Maldives is governed by the Land Act and administered by the Ministry of National Planning, Housing and Infrastructure. Unlike many countries that impose annual property taxes based on value, the Maldives uses a transfer tax based on land area (square footage). Most land in the Maldives is held on long-term leasehold from the government rather than freehold. The annual land rent is a nominal charge for leasehold properties. There is no tax on property value appreciation (0% CGT). Capital gains on property (0%) →
Real-world example: A buyer purchases a 2,000 sq ft residential plot in Malé. Transfer tax at MVR 10/sq ft = MVR 20,000. Annual land rent: approximately MVR 5,000-10,000. No annual property tax. Compare this to Sri Lanka where property buyers pay stamp duty of 1-4% plus annual rates, or India where buyers pay stamp duty of 5-8% plus annual property tax. The Maldives offers very low transaction costs for property buyers. Rental income taxation →
Property Transfer Tax
- Rate: MVR 5-10 per square foot of land area, depending on location and zone
- Malé zone: Higher rate (approximately MVR 10/sq ft)
- Outer atolls: Lower rate (approximately MVR 5-7/sq ft)
- Basis: Calculated on land area, not property value or gain
- Paid by: The buyer at the time of property registration
The transfer tax is a one-time cost paid when the property title is transferred. It is significantly lower than property transfer taxes in most countries, which are typically 1-10% of property value.
Annual Land Rent
- Leasehold properties: Most land in the Maldives is held on long-term lease (typically 50-99 years) from the government
- Annual rent: Nominal annual fee paid to the government — typically MVR 5,000-50,000 depending on location, size, and use
- Freehold properties: Very limited freehold land exists. Some islands and resort properties are freehold
- No annual property tax: There is no annual tax on residential property value or ownership
The annual land rent is not a tax but a lease payment to the government for use of the land. It is generally very modest compared to the property value.
Registration and Notary Fees
- Registration fee: Fee for registering the property title with the land registry — modest fixed amount
- Notary fee: Legal fees for notarizing the sale deed
- Survey fee: Fee for cadastral survey if needed
Total transaction costs (transfer tax + registration + legal fees) are typically well under 5% of property value, making the Maldives a low-cost jurisdiction for property transactions.
Foreign Ownership
- Foreign ownership: Foreigners may purchase property in the Maldives but with restrictions
- Tourist resorts: Foreigners can own leasehold rights to tourist resort properties
- Residential property: Foreign ownership of residential land is restricted. Foreigners may lease property long-term
- Tax treatment: Same transfer tax and annual land rent applies to foreign buyers
Is there a tax on rental income from property?
Passive rental income from property is not subject to personal income tax (0% PIT). However, if rental activity constitutes a business (multiple properties, active management), BPT at 15% may apply on net rental profits. Detailed rental income guide →
Do foreigners pay the same property transfer tax as locals?
Yes. The same MVR 5-10 per sq ft transfer tax applies to both residents and non-residents. There are no additional surcharges for foreign buyers, though foreign ownership of certain land types may be restricted.