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Maldives Rental Income Guide: 0% PIT, BPT If Business 2026

Rental income from property in the Maldives is generally not subject to personal income tax (0% PIT) for passive individual landlords. However, if the rental activity constitutes a business (multiple properties, active management, short-term tourism accommodation), Business Profit Tax (BPT) at 15% may apply on net rental profits. Here is how rental income taxation works in 2026.

Rental income taxation in the Maldives is defined by the absence of personal income tax. Individuals earning passive rental income from one or two properties pay zero tax on that income. The Maldives does not have a withholding tax on rental payments, and tenants do not deduct any tax from rent paid. The key distinction is between passive rental (tax-free) and rental as a business (subject to 15% BPT). MIRA provides guidance on this distinction based on the scale and organization of the activity. 0% PIT overview →

Real-world example: A landlord in Malé owns two apartments rented out on annual leases for a total of MVR 360,000 per year. This is passive rental income — tax at 0% PIT = MVR 0. A company operating a guesthouse with 10 rooms and MVR 2,000,000 in annual rental revenue is engaged in a tourism business — profits are subject to 15% BPT. An individual renting out a single vacation home for short-term stays may be classified as either passive or business depending on the level of services provided. Property tax and transfer fees →

Taxation of Rental Income

  • Passive residential rentals: Individual landlords with few properties on long-term leases — 0% tax (no PIT)
  • Commercial rentals: Renting commercial property — generally 0% PIT for individuals, but BPT at 15% if conducted as a business
  • Short-term tourism rentals: Guesthouses, villas, and short-term lets catering to tourists — likely a tourism business subject to TGST (16%) and BPT (15%)
  • Corporate landlords: Companies earning rental income pay BPT at 15% on net profits

Short-term rentals (Airbnb-style) in the Maldives tourism sector may be subject to Tourism GST (TGST) at 16% in addition to BPT on profits. Landlords should confirm their classification with MIRA.

Allowable Deductions (for BPT-taxable rentals)

If rental income is subject to BPT (business classification), landlords can deduct the following expenses:

  • Maintenance and repairs: Costs of keeping the property in habitable condition
  • Management fees: Fees paid to property management companies
  • Insurance premiums: Property insurance, liability insurance
  • Loan interest: Interest payments on loans used to purchase or improve the rental property
  • Utilities: Water, electricity, gas if paid by landlord
  • Depreciation: Buildings may be depreciated at prescribed rates
  • Professional fees: Legal and accounting fees related to the rental activity
  • Annual land rent: Lease payments to the government

Deductions must be supported by proper documentation. MIRA may request evidence during tax audits.

Registration and Compliance

  • Tax registration: Landlords with passive rental income do not need to register for tax. Those with business-classified rentals must register for BPT
  • Rental contract: Written rental contracts are recommended and may be required for tourism properties
  • GST/TGST: Tourism accommodation providers must register for TGST at 16%
  • Annual filing: BPT-registered landlords must file annual returns by March 31 (individuals) or June 30 (companies)

Non-compliance can result in penalties and back-tax assessments. MIRA may cross-check declared rental income with information from the tourism ministry and property registries.

Is there a withholding tax on rental payments?

No. Rental payments from tenants to landlords are not subject to withholding tax in the Maldives. Tenants do not need to deduct or remit any tax.

Can rental losses be offset against other income?

For BPT-taxable rental businesses, yes. If allowable deductions exceed rental income (creating a rental loss), the loss may generally be offset against other business income in the same tax year. For passive landlords, there is no tax to offset since rental income is already tax-free.

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