The Maldives has a genuinely light tax profile for a property owner — and it is worth stating clearly because the inverse myth (that an exotic jurisdiction must be tax-heavy) is common: there is no annual property tax, no capital gains tax, and no inheritance tax. The catch is on income: rental income paid to a non-resident is subject to a 10% withholding tax, which operates as a final tax, and a deemed deduction of around 20% may be available depending on the letting structure you use. So the headline is favourable but not zero: you keep the gain and pay no property or death taxes, but rent is taxed at source. Confirm the exact withholding treatment and any deduction for your specific letting structure with MIRA guidance and a local adviser.
What the Maldives does not tax
For a foreign owner, the Maldives is notable for the taxes it does not levy. There is no annual property (recurring ownership) tax of the kind that ENFIA represents in Greece or council/IBI taxes represent elsewhere — holding the villa year to year does not attract a standalone property tax. There is no capital gains tax, so an uplift in value between purchase and sale is not taxed in the Maldives (subject always to how your own country of residence treats the gain). And there is no inheritance tax, so passing the asset to heirs does not trigger a Maldivian death-tax charge. Taken together, these absences are a real and often-understated part of the Maldives' appeal, and they directly rebut the assumption that a far-flung island jurisdiction must impose heavy ownership taxes.
It is worth being precise about scope, because 'no taxes in the Maldives' is an overstatement in the other direction. These exemptions concern ownership, gains and succession within the Maldives. They do not switch off your obligations in your own country of tax residence, which may tax rental income, capital gains or the estate regardless of the Maldives' position — that is a matter for your home-jurisdiction adviser. And, as the next section covers, they do not extend to rental income earned in the Maldives, which is taxed at source. The correct summary is 'no property, gains or inheritance tax in the Maldives; income is taxed', not 'tax-free'.
The one that bites: 10% withholding on rent
Where the Maldives does tax the owner is on rental income. Under the Income Tax Act (Act 25/2019), rent paid to a non-resident is subject to a withholding tax of 10%, deducted at source and operating as a final tax — meaning that, in the standard case, the 10% settles the Maldivian income-tax liability on that rent rather than being a payment on account against a later return. This is the number that most affects the net economics of letting a Maldives villa, and it should be built into any yield model alongside the management and service-charge deductions covered in our net-yield and annual-costs questions. A 10% final withholding is modest by international standards, but it is not nothing, and it is easy to overlook when the marketing emphasises the absence of property and capital-gains taxes.
There is a nuance worth confirming: depending on how the letting is structured, a deemed deduction of around 20% may be available, which can change the base on which tax is effectively borne. Because the availability and mechanics of that deduction depend on the specific letting arrangement — direct ownership, a rental pool, an operating structure — this is a point to pin down for your exact set-up rather than assume. The no-property-tax, no-CGT, no-inheritance-tax and 10%-withholding positions summarised here are drawn from MIRA (the Maldives Inland Revenue Authority) and the Income Tax Act (Act 25/2019); confirm the withholding treatment, any deduction and your home-country position with MIRA guidance and a tax adviser before relying on them.
Sources
Primary and expert sources behind this answer:
- MIRA — Maldives Inland Revenue Authority & Income Tax Act (Act 25/2019): 10% non-resident withholding on rent, no annual property tax, no capital gains, no inheritance tax ↗
- U.S. Department of State — 2025 Investment Climate Statement: Maldives (foreign land ownership, leasehold framework, market liquidity) ↗
This page is general information, not legal or tax advice. Maldivian ownership is a long-term leasehold, not freehold, and the lease, tax, residency and succession rules are technical and change frequently. Every figure and rule here must be confirmed with a Maldivian lawyer and the developer for the specific residence before you act.
Related questions
Explore our guides and listings
Buying a branded residence in the Maldives? Get an independent read first.
GADAIT is an independent luxury buyer's agent. We confirm the lease reality, the true net yield, the residency angle and the real all-in cost for your specific case — before you commit.
Newsletter
Be among the privileged.
Subscribe to the Gadait International newsletter and receive the latest trends in the luxury market, along with exclusive opportunities for exceptional properties in advance.
Low frequency. High relevance.