WHY MALDIVES?

Maldives is known for its blessed white sandy beaches, crystal clear lagoons, pristine waters, underwater beauty, friendly smiles, the young and energetic workforce. ?Maldives offers plenty of opportunities to entrepreneurs and aspiring businesses, and here’s why you need to consider the Maldives to invest.

Maldives will offer you opportunities like nowhere else. The government of the Maldives has opened diverse opportunities for foreigners to benefit from investing in the country. The main foreign investments in the Maldives focus are the tourism industry investment and real estate.

Maldives is lucky to have been blessed with an extremely stable economy, and also a transparent legal system, as opposed to some of the neighbors. This is largely due to the country’s liberal trade environment, dynamic private sector, and development oriented legal structure. The simple policy environment is enjoyed by foreign investors where the law guarantees the security of both foreign and domestic investments. Efforts are always being made to make the investment climate more friendly and predictable to attract more investors and also provide peace of mind to those who have already invested in the country, and looking forward to investing in the Maldives.

?

Reasons to Invest in the Maldives Tourism Industry

Maldives is among the most desired tourist destinations and is wildly famous as the leading beach destination. Maldives is now leading the tourism industry service standards globaaly and the hotels that sit on its private island are coming up with overwater and underwater facilities which other destinations struggle to offer. ?

If the heavenly beaches, pristine waters, underwater coral gardens and, the rich marine life are not convincing enough to invest in the Maldives, here are some further reasons to support the cause:

Political Stability:

Maldives’ has maintained its political stability and continued to develop, with all the challenges the world has faced.

Legally Backed Governmental Support:

One of the greatest advantages of starting a business in the Maldives as a foreign investor is that the government is extremely supportive. The Ministries are flexible and responsive in issuing the permits and other investor requests.

One such example of the legally backed governmental support is that Maldivian legislation poses no limitation on sending domestic profits to originating countries, and the 100% foreign ownership, and the lower tax rates, making investment opportunities extremely striking. Below are important legally backed investor advantages;

• Islands are being leased for a long term of 50 years, with the option to extend another 49 years.
• Resort islands are given 500 meters of exclusive boundary area, surrounding the island which can be extended to an additional 500 meters.
• A construction period of 36 months is granted for virgin islands and 48 months for lagoons that need to be reclaimed.
• Right to 100% foreign ownership
• Provision for overseas arbitration of disputes
• Long-term contractual agreements and long-term lease of land
• No foreign exchange restrictions.
• No restrictions on the repatriation of earnings or profits.
• Privileged Corporate Resident Maldives Card Service.

• Residency Visa and benefits for investor, investor’s spouse, and dependents under 18 years.

The low corporate tax rate:

Maldives is among the few countries in the world with the lowest corporate tax rates. Whereas the global average of taxation rate stands at approximately 23% the corporate tax rate of Maldives is only 15%.

Return on the Investment

Maldives toursim industry proudly offers an investmnt recovery period of 5-7 years, and a Return on Investment (ROI) of 12-15% at an average.

Maldives’ Average Daily Rate (ADR) is ranked 5th highest globally.

The Revenue Per Available Rooms (RevPAR) shows a slight increase in 2023, compared to USD 376 in 2022 and USD 375 in 2021. Maldives is the top-performing hotel market across the region, with yearly RevPAR exceeding, and Maldives remains one of the highest rate-yielding markets in the Asia Pacific.

Maldives is also considered among the highest Internal Rate of Return (IRR) in the Asia Pacific in the hospitality industry.

The occupancy percentage average is 70% and the average length of stay is 8-12 days.