# Maldives: taxes, residence and cost of living

Source: https://domicile.wiki/places/maldives/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- Score for a wealthy family: 62 / 100
- Tax on a €30M portfolio: €55,350 a year · Temporary resident (foreigner on an immigration permit)
- Wealth tax: none
- Children inherit: tax-free
- EU member: no
- Currency: MVR
- Capital: Male

## Tax on investments, inheritance and wealth

The Maldives has had a personal income tax since 2020 (Income Tax Act 25/2019): 0% up to MVR 720,000 rising to 15% above MVR 2.4M. Full residents are taxed on worldwide income including capital gains and foreign dividends; dividends from Maldivian companies are exempt. But a foreigner living in the Maldives on an immigration permit (and not married to a Maldivian) is a 'temporary resident' taxed only on Maldivian-source income, so a foreign family's foreign portfolio would be untaxed. No wealth, inheritance or gift tax. Long-term residence for wealthy foreigners is hard to obtain.

- **Maldives tax residence (full resident)**: Worldwide taxation at up to 15% (applies to Maldivians and foreigners married to Maldivians).
- **Temporary resident (foreigner on an immigration permit)**: Foreigners staying under a permit granted under the Immigration Act are taxed only on Maldivian-source income.

## Inheritance law and trusts

Maldives law is based on Islamic law and all citizens must be Muslim, so heirs are expected to take Islamic fixed shares and a will is limited to about one third. I could not source a Maldivian statute for this, nor any trust or foundation law. The Hague Trusts Convention is not in force.

## Daily life (0-100, higher is better)

- Safety and personal security: 76
- Political and institutional stability: 47
- Corruption and government integrity: 41
- Legal system and property rights: 47
- Healthcare quality and access: 76
- Human development and quality of life: 53
- Infrastructure and connectivity: 64
- Business opportunities and economy: 53

## Research notes

### Maldives — family-office tax dossier

Last reviewed: 2026-10-15
Tax year: 2026
Reviewer: research agent (Claude), unreviewed by a tax adviser

#### Summary

The Maldives has had a personal income tax since 2020 (Income Tax Act 25/2019): 0% up to MVR 720,000 rising to 15% above MVR 2.4M. Full residents are taxed on worldwide income including capital gains and foreign dividends; dividends from Maldivian companies are exempt. But a foreigner living in the Maldives on an immigration permit (and not married to a Maldivian) is a 'temporary resident' taxed only on Maldivian-source income, so a foreign family's foreign portfolio would be untaxed. No wealth, inheritance or gift tax. Long-term residence for wealthy foreigners is hard to obtain.

#### Residence and eligibility

Resident if the permanent home is in the Maldives or present 183+ days in a 12-month period starting or ending in the tax year. A foreigner present under an immigration permit and not married to a Maldivian is a temporary resident taxed only on Maldivian-source income.

- **Work / business visa** (EU, US, OTHER): Long-term stay requires a work or business visa tied to employment or an approved investment; no residence-by-investment programme was verified.

#### Capital gains

Capital gains are part of taxable income and taxed at the individual progressive rates (top 15% above MVR 2.4M) (Income Tax Act 25/2019, ss. 3 and 7). Residents are taxed on worldwide income (s. 10(a)).

- **Rate basis:** Top marginal rate 15% applies above MVR 2.4M (~EUR 135k); a large gain is taxed at about 15%.
- **Foreign assets:** Full residents: worldwide, with a foreign tax credit (s. 72) capped at the Maldivian tax.
- **Confidence:** medium (partially_verified), verified 2026-10-15.
- **JSON numbers:** headline 0.15; listed domestic 0.15, listed foreign 0.15, private business 0.15, local real estate 0.15, foreign real estate 0.15.

#### Dividends

Dividends received by a resident from a resident company are exempt (s. 12). Foreign dividends of a full resident are taxable at progressive rates up to 15%, with a foreign tax credit.

- **Rate basis:** Domestic 0 (exempt); foreign at the 15% top marginal rate.
- **Outbound WHT:** 10% non-resident WHT on dividends (s. 55).
- **Treaty network:** Very small (a handful of treaties; not verified).
- **Confidence:** medium (partially_verified), verified 2026-10-15.
- **JSON numbers:** headline 0.15, domestic 0.0, foreign gross 0.15, credit method `credit`.

#### Inheritance and gifts to children

No inheritance, estate or gift tax. Gifts are exempt income subject to a de minimis rule and conditions (s. 12).

- **Gift tax:** Exempt income subject to conditions (s. 12).
- **Foreign assets:** No tax on any asset.
- **Domicile rules:** Not relevant.
- **Important exceptions:** Succession, not tax, is the issue: personal status law based on Sharia governs the estates of Muslims (fixed shares; a son typically takes twice a daughter's share; at most one third freely disposable by will to non-heirs). How estates of non-Muslim foreigners are handled (law of nationality, own religious rules, or Sharia by default) was not verified here; non-Muslim families should take local legal advice.
- **Confidence:** medium (partially_verified), verified 2026-10-15.
- **JSON numbers:** basis `none`, children `fully_exempt`, exemption 0, brackets none, other transfer cost 0.0.

#### Wealth tax

No net wealth tax.

- **Property taxes:** No recurring property tax on individuals was found. Foreigners cannot own freehold land (leasehold only).
- **Confidence:** medium (partially_verified), verified 2026-10-15.
- **JSON:** type `none`.

#### Special regimes

##### Temporary resident (foreigner on an immigration permit) (`temporary_resident`)

Foreigners staying under a permit granted under the Immigration Act are taxed only on Maldivian-source income.

- **Eligibility:** A foreign individual who would otherwise be resident but stays in the Maldives under a permit granted under the Maldives Immigration Act, and is not married to a Maldivian.
- **Duration:** Status lasts for as long as the person stays under an immigration permit and is not married to a Maldivian; no statutory time limit (Income Tax Act 25/2019, temporary-resident definition; s. 2(c) as amended by Law 15/2021). In practice limited by the availability of long-term permits.
- **Capital gains:** Temporary residents are taxed only on Maldivian-source income, so gains on foreign securities and foreign real estate are untaxed. Maldivian-source gains are taxed at up to 15%. Foreign listed securities and foreign real estate 0 (outside the source rule). Domestic assets at the 15% top rate.
- **Dividends:** Foreign dividends are outside the scope for temporary residents; dividends from Maldivian companies are exempt. Foreign dividends 0 (foreign source); domestic 0 (exempt).


#### Company taxation (kept separate from personal tax)

Companies 15% above MVR 500,000 (0% below); banks 25% (Income Tax Act 25/2019, ss. 8-9).

#### Cost of living notes

No cost-of-living items were sourced in this pass.

**US citizens:** US citizens remain US-taxed; no US-Maldives tax treaty.

#### Open questions

- Lloyds Bank Trade states 'no capital gains tax is levied', contradicting CTL's reading of the Act; the Act itself (MIRA site blocks automated access) was not read.
- Individual rate brackets after any 2024-2026 amendments were not verified (Lloyds lists the same brackets as '2023 brackets').
- Conditions of the s. 12 gift exemption not verified.
- Source rules for gains on foreign shares held through a broker were not verified against the Act.

#### Sources

- [Income Tax Act: Overview & Impact (Jan 2020)](https://www.ctlstrategies.com/wp-content/uploads/2020/01/20200106_Income-Tax-Act_Overview-Impact.pdf)
- [Maldives: Business environment - taxes](https://www.lloydsbanktrade.com/en/market-potential/maldives/taxes)
- [First amendment to the Income Tax Act (Law 15/2021)](https://mira.gov.mv/Legislations/View/First-amendment-to-the-Income-Tax-Act)

#### Change log

- 2026-10-15: initial research.


## Residence and succession sources

- [HCCH status table: Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law
- [Constitution of the Maldives 2008](https://www.constituteproject.org/constitution/Maldives_2008) — Constitute Project
- [Succession under Shariah law: implications for wealth structuring](https://www.mondaq.com/india/wills-intestacy-estate-planning/1772930/succession-under-shariah-law-implications-for-wealth-structuring-and-estate-planning) — Mondaq