fbpx

Invest in Maldives

a guide for foreign investors

CTL Strategies ranked in Chambers Global Guide 2024

CTL Strategies has been ranked in the Chambers Global Guide 2024, published by Chambers and Partners.

The new edition of the Global Guide highlighted CTL for its considerable market respect in tax  matters, and demonstrating strength in litigation and corporate services. Among responses received from interviewees, Chamber and Partners quoted that the firm is “able to handle complex matters and provide unbiased legal advice.”

Chambers and Partners is an independent research firm that operates in 200 jurisdictions and is commonly referred to as the “gold standard” in the legal profession. Chambers and Partners publishes rankings and information on the world’s top lawyers and law firms. In-depth interviews with lawyers, in-house counsel for clients, and independent experts were used to compile the rankings.

Recent Updates

/in , /by

New Foreign Investment Entry Requirements Published

The Ministry of Economic Development and Trade (the “Ministry”) has published the new Foreign Investment Entry Requirements on 8 October 2025, under the Foreign Investment Act 1(the “FI Act”). The new Entry Requirements revise sector classifications, investment thresholds and foreign shareholding limits across multiple business sectors.

Sector-Specific Restrictions
Under the FI Act, foreign investments remain subject to sector-specific restrictions. To obtain a foreign investment licence, the proposed business sector of the foreign investment must either be:

  • Open for foreign investment; or
  • Open for foreign investment subject to conditions/restrictions.

The new Entry Requirements published by the Ministry introduce material changes in several sectors that will affect market entry and transaction structuring for investors considering investing in Maldives.

Some of the major changes include:

  • Entry requirements for the core tourism sectors remain broadly unchanged
  • Entry requirements for real estate development activities are tightened, with more granular sub-categories narrowing access for smaller projects
  • Additional restrictions are imposed on the construction sector with permitted contract values increased significantly
  • Significant restrictions are introduced for transportation and logistics sector
  • Investment thresholds are reduced for the financial services and insurance sector
  • A specific business activity is introduced for renewable energy projects
  • Maximum foreign shareholding is decreased for dive centres and dive schools
  • Franchising restrictions are eased with location-based limits removed
  • The general prohibition on wholesale and retail sector is maintained

Transitional provisions for existing businesses
As the foreign ownership limitations, rules and conditions outlined in the new Entry Requirements published by the Ministry are set to take immediate effect, the new changes will significantly impact existing foreign investment entities currently operating in the Maldives.

To facilitate compliance for such existing investors, the Ministry has published transition arrangements. A summary of the key provisions is provided below.

1. Validity of existing Foreign Investment Agreements
Foreign investment entities with valid Foreign Investment Agreements may continue operating in the Maldives until the expiration of their current Foreign Investment Agreements.

To continue operations beyond the expiry, entities must restructure to comply with the new foreign ownership limits and other related conditions.

2. Application for a transition period
Foreign investment entities operating in newly restricted sectors that require additional time to either wind down operations or restructure in line with the new rules may apply to the Ministry for an extended transition period.

3. Sector-specific transition periods and rules
The Ministry has issued sector-specific transition rules for affected foreign investment entities. The Ministry asserts that these periods have been determined based on:

    1. Sector of operation;
    2. Nature of the project; and
    3. Scale of the investment.

The Ministry has provided 1-year transition periods for business sectors that are primarily service-based, and for other business sectors that the Ministry does not consider to be capital-intensive.

Residential real estate projects will be granted a transition period equal to the remaining durations of their active projects (aligned with the relevant project agreements).

In sectors that the Ministry considers to be capital-intensive, transition periods have been granted as follows:

Scale of Investment Transition Period
Less than USD5,000,000 3 years
Between USD5,000,000 and USD10,000,000 5 years
Greater than USD10,000,000 7 years

The Ministry has also stated that verified investments substantially in excess of USD10,000,000 may be granted transition periods exceeding 7 years at the Ministry’s discretion.

A complete list of sector-specific transition rules and timelines can be accessed here.

4. Foreign Investment Transition Committee
The Ministry will establish a Foreign Investment Transition Committee (the “Committee”) to determine applicable timelines and the scope of operations eligible to be granted transition periods as stated above.

5. Application review process
Applications for transition periods will undergo the following review stages:

    1. Preliminary Assessment: The Ministry will check the completeness of the application, conduct tax and regulatory compliance checks, and prepare a summary report for the Committee.
    2. Committee Review: The Committee will vet the summary report, request further documents or invite an applicant presentation if needed, and issue a decision based on the sector, investment scale, and commitments stated in the published sector-specific transition rules.
    3. Outcome: Once the Committee has made a decision, and if the application has been approved, the Ministry will issue a Transition Arrangements Letter to the applicant detailing the transition period granted to the applicant; and any conditions applicable to the continuation of their business during the transition period.

The Ministry asserts that the review process will be completed for all complete applications within a maximum of 60 days.

6. Appeals and re-evaluation

Applicants dissatisfied with the Committee’s decision may submit a request for re-evaluation with additional documentation or representation.

Effective Date

The new Entry Requirements came into effect on 8 October 2025.

/in , /by

Regulation on the Advertising of Establishments that Provide Services to Tourists in the Maldives

On 4 August 2025, the Ministry of Tourism and Environment (the “Ministry”) gazetted the Regulation on the Advertising of Establishments that Provide Services to Tourists in the Maldives (the “Regulation”). The Regulation came into force on the date on which it was gazetted.

The Regulation has been enacted to expand on the new advertising rules provided under Section 45-3 of the Maldives Tourism Act1 (the “Act”) introduced to the Act by the 15th Amendment to the Maldives Tourism Act2.

The key provisions of the Regulation have been summarised below.

Applicability and scope

The Regulation applies to all establishments that operate under a license or permit issued by the Ministry (and any such establishments that are being developed), as well as centres that provide sea or water sports services and excursion services.

The Regulation stipulates the rules applicable to activities carried out to directly or indirectly promote the services provided by a tourist establishment:

  • Through print media, electronic media, the internet or any other medium; and
  • In audio, visual, video or any other form.

Licensing requirement

As a general rule, tourist establishments can be advertised only after they have been licensed with the Ministry.

However, a tourist establishment under development can be advertised before it is licensed with the permission of the Ministry. Application forms for the Ministry’s permission can be submitted on a portal to be designated by the Ministry. The designated portal will list the supporting documents required for such an application.

General standards

The Regulation stipulates the following general standards applicable to the advertising of tourist establishments:

  1. Establishments can only be advertised as an establishment of the level and category specified in its registration documents and operating licence . (E.g., an establishment licensed to operate as a tourist hotel cannot be advertised as a tourist resort)
  2. The level and categorisation of establishments under development will be determined by the Ministry as follows based on the type of property on which the development is taking place:
    1. If the establishment is being developed on a property leased by the Ministry, as specified in the lease agreement.
    2. If the establishment is being developed on a property leased by a local council or a privately-owned property, as determined by the Ministry.
  3. Information that clearly reflects the level and category of the establishment under development must be included in its advertisement.
  4. The establishment must ensure the completeness and accuracy of information provided on:
    1. The establishment and the services provided at the establishment.
    2. The natural environment surrounding the establishment or of any area of the Maldives.
    3. The area surrounding the establishment and the services available in that area.
  5. The views, vision and information included in advertisements must be incorporated in compliance with the applicable laws and regulations of the Maldives.
  6. The advertising of tourist establishments must be in line with the responsibility to protect the natural beauty and environment of the Maldives.
  7. Information of environmentally vulnerable areas must be clearly stated in advertisements.
  8. Establishments that maintain wellness tourism practices must accurately and transparently disclose precise details and proof of such practices.

Digital advertising

The following additional standards are applicable to the digital advertising of tourist establishments:

  1. Social media advertisements must clearly indicate that they are advertisements (E.g., paid promotions must be specifically disclosed to be advertisements).
  2. False or inaccurate photos and videos cannot be used in advertisements.
  3. False or inaccurate online reviews, comments and ratings cannot be made or presented.
  4. Advertisements must clearly specify if it contains AI-generated content or content generated through machine learning.
  5. The contents of advertisements must be the promoter’s own content, or the promoter must ensure that such contents do not infringe the Copyright and its Related Rights Act 3.

Use of establishment name

An establishment may only use its name in advertisements after the name has been registered, and in line with the following rules:

  1. If the establishment is developed on a specific island, the advertisement must state the name of the establishment stated on its operating licence along with the name of the island and atoll.
  2. If the establishment is developed on an inhabited island or a specific area of an island, the advertisement must state the name of the establishment such that tourists will know and understand the name of the atoll, island and ward in which it is located.

Administrative actions and fines

Licensed tourist establishments and tourist establishments under development will be subject to the following administrative actions and fines in the event of a breach of the Regulation.

  1. The Ministry must first issue an order in writing to the promoter for the removal of the advertisement within 24 hours, with details of how it breaches the Regulation.
  2. If the promoter does not comply with such an order, the Ministry has the discretion to impose fines as follows:
    1. Impose a fine not exceeding MVR10,000 in connection with first-time breaches of the Regulation;
    2. Impose a fine not exceeding MVR50,000 in connection with the second breach of the Regulation; and
    3. Impose a fine not exceeding MVR100,000 in connection with the third breach of the Regulation.
  3. The Ministry has the discretion to impose MVR100,000 for each subsequent breach of the Regulation by a promoter after their third breach, without the need for the Ministry to first serve a written order requiring the advertisement to be removed.

> More Updates

Update

CTL Strategies ranked in Chambers Global Guide 2024

Guide

Year In Review 2023

News

Overview of Tourism Land Rent Regulation