Island Maldives - Incentives offered

Incentives offered

oreign investors may choose either to set up an investment wholly owned by foreigners or enter into joint venture arrangements with locals. Incentives offered to foreign investors are rendered without discrimination to both wholly owned foreign investments and joint venture companies.

INCENTIVES OFFERED TO FOREIGN INVESTORS*

There is no income, corporate or property tax in the Maldives.
Right to 100% foreign ownership.
Legally backed investment guarantee.
Overseas arbitration of disputes.
Long term contractual agreements and long term lease of land.
Freedom to use foreign managerial, technical and unskilled workers.
No exchange restrictions.
Freedom to repatriate earnings or profits.

* The application of some of the above incentives is subject to specific guidelines described below.

GUIDELINES ON INCENTIVES TO FOREIGN INVESTORS

Period and renewal conditions for foreign investors

The period and the term of renewal of the agreement signed between the Government of Maldives and the foreign investor can vary depending on the size of the investment. The following can be used as a guide:

If the initial investment capital is less than US$ 250,000 the initial foreign investment agreement will be signed for a maximum of 5 years, but may be renewable. However, each renewal is for not more than 5 years.

If the initial investment is between US$250,000 and US$ 1 million the initial agreement will be signed for a maximum of 10 years, but may be renewable. However, each renewal is for not more than 5 years.

If the initial investment is greater than US$ 1 million the term of the agreement and the conditions for renewal is subject to negotiation.

Dispute settlement

If the investment capital is less than US$ 1 million, dispute settlements must be through mutual discussion, failing which matters can be referred to the Maldivian Courts of Law.

If the investment capital is greater than US$ 1 million, dispute settlements must be through mutual discussion, failing which matters may be referred to International Arbitration.

Source: FISB Maldives