The Maldives government’s proposed SEZ amendments aim to create Sustainable Townships that drive tourism, attract global investment, and promote green growth
A new model for Maldives tourism, investment, and sustainable growth in emerging destinations.
The Maldivian government has announced proposed amendments to the Special Economic Zones (SEZ) Act to create a new category of Sustainable Townships, signalling a major step toward diversified, long-term economic growth.
Designed to broaden the country’s tourism model and attract next-generation investments, the Sustainable Township framework promotes integrated development that combines hospitality, housing, healthcare, education, and renewable energy.
A New Chapter in Tourism and Economic Diversification
Under the proposed framework, Sustainable Townships will serve as large-scale, self-sufficient communities, blending resort-style tourism with urban innovation. The initiative aims to complement traditional resort models by drawing investment into premium real estate, wellness, and education-based tourism, while fostering inclusive and environmentally responsible development.
The Government said the amendments are intended to position the country as a regional leader in sustainable investment and long-term tourism competitiveness.
Eligibility and Incentives for Developers
Only developments with a minimum investment of USD 500 million will qualify as Sustainable Townships. Eligible projects will benefit from time-bound fiscal incentives designed to encourage large-scale, high-impact investment.
Key Incentives Include:
- 5% income tax rate for the first 10 years of operation
- 10% income tax rate for the following 10 years
- Real estate transfer tax starting at 1% for the first transaction, rising to 4% by the third
Other existing levies — including Green Tax, GST, and land lease rent — will continue to apply, maintaining fiscal responsibility while incentivising long-term growth.
Sustainability and National Priorities at the Core
To qualify for incentives, projects must include facilities that advance national development priorities, such as:
- Education and skills training
- Healthcare and wellness infrastructure
- Renewable energy systems
- Food security initiatives
This requirement ensures that large-scale developments not only drive tourism and investment but also directly support sustainable growth and social well-being.
A Transparent and Predictable Investment Framework
The proposed SEZ amendment introduces a rules-based, transparent framework with clear eligibility criteria, investment thresholds, and compliance conditions.
This approach aims to boost investor confidence by providing predictability and fairness, while fostering innovation, accountability, and responsible growth.
At a Glance
- Policy Update: Proposed amendments to SEZ Act
- New Category: Sustainable Townships
- Minimum Investment: USD 500 million
- Incentives:
- 5% income tax (first 10 years)
- 10% income tax (next 10 years)
- 1–4% real estate transfer tax
- Focus Areas: Hospitality, housing, healthcare, education, renewable energy
- Purpose: Expand tourism, attract sustainable investment, and promote social development
- Framework: Transparent, rules-based, and aligned with national priorities
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