Can You Actually Own Land in the Maldives? A Guide for Foreign Investors

Foreign Ownership and the Land Act

The Maldivian Constitution bars non-citizens from outright freehold ownership of land. Instead, foreign investors navigate a system of long-term leases governed by the Land Act of 2002 and its subsequent amendments. This framework was designed to protect the nation’s fragile ecosystem while inviting high-value investment into its tourism industry.

Leasehold Opportunities – 50 Years of Island Living

Every one of the Maldives’ 1,200 islands can be leased to private interests, provided projects align with national development goals. Standard terms allow a 50-year lease, typically structured as an initial 10-year term with two potential 20-year renewals. This arrangement ensures both security for the investor and oversight for the Maldivian government.

By securing a leasehold agreement, international buyers effectively control the land and any development erected upon it. Title deeds record the lease, granting rights akin to ownership for the duration of the term. When properly structured, these leases can be financed, mortgaged, or passed on, delivering liquidity and estate planning benefits often reserved for conventional real-estate markets.

Corporate Structures and Joint Ventures

Another pathway involves establishing a Maldivian company in which local shareholders hold a majority stake. Foreign investors can then acquire equity in the entity, accessing land through corporate ownership. This route demands careful legal counsel and a partner who understands local regulations, but for sizable developments it has become a popular choice.