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Maldives tourism sector regulatory and tax changes

Updated 7 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-22 12:15 UTC → 2026-10-03 17:13 UTC · added removed

The Maldives is implementing new measures to regulate and increase revenue from its tourism sector. Initially, a bill was submitted to the People’s Majlis to impose a Goods and Services Tax (GST) on foreign tourism-related businesses, including offshore booking platforms, foreign tour operators, and overseas travel agents. This proposed amendment aims to apply the “destination principle” to the national tax framework, with projections suggesting an annual revenue increase of approximately MVR 1.6 billion. Following this, the government announced it would pursue tourism leaseholders for unpaid rent, fines, and penalties under the Tourism Act. On August 31, 2026, President Mohamed Muizzu ratified several legislative amendments to formalize these fiscal and regulatory shifts. Under new amendments to the Foreign Currency Act, resort operators must now exchange 40 percent of their foreign currency earnings through local banks to boost the Maldives Monetary Authority’s foreign reserves. The ratified GST Act amendments are were scheduled to begin collection in October, and an amendment to the Income Tax Act doubles the withholding tax on non-resident contractors from 5 percent to 10 percent. On September 8, 2026, industry concerns intensified regarding the implementation of these reforms. European organizations, such as ECTAA, expressed alarm over the short timeframe, while the Maldives Association of Tourism Industry (MATI) requested government discussions. On September 10, 2026, Tourism Minister Mohamed Ameen confirmed that unpaid resort rent and fines owed to the state have exceeded $90 million, with some debts dating back to 2013. Under new regulations, the state is empowered to terminate lease agreements for tourism plots where no development has occurred for eight years and outstanding dues exceed $10 million. The ministry may also cancel leases if construction is stalled or progressing at an inappropriate speed. By mid-September, opposition to the 17 percent Tourism Goods and Services Tax (TGST) intensified.

Versions

  1. 2026-10-03 17:13 UTC Maldives tourism sector regulatory and tax changes
  2. 2026-09-22 12:15 UTC Maldives tourism sector regulatory and tax changes
  3. 2026-09-12 07:11 UTC Maldives tourism sector regulatory and tax changes
  4. 2026-09-11 02:09 UTC Maldives tourism sector regulatory and tax changes
  5. 2026-09-10 07:33 UTC Maldives tourism sector regulatory and tax changes
  6. 2026-09-09 04:36 UTC Maldives tourism sector regulatory and tax changes
  7. 2026-08-31 10:06 UTC Maldives tourism sector regulatory and tax changes
  8. 2026-08-23 21:53 UTC Maldives tourism sector regulatory and tax changes

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