Maldives: what buyers should know

The Maldives is one of the world's best-known resort destinations, with steady demand for premium holidays. For investors it is mostly hotel property: rooms, overwater villas and shares in resorts let and run by an international operator.

Foreigners generally do not buy land freehold. Resort units are sold on a long leasehold — for example, 50 years with an extension — under a contract with the developer. Before buying, find out who holds the island lease, for how long, and how your rights are registered.

Income comes from hotel management: the operator lets the room or villa and pays the owner a share of revenue. Some projects offer a fixed rate during construction. What matters most is who the operator is, how the owner's share is calculated and how many nights a year you can stay yourself.

Tourism is subject to goods-and-services tax and guest levies, which are built into room rates. How the owner's income is taxed depends on the deal structure and your tax residency. Discuss the structure with a lawyer before signing.

Tropical climate, around 28 °C all year. The dry high season runs from December to April; May to November is wetter. Velana International Airport is in Malé; islands are reached by speedboat or seaplane.

Income depends on tourism and the operator, and exiting can take time because resale buyers are few. Check the lease and extension terms, the operator agreement, the payment schedule and what happens if the opening is delayed.