The liberal economic policy environment of the country has aided in attracting considerable foreign investments. There is no income tax, corporate profit tax or property tax in the Maldives and there are no foreign exchange restrictions imposed on the repatriation of economic profits. The government is committed to establishing an economic policy environment which is transparent, and in which the free play of competitive forces determines the character of economic development. Foreign investors are offered a simple and transparent policy environment and continuous efforts are being made to make the investing environment more predictable and transparent.
All sectors of the country’s economy are open for foreign investors but under the existing constitution, land cannot be owned by foreign parties. However, Maldivian land is available for long term lease of 25 years by foreign parties. The government is in the process of reviewing the laws on land to make it more receptive to large scale foreign investments. Ongoing round of revisions to the current Constitution have incorporated extension of the land lease periods to 99 years for local as well as foreign parties, and these will become effective with the ratification of the revised constitution.