The Maldives is not only a beautiful paradise for the holidays. It is also a paradise for investors. Hotel chains such as Banyan Tree or Sixson opened their first hotel in the Maldives and today they have hotels at almost all major destinations.
The main international airport of Maldives was leased to an Indian company in the last 2 years and was the most profitable period in the company’s history.
Freshly New York Stock Exchange-listed company Blackstone got two seaplane organizations working in the Maldives. These are the main attractions of foreign investment in the Maldives.
Win open bid or buy from the current owner
In the Maldives, you can evacuate the island forever. It is leased for 99 years and you have to pay land tax annually. Currently, the rent of the island of fewer than 20 hectares is $ 1 million, depending on the land area.
Profitability depends on many factors such as geographic location, beach quality, lagoon, reef, dive site, proximity to local islands, proximity to desert islands, proximity to airports, size and island formation, and more.
The investment recovery period of fewer than 11 years, out of the initial lease of 35 years.
Subsidy for providing ferry service or public transport
The Maldives has a large number of scattered islands in the Indian Ocean. It has a small population of less than 400,000. A very small part of the population can afford air transport, all others have to depend on sea transport.
The government operates ferries for private companies under public-private partnerships. As a subsidy, the yacht operating company gets an island for resort development.
This is a very effective way to get an island without a down payment. Ferry operations will cost approximately $ 5000 per month.
Subcontinent from other companies
Some companies already have islands and are unable to develop the resort due to financial issues. These companies often leave the island indifferent to other companies on long-term contracts.
This method is not as cheap as the subsidy method, but it works and sometimes helps you get the island from strategic locations.
From time to time, the government leases the islands for farming and agriculture. You can bid or buy from a third party. Land tax for these islands is as low as $ 1000 per month.
Depending on location and other factors, some expensive islands may cost up to $ 7000 per month. These islands have been leased for agricultural projects and tourism is not allowed in these islands.
But, you can still build your villa and get a work permit. Then you can enjoy your holiday home in the Maldives. It is also likely that the government will soon allow some kind of tourist activity in the future to attract investors. But, then the islands will become expensive.
Leasehold Properties in the Maldives
The leasehold assets are owned by the existing companies, which have already been given land by the Maldives government on 50-year leases. The foreign buyer has full ownership rights for 50 years. The foreign buyer or his descendants can restore the lease at market value.
While the real estate market for the Confederates in the country’s capital, Male, has slowly matured, the existence of leases on the islands has yet to fade. The main player at the moment is Soneva, who has two assets in the Maldives.
The cash yield of our villa owners varies from 2% – 7% of the purchase price of the history, depending on the type of villa they purchased.
Our experience is that the value of the property has increased by 5% per annum in the last 5 years.
Potential buyers should keep in mind that rental revenue will vary according to the time of year that an owner wishes to use it. If you book peak high season Christmas in the Maldives, your return will be less.
The funny thing about owning a villa in Sonwa is that they allow for customization and as long as the exterior of the property adheres to the aesthetics of the resort, a lot can be done in terms of design.
Slides from the property into the pool are common additions and if owners opt out of the rental program, they can change their villa as much as they like, as long as the changes do not affect the exterior appearance.
If someone is spending less than 15% – a net worth of 20% on a villa in Sonwa, which is a good appreciation for their portfolio, as a combination of return on life, cash on villas, and rentals. Capital. Profit. Returns are above average.
Tax Responsibilities in the Maldives
You are responsible for taxes in your country as well as in the Maldives. Villa owners are primarily liable for two taxes – 12 percent tourism items at one time and tax service payable at the gross invoice value at the time of purchase, and an annual 15 percent trade profit tax on net profit from rental revenue.
Also, as with any trip to the Maldives, you will have to make your way to a seaplane and all meals will be provided by the resort. On that front, Sonwa offers a 20 percent discount to villa owners.
However, with all the signs of climate change, has the Maldives not sunk? The answer to grief is yes. Since the archipelago is one of the lowest level islands in the world – it is only one meter above sea level – it is incredibly vulnerable to rising levels of about eight inches a year due to climate change.
Many luxury purchases such as yachts and private jets are appreciating the property. While a resort property on the Maldives is a luxury purchase.