Maldives: $45,000 tax free and no capital gains

The Maldives only started taxing personal income in 2020, and it built in an unusual rule for foreigners. If you live there legally and you're not married to a Maldivian, you're a "temporary resident", and only your Maldives income is taxed. Your foreign pension, dividends and gains stay outside Maldivian tax, however long you stay.

This guide covers Maldivian personal tax for people moving there in the 2026 tax year: temporary residence, the 0% to 15% rates, capital gains, crypto, the pension scheme and visas.

The key question is simple. Are you a resident or a temporary resident, and which of your income comes from the Maldives?

What's changed: the Second Amendment to the Income Tax Act (Law 11/2026) was ratified on 31 August 2026. It raises withholding on payments to non-resident contractors from 5% to 10% of the gross payment, as a final tax, but leaves individual rates alone: the 0% to 15% bands have been the same since 2020. The tax treaty with Malaysia came into force on 22 January 2026 and takes effect from 1 January 2027. On immigration, work visas are now e-Visas only, and since 23 April 2026 tourists can extend their visa online through the IMUGA portal.

📋 Maldives tax at a glance for 2026

US dollar figures use about MVR 15.42 to US$1, the Maldives Monetary Authority's official rate, rounded.

Temporary residents: foreign income stays outside Maldivian tax

Why does the Maldives look so different from its neighbours? Because of how it treats foreigners who live there.

Image 1 — foreigners in the Maldives are taxed on Maldives income only

The Income Tax Act sorts individuals into three groups:

• Residents are taxed on income from the Maldives and from everywhere else.

• Temporary residents are foreigners who meet the residence tests, are allowed to stay under the Maldives Immigration Act, and aren't married to a Maldivian. They're taxed only on income from the Maldives.

• Non-residents are everyone else, and they're also taxed only on income from the Maldives.

So if you move to the Maldives on a work visa, a foreign pension, rent from a home abroad or dividends from a foreign portfolio aren't taxed there. There's no time limit, and nothing to apply for.

What counts as Maldives income? The Act lists it. The main items are pay for work done in the Maldives, dividends from Maldivian companies, interest paid by Maldivian residents, rent from property in the Maldives, and gains on assets in the Maldives, including shares in Maldivian companies. That first item matters if you work remotely: pay for work you do while you're in the Maldives is Maldives income, even if your employer is abroad.

The status changes if you marry a Maldivian. You then become a full resident, and your worldwide income is taxed.

👉 MIRA: am I a tax resident? (residents and temporary residents)

👉 MIRA: income tax FAQs (how residents and temporary residents are taxed)

👉 MIRA: Income Tax Act (Law 25/2019), consolidated (sections 10 and 11 on Maldives income)

When you become tax resident in the Maldives

You're resident in the Maldives for tax if any of these applies:

• your permanent place of living is in the Maldives

• you're present, or intend to be present, in the Maldives for more than 183 days in any 12-month period that starts or ends in the tax year

• you're an employee or official of the Maldivian government posted abroad

Note the word "intend". If you arrive on a one-year work permit, you can be resident from the start. As a foreigner you'll then be a temporary resident, unless you're married to a Maldivian.

How you stop being resident

You stop being resident when you no longer have a permanent home in the Maldives and you're no longer there for more than 183 days in a 12-month period. For most foreigners, little changes on leaving: you were only taxed on Maldives income anyway, and that's still the case as a non-resident.

Income tax rates for 2026

The same progressive bands apply to all of an individual's taxable income for the year, whether it's salary, business profit, rent or gains.

Maldives income tax rates for individuals in 2026

Source: Income Tax Act (Law 25/2019), section 7, unchanged by the 2021 and 2026 amendments.

Employers deduct employee withholding tax each month on the same bands divided by 12: 0% on the first MVR 60,000 a month, rising to 15% above MVR 200,000. Withholding covers salaries, allowances and benefits, in cash or in kind. Contributions to the Maldives Retirement Pension Scheme are deducted first.

Worked example

• You're a foreign employee on a work visa, a temporary resident, earning MVR 1,542,000 (about US$100k) in 2026.

• The first MVR 720,000 is tax free. The next MVR 480,000 at 5.5% costs MVR 26,400.

• The last MVR 342,000 at 8% costs MVR 27,360.

Your income tax is MVR 53,760, or about 3.5% of your salary. Your employer withholds MVR 4,480 a month. You don't have to join the pension scheme, so that's your all-in cost. If you and your employer agree to join, your 7% would take the total to roughly 10%, depending on the cap on the pension deduction.

👉 MIRA: income tax for individuals (rates)

👉 MIRA: employee withholding tax

👉 MIRA: Second Amendment to the Income Tax Act (Law 11/2026)

Freelancing in the Maldives

Business profit is taxed on the same bands as a salary, so US$100k of profit also costs about 3.5%. You can deduct expenses incurred wholly and exclusively to earn business income, and there are no compulsory contributions for the self-employed.

The bigger hurdle is immigration. There's no visa for freelancing or for working for yourself, so this mostly helps foreigners with residence through marriage or investment.

If you're not resident and a Maldivian business pays you for services provided in the Maldives, it must withhold 10% of the gross payment as non-resident withholding tax.

👉 MIRA: deductions for individuals

Crypto, investments and pensions

Does the Maldives tax capital gains? Yes, for individuals, as ordinary income at the normal rates. These gains are left out:

• your only property, if it's been your main home for at least two years

• small disposals of up to MVR 40,000 each, and MVR 100,000 in total in a year

• transfers to your spouse, children or parents, and property passing on death

• personal clothing, furniture and household goods

How is crypto taxed? MIRA's income tax guidance doesn't mention it, so the general rules apply. A full resident would be taxed on a gain like any other. For a temporary resident, only gains on assets in the Maldives are Maldives income, and the Act doesn't say where crypto is located. Either way, the bands keep the cost low: a US$100k gain taxed in full would cost about 3.5%.

Other investment income works like this:

• Dividends: dividends from a Maldivian company to a Maldivian resident are exempt. Foreign dividends are taxed only for full residents.

• Interest: up to MVR 5,000 a year of passive interest, such as on a savings account, is exempt, as is interest on debt securities issued by listed companies.

• Pensions: pensions and annuities under the Maldives Pension Act are exempt. A foreign pension is taxed only for full residents.

• Gifts and inheritance: inheritances, bequests and gifts from relatives are exempt. There's no inheritance tax and no wealth tax.

👉 MIRA: income subject to tax (including capital gains)

👉 MIRA: exempt income for individuals

Social security: the pension scheme is optional for foreigners

The Maldives Retirement Pension Scheme (MRPS) is the main contribution. For local employees aged 16 to 65 it's compulsory: you pay 7% of your pensionable wage and your employer pays 7%.

For foreign employees it's voluntary. The Pension Office says you can join only if your employer is also willing to contribute, and there's a ceiling on voluntary contributions. Self-employed people don't have to join either. If you do join, your contributions are deductible for income tax, up to a cap, and your employer's share is exempt.

👉 Maldives Pension Administration Office: FAQs for employers (foreign employees and contribution rates)

👉 Maldives Pension Administration Office: the Maldives Retirement Pension Scheme

Double tax treaties

Does the Maldives have double tax treaties? Only a few. MIRA lists three comprehensive treaties in force:

• United Arab Emirates: in force since 2018

• Bangladesh: in force since 11 January 2024

• Malaysia: in force since 22 January 2026, effective from 1 January 2027

A treaty with Hong Kong was signed on 26 May 2025 but isn't in force yet. The Maldives is also part of the SAARC limited multilateral agreement on avoiding double taxation, and of the multilateral convention on exchanging tax information.

There's no treaty with the UK or the United States. For most foreigners that matters less than it would elsewhere, because a temporary resident's foreign income isn't taxed in the Maldives in the first place.

👉 MIRA: tax treaties

Visas: there's no digital nomad visa

The Maldives doesn't offer a digital nomad or remote work visa. These are the main routes:

Maldives visa routes for longer stays in 2026

👉 Embassy of the Maldives in Germany: FAQs for foreigners (30-day tourist visa)

👉 Maldives Immigration: tourist visa extensions through IMUGA

👉 Maldives Immigration: work visa

👉 Maldives Immigration: resident visa and Corporate Resident Visa

Who is the Maldives good for?

How does the Maldives compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on the 2026 tax year. They assume you're a foreigner taxed as a temporary resident, which is the normal position for anyone who isn't married to a Maldivian. The tax picture is strong, but getting the right to stay is the hard part.

☑️ Who is the Maldives good for? Tax ratings for expats in 2026

Filing and deadlines

The tax year is the calendar year. If your only income is a salary from one employer, you generally don't need to file a return: your employer's monthly withholding settles it. Employers file and pay withholding by the 15th of the following month.

If you have other income, such as business profit or rent, you pay in three steps:

• 31 July of the tax year: first interim return and payment

• 31 January of the next year: second interim return and payment

• 30 June of the next year: final return (MIRA 604) and payment

For 2026, the final return is due by 30 June 2027. Each interim payment is usually half of the previous year's tax, and you can skip interim payments if they and last year's tax are no more than MVR 20,000. Returns can be filed online through MIRAconnect, which is compulsory if your income is MVR 10 million or more.

👉 MIRA: how to file an income tax return

👉 MIRA: income tax important dates

👉 MIRA: Income Tax Regulation, consolidated (accounting period)

Frequently asked questions

What is a temporary resident in the Maldives?

A foreigner who meets the Maldivian residence tests, is allowed to stay under the Maldives Immigration Act and isn't married to a Maldivian. Temporary residents are taxed only on income from the Maldives, so foreign pensions, dividends and gains aren't taxed there.

How many days make you tax resident in the Maldives?

You're resident if you're present, or intend to be present, for more than 183 days in any 12-month period starting or ending in the tax year, or if your permanent place of living is in the Maldives.

What are the income tax rates in the Maldives for 2026?

The first MVR 720,000 is tax free. Rates then rise through 5.5%, 8% and 12% to 15% on income above MVR 2.4 million. The bands haven't changed since income tax started in 2020.

Does the Maldives tax capital gains?

Yes, for individuals, as ordinary income at the normal rates. Your only home, small disposals of up to MVR 40,000 each (MVR 100,000 a year) and family transfers are exempt. Temporary residents are taxed only on gains on assets in the Maldives.

Do foreigners pay into the Maldives pension scheme?

Not unless they choose to. The Maldives Retirement Pension Scheme is compulsory for local employees at 7% plus 7% from the employer, but voluntary for foreign employees and the self-employed.

Does the Maldives have a digital nomad visa?

No. Tourists get up to 30 days free on arrival, with extensions applied for online. To live and work there you need a work visa through an employer, or a resident visa through marriage or a large investment.

Where to go next

👉 Lowest-tax countries for employees

👉 Best countries for freelancers

👉 Best countries for retirees

👉 Best countries for investors

👉 Best countries for entrepreneurs

👉 Countries that don't tax foreign income

👉 Lowest-tax countries for expats: 153 ranked