Maldives Tax Hikes: What’s New and How It Impacts You

On 5 November 2024, the Maldives government established important changes to three key tax acts that will impact the tourism industry and travelers. These amendments are part of the government’s economic strategy to reduce the budget deficit and increase foreign currency inflows. The updated rates for Tourism Goods and Services Tax (TGST), Green Tax (GRT), and Airport Taxes and Fees were outlined in the amendments, and the changes are expected to affect both businesses and travelers. The information below is sourced from the Maldives Inland Revenue Authority (MIRA).

Tourism Goods and Services Tax (TGST)

Starting 1 July 2025, the TGST rate for tourism sector goods and services will increase from 16% to 17%. This increase will be effective after a transitional period from 1 January 2023 to 30 June 2025, when the rate will remain at 16%.

This change impacts tourism businesses, particularly those who need to prepare for the rate increase. Additionally, the Seventh Amendment to the Goods and Services Tax Act introduces a key update: staff cafes in tourism establishments and shops can now register for the general GST at 8%. Previously, only staff shops had this option, giving businesses more flexibility when catering to their employees.

Green Tax (GRT) Changes

Effective 1 January 2025, the Green Tax (GRT) rates will change. The Fourteenth Amendment to the Maldives Tourism Act sets the following new rates:

Tourist resorts, integrated resorts, resort hotels, and tourist vessels: USD 12 per tourist per day.
Hotels and guesthouses on uninhabited islands: USD 12 per tourist per day.
Hotels and guesthouses on inhabited islands:
For more than 50 rooms: USD 12 per tourist per day.
For 50 rooms or fewer: USD 6 per tourist per day.

Additionally, from 1 January 2025, infants under the age of 2 years will be exempt from the Green Tax, offering relief for families traveling to the Maldives.

Airport Taxes and Fees

The amendments to Departure Tax and Airport Development Fees (ADF) will take effect on 1 December 2024. These changes will affect both Maldivian and foreign passengers departing from the Maldives. The updated rates are as follows:

Departure Tax:

Authority),Class	Maldivian Passengers	Foreign Passengers
Economy	USD 12	USD 50
Business	USD 120	USD 120
First	USD 240	USD 240
Private Jet	USD 480	USD 480

As specified in the Second Amendment to the Airport Taxes and Fees Act

Airport Development Fee (ADF):

Class	Maldivian Passengers	Foreign Passengers
Economy	USD 12	USD 50
Business	USD 120	USD 120
First	USD 240	USD 240
Private Jet	USD 480	USD 480

As specified in the Second Amendment to the Airport Taxes and Fees Act

However, the ADF and Departure Tax rates for Maldivian economy class passengers will remain unchanged.

These changes are part of the Second Amendment to the Airport Taxes and Fees Act and will affect all passengers departing from Velana International Airport.

Refund Policy for Excess Taxes

Passengers who have been charged incorrectly or have overpaid the Departure Tax or ADF will be able to request a refund from the Maldives Inland Revenue Authority (MIRA). This provision ensures that any excess taxes paid by passengers will be refunded.

Implementation Dates and Regulations

The effective date for the amendments is November 5, 2024, but the full implementation of these changes will happen on different dates:

TGST: The increase to 17% will take effect from 1 July 2025.
Green Tax: The new rates will apply starting on 1 January 2025.
Airport Taxes and Fees: The updated rates will be enforced on 1 December 2024.

The Maldives Inland Revenue Authority (MIRA) will publish regulatory amendments within 30 days to ensure smooth enforcement of these changes.

Tourists planning to visit the Maldives should be prepared for higher taxes, especially on accommodation, airport services, and departure fees. Businesses in the tourism sector will also need to adjust to the new rates and ensure that they comply with the updated regulations.

Stay informed and prepared for your next visit to the Maldives!

This article’s information is sourced from MIRA and reflects the latest updates to the Maldives’ tax policies.

The Maldives has long been known for its pristine beaches, crystal-clear waters, and luxurious overwater villas. However, it is the country’s growing emphasis on wellness that has recently captured the attention of Forbes Travel Guide. As a result, the Maldives earned a spot in their coveted Top 12 Destinations for 2025. While the Maldives has always been a dream destination for relaxation, it now offers much more—transformative wellness journeys that attract travelers from around the globe. So, what exactly makes the Maldives stand out in 2025? Let’s explore what Forbes found so compelling.

Why Forbes Chose the Maldives

As global travel trends evolve, wellness tourism is rising in popularity. Forbes notes that more and more travelers are seeking remote destinations that offer the perfect balance of relaxation and rejuvenation. The Maldives, with its peaceful surroundings, is a prime example of this shift. Moreover, with a growing number of luxury wellness resorts, the Maldives is at the forefront of this travel trend.

Forbes highlights how the Maldives combines its natural beauty with holistic wellness programs. They specifically mention resorts like Joali Being and Velaa Private Island as key players in this movement. These resorts offer much more than just a place to stay—they create transformative experiences that allow guests to disconnect from the stresses of daily life and reconnect with their well-being. Whether it’s through movement, nutrition, or mindfulness, these wellness programs go beyond the typical spa treatment. In doing so, they encourage true personal growth and rejuvenation.

Joali Being: The First Wellbeing Island of Its Kind

Joali Being, the Maldives’ first wellbeing island, offers a transformative journey centered around the Four Pillars of Wellbeing: Movement, Nutrition, Sleep, and Emotional Balance. Rooted in nature’s abundance and ancient wisdom, the resort tailors wellness experiences to individual goals. Whether it’s achieving hormonal balance or mental clarity, Joali Being has something for everyone. Additionally, facilities like the Hydrotherapy Hall and Discovery Sound Path complement the holistic experience. As a result, guests leave feeling revitalized. Combining modern science with ancient healing practices, Joali Being stands as a leader in the realm of transformative travel.

Velaa Private Island: A Cutting-Edge Wellness Retreat

Velaa Private Island takes wellness to new heights with its recently unveiled Velaa Wellbeing Village. The village offers services ranging from Ayurvedic and osteopathic treatments to tailored fitness and nutrition programs. At the heart of the Velaa Wellbeing Village is the Eveylaa center, which blends traditional healing with modern wellness practices. This provides a sanctuary for guests seeking holistic health. The Velaa Academy by Olazabal also offers the perfect space for yoga and Pilates enthusiasts. Meanwhile, the Faiy restaurant, nestled in a lush garden, serves mindful, vibrant meals. These dishes nourish both the body and the spirit. Velaa Private Island is a destination where physical wellness meets spiritual nourishment, solidifying its place as a premier holistic retreat.

The Maldives as the Ultimate Wellness Escape

Forbes Travel Guide’s decision to name the Maldives in its Top 12 Destinations for 2025 highlights the growing appeal of remote, wellness-focused locations. As wellness continues to become a top priority for travelers, the Maldives stands out for its unwavering commitment to promoting long-term well-being. From the peaceful overwater villas to the innovative wellness facilities, the Maldives offers a rare combination of luxury and rejuvenation. Therefore, it makes the ideal destination for those seeking a transformative escape.